Hi folks… I’m looking for suggestions on what to do with $15,000 cash, while still adding to it for a deposit. I think ING Direct is currently about 5.2% and Companion Credit Union a little more I think – but it’s really still chicken feed – anyone have any other suggestions?
Allan.
buy a cheap +cf prop in woop woop
<<<<buy a cheap +cf prop in woop woop>>>
I am not sure if Nathan is serious or not – probably not – those that buy ve+ dont use the term woop woop.
I would never buy in woop woop. Dont waste your hard earned money on a crap asset. Save a little more and buy a quality property. Only invest in quality assets I reckon.
While your saving – go read a Jan Somers or Peter Spann Book. I am curently reading the latest Peter Spann Book and its the most practical and common sense book I’ve read since I read Jan Somers many years ago.
Me, I would put my money in one of the major aussie banks. I prefer safety to a little extra commission.
Hi Allen,
I keep cash,tomorrows deposits, backup survival funds or what ever you want to call it in an offset account against one of my IP loans.
Not much use if next year your asset is worth say 10% less. I’d stick to ING for the 12-month period !
Hi JustAllan,
IMHO, i dont believe property is the time now, for many places, unless, you can source out some real prime real estate.. (penny for dollars i mean), just listenting to comsec midday report and analyst are saying Sydney property market is down 5.4% and major capital cities are down 1.2%… etc, etc, more signs of housing market slowing down…
if you have good concept and understand the stock market, i would rather stick my money in there, rather than in a Manage Fund.
im not trying to be negative on my comment below, but my sister who puts her money into some Suncorp Manage Fund, im constantly giving her negative feedback, as to how little money shes earning, and how she has to regulary add there weekly or monthly, but most importantly, when she needed the money, she withdrew it, and lost her earned interest, and in which really gained nothing at all.
if you know, how to trade, or know of some secured funds, your better off with your money in there, rather than a mange fund, that could include break fees.
Cheers,
sis[biggrin] But it is better than nothing…[biggrin]
spaner32
Gday guy’s,
hehehehehe… just stirring i was just saying 15,000 might buy you 1/2 of woop woop.i would be with sis on this one, Try some in the stock market.
Yes, the property market is slowing quite drastically and you can see falling SALE prices everywhere. Ignore the listing prices as they tend to lag behind reality for a while.
The slowdown has impacted this forum somewhat and I do notice that the forums are a lot quieter these days. Hopefully the downturn won’t last for more than the 5 years which most of the experts seems to be quoting.
At what point does a post boom market become a pre boom market?
I am a buyer so as to be in place for the next boom.
Good quality property by the coast is my criteria.
But to store money we use ING Direct.
Cheers
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by MortgageHunter:At what point does a post boom market become a pre boom market?
When a property that you have had your eye on during the boom days, has since had price reduction of at least 25% and is now/has been sitting on the market for months without any bites!!!![biggrin]
BTW Simon, excellent criteria!!!
Hi Guys,
to be fully honest… and this is something i learnt long time ago… when the property market is going backwards… people are drawing there money out and investing into other alternative investments, such as shares, business, internet websites, MLM, and so on and on….
im not trying to be biased, but there are other better investments than property at the moment…
Cheers,
sisg’day allan.
what to do with 15k eh?? well i reckon that would depend on how your position is overall. if you have little debt and sitting pretty then leaving 15k in a intere4st bearing account to me makes no sence. do something with it. get some debt and try and get a reasonable return.
if however you have more debt then you should have in what is a very volatile market (oil prices, interest rates, terrorism, property bubbles etc) then i would pay down some of you debt.
all depends on your appetitie for risk. and this will vary from one person to another depending on your overall financial situation. good luck..
Hi all
just a couple of comment- SIS two things
why have you bumped property so quickly, a few months ago you were full on property, right at the peak of the market by the way.
Now the market has turned your full on into shares and at a time when it is at Historic highs.to be fully honest… and this is something i learnt long time ago… when the property market is going backwards… people are drawing there money out and investing into other alternative investments, such as shares, business, internet websites, MLM, and so on and on….im not trying to be biased, but there are other better investments than property at the moment…
I’ve been around a bit longer than you and what i’ve noticed is that people have a tendancy to go from one bust and jump on the next, just before it goes bust. Sometime you just have to go back to your original strategy and say well i’m in for the long haul 10-20 years so a few little ups and downs don’t really matter in the big scheme of things. Like the 1987 stockmarket crash, in the USA the Dow had recoved within a year. Pity for those who jumped ship and plowed their cash into property just before it went backwards also.
Oh by the way this ING product isn’t a managed fund. But i agree with your sentiment on them.
Back to the question what to do with 15k while saving for the deposit i’d probably do the same (ING) but if you know the stockmarket keep an eye out for any IPO’s that you can buy and sell on listing for a profit (not as easy to do as it used to be).
regarsd westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
sis said –
“but there are other better investments than property at the moment”
” Sydney property market is down 5.4% “
Yeah, well, there is that.
