$300k cash in bank - what would you do?
- Thread starter Michalsz
- Start date
The casino is only attractive because of leverage too.
Yes or the more generic term is OPM (Other People's Money)
Why do people instantly try to negatively gear the $300k? I'd rather positively gear it, compounding returns. Strange mindset.
Because incurring maximum leverage usually results in interest payments exceeding cashflow from rent.
Nonetheless, why do people always go straight to negatively gearing? If I had $300k I'd want to buy positively geared, means I can relax straight away from the purchase until I find the next place.
well, im in a similar situation to the "hypothetical" one,
Ihave the cash, unfortunately, zero income at the moment,
so thats posing another major question
Ihave the cash, unfortunately, zero income at the moment,
so thats posing another major question
Depends on your age and mindset.
If you're risk-averse, buy a house, get a job.
If you're a little more risk-taking, lever a bit and try to get 8-12% returns and maybe do some side jobs.
If you're risk-taking, aim for 10x in 2-3 years because unless you're a high flying employee (and I mean very high flying, earning say $500k pa+) you'd never save 10x that amount in 10 years of working. And even if you do earn $500k, it'd take you 10 years to save that much. Why wouldn't you try to do 10x in 2-3 years?
If you're risk-averse, buy a house, get a job.
If you're a little more risk-taking, lever a bit and try to get 8-12% returns and maybe do some side jobs.
If you're risk-taking, aim for 10x in 2-3 years because unless you're a high flying employee (and I mean very high flying, earning say $500k pa+) you'd never save 10x that amount in 10 years of working. And even if you do earn $500k, it'd take you 10 years to save that much. Why wouldn't you try to do 10x in 2-3 years?
