I am very pleased to have found this site and forum, and would welcome some input. I am in rural South Australia.
I am a single mum, expecting a settlement of approximately $80,000 in a couple of months. I rent and don't think I want to or will be able to buy a house to live in so am thinking what to do with the money.
My thoughts so far are leaning toward two things that I would be comfortable with, either shares or a small investment property. I think I would not want any income from it, just capital growth to protect my money and future. However, I also would not be able to afford too many ongoing expenses.
I am still wondering about the issues with Centrelink and whether there would be any benefits of having a family trust and or company.
I will soon be looking for a good accountant for advice and perhaps some input from a financial planner, but would welcome any advice in the mean time.
The whole idea at this time is to protect the value of the original $80,000 and give me some options in the future without being penalised by Centrelink and the ATO.
Many thanks.
Hi Singlemum,
Welcome to the forum. You ask a good question and you are wise to think about your financial future.
I'm unable to comment about shares or managed funds as this is the domain of financial planners who must be licensed with an Australian Financial Services License. I do not have one.
However, as far as property is concerned, when buying for growth look for scarcity above all else, as this is what will drive prices higher in the long-term. Watch out for the impact of negative gearing (a property with more expenses than income) though, as this may erode your income.
Perhaps a unit (avoid 1Br) that is near shops and transport that would suit a retiree would be a good start. You are more likely to have a longer term tenant in this case, and if you can get it neutrally geared or even positively geared then that would be ideal.
Now, as for issues with Centrelink… an accountant is your best bet, and it would be wise to also pop in to see a financial planner – remember though, they will probably push you towards some sort of shares/managed funds scenario so you will need to work out whether that or direct property investing best suits your goals.
Once again, welcome to the community and all the best for a bright future.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
You must be logged in to reply to this topic. If you don't have an account, you can register here.
