$100,000 cash

F

fish74

I thought it might be an interesting discussion starter to ask people:

If you were given $100,000 cash tomorrow what would you do with it?

As we all have different needs/goals I would expect a variety of responses. And 100k isn't alot of money but it's more than 0 and it's achieveable for even low income earners (I think??)


Personally I'd go rural investing and look for low cost, high yield because we need more income $$.

And could someone tell me how to get those little yellow smilee faces to come into my message??? I've tried everything I can think of :>
 
Ive just read that previous thread, and copied some of the answers (trimmed down) for easy of others reading this.

11/2/03

Common sense tells me that the property boom is at or near its peak. The stockmarket is at or near its trough.


23/3/03
I'd buy $50k of QANTAS shares. I expect that $50k to be $75k in less than a year, possibly 6 months


26/3/03
That's the great thing about property investment. In the current climate, you've got perhaps an 80% chance of getting good cap growth- no matter where you bought.
But there's probably a chance of a decline in prices as well. I'll be treading carefully


Anyone know what the Quantas shares would have done since 23/3 ?? :)
PS: smiley made from : and ) without any space between.
 
Hi all,

During March QAN shares traded between $3.10-$3.50 in the early to middle of the month. At the end of the month the collapsed back to $2.90(due to SARS I think), they are now trading at $3.15. If you had bought them at $3.10 you are flat(due to commission), if you bought them at $3.50(around the 24th) you are unhappy:mad:

Much better to have put the money into an offset account against existing IP loan and take time to look for next purchase. :D

bye
 
Hmmm, interesting. So:
The investor who would have bought Qantas would have lost $5,000.
Those thinking the property market had peaked in February would have been kicking themselves

And the one who suggested spending $20,000 on a big party for all the PI Forumites (which I forgot to include on the selection I listed earlier) would probably have been much happier than either of the above two. At least till they sobered up !! :)


What would I do with $100,000 right now ?
Put it straight into another IP. I'll make a diary entry to revisit this in 6 months time, and see how I would have done.
 
yeah it's very interestng to go back on past speculation and see what would be the case now.

In my current situation, I'd probably buy another IP and use the rest of the money to fix up my LVR to be more +ve cashflow, because I'm not on 80K per year. That old serviceability chestnut will bite soon otherwise.

I'm in adelaide and "speculate" that prices will continue to rise where I am investing (outer southern suburbs) because of the ripple effect from suburbs "down the hill", still low interest rates and in my area has a high percentage of first home buyers keeping the market strong, ask me again in 6 months.

for you fish74 - :) :( :eek: :D ;) :cool: :rolleyes: :mad: :eek: :confused:

:D :D :D
 
I would use 50% towards a deposit on an IP - perhaps something boring in outer suburban Melbourne, 50% into shares (perhaps 10 or so different stocks).
 
I'd try to buy BHP under $10 (currently trading at $10.30). I feel this stock has a long way to recover (similar to 1993 where it moved from under $10 to about $20) over about a year. I'd also buy several other bluechips that are currently recovering from lows-possibly Coles Myer (CML last $7.46). QAN fits the strategy depending on your views about the impact of terrorism on this sector.

I would be quite aggressive with my BHP purchase and buy the stock and up to $15,000 of longdated BHP call options (i.e. slightly out of the money Sept 2004 BHP call options). More bang for your $.

I would not use the entire $100,000-up to $60,000 only.


Ajax


P.S. I have been giving this strategy some consideration. Rolf tells me there are some lo-doc products that permit up to $100,000 cash out (i.e. do not require the funds to be used to purchase property).
 
Hi I'm trying the smily thing :) You guys are sucha tease....specially you Blitz. I wanna a smilee face. Actually I really like the one with the teeth. My version :)- one tooth anyway. Sigh.

On second thought I think I'd put 50K into a cash + property and 50k into a managed fund. Not real great on shares and such yet.
 
Hi fish74,

When you reply there should be a section to the left of the reply box called "Smilies"... all you have to do is click on the one you want to use and it should automatically be inserted in your post.

If the "smilies" box isnt visible, then try going to User cp , then click on edit options , then make sure under Use vBCode quick links on your message input screens you have clicked on YES .. this allows you to insert smilies in your text, as well as use a number of other functions...

Hope this helps,

Jamie :D
 
Hi Fish

On second thought I think I'd put 50K into a cash + property and 50k into a managed fund. Not real great on shares and such yet.
Click to expand...

Lets see how you'd go on that managed fund.

First of all, they'd take a 4% entrance fee, that leaves you with 48000. Then, they'll give you about 3.5% growth for 5 years, which puts you up to 57008. At which you'll withdraw and they'll take 4% exit fee and pay you a prizely sum of 54728, assuming they were kind enough not to charge a management fee along the way. A grand a year is not bad right? :p

-Food for thought

Dave
 
Originally posted by dtraeger2k
Hi Fish



Lets see how you'd go on that managed fund.

First of all, they'd take a 4% entrance fee, that leaves you with 48000. Then, they'll give you about 3.5% growth for 5 years, which puts you up to 57008. At which you'll withdraw and they'll take 4% exit fee and pay you a prizely sum of 54728, assuming they were kind enough not to charge a management fee along the way. A grand a year is not bad right? :p

-Food for thought

Dave
Click to expand...

I don't think many would be paying 4% entry fee, 4% might be listed in the prospectus and is seen as the advisors commission though most advisors charge lower rates or don't charge it at all. Lots of sites also which give access to funds with nil entry and exit fees.

http://tradingroom.com.au/managed_funds/index.jsp?section=order_a_prospectus
 
Nil entry fee (almost on all managed funds) at
www.nevward.com.au

Steve Navra's fund is almost up 3% in this year :D and expecting more to come.

Having invested in it early in May, I already got 1%
distribution at the end of June (reinvested, of course) so I am already 4% ahead (and confident in Steve's ability for more to come) in 3 months!!! Not a bad return in a market that is very far from being hot.

Tibor
 
Hmmmm .... $100K cash.

1. Park in offset acc against IP while thinking about what to do with it.

2. Revise long term plan to see how the $100k can help me retire earlier.

3. Possibley buy a quality IP or two and park the remaining money in an offset account against them so they are at least neutrally geared.

4. Possibly rennovate existing IP's to increase returns and capital value.

Slow and steady wins the race !
 
Aceyducey

You said:
Simple - buy 4 IPs in an area that has not peaked yet & are cash flow positive

Any chance of letting me know where that is ?? :) :) :)
 
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