All Topics / Help Needed! / How would u spend $250,000 cash?
We are on the verge of selling our family home of 5 years. All settled and commissions paid, we should have between $250 – $300k cash.
Do we buy another family home and live mortgage free, borrowing for investments?
Do we split it up into 3x $100k “deposits”, and move from one to the other doing them up, and renting the others? Later selling them all (reno’d and tenanted) and coming out even further in front?
Do we put it all down as deposit on a $1m+ block of units, live in one and rent the others? Be onsite landlords. Reno them as we go. (this is my fav)
Do we do something else?
I dont want this to be a wasted opportunity to start the investment property cycle. Also dont want to buy a couple and then hit a dead end, running out of options. We currently do not have any investment properties.
Confused, but excited. Wana mentor me?
Phil. (Brisbane)DerekMember@derekJoin Date: 2004Post Count: 3,544
Why are you selling your home?
You could leverage off the security available to invest anyway.
Assume you do proceed with the sale it really is only you that can determined which direction you should take.
Initially you do need to establish what you are trying to achieve via property investment.
What are your timelines?
What skills and/or knowledge do you possess that will assist you to succeed?
Are there any impending major changes in your life that could impact on your plans?
Do you have a fall back position?
How much can you afford to borrow?
How old are you?
What are your partners thoughts?
Are their factors in your personal makeup that will naturally steer you in a certain direction?
………………… and so on.
All of these matters (and others) need careful consideration and will largely help you to determine where you should go.
For example – while I possess reasonable handyman skills and have done some renovations in the past I could never take on renovating fulltime as I find, despite the rewards, it wearisome and onerous.
I could never buy a block of units and live in one while tenants live others. Too close for me.
0409 882 958
Im selling my house cause i dont want it anymore. Its a purpose built duplex with 7 bedrooms, 2 kitchens, 4 bathrooms, 4 living areas, 2 outdoor entertainment areas, 4 car accom, 200m bitumen driveway, perched atop a purdy hill, on 5 acres 30min from Brisbane.
My inlaws rent half off me.
Im sick of living with them.
So im moving.
I know what i want. Got the time frames all worked out. I know what my partner wants, i know what what i can borrow, (and im 27yo). I do appreciate the questions, but they dont really give me any new direction. Already been through all that.
Please, just some other peoples thoughts and opinions are all thats needed. I promise i wont hold you to anything. Just, what would you do?
40+ people have read this thread, surely someone has a opinion running through their head. And that rhymes.
PhilDerekMember@derekJoin Date: 2004Post Count: 3,544Originally posted by PHILandGEN98:
I know what i want.
Well don’t ask then.
0409 882 958
Now dont be like that Derek. I didnt mean to shake your tree.
I just mean i dont want to be complacent and take the easy road, own 1 house and retire on the govt pension (if its still availabe when i hit 65).
I know i want, to be in control of my future, learn the skills needed to direct and shape my own portfolio. I’m doing ok i guess so far, i mean, i could be doing a lot worse.
Thanks heaps for all the probing and thought provoking Q’s, but its opinions im after.
C’mon Guys and girls, surely Derek isnt the only one sitting in front of their comp, reading investment threads. Talk to me.
Or is it just me and u, D?Mortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
The options you describe all have significant lifestyle impacts.
Do you prefer to reno and move often? I know with a young family this wouldn’t be my choice.
Do you want the lifestyle of an onsite landlord? I wouldn’t but wouldn’t knock anyone else doing it.
So you need to understand that what we would do is meaningless.
I would tend towards the first option. A PPOR with no nondeductible debt yet borrow to 80% to fund other investments all geared at 50 – 80% depending on the investment and the market cycle. I would have both property and equities in the portfolio.
Like pulling teeth but you got an opinion. Not financial advice tho…
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150Do we do something else?
I reckon do something else currently not listed.
Now the below rough opinion is solely dependent on your better half and how much dross she will put up with of course. This stops most couples stone dead on this high speed track.
