Hi all,
I’m 25 and in the past couple of years my wife and I have been doing a few small subdivision projects. At this stage we have 2 projects on the go.
A down side I’ve found with property investing is the large entry cost. While were been using equity and JV’s to fund property purchases we have also set up a savings account to save every week. In this account we have about 10k.
Just would like to hear what people are doing with smaller amounts of capital while they have projects on the way. Our main focus is property but leaving money in the bank just seems ineffective.
I would love to hear what other people are doing and hear stories about their other investments, both positive and negative.
Thanks in advance for your comments.
MichaelWith smaller money I tend to do business ventures. Mainly online stuff, sometimes I will invest the money to buy a product cheap from overseas and sell it on ebay. It is not really investing as it is a fair bit of work, but it is a good way to build up capital.
You are right, putting money in the bank seems like such a waste.
Putting money in an offset account might save you more money than a savings account would make you.Ryan McLean | On Property
http://onproperty.com.au
Email MeMichael,
We were having the same problem. We had a few potential partners with smallish amounts of money. Some of them with $10k while others only had Super but they were keen to invest in the property market. To over come this problem we had a separate Unit Trust setup to pool the funds. This then enabled investors with any amount to invest whether it be cash or Super (via setting up a SMSF). The trust is then able to invest in the project via a share holding in the company carrying out the activity. The company pays annual dividends and at a set point in time the company exercises a share buy back at a predetermined rate/formula. The main principles we adhere to being low LVR's on borrowings and only cash positive projects. Everything needs to be arms length, ATO compliant and ethical.
Regards,
Mark Coburn
0405 243 547
[email protected]Modernity Investing
Email Memichael ,
do you mean you want to invest a property without spending so much capital ?
is that what you wanted to do ?
We were having the same problem. We had a few potential partners with smallish amounts of money. Some of them with $10k while others only had Super but they were keen to invest in the property market. To over come this problem we had a separate Unit Trust setup to pool the funds. This then enabled investors with any amount to invest whether it be cash or Super (via setting up a SMSF). The trust is then able to invest in the project via a share holding in the company carrying out the activity. The company pays annual dividends and at a set point in time the company exercises a share buy back at a predetermined rate/formula. The main principles we adhere to being low LVR's on borrowings and only cash positive projects. Everything needs to be arms length, ATO compliant and ethical. 
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