Hi everyone,
I’m a newbie and whilst I’ve read Steve’s books I’m only starting to read up on information in these forums (there’s SO MUCH TO COVER!).
I recently inherited $250K and want to invest it in property. I have a low income of $45K, never bought property before and would like to hear your ideas on how YOU would choose to invest all this money.
This may be too basic to answer for most of you but I have to start somehwere right?
Look forward to reading all your past posts…
Chevy
Well there are really two options in my opinon, you can either invest in or if you think you can beat the return invest yourself.
I would invest all the money, earn 12% and retire in 5yrs (for those 5yrs you would not be able to touch the money). You would be then on an income of $47K and if you decided to continue to work you would be on $92K.
Hellman
Originally posted by chevy_no10:I recently inherited $250K and want to invest it in property. I have a low income of $45K, never bought property before and would like to hear your ideas on how YOU would choose to invest all this money.
Hi Chevy,
For me the critical issue is to take some time and explore all the options available to you. Not only do you have to address issues relating to your preferred asset class/es, you also have to consider growth V income or parts thereor, your age, life options and preferences and so on.
My advice is to put it in a six month fixed term account and spend the time learning, learning, learning. Discuss the options with experts in their respective fields and then sort oout what you want.
In some respects the main issue is what is your preferred ‘end point’ – the vehicle to get you part way there is the inheritance and the pathway is for you to determine.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I agree with Derek, I’m just telling you what I would do with $250K.
Hellman
Hellman, where do you suggest Chevy invest the money to get 12%? That’s quite a return.
Hi Chevy,
My advice is to put it in a six month fixed term account and spend the time learning, learning, learning. Discuss the options with experts in their respective fields and then sort oout what you want.I also agree with derek. This is very sound advice.
Another thing you might want to do is think of the money a seperate smaller sums. Thinking of it this way might help you put things in perspective. ie think about different individual investments that you could gear into rather than putting all your money in one place.
I don’t think you will be giving up work just yet. It would be a shame to start thinking like that now because if you spend some time and come up with a good investment plan you could really have a massive impact on you future by doing something positive now.
Cheers
[email protected]
NZ Investors & Property Spotters
Renovations & Project ManagementDon Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Rather than a term deposit..most banks offer better returns on their on-line accounts “plus” it’s on-call and easy to access..
I agree with Derek..decide on a strategy that suits your personal situation and needs, expolre your options.
Talk to a good Mortgage Broker now though and look at your options there as well.
Begin researching and building your team now so your are ready when you find something you are interested in..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorBankwest offer the best int. rate on savings at the moment, which is 6%.
Hellman
Chevy
Ditto to all above responese. But what I reckon is to set a timeframe to take some actions. It is important to learn but attempting to achieve something without a solid game plan is a very risky undertaking.
All the best.
Cheers
JohnWanting financial freedom is not enough. Take some action TODAY. I have successfully built my own PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.
Hi All,Thanks for your advice, its what makes this forum so special.
For the record, I am in no rush to stop working but I am also determined to be financially independent in the next 5 – 10 years.
Hellman – As Crusier asked..where would you invest to get a 12% return? Sounds like a good option and I will look further into that possiblity.
Derek – You make a lot of sense and I understand that I”m standing at the bottom of the mountain looking up wondering to myself how I am going to best climb the investment mountain. My initial motivation is to invest to build income, then later to focus it back on capital growth. I’m 30 years old and single so I’m in no rush, yet I”m also going about setting goals to achieve what I want. Thank you for your advice.
Don and Liz – Thanks I know what you’re saying and I have thought about breaking up the money into smaller parcels of $50K and investing in 5 properties instead of 1 big one.Can you expand on how you would best go about that?
Redwing – Thanks I will look into other options to invest my money whilst I build up knowledge and networks.
John – I admire what you ‘ve done by building your own business and still work your Bank job. I am going to build a game plan before anything else happens.
Just reading the forum information I realise how much there is to learn! Thanks again I’ll keep soldering through…
cheers Chevy[thumbsupanim]
Buy a Ferrari!
Coreyjay
Alternatively, buy ME a ferrari ..
Originally posted by coreyjay:Buy a Ferrari!
Coreyjay
Hi Chevy,
Decide whether:
A. You want to invest for growth -or-
B. You want to invest for income.If you choose A. you would be looking at buying houses (land appreciates) in metropolitan areas ideally within 10km of the CBD. Also you would want to split your money and buy many houses so this option would likely rule out Melbourne and Sydney as a place to invest. You could use a buyer’s agent but make sure you do some research and specify where you want to buy and what properties the house must posess i.e. close to transport etc.
If you choose B. then you can choose either units or houses. Your level of involvemet will be greater with this option. You will be looking at either investing in stable country areas or getting creative in metropolitan areas i.e. multiple occupancy dwellings, short term accomodation etc.
Hope this helps
“Most people operate under a false ceiling which is 3 feet high” Stuart G Goldsmith
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