Starting with $3,900,000 - what would you do?

Hey,

Did u end up getting started in 2015? If so how is your portfolio looking now

 

Step 1. Don't Lose The $3,900,000
Step 2. Don't Lose The $3,900,000
Step 3. Buy Cashflow Positive Properties In Good Growth Areas.

I'd get your money out of shares, real estate will be here 100 years from now. Not sure about shares.

Don't own your own home, rent where you live and invest your money.

If you are leveraging money from the bank and using "X" amount of money from a deposit, make sure you plan out all the "what ifs" and save enough money for a buffer for emergency.

You could buy 3 properties For $1 Million in Blue chip areas in Melbourne and just hold them forever while u enjoy the cash-flow. In 10 years they should double in value.

Stay away from apartments. Buy Houses in suburbs where there's only 5 - 15 properties on the market like https://www.realestate.com.au/property-house-vic-balaclava-133586670

It all depends on your goals

 

Hmm.. 4m net, I will need to try harder a few more years before I can try to give advise on this thread..

Besides, I am looking to see how much he get just by keeping those share since 2015 doing nothing

 

Why subsidise the wealtthy? What sort of revenue will bluechip areas in Melbourne give wont they give poor if not negative cash flow. and what is the point of holding them. How liquiid would they be? Why would poor yeilding blue chip and the issues that come with that be better than owning some quality in an REIT or other structure . You know blue chip is a term to attract people to investments that are medicore at best and with property usually poor.

 

If they were 20 years old i won't pay off the houses. I'd leverage the money and keep multiplying the wealth.

If they wanna enjoy life, i'd buy in suburbs which 100% will grow in the future drastically. Where there's lot of scarcity and high demand. I'd only buy CF+ in any situation and i'd never over leverage.

Blue chip is just a label, by blue chip i mean scarcity and high demand and potentially suburbs which will have an even higher demand in the future 10 - 20 years.

 

Just looked at their holdings back in 2015, probably worth well over $20m now if they did nothing.

Take that property investing!

 

Assuming you want to make more money (as opposed to buying a trophy house plus a new $500k car) and were interested in property (as opposed to buying more shares), I would probably consider a good development potential site (eg opposite light rail, major train station hub, CBD) ideally with secure rental (personal guarantee, strong bank guarantee bond). What you’d get would depend on which city you’re in. The other play in my mind would be further out bigger sites ideally with a secure tenant using it for storage or logistics purposes (but still in metro). I’d also consider non PSP subdivision lands in Melb and Syd but that’s probably too hard if you have no idea about it (although that’s where’s you could potentially make serious money, ie $20m+, especially if debt was limited)

Main thing I’d look for apart from rent (which will help you hold), would be ability to build up (ie go taller, ie 8 stories+), which would rule out most residential investments. Depending on the rent you would be looking at the $5m+ range non recourse I would’ve thought. To the extent you had spare cash left after that would be buffer (for times like this) and you could try replicate your share journey again.