Hey guys/gals,
What are some ideas on how to best leverage, and drag as much cash flow out of $50K? Not limiting myself to property here. Am starting to think about other investment vehicles including shares.
Borg
Highest leverage is to use it as a 5% deposit on residential property.
Comercial will be a 30% deposit
Shares will be a 100% – 30% depending on the quality of the share or MF.
As far as best use for cash flow goes that al ldepends upon yield. A high yielding residential property will give the most bang for buck in general.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Well, resi real estate:
$50k your money, $200k of ‘their’s’ @ 5% rental yield will cost you $18k per year for a return of $12,500 minus management, repairs, insurance, rates etc. Remember that average yields are below 4% in most capital cities, so 5% is generous or a “good deal”… Also, higher leverage will equate to higher levels of negative cash-flow.
10% fall in value loses you $25,000.Shares
$50k your money, $50k ‘their’s’ into Telstra. 34c/share dividend (plus rumours…) will return you $8900 in a few months for interest costs of around $4500 pa.
10% fall in value loses you $10,000.Westpoint
$50k your money, no leverage. $6000 pa, no worries…All guestimates are based on fag-pack calculations, no consideration given to individual circumstances, comments are general, blah, blah, sue me. And there are taxation considerations to be made too.
F.[cowboy2]
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