My husband and I got married two weeks ago ☺️ We were gifted an amount of cash. We would like to leverage this in someway for our future. We are happy to leave it for 5-10 years before reassessing. What have other people done with wedding money, and what might make sense in the current economic/ property climate?
Congratulations! We bought a classic Mini (wife's dream car) and that's tripled in value in 5 years so you could try the same thing I've always recommended to friends to keep $1-2k towards couples development/counseling so that you can keep everything on track and money is never the excuse) Buying a house in Brisbane wouldn't be a bad option currently if it's heaps of cash.
Congratulations on your recent wedding. How much money are we talking? And you say you would like to leverage this in some way for your future, and happy to leave it for 5-10 years. Do you have property at all? Shares? Not enough information at this stage to give advice (in my opinion).
Nah, I would put it into the sharemarket, especially if you ... Better returns and you can cash in a portion if you really, really need the money.
I understood their question to be the best way to leverage it. If someone gifted them 30k and they have some savings, they could potentially be controlling a 500k asset. Over 10 years of holding the asset, I bet their overall returns would likely beat their stock market picks of 50k. Plus reducing the temptation to cash out Monday noon and buy that new car when emotions run low. That's my take at least.
You took leverage to mean “to use borrowed capital for an investment”. I took leverage to mean “use the wedding gift to maximum advantage”, without debt. Different meaning of the same word. Bloody English language .
True story, guy at Tafe when we were apprentices went and got an unsecured personal loan for 10k. We all told him he was an idiot. Bet it all in one round of roulette and won. Paid back the loan and bought a house. Never would I try this but crazy luck and worked out for him in a huge way!
The dollar figure is very important here. No real answers are able to be given. We could be talking $10k or $100k or more. The answers will be very different depending on your circumstances now, the amount, whether you have a house already, your debt levels, your risk level, your aims.
Congratulations!! How very exciting! Hope you managed to get away somewhere nice for your honeymoon! Assume the gifted amount is bigger than your expenditure? If so, I'd use it to contribute towards a deposit to buy an IP. We received some monetary gifts - would be peanuts compared to what you're handling. That went straight into the offset account (to offset the cost of the wedding!) - we went to the bank the day after literally ....
If the amount is big enough, I'd use it to get into my first home. If it's a really large amount, and not enough for a PPOR, I'd buy something cheaper as an investment. Like @wylie said, above, it's really hard to say without some context of the amount involved.
Why not use it to help with starting a business? We need more young people in this country to have a go IMO.