1. Go and buy the worst hovel in Hovellsville – pay cash, move in.
2. Slowly renovate at your lifestyle leisure, but only up to about 90% of the next worst house in the street.
3. Use the rest of your funds and the title deed from Hovellsville for purchasing high growth and high yielding industrial complexes with a large land component.
As I said, most people won’t tackle it, and the wife’s girly friends will convince her in a New York minute to dump your crazy proposition.
But….it worked for us….and a year or two later when we shifted PPoR’s to a suburb they couldn’t afford to live in, their initial snide put downs turned to snide jealousy…..either way you can’t win.
Do what’s best for you and your partner…..who cares what we think ??? We have no clue as to what dictates your decision making structure.
P.S. I love having my tree shaken. [biggrin]DuckyMember@duckyJoin Date: 2005Post Count: 7
I have thought this through also as we have moved to Qld from Sydney and are renting. If we sold after paying out the mortgage etc we would have 300K or so. Do we as you say purchase a house and be debt free and have the lifestyle we want now or continue to rent and build up our portfolio?? For us it comes down to quality of life. You say you want to live on your own , no inlaws, then I would say no to tenants also. I think you need to keep some distance especially if things went pear shape. However it is one way to keep an eye on things. I know a guy who owned some units and he would turn up to mow the lawns. The tenants didn’t know who he was and would spill the dirt so he was always 1 step ahead.
If you rent somewhere you would like to live you can have a quality of lifestlye and purchase a renovator somewhere cheaper. I currently believe this is our option. At least you can leave the work behind and maybe do it faster if you make it a full time job.
I think life is a roundabout you can jump off and on at any spot but the outcome will be very different. Sometimes I day dream [sleepy2]if I had $5 million where would I really want to live?? Does the money change your priorities for what you want out of life?
don’t shake my tree.
first off a ppor is good if you are going to buy add something and then sell as you have no cgt and is a highway to making money,
you can rent and gear your money look at.
if I gave you 1 mil and see what you can do with leveraging.
sorry but this is a highway you are on and lots of people are also on this road and if your a hitchhiker ( and i’ve been one) and you put your finger up for a lift( which you have) and someone isn’t going your way then you say as I do thanks and go to the next bit of advice.
you are really asking hows long a piece of string or really how longs a piece of string and where can I get that lenght.
as for mentor or guru I’m not one for recommeding any as a guru is gee you are you and mentors are like hens teeth.
both of which I’m not.
If your going to become a trader in property the costs will kill you and the return after cost are not that great either.
some people here are traders put there systems are in place and there costs worked out.
My advice even thou I don’t like to go with dazzling is thats the road to take
but first work out what and how your going to do it.
would you post on extreme live styles looking at climbing everest can any one give me a few clues on how to do it.
do research on what you want to do and cut down on the do this, do that,
focus is very important in anything you do.
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]DazzlingMember@dazzlingJoin Date: 2005Post Count: 1,150My advice even thou I don’t like to go with dazzling is thats the road to take
Awwww, shucks Lawrence……you’re a sweety.
You know – deep down you know you do, you just don’t want to admit it. Good onya bloke. [biggrin]
Come and see me over in Perth some time. Hell, with your cleaning business, and my picking up everyone elses garbage….I reckon we’d make a great team.
Generally I think Dazzling is on the right track . You have to do something different. Remember success comes from doing things differently .
The options you have outlined for yourself seem too sterile to me .
That’s what I think .
Now what about instead of going the industial path after you have secured the renovators delight down in Drossville you look seriously at starting or buying a business.
I note that you are 27 and list your occupation as a tiler. Give the tiling away mate . [winking] Pick the right business and when the profits come , stump them up as deposits on property .
