if you have $1mil, how would you invest your money wisely?

[RPI]

Pubs in QLD are worth alot because of Woolies and Coles buying them. Limited to 150m2 offsite too. Licensee runs the bottleshop. Have to be within 7km of the pub too last time I did it.

 

[eggnog]

Thanks for the explanations Darryl. Very interesting and something i'd like to look further into sometime in the future. Cheers.

 

[willair]

Pubs in QLD are worth alot because of Woolies and Coles buying them. Limited to 150m2 offsite too. Licensee runs the bottleshop. Have to be within 7km of the pub too last time I did it.

Thanks for that,i thought that's the way it went,but some of those country freeholds for sale for under 500k,depending on the trading figures and leases in place are still value if you can turn them into backpackers..

 

[kkjj]

Assuming no main residence.

Gift $1Mil to a discretionary trust (trust A) which is careful set up. Borrow $1mil from trust A, interest free, and buy a main residence for $1mil (ideally a much cheaper property). Then borrow up to 80% against main residence and get a loan of $800,000 in the form of a LOC. Then consider

- Whether you should invest in real property,
- of invest in shares

If property, determine best structure. This may entail lending 20% deposits to trust B which then borrows 80% from a bank to achieve 100% financing.

Assuming you had income to support a loan you could purchase around $3.2mil worth of investment property. Sit back and wait for growth to kick in and/or rents to increase.

After a while consider selling 1 property to reduce debt and speed up 'retirement'.

Your idea seems really interesting

Sorry to be asking dumb questions here. What is the benefit of gifting the $1Mil to Trust A first then borrow it back to buy property under Trust A/B? If not buying main residence just paid cash to buy an IP under Trust B, is it still possible to get the $800k LOC? Can the 20% deposit still be lent to purchase another IP under Trust B?

I suppose essentially, why do we need two trusts instead of one?

 

[Terry_w]

Your idea seems really interesting

Sorry to be asking dumb questions here. What is the benefit of gifting the $1Mil to Trust A first then borrow it back to buy property under Trust A/B? If not buying main residence just paid cash to buy an IP under Trust B, is it still possible to get the $800k LOC? Can the 20% deposit still be lent to purchase another IP under Trust B?

I suppose essentially, why do we need two trusts instead of one?

asset protection. The lending trust will be a secured creditor.