VIC Investment ideas on $1,000,000

I am looking to make an investment with up to $1,000,000 available (via loan) to invest. Looking for capital growth. Maybe getting 1 old house and knock down rebuild into residential or commercial building. Or maybe 2 smaller properties, then rent them out and hold. What would you do?

 

Gift the money to @Cactus

 

If I was conservative - subject to borrowing capacity , I would break it into 10 x 100K deposits, to cover 20% + stamp duty, and buy 10 x 400-500K NRAS properties , which will make me 10K each tax free, or 100K per annum tax free. That's 10% tax free return on $1Million

If I was a little less conservative, and again, subject to borrowing capacity, I'd break it into 15 x 65-70K , to cover 12% + stamp duty , and buy 15 or 16 x 350-400K NRAS properties, which would make me 10K each tax free, or 150-160K per annum tax free. That's 15-16% tax free return on $1Million

If I was aggressive, and again, subject to borrowing capacity , I'd break it into 20 x 50K deposits to cover 12% + stamp duty and buy 20 x 300 - 325K NRAS properties, which would make me 10K each tax free, or 200K per annum tax free. That's 20% tax free return on $1Million

 

Hi Euro,

Can you give us some level of income you'd be needing to service that kind of investment? My understanding there are only limited lenders who will consider the income of the NRAS payment and they do not accept lvr's above 80%? So you'd need to be looking at lenders who do not consider the extra payment & instead would be looking at the reduced rent.

The way I read the OP was they have 1mil via a loan & are already leaveraged.

 

Depends on the lenders you use, and in what order... It is a fairly complex process to work out a 5+ property purchase plan, and even moreso for a 10+ property purchase plan, and even more so for a 20+ property purchase plan....

Too many variables to give you a simple answer... how many dependents? is the borrower married, single... what sort of income, bonus, o/time..fulltime, part time...self employed... other debts, credit card limits etc...

If I had a $1 Mil max borrowing capacity, I'd still be looking to get 2 or 3 NRAS though. 2 would generate @ 35K in deductions against taxable income, and @ 18-20K CF+ tax free. 3 would generate @ 50K in deductions against taxable income, and @ 27-30K CF+ tax free....