hi all
this ones simple if I gave you 1 mil where would you invest and what return would you guess to make per annum.
structures, wraps, put calls and venture capital are all ok.
lets see some out of the box replys
mine
not the best but the start
simple short time money 2% a month 24% return per annum capitalised gives 27% over the year.
little clue you can do alot better then this with certain property.
lets see
any class can post.here to help
Go to casino put it all on black might double money in 2 minutes thats not a bad return
Monopoly, my favourite game
Gross,
The way I see it risk v return . I must admit if you can make 27% on your money that is crazy I would put a million into something like that 7 days a week if I thought I could get that sort of return with little risk. I would be able to retire .
Kind regards RickMonopoly, my favourite game
I would drop it in a BANK and go to Fiji, Maldives and Hawaii for 3 months surfing and worry about it when i got back.
RoboWhere would you invest: I would finance rural/commercial property in my local area ( south west vic) In finding a good deal I would be looking for bad management and lots of problems. I would expect to have a valuation of about double what i’d paid in 12 months.
Now I know this is not very glamorous to you poshy swanky types , but hey , it’s worked for me and if the formula is working why change the formula ?
No doubt at all you can do better than this with sophisticated share investing IF you know what you are doing .
What return would you guess: 100% cash on cash .
Shawn
GR, can I have the money first and then think about it?[biggrin]
I would take a long time to decide, I think. I would leave it sitting somewhere safe compounding interest while I was doing the thinking.
Thinking about it would make me AT LEAST $50,000- $60,000 a year risk free.[biggrin]
I’d go on a nice holiday several times a year ‘coz having these valuable thoughts about the money is pretty hard, ya know! [whistle]
Celivia
G’day grossrealisation…mine would be a two step process.
1. Buy a nice vacant residential block in a swisho suburb hopefully with some sort of water views for the full $ 1 MM and pay cash and get the title deed. No whingeing residential tenants but still get all of the growth…fantastic, and because it’s fully paid off, not missing out on any of the tax benefits.
2. Walk straight into the Bank and slap the residential title deed down as a 20% deposit on a $ 4 MM industrial property renting for 10% nett yield.
End result would look something like this ;
1. Land growing = $ 5 MM.
2. Cost of borrowing = $ 4 MM * 7.25% = $ 290 K p.a.
3. Tenant pay all outgoings on 4MM prop.
4. Outgoings on ressy block = maybe $ 8 to 10 K p.a.
5. Nett rent from IIP = $ 400 K p.a.Free cashflow in your pocket = $ 400 – 290 – 10 = $ 100 K p.a.
Growth of underlying land ~ 9% average = $ 450 K in first year. Cranks up from there.
Of course if you don’t have a cool lazy million lying around, tailor the coat to fit the cloth.
None of the above should be viewed as advice…you know the usual drill.
Originally posted by Dazzling:
1. Buy a nice vacant residential block in a swisho suburb hopefully with some sort of water views for the full $ 1 MM and pay cash and get the title deed. No whingeing residential tenants but still get all of the growth…fantastic, and because it’s fully paid off, not missing out on any of the tax benefits.2. Walk straight into the Bank and slap the residential title deed down as a 20% deposit on a $ 4 MM industrial property renting for 10% nett yield.
End result would look something like this ;
1. Land growing = $ 5 MM.
2. Cost of borrowing = $ 4 MM * 7.25% = $ 290 K p.a.
3. Tenant pay all outgoings on 4MM prop.
4. Outgoings on ressy block = maybe $ 8 to 10 K p.a.
5. Nett rent from IIP = $ 400 K p.a.Free cashflow in your pocket = $ 400 – 290 – 10 = $ 100 K p.a.
Growth of underlying land ~ 9% average = $ 450 K in first year. Cranks up from there.
I’d give my $1M to Dazzling to invest…[biggrin]
hi all
no cheating and copying.
some ideas please.
not sure dazzling if you could get a 75% comm lend but will accept it.
its not a bad senario.here to help
Buy 10 of these:
8plex =$80K
Use $20K to renovate
Rent each place out for $100.
Rent Return is $37,000 after expenses.
Revalue get a LVR of say $90K. Loan @ 70%.
Meaning you have $63K pulled out.Get Loan on property pay $6,000.00 in I.O.
Pulled out $63K + $30K in rent.
x10 = $930K back into your pocket (for a CoCR of 93% for first yr).
Then rents per yr after that = $300K. So 2nd yr 30% CoCR.
Dazz pls. review figures! Thx.
(I actually like what Dazz would do better – Hay less damn work!! No Tennants or Renos!!
])
(And tennats are a hassle. The more you have the less you want!).Hellman
Hellman I’m thinking this is not in Australia , please fill us in
Monopoly, my favourite game
hmmm, well, I would start with banking the money in high interest return.
