kong71286Participant@kong71286Join Date: 2009Post Count: 261
lol – I was wondering what was up with the multiple postshawko79Member@hawko79Join Date: 2011Post Count: 5wisepearl 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.
MattTerrywParticipant@terrywJoin Date: 2001Post Count: 16,173
I would see a lawyer first, and work out the legal issues.
Then I would suggest you work out the investment issues. This is the hard part and you should do you own research as well as talking to various professionals such as tax accountants, lawyers, mortgage brokers and financial planners.christianbParticipant@christianbJoin Date: 2009Post Count: 386
It's my line of work, so I may be biased, but you might consider:
- Buy a well located house with adequate land for say $700,000
- Subdivide the land and build a second dwelling
- Sell the existing house on its subdivided land for say $600,000
- Take your cash back and retain the (new) second dwelling financed at an LVR of 60%
And good luck whichever way you go.
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