? Improving cashflow

From: Lotana Von Amor


How would one improve their cashflow to help with negatively geared IPs if they had $100,000 cash available at 3% after tax that they could invest in the name of somebody with no income? In fact, in the joint names of 2 people with no income. If I am correct, this is the opportunity to derive up to $12,000 pa tax free, that one could use to service their IP obligations.

What would be the best way to conservatively invest $100,000 aiming to get 12-14% with monthly income?

Regards,

Lotana
 
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Reply: 1
From: Lotana Von Amor


Ok, no takers on this one. I reduce my demands to, say 8-10% pa. Any ideas?

Regards,

Lotana
 
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Sim

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Reply: 2
From: Sim' Hampel


On 4/10/02 2:52:00 PM, Lotana Von Amor wrote:
>
>What would be the best way to
>conservatively invest $100,000
>aiming to get 12-14% with
>monthly income?

Conservatively invest ? What is your version of conservative ? I don't know of too many strategies that I would consider conservative which could return 12-14%.

 
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Reply: 2.1
From: Lotana Von Amor


Sorry, what I actually meant was a strategy for say 3 years to get an average annual return of this magnitude. I compare a debenture paying 8.5%pa monthly (smaller return, less volatility) and a blue chip share portfolio with 5% dividend (including imp credit) + capital growth which can be realised annually virtually tax free, also a portfolio of hybrid securities (convertibles) such as FXJPA paying 6.7% semi-annually plus capital growth. Is there anything else along these lines?

Regards,

Lotana
 
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W

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Reply: 2.1.1
From: Kevin Forster



Another option is listed property trusts paying about 6-8% fully franked dividends. Some of these also have tax deferred components. These also have a higher NTA (Net Tangible Assets) per share than blue chip companies. With proper analysis you could find some with capital growth prospects.

Just another option.
 
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Reply: 2.1.1.1
From: Lotana Von Amor


Thanks Kevin, what a great idea.

Regards,

Lotana
 
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Reply: 2.1.1.1.1
From: George M


you could perhaps look at a commercial opportunity in a regional area with a long lease, ie medical suites etc. some of these are returning 12% with all outgoings paid and you could perhaps buy it outright with 100k, it would also give an equity facility to borrow against.

George Mariotti
 
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