Then off to another state to go buy 3 low end properties in WA (already sorced btw, no capital hint hint – hehe [wink3])
As followsProperty 1 – (a solution I admit) $60K / $130 rent p/w.
Property 2 – Large land Needs new bathroom (major) new kitchen (minor) new carpet, paint $80000 with renovations. $190 pw rent.
Build granny falt (1 bedroom) out back for $70 / $150 pw rent.Property 3 Large land again. Needs major superficial renos throughout. All plumbing and electrical done – all appliances for kitchen / bathroom supplied. $95000 with renos / $200 pw rent.
Granny flat opu tback $70000 / $150 pw rent.Total cost – $315000
Rent p/a – $42640I would then
A) Live off the rent – use the cash in bank to go to Martyn’s 1 day offer of learning how to develope for $2500, and use the rest of the cash to buy several properties / land to subdivide / knock down and develop.
Re-value 2 renovated properties and sell for a total of about $410 000. (If this was the option i would be buying a lot more properties, renovating and selling – also buying and holding some to have continuous cashflow).
and or I would find a block of units (slightly run down, badly managed hopefully near a uni, supply basics like furniture, common kitchens bathrooms etc, rent out to students….ideally :o)Not sure if all my figures are correct….
Hi Gross,
If you haven’t done so, why don’t you invest the money in various property sydndicates. they will give you 8 to 8.25% p.a on rental dividents, paid monthly. And after five to six years, when the propeties were sold, you might get another 40-50% divedent on capital gains. some one will be managing your money hassle-free.
What do you thnik?
Cheers,
learn&share“Hellman I’m thinking this is not in Australia”
It’s very similar to something I’ve just done in Aust.
Hellman
I would of placed the $1miLL on Makaybe Diva at odds of $4.
Invested $1miLL : Returned $4miLL : Profit $3miLL
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
For hellman, where you can find 8plex for $80k in Australia? also you revalue $90k, is this mean you add $10k to value to support $100 rent for each or you add $90k to original $80k and still get the $100 rent (you are really amazing if you can the latter
For gross, in investing, I think it all relative to risk+knowledge+experience v return. You have high return but also high risk, but with knowledge and experience you can lower your risk.
potential investment (only example only, not viewed as advice):
1. options = for $1 invest you can control $15-30 worth of shares in trust property, return 25%-300% pa
2. land banking = buy lots of land together and subdivide and sell, say need 10 years you can get 4 times original purchase price, if you borrow say 50% LVR, you get 80% return pa on average.
3. buy shares in mining company = if the co. struck the deposit(ore, gold,oil), your $1 be worth $50 in 3 years, return 1,666% pa (you said any class is ok ?)
4. buy property that you can renovate (add value)+ get better tenant (better value and rent)+ subdivide (add value)
+ build (add value), return 40% (add value, do refinance and pull out) + 30% (extra rent from original property and second property) = 70% pa
5. your brain, the more you know, the more can see opportunities and more money you can make. that’s the best investment you can makecheers
Happy_Dragon
A simple act is worth ten thousand times of a decision to to act.
I would of placed the $1miLL on Makaybe Diva at odds of $4.Invested $1miLL : Returned $4miLL : Profit $3miLL
My mother used to say “woulda coulda shoulda….but didn’t”.
I note that you put your profession down as a professional gambler, although your post is dated 2 days after the big race. This post event gambling must be a lucrative business I imagine.
I think the mare’s name is spelt Makybe Diva.
I would spend $100k into shares, buy $10k of shares from 10 different blue chip companies in different sectors and let it stay for many years to come.
Then invest in myself, go on a holiday to Fiji, rest for few months.
Get a decent car and other accessories like laptop, new pc, iPod
Then start buying undervalued properties using the rest of the money as deposit for at least 12 properties averaging $400k – $600k
As I always say, work less, earn more!
Cheers,
SerkanCheers,
SerkanI would buy $10m worth of AUDJPY ($200k margin required) which would pay me about $565k a year in positive carry and another $60k in interest…..a mere $625k p.a or 62.5%
http://www.posigear.8k.com
Positive Geared Share InvestingNow I have started to type my answer and I can’t decide what to do with the money! Can I just hold onto it for a while and decide later. Maybe if I take it to my place for a while I could think better. That should be okay shouldn’t it? [biggrin]
cheers
[email protected]
Property Spotters living in NZ
Renovation & Project Management
Email now to receive info on the lastest deals!Don 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
])
Re-value 2 renovated properties and sell for a total of about $410 000. (If this was the option i would be buying a lot more properties, renovating and selling – also buying and holding some to have continuous cashflow).
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