I am certainly not advocating ‘investing’ in sydney at the moment!!!
With any investment you pick what you are wanting to achieve, and weigh up the risk, return, and work involved. Sure, renovations in booming markets make money, but me? sure they work and make money, but I just don’t have time to do them that often. sure, term deposits or bonds are safe and secure, but they have lame returns – and cash deposits go down in value over time (100k cash is worth less next year than it was this year, thanks to inflation and rising costs of living) – So in the end with a cash deposit your interest is just simply treading water and not storing or leveraging your wealth.
Shares, yah, well, yawn. everyone I have known that has done well on shares has immersed themselves in it, almost like a full time hobby or a full time J.O.B.!!! I have a full time LIFE doing something I LOVE so I just want an investment to store and grow my wealth, and not require me to check up on it every day. Especially not if I find it boring like I do shares.
So back to property – which is my investment of choice. – I am getting twice as good cashflow returns as with a term deposit, (nett after costs!!) and 6 times as good if you count capital gains. If capital gains stop completely, I will still get three times term deposit ‘interest’ as cashflow, because rents have risen and the investment is performing even better now a year later compared to what I’ve put in.
It’s an absolute no brainer to me that when the market isn’t doing capital gains, you buy cashflow, because rental demand is heightened – everyone rents, and rents rise. Cashflow goes up. Then when yields start to go down it means that capital gains are occuring. This is somethine completely logical and predictable which evidence through my analysis of figures of the last 13 years has aupported.
So I figure you buy for cap gains or for cashflow depending on what the market is doing. of course when nobody is buying, you get a lower purchase price which means higher yields which means painless holding until the next boom when you will get capital gains all over again.
These are the reasons I am sticking with property (i have more, but that will do- !)
Sure, I am not averse to pulling out of one market at a high and getting in to another, a la Steve mcKnight, but I’ll still stick with property as it has the low time-factor long term thing I need, the security (everyone needs somewhere to live, population of the world is increasing, it costs more to build new than it does to buy a pre-existing home – ) etc etc.-
and the cashflow returns which will eventually enable me to live off my assets WITHOUT SELLING THEM!!$ 12,500
PRIME LOT – LOCAL SPOT
A rare chance to secure an excellent undeveloped 920m∫ lot close to the centre of town. Services installed and plans for two units available to successful Purchaser. Be very quick for this opportunity.in a growth area.
(this was an actual ad!!!)I know it’s ‘negatively geared’, but as you can’t get a CF+ve property for 15K without a mortgage this is the next best thing I reckon and I just might ring up and whack an offer on that land myself tomorrow!!
Also with the change you pay the rates for 2 years or stick a horse on it or whatever for the cost of the rates per annum, and then you will probably be able to sell it for 30-50k in 2 years, which is conservative!!
cheers-
Minijoy to the world
PS!!! I a weird, because I call suburbs i.e. Blackown, Rooty hill ‘woop woops’ and my ‘walking distance to town’ properties in small towns NOT woop woops!!
I have replied to this topic twice and been moderated to death. Who the hell is doing this as I put a lot of time and effort into this only to get back on and find my posts rremoved.
If you do remove posts at least have the curtesy to list who gets bumped and why.
A valid reason would be nice.
DD[angry2]
Don’t sweat the small stuff,and it’s all small stuff!!
We delete ads, Henry, as per policy of the Forum. If people don’t want posts to be edited, then perhaps they shouldn’t advertise properties they have an interest in- simple.. because I wonder how many times people have to be told before they decide to stop posting their ads.
kay henry
Originally posted by JustAllan:Hi folks… I’m looking for suggestions on what to do with $15,000 cash, while still adding to it for a deposit. I think ING Direct is currently about 5.2% and Companion Credit Union a little more I think – but it’s really still chicken feed – anyone have any other suggestions?
Allan.
Hi allan
Could I suggest an income fund such as Navra.
I am invested in this fund and it is making great returns with no effort.Returns over the last 3 months has been about 5% (giving 20% pa)
You can check out their site at http://www.navrainvest.com.au
If you proceed with them then make sure you avoid the entry cost which I think is about 4%.
As far as buying shares direct, unless you take a real interest you will loose money. Prime example is the Telstra sell of at seven dollars something in the form of Telstra 2. All the mom and pops are sitting on losses of at least $2.50 or about 33%.
Cheers
Hi Allen,
The best place for the money is determined by a number of factors which we are not aware of;
What investment timeframe are you looking?
Do you have any non-deductible debt?
If so – would $15K be best used there and release the equity?
Are there investments you are adverse too?If you are looking short term and you have no non-deductible debt then something like an ING (or similar) account would be best.
If you have non-deductible debt either pay it off /down or set up an offset account depending upon the circumstances.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I totally agree with Westan’s comments.
People ar jumping from one to the other, also if you are looking for +cf and obviously not for capital gain you would be investing for long term rather then short term. Why not property investing when there are some great deals around in a buyers market.
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