All Topics / Help Needed! / Question for everyone. What would you do with 125k?

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  • Profile photo of AJCAJC
    Participant
    @quokka37
    Join Date: 2014
    Post Count: 11

    Just wondering what everyone would do if they suddenly got 125k hypothetically?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Depends on current age, income, other assets/income, and state of superannuation balance.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi Allister,

    I think the question is what do you want to achieve for your self and work it out from there:

    Jpcashflow | JP Financial Group
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    Your first port of call in finance :)

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Open ended question and really depends – for me I’d use it for a deposit and fund a new development – but that is me. Really depends on the source and the strategy, no strategy and you may be better heading to crown and betting on black?

    Cheers Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
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    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    $125k…..

    Use it as a a deposit on a buy/reno/hold place in Canberra’s inner north.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of xdrewxdrew
    Participant
    @xdrew
    Join Date: 2010
    Post Count: 479

    It depends on the other parts of the scenario you have.

    If you are earning 35k you can borrow about 200k-ish and get a 300k property of some sort.

    If you are earning 65k you can borrow about 350k-ish and get a more substantial property around the 430k mark (stamp duty and transfers starts to get big)

    Having been in this scenario with my benefits dependant cousin about 3 years ago .. she just needed to increase her existing asset and income folio so the banks would take her seriously. So she purchased 2 units at a low market value straight out, and then .. cpl months later .. when she had revenue streams and a path of 100% ownership .. she also borrowed money to purchase more units.

    She is no longer requiring benefits.

    The choice you make will be dependant on your existing situation and your comfort level for attacking the market. If you are new and dont feel secure with a level of risk component .. take it slow and find your happy level of investing .. because at the end of the day .. minus the stress .. is where you will find your investing to be not only fun but profitable.

    Again .. as always .. the two important rules … know your market .. know your limits.

    Just do it
    Participant
    @just-do-it
    Join Date: 2006
    Post Count: 10

    If I came into $125k, I would buy 4-5 cash flow positive properties with 95% lends. Most would need renovation work (5-15k each) but value adding approximately $30 – 50k each once complete with strong rent returns

    I am 30 and own 15 investment properties bought over the last 7 years. Works for me….

    • This reply was modified 5 years, 7 months ago by  Just do it.
    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Firstly you wouldn’t get 95% lend on 4/5 properties so don’t waste time going down that path.

    As Jacqui wisely said it depends on a number of factors and what is right for one member would not be right for another with totally different aims and objectives.

    I own 43 properties in a variety of entities and with next to no debt (in fact Nil from next Friday) so for me $125K would be 1 months Gross rents however someone starting out could sensibly with some planning and financial discipline start a portfolio with that sort of deposit.

    Without indepth knowledge of the posters requirements a response if fairly aimless.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Just do it
    Participant
    @just-do-it
    Join Date: 2006
    Post Count: 10

    CBA havent had a problem lending us 95% over the past 7 years. At one stage they changed their policy on investment properties to 90% but that has since been reverted back to 95% for the last few years.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Not many lenders doing 95% + LMI for IP’s these days though. The ones still doing 95% lends won’t add LMI (it has to be 95% inclusive of LMI).

    Those that still do them aren’t too keen on them – so credit score harshly.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    CBA will not do 95% lvr on an IP if you do not own any other properties or if you are not an existing CBA customer.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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