I don’t know why anyone would work for 250k a year when you could start your own business ! Some businesses make so much money so quickly it is staggering . It’s called alchemy[/b] [biggrin]
My thoughtskdhnMember@kdhnJoin Date: 2005Post Count: 68
Really , there’s only one logical solution to your $250 ,000 dilemma , if l were you l’d just give it to me .
not been called a sweety for a while maybe you need to have a chat with a couple of lender this week and a liquidator that said he had no interest in my offer as it had the dot between the ooo wrong will wait for him to come back,
as for going to perth been there and if the lend comes thru maybe doing a little development over there sent out to lenders and waiting for it to come back.
The cleaning business went some time ago I kept the email address as they changed the name when they bought it.
and Pursefattener couple of thing about business
95% close with in the first year the the rest another 2% the second hence if you get thru two years the banks like you also that why the banks want 3 year company tax returns cos if you got these you should be safe.
second the main thing about business is not tiler, plumber or cook its cash flow you st-ff this up and you gone make sure you keep your finger on the till this is the biggest killer of any business, the second is the tax man no business is killed by customers or lack of then but it customers that think your are a 9 or 12 month credit account this is what you need to keep under control.
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
Yes Gross , the percentages are against you when going into business and yes good financial control is required for success . No doubt about it . Nothing new here .
The rich people in my tree don’t mind if you shake it [biggrin]
sorry to say this but I have a couple of businesses and you right there is nothing new here because they way a business is run and works there is nothing new about it you can have a dot .com business and if you run it as most business are run and have been run many years it will work.
people go into business with rose colour glass ( we would love to be like him)the trouble is they forget that he is up till 11 at night and up again at 6.00 and his kids ask why does your phone never stop ringing and you can’t just close your business an dwalk away.
so not new no it not but maybe a couple of people here that have a business can let you know
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
Gross you are completely correct . Making a success of a business is no easy way to wealth . However , with the right attitude and approach the results can be worth it . I should know . At Phill’s age I was in a similar position and there is no way known we would be where we are now without our business .
Yep it takes a lot of energy and it can disapear in a ‘New York minute’ as Daz says .
Really, when it gets down to it ,investing in property is running a business. If you don’t approach it properly it can easily become an expensive hobby I reckon.
Steve McKnight writes about taking the path of least resistance.
Property investing is only one way …
How is the sale going Phil ?lyndon_gMember@lyndon_gJoin Date: 2006Post Count: 58
id take it to the casino and put it all on black.
with regards to business yes the numbers are against you and yes it is very difficult to succeed but when you do (and I have )succeed then it is a very good feeling. I am alittle different in that I take a business make it work and like a seed capitalist then take a percentage in the business and leave the other people to move on from there.
and sorry to say this but I am a percentage man and look at both possible and actual returns.
with regard to your original post.
here is an example
property international hotel build 17 mil land leased on 99 year term
in possession with a international bank for 13 mil
international hotel group has an agreement to lease at 12% of 17 mil for 25 years
relend 13 mil from a bank at 8% repayments 1.04mil 80%
put equity (not Cash)up to the tune of 3mil
so for the 3 mil in equity which is not costing any cash out.
gives 1mil return per year and the international hotel group is being asked of the 2.04 mil, how much will you put up in advance on the deal in us dollars.
This is an example and is currently closed so can’t be used as any type of investment choice.
look aout side the square
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]JarrahMember@jarrahJoin Date: 2005Post Count: 99
I know you didnt ask for career advice mate but I have a mate who’s a tiler in your neck of the woods, old school, goes hard, old time hard man, you’ll know what sort of money he’s on…
Me, I’ll always do something with trees and a chainsaw HA! They would all flip at the dollar we get wouldnt they mate…
$250K Sounds like a yacht to me, Gross and me are toying with me skippering his, maybe we could get another 20′ with your $250K jump on board we tile and tree work around the coast while Gross cuts the prop deals with the sat nav off the laptop, sounds like a plan man…
“ask and you shall recieve”
++CASH FLOW PROPERTY HUNTER
(your not hunting if your not hungry)
Climbing & Consulting
“be ye angels?”,
“nay we are but MEN!”
You must be logged in to reply to this topic. If you don't have an account, you can register here.