i have been unemplyed for over a year now… and would like someones opinion on how i can make a living with a small amount of savings i have in the bank. i cant live off interest its just not enough.
Does anyone have any ideas how i can use this capital to my advantage… so i can make at least 30 or 40k a year??
cheers,
dj
20%+ return to live off and no job …. buddy sorry to say…Not possible unless your wiling to take on MASSIVE risk…
If there is such a way…i would have sold all my property and retire
In order of risk(low-high)
Cash – 6% Yield
Gov Bond – 6-9%
Res Property – Range from 4-18%
Company Bond- 8-13%
Shares- Not limited
Comm Property- 9-25%
Private market – 9-20%A few tings to consider:
1. A lot of these investment do NOT pay out frequently.. meaning you may have to wait till end of the year+ to see the return
2. All investment requires TIME! 3-5+ years to see any real return
3. Within each sector there are always the “good buys” and “bad buys” knowing which is which is the hard part
4. I suggest you just place this money into the bank at 6% + rate and wait till you get a job or win the lottery
5. I would hate for you to make a bad investment and lose all/part of your money…as this is all you have…
6. Dont be greedy …take it nice and slow…fast money = high risk = no money.
7. Getting a part time job and invest into the res property market may be your next best frd…P.s im happy to be proven wrong…ie if there is a market out there where you can live off $200,000 no job and get $40,000 instant return PA with ok to average risk…im in x 4
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Pop it in a term deposit and live frugally in SE Asia
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Its interesting that you are quoting this amount dougie. I just pieced together a plan for my younger cousin (is 40 young these days?) to get something together. She's never had a great income .. but now she has a gross rental of 15k. Net that works out to 11k .. but she can now use that as leverage when she goes back to the banks. She'll have two debt free properties and 11k income for next time around, when she can boost that with a job (hopefully).
Yes .. it was a fantastic deal .. 93k a piece for each property (2 for 186k). A rarity in todays market. But what she needed was the income not the capital growth, so it worked well for her.
Its not the ideal live off it for life deal .. its what you'd call an assistant deal. A couple more like that and she can retire. And with a job even a consistant part time one .. she'll have both assets .. income .. and rental income. As long as she doesnt max on credit cards she's looking better for the near future.
You wont be creating a paradise out of 200k and nil leverage potential. However it just makes sense to improve your position with good long term assets. I'd be sitting out on shares and gold until the whole bag stabilises. The markets are calculating a SECOND possible re-evaluation of the US. That is not good.
Hi Dougie.
The only way I can see you earning $30-40K per year with $200K is to look at investing in US property.
Invest in the US wisely and you would easily pull-in $30-40K a year in income after costs. Send an email to Drew, a good friend of mine, at: [email protected] and he'll give you all the info you need to make an informed decision on this – but, at the very least, have a look, you might be very and pleasantly surprised.Hi Jamie,
He need not live frugally in SE Asia.
))Angel
Property could definately provide you with $30-$40k per year. If you invest your money wisely then you could achieve that.
The only problem you have is that your borrowing power is completely limited by the fact that you don't have a job. If you had $200k and a good job you could buy a few house in rural centres, but with 200k and no job that means you are going to have to purchase each property outright.
xdrew sounds like his friend had a pretty good idea. Take the money and invest it in property that gives you a good rental income, then you can take that rental income to the bank and hopefully they will see it and let you borrow some money.
Maybe you should look at investing in property that you can add value to by doing minor renovations. Then you might be able to achieve a higher rental yield.
The other option I see is investing in shares, but from what I know about shares you would probably have to be creative and sell options on your shares to achieve the 20% return you are after. See a financial planner if you are ever considering this.
Good luck and I really hope you can achieve it. It can be done, but you have to be a good investor and know what you are doing
Ryan McLean | On Property
http://onproperty.com.au
Email Meangelinsydney wrote:Hi Jamie,He need not live frugally in SE Asia.
))Angel
Haha – ok, live like a king!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Definitely possible to get a 20% return through investing in US property. Can’t do it in Australia though.
An alternative to direct property investing in US is tax liens, which can return 18%, but the timing of the cashflow can’t be controlled.
Thanks everyone for your posts i greatly appreciate it.
im still hunting for work and fortunatly im picking up some here and there.
US property did come to mind since our dollar has sored and the flat property market over there. i have strong feelings US soil is a great investment but still unsure how long a wait be before selling and reaping the rewards. And also how do u go about purchasing and renting a property over there.. do i need a visa?Jamie.. i was most excited about your post though.. haha but i still believe the intrest gained from my cash would not support me over there. Great idea though.. maybe if i save another 200k
cheers,
dougie
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