How to Invest 2 Million Dollars

Discussion in 'Investment Strategy' started by yoyo_guitarist, 4th Oct, 2017.

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  1. yoyo_guitarist

    yoyo_guitarist Well-Known Member

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    Hello Guys,
    My sister was looking around in Sydney to buy a place. The bank approved her for around 2 million dollars (she has a high paying job) I have been trying to convince her to staty renting and invest that money else where. I told her she should look to lower her taxable income as she is in the highest paying tax bracket and also her loan repaymnents will be far more than her rent now and I feel a rent vesting approach would be a better approach financially. Question is where would 2 million be best spent in Australia... Sydney, Melbourne ? Should she buy multiple investments for the 2 million or one, or start off with one for say 300-400K or one even 800K? Any advice or tips would be appreciated.
    Cheers
     
    yoyo_guitarist, 4th Oct, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It is probably a good idea to buy a main residence if she doesn't have one - but perhaps not using all of it.
     
    Terry_w, 4th Oct, 2017
    #2
  3. Sackie

    Sackie Well-Known Member

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    All depends on her goals and financial situation. Personally I would not be investing in most of the Sydney markets atm. I would be breaking up the 2 mil into 4 or 5 assets in growing markets, middle ring Brisbane with add value potential as well as certain areas in Melbourne where there is still value for money. Perhaps Perth for a longer term hold if the deal is a killer deal. I am not convinced in the long term fundamentals for SA yet.

    But keeping it simple, if it were me, I would be spending all that 2mil in middle ring surburbs in Brisbane, high demand PPOR areas (all houses) with reno/add value potential. High upside potential, risk managed compared to other states buy in price and Brisbane is definitely growing.
     
    Sackie, 4th Oct, 2017
    #3
    TadhgMor, Foxdan and Eric Wu like this.
  4. Eric Wu

    Eric Wu Well-Known Member

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    It is a good problem to have. :)

    How does she feel about not buying a home? Is a home the top priority for her ATM? Is she OK to rent for a few years? These will affect her choice of investing.

    In terms of buying IPs, agree with @Leo2413 , Brisbane is still a good start.
     
    Eric Wu, 4th Oct, 2017
    #4
  5. Ted Varrick

    Ted Varrick Well-Known Member

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    Ted Varrick, 4th Oct, 2017
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  6. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    @Brett1709 - It's what your sister wants, not you. People have to do things for their reasons, not your reasons :)
     
    Property Twins, 4th Oct, 2017
    #6
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