I'd like a few choices, to earn the most income with $1000000 long and short term please.

Discussion in 'Investment Strategy' started by justine77, 23rd Sep, 2015.

Join Australia's most dynamic and respected property investment community
Page 1 of 2
  1. justine77

    justine77 Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    589
    Location:
    australia
    I'd like a few choices, to earn the most income with $1000000 long and short term please.

    Thank you.
     
    justine77, 23rd Sep, 2015
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Buy houses
     
    D.T., 23rd Sep, 2015
    #2
    Phantom likes this.
  3. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
    Buy a commercial IP for $950k + stamps outright with 9% yield and collect $90k pa income. Offload outgoings to tenant
     
    DaveM, 23rd Sep, 2015
    #3
    Jessproperty, JacM, Phantom and 2 others like this.
  4. Johnny Cashflow

    Johnny Cashflow Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    919
    Location:
    SA
    All on black..Or lottery tickets? One is bound to win ...
     
    Johnny Cashflow, 23rd Sep, 2015
    #4
    Esh likes this.
  5. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,935
    Location:
    Lower Blue Mountains
    Are those Nigerian princes still looking for funding?
     
    bob shovel, 23rd Sep, 2015
    #5
    Esh likes this.
  6. neK

    neK Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,842
    Location:
    Sydney
    Become a pimp
     
    neK, 23rd Sep, 2015
    #6
    Esh and MTR like this.
  7. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    858
    Location:
    TAS
    Oh I was going to suggest buying lotto tickets!
     
    legallyblonde, 23rd Sep, 2015
    #7
    Esh likes this.
  8. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,500
    Location:
    Melbourne
    Justine, as you can see from above, too few parameters.

    So much depends on you existing knowledge and risk appetite, that it is anything from lottery to buying a commercial property.....

    Totally different issue if you had asked "If it were you....."

    The Y-man
     
    The Y-man, 23rd Sep, 2015
    #8
  9. fols

    fols Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    737
    Location:
    Sydney
    Buy Shares. Heaps of shares. Banks. Supermarkets. Mining companies. Industrials. Tech. Pharma. Health. Construction. We all love shares. Do it.
     
    fols, 23rd Sep, 2015
    #9
  10. Ace in the Hole

    Ace in the Hole Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,874
    Location:
    Sydney
    If I were down to my last mil, I'd do business.
     
    Ace in the Hole, 23rd Sep, 2015
    #10
  11. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Or go overseas hunting for cheap properties?
     
    D.T., 23rd Sep, 2015
    #11
    2927 likes this.
  12. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,647
    Location:
    Sydney (Australia Wide)
    Not sure property is the best way to do it if your after a 3 month gain (depends on definition of short term). You'd probably want liquid returns?

    I'd be searching for the business with enormous potential without the know-how, capital, ambition to take it there, buy a stake and have a reasonably short term exit strategy. With the right opportunity, plan and execution, this could make you a fair bit in the short term. Obviously easier said than done - but there's opportunities everywhere for those that see them.

    Cheers,
    Redom
     
    Redom, 23rd Sep, 2015
    #12
    Jingo likes this.
  13. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    Spend 300k on small business. Maybe fast food. This will generate about 150k. Put a manager in with a proven track record. Pay him 100k. That leaves you with 50k. With the 700k buy 3 propeties in a low CG, high yield area. Look for above 7%. This will earn you at least 49k. This is your long term solution. Total invested 1m. Total income 99k. :)
     
    Phantom, 23rd Sep, 2015
    #13
  14. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    793
    Location:
    Sydney
    3 commercial properties, at 70% LVR.
    $300k deposit on each.
    $700k loan on each.
    $100k to cover costs (need a bit more)

    $2,100,000 in debt @ 5.5% interest = $115k interest expense per year
    $3,000,000 property @ 10% yield = $300k income
    Net Annual Profit = $185k

    As Dave says, make the tenant pay expenses.

    If you buy them in a trust, you can split the income with your lucky man and pay less tax. You'll want to do some structuring anyway to take care of GST.

    If you want less risk, do a mix of lower yield like offices, or mix with Resi.

    Or you could take the other option I mentioned before - I'll sell you my car park for a million dollars, it's secure :)
     
    DanW, 23rd Sep, 2015
    #14
    Perthguy likes this.
  15. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,853
    Location:
    My World
    is it 50% population obese, or was that the divorce rate, either way could be an issue:eek:
     
    MTR, 23rd Sep, 2015
    #15
  16. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    I think that's the divorce rate...obesity is about 65%.
     
    Phantom, 23rd Sep, 2015
    #16
  17. MRO

    MRO Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    318
    Location:
    Perth
    How hands on do you want to be? Buy shares and spend your day doing nothing, or buy a business and get involved.

    Commercial property could leave you with no income for long periods of time between tenants is another consideration.
     
    MRO, 24th Sep, 2015
    #17
  18. 2927

    2927 Well-Known Member

    Joined:
    4th Sep, 2015
    Posts:
    217
    Location:
    Gunnamatta Bay, Sydney, NSW
    I agree somewhat with your comment, it's a little bit unfair though, I own a pub, with 3 bars, an inside an outside eatery, restaurant and conference rooms, with accommodation, it's zoned as commercial..!!!

    Some commercial property could leave you with no income, perhaps even a static income for short periods. Let's not scare the guy off.:)
     
    2927, 24th Sep, 2015
    #18
  19. 2927

    2927 Well-Known Member

    Joined:
    4th Sep, 2015
    Posts:
    217
    Location:
    Gunnamatta Bay, Sydney, NSW
    Not as silly as it sounds. Been there done that. Will do it again.
     
    2927, 24th Sep, 2015
    #19
  20. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    Offload money into my bank account and I will look after it for you.
     
    Big Will, 24th Sep, 2015
    #20
Page 1 of 2