All Topics / General Property / $ 200K CASH, What would you do ?

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of Property PassionProperty Passion
    Member
    @property-passion
    Join Date: 2005
    Post Count: 172

    Hey people,

    Id like to hear how people would choose to invest 200K. Lets just imagine for a bit that we suddenly had 200k

    Heres how i would use the money, basically id buy a 200k property making sure i could use it as a duel occupancy and borrow for the construction.

    What would YOU do with it ?

    “It’s not how much money you make, It’s how you spend it that matters.”

    Aspiring property developer

    Giulio Taranto

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    why wouldn’t you leverage and buy $2 million worht of property, borrowing the rest?

    I don’t think it’s about how much money you have to invest, it’s about what your action plan is!

    We buy properties in Adelaide. No Agent Fees.
    [email protected]
    INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
    http://www.renttoownau.com/ http://www.vendorfinanceau.com/

    Profile photo of asaboveasabove
    Participant
    @asabove
    Join Date: 2005
    Post Count: 8

    Excelent Question.
    I have allways been a fan of borrowing 100% on positve geared property.
    this to me is a no brainer but they are pretty thin on the ground at the moment and I am looking for alternatives.
    Hope to read replies.

    asabove

    Profile photo of hbhb
    Member
    @hb
    Join Date: 2005
    Post Count: 179

    great question property passion
    the share markets going ape
    bought $2k worth sold $2.4k in 2 weeks
    but if i had your 200K, would have made 44K. profit …in two weeks…wow

    a bit of a contrast to say 2 mil worth of property….
    say i bought 10 x IPs in Vic at 200k each….total StampDutyPlus Total Costs -$83,384
    or 1 x 2mil property totals costs -$117,564….wow…thats the cost of an IP at back of ballarat???…..we’ve being ripped off
    it would take you a year just to get costs back…..
    but heck the CG is worth it…especially in todays market….

    hb

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi Property Passion
    For a start this is not to be seen as investment and is as you say imagine
    I would split the 200k into two parts I would invest 100k on the short term money markets with caveat lending ( I know a little about that at 3% per month with three months up front) 9k

    Take the 9k and leverage it with 10 other people on a commercial in vanuatu at 700k running at 10% I would take the other 100k and run it on a high income high risk cash currency margin scheme
    The us dollar against the chiness dollar
    My favorite is the japanese yen but we all have got our own risks

    The yen has done back dated a 41% return for the last 5 years but I digress
    after 12 month
    the caveat lending gives you 81k
    vanuatu gives you 16k in vanuatu nice for holiday
    and the yen gives you 41k
    and hopfully you still have your 200k
    not bad a 138k profit plus a place in the sun and you can do this while sucking margartita’s in the sun.

    oh i forgot to mention check everthing with the ato before setting sail on this venture but YOU did say imagine.
    ps sorry I didn’t include any real estate in any of the above apart from the property in vanuatu. will try to add that next time.
    hope this helps
    wondering if we can beat this type of return not bad 130%+ return for 12 months.

    I like it my self.

    here to help
    If you want to get involved in some of the projects I’m involved in email to [email protected]

    Profile photo of Property PassionProperty Passion
    Member
    @property-passion
    Join Date: 2005
    Post Count: 172

    Dont need to be sorry, you can use the imaginary money any way you like! haha

    Its just good to see how others would invest the money. Looking foward to see what the rest of you come up with.

    So far so good.

    “It’s not how much money you make, It’s how you spend it that matters.”

    Aspiring property developer

    Giulio Taranto

    Profile photo of cfdaviscfdavis
    Participant
    @cfdavis
    Join Date: 2004
    Post Count: 3

    Well Guys and Gals,
    Thats very interesting about 200k but what if it grew to $2mil.
    What would you do???
    Would you do the same on a bigger scale or approach it quite differently.[baaa]

    C.F.Davis

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi cfdavis
    maybe a little different as I would high risk high return part of the 2mil on a couple of seed capital investment groups and they give 20% return plus upwards of 30% of profit from the venture say something like a crispy cream of this word.
    even setup as a finance angel and lend out on high risk projects.
    example leverageing 5k on high risk gives 20k cash flow and you lend out the 20k at a high interest rate you are securing the 5k against networth complicated yes but profitable,extremly risk very high as most of these venture fail within 6 months and you are left holding the leveraged debt which is alot higher then normal debt.
    not for the novice this one but you did say imagine at 200k so this is imagin at 2mil.
    but also imagin bankrupcy, upwards of 10 year debt with no fall net of liquidation.
    With high profit comes high risk if all goes well and we are looking at utopia here with combind interest and profit is well over 200% on going profit.
    little example is domino’s pizza seed capitalists set it going and now is a listed company with the seed capitalsis holding a majority of the shares and doing very nicely indeed( I haisen to say I was not one of them)
    and macquarie bank which was a very high performing bank last year
    is a major player is the seed capitalist market and they charge 15% interest per annum and take a nice litle small amount of 50% of profit for the first 5 years on operation and will list if it works.

    here to help
    If you want to get involved in some of the projects I’m involved in email to [email protected]

Viewing 8 posts - 1 through 8 (of 8 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.