Lots of money - what to do with it?

I'd develop if I was in your shoes. There are a few very experienced developers on the forum like oc1 (oscar) and MTR with many many years of experience under their belts....find yourself a GOOD mentor whose been investing for sometime. Best would be to learn for yourself...i.e. learn to fish

If I had $400k coming in like the OP states developing would be very low on the list of things I would do in life :p
In your shoes, I'd accumulate a fairly substantial holding of residential and commercial real estate at reasonable LVRs, begin doing developments, diversify into other assets to ensure you're set financially, but really to try do some good in the world by investing ethically e.g.

- Seed capital/angel investment in startups and businesses that can change people's lives/the world for the better.
- Microloans/peer-to-peer lending to provide capital to those who need it most e.g. in developing nations
- Engage in random acts of kindness
Start snapping up prime sites in Brisbane CBD.

Depending on your age, you should be aiming to be the next Smorgons, Grocons etc.

As someone told me yesterday, go big or go home.
This is something I was wondering about too. Who is handing you $400K per year, what is the source of this income and how long will it be coming to you (how many years)?

The answers to that might clarify the advice.

Most likely a descendant of wealthy family and getting it from a family trust.

I know a few grandchildren of Packer-equivalents in other countries on similar arrangements.
No I will not buy you a Porsche because I don't even think there good cars anyway! What about the latest Ford Mustang coming out later this year - now that is a nice car! The cheapest 5.0L V8 to come out on the market and the most stylish I think.[/QUOTE]

Must be a fake anyone who thinks a ford is better then a porsche
has to be a phoney!
I call bs. As if anyone with that sort of family wealth wouldn't have a proper adviser.

Haha seriously I have a friend on a similar arrangement.

He just parks his money in a bank account, no advisors. Of course that's not very efficient because his money has broadly grown just a tad ahead of inflation which is not that good.
How many years do you expect to receive 400k?

You said ongoing. Do you mean for as long as you live?

If you have a guaranteed 400k coming in for the rest of your life, i wouldnt worry too much about how to invest it. Thats a lot of money already and if youre happy to keep a low profile the way you are now you have very little to worry about.

Enjoy life!
Keep investing in ASX stocks but probably just buy LICs or ETFs unless you like managing stocks yourself. I'd be all industrials that are reliable dividend payers for ASX part of the portfolio. Due to dividend imputation, I'd have a tilt here (home bias). Vanguard does the same with their unlisted funds.

Do they? All the ones I've seen look like the add up to a 50/50 split Australian shares / International. Once you take into account the emerging markets and international small companies

Quit work and travel. Give no ****s :)

I definitely agree with this part - this is what I would be doing!
Considering the your goals are to diversify into property around Brisbane. It would also seem CG is your main priority.

My thoughts would be;

- Spend time reading this forum and other peoples stories to get a better understanding of the basics.
- Sink your $400k cheques into your home loan to eliminate non-deductible debt ASAP
- Reborrow against your apartment for investments to maximise deductible debt when you want to purchase.
- Get a better understanding of negative gearing, it shouldn't be your goal. You can purchase a place for $400k renting at $500pw, this is (probably) positively geared in today environment. If you want to negatively gear this same property all you need to do is lower the rent to say $300pw, even better $100pw, now you're really negatively gearing!! woohoo! I'm not saying you need to avoid it, just don't make it your focus.

- Purchase sooner rather than later, nothing like learning by doing and you can afford to jump in with no fear. I don't know Brisbane well but buying in suburbs that have improving infrastructure within 10km of the CBD or less should yield long term CG.