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

[bonanzawealth]

As the title says, I'd like to know how you would invest it wisely in property market? Say if you are someone witj average income $60k and suddenly won a lotto or receive massive inheritance or workers comp, etc. Let's not go into buying ferraris or mcmansion house. Just investing and limited to property in Australia.

Details would be nice such as Would you buy IP? Cashflow? Capital gain? Or commercial IP? How many properties? And looking at current market, where would you invest? New or existing? How would you finance it?

 

[china]

As the title says, I'd like to know how you would invest it wisely in property market? Say if you are someone witj average income $60k and suddenly won a lotto or receive massive inheritance or workers comp, etc. Let's not go into buying ferraris or mcmansion house. Just investing and limited to property in Australia.

Details would be nice such as Would you buy IP? Cashflow? Capital gain? Or commercial IP? How many properties? And looking at current market, where would you invest? New or existing? How would you finance it?

If I did not own a house to live in, I would borrow some more to buy a nice place on the North Shore or Eastern suburbs to live.

 

[Big Will]

I would buy 2 IP median houses in Brisbane or Melbourne and rent them out.

Spend some money on celebration and use the remainder to service the loans whilst I still worked.

 

[EN710]

Buy income generating investment - so either shares or an IP with really good yield, enough to cover my necessities cost.

Buy nice PPOR around the north shore, keep working and take long holiday every now and then

 

[Ace in the Hole]

I'd buy a duplex or small development block with the minimum deposit required.
Then develop with the remaining cash, no finance.
Then refinance to cash out on completion.

 

[see_change]

Non Sydney IP's . Multiple , around 20 ( using money as deposits and Legals

Cheapies , but not bottom of the market ,

Cliff

 

[Terry_w]

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'.

 

[Ace in the Hole]

Non Sydney IP's . Multiple , around 20 ( using money as deposits and Legals

Cheapies , but not bottom of the market ,

Cliff

Say you going to buy 20 x 200k properties.
Can you borrow 3 mil on a 60k income?

 

[see_change]

Say you going to buy 20 x 200k properties.
Can you borrow 3 mil on a 60k income?

Mmm . Missed that bit ... Rushing posts .

Not sure . Depends on rental return etc

Cliff

 

[RPI]

I would gift it to my finance trust (my private bank).

Then I would

Lend $200k to another trust to establish a Sydney Office for my Law Firm

Lend $400k to a new trust to purchase a QLD pub (not the business, just the freehold)

3 months later

Lend $200k to another trust to establish a Melbourne Office for my Law Firm

3 months later

Lend $200k to another trust to establish a Perth Office for my Law Firm

My loans would be at commercial interest rates - 2nd mortgage for the pub, unsecured business loan rates for the law firms

 

[Mr. Fabulous]

• Make sure everything was structured properly.
• Do whatever I had to do to get the funds into said structure.
• Purchase a commercial property with available cash (probably around the 800K mark after costs).
• Draw out equity from the property and use the proceeds to purchase a second commercial property.
• Keep balance in cash to cover unforseen circumstances.
• Focus on paying down the debt ASAP.

 

[Manic]

Non Sydney IP's . Multiple , around 20 ( using money as deposits and Legals

Cheapies , but not bottom of the market ,

Cliff

See_change, been following your posts. What's your range for 'cheapies'?

 

[willair]

Lend $400k to a new trust to purchase a QLD pub (not the business, just the freehold)

Just a simple question,as I watch the prices for country freehold hotels do you then onsell the licence,beacuse the numbers for country hotels buy a lot for 400k if you find the right vendor..

 

[RPI]

400k would be for equity in a loan but

Have done. Secure head lease for off site bottleshops (3 allowed per pub), and get them going. Eg, I took over a fruit and veg shop opposite a Woolworths to put a bottlo in.

 

[eggnog]

OK Darryl and Willair, could you explain in laymans terms what you both are talking about regarding purchasing a tub. Please use small words for stupid people like myself

And Darryl, you looking for equity partners to help fund your law firms foray into other capital cities?

 

[WilliamB]

I'd buy a 1 million dollar car.

Good ol' Super Troopers

 

[Danrc]

Put it in index funds

Then retire ..... or work a bit if I felt like it

 

[GreyGhost]

I Love this...

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'.

 

[RPI]

Qld hotels allow you to have 3 offsite bottle shops per pub. You can't have an offsite bottleshop without a pub in QLD. A bottleshop in a great area, eg opposite supermarket can make great coin. But they can be crap if poorly located, there is value to a the buyer of a hotel lic in having well located bottleshops.

Cheers for the interest eggnog but no. I could draw equity to do so myself and pay less than would have to share.

 

[eggnog]

interesting. So you are saying that all those thirsty camels, liquorlands, dan murphy's, etc are owned by pubs. Didn't know that. I'm assuming then that since coles and woolies own those bottle'os then they also own pubs in order to have offsite bottle shops.

When you say you are allowed to have 3 offsite bottle shops do you mean you are allowed 3 licenses to operate 3 offsite shops. Then you lease the license out to the major chains? Or do you yourself have to own and operate the business?