[hawko79Member@hawko79Join Date: 2011Post Count: 5]

July 23, 2011 - 6:55 am

wisepearl wrote:

Terryw wrote:

I think you should get some proper advice first.

I liked a much earlier comment about a term deposit whilst researching, and Terry's multiple comments about seeing the right professionals.

I think you're in such a fantastic position having that lump-sum cash, so take the time to educate yourself on how to most successfully invest your money to achieve your personal goals. If the money is not already sitting in a high interest account, the first thing I would do is deposit the lot into perhaps a 6 month term deposit at a great interest rate. Then book yourself in with a good financial planner, and accountant. Start talking to the experts (and yes it will cost you money, but its all worthwhile for the tailored, professional advice) and work on a plan that suits your goals. Might as well have your money earning top interest while you're preparing your path for investment. Also it does appear that the majority of property markets are reasonably flat at the moment, so you wont be missing out on large capital gains over a 6 month period.

Also a popular theme mentioned in investing books is about delayed gratification and if you can live frugally for a while, you can reap the benefits later. so perhaps consider renting/sharing and focussing on investments for now… FHOG benefits vary from state to state, and also in some states if you buy just for IP this doesn't mean you are ineligible for FHOG for a PPOR in the future.

But I'd pay a lot of attention to Terry's posts and not spend a cent of your income without some professional advice, and getting it set up in the right structures from day 1.

THanks for your detailed response. At the moment I have my money in high interest savings accounts.

At the moment I am quite happy to live frugally. I'm 31 years old and single and was considering buying a car, but my circumstances (working in Melboune CBD, planning to take public transport to/from work) mean that I can hold off.

Where do you usually go when looking for financial advice? Obviously there are plenty of options.

Thanks again,
Matt

[hawko79Member@hawko79Join Date: 2011Post Count: 5]

July 21, 2011 - 11:21 am

Hi everyone,

Thanks for your help. I've just got myself a job (started this week), wages aren't great ($45k) but its a start as I was teaching English overseas for the last 2 years.

Been reading API and almost finished "0 to 130 properties" by Steve McKnight. I'm nearing the end of the book, but I found an interesting part that said that you should buy commercial property (debt free) when you have enough cash to do so (which I do at the moment).

What do you guys think I should be looking to do? I was thinking of starting out small (ie, +ve cashflow property most likely in regional area) and then working my way upward.

Thanks again for your help, much appreciated.

[hawko79Member@hawko79Join Date: 2011Post Count: 5]

July 7, 2011 - 2:32 pm

Hi Shape,

Thanks for your response. If I decide to buy a house I'd want to try and get the FHOG. I'd live in it for 6 months then rent it out. Therefore it would be best if I could get a loan for most of the purchase price so I can claim the interest deductions instead of using my own cash to purchase it.

Sorry if I am stating the obvious, just want to confirm that I am on the right track.

Thanks again, much appreciated.

Regards,
Matt

[hawko79Member@hawko79Join Date: 2011Post Count: 5]

July 7, 2011 - 5:47 am

HI again,

Thanks a lot for the detailed responses. To answer some of the above questions:

At the moment, I'd be able to get $45-50k from a job. I'm not worried about employment prospects as I believe I'll be able to get a job sooner rather than later.

I guess my reasons for suggesting rural vs Melbourne were the property prices. I guess I would feel more comfortable with 2 x 250k properties vs 1 x 500k property, kind of like spreading the risk. Also, for CG, would you recommend a house as opposed to an apartment/unit?

I assume I cant borrow any money to buy at the moment without a job, so would you think that its better that I find a full time job first and then get a loan from the bank to purchase an IP. Do I need a full time job for a long time before the banks will lend me money?

I know there are a few obvious questions in my response, but I just want to make sure that I am thinking on the right track.

Thanks again.