What to do with my Bitcoin money

The Bitcoin bubble gods have smiled down on me.

I've got 60k, no make that 70k, no make that 30k, no 55k.... In crypto that I'm eventually going to cash out.

Whatever it is, its going to be a bonus that id like to do something sensible with. Something life changing for my family.

My current PPOR has 370k owing on it. It's like a 90% LVR. I should be scolded for buying like that...but the fact is that it was the buy of a lifetime and the mortgage is less than out rent. It has been a great decision.

My great dream is to buy an IP and start properly on my property journey.

But I've done the numbers and just throwing the Bitcoin money into the PPOR offset gives me about an 8% (ish) return once I factor in post tax wages and bank fees. It also allows me to be ready for the CGT onslaught in June...

I'm thinking that it will be hard for an IP to top that...at least for the next couple of years?

Reducing debt feels really boring...but I'm thinking its probably the best move I could make at the moment? Pay off a big chunk of my Mortgage then buy an IP in a year or two? @euro73 keeps saying now is a good time to deleverage. Maybe he's right?

I'm 38 and married. Can't have kids.

Anyone else got any better ideas?

@euro73 @Jess Peletier @MTR ?

 

Ride crypto to the moon?

 

Nothing wrong with reducing debt.

Or do what I'm doing and recycle it into something else.
Expands the asset base, increases income and still reduces LVR as it's now a larger asset base against a same size loan.

 

I feel like I've done that.

Thus is all from $100 I put in as a laugh in 2013....

60000% ROI so far....

I've gone past the moon into the next galaxy...

 

Well done!

A more serious answer. The prudent thing would be to park the funds in your offset and then go looking for that IP. If a bargain pops up then great, if not keep looking.

 

Agree - park funds in your PPOR offset and take your time to decide which direction to go and where/what to buy. Outer skirts of Melb, Tasmania and of course Logan/SEQ would all be within reach with your budget of around $70k deposit + stamp duty + buying costs. Make sure the cashflow is decent since your PPOR LVR is quite high and to mitigate *some* risk of impending rate rises

Perhaps only cash out a portion and keep speculating on alt coins? Seems like you have a knack for it

 

Hey, I never said I was going to sell all of it.

But I do appreciate that the luck I have had will run out one day. Probably sooner rather than later.

It's all fairy-play money untill you cash out.

 

Lets have a good chat about long term goals when I’m back at work.

Recycling the PPOR debt into shares or property would probably be the most life-changing, long term. But there could be other things too - business? An unexpected lump sum can give you options outside the normal investment route - it might be a dream/values/opportunity thing rather than strictly monetary or retirement based.

 

Done

 

Park ¹/2 - ²/3 in your offset - set some aside for CGT. Let the rest sink or swim. That way you've recouped your initial investment plus some and still have a healthy exposure.

 

The boring things like reducing home loan debt is usually the best...but you are reasonably young and may want toke some additional risk (depending on goals strategy etc). Have a chat with the finance people on this forum.
Personally, I'd go on a cruise to Alaska and blow it all on on board casinos.. But that's just me

 

Thought there was going to be invest it in Brisbane - oh wrong thread

I personally would see that $100 going to 60k as a bonus and would have put it against the PPOR waiting until I decide what I do.

You can either sell 100% down to 0% so you can hedge your bets and same when you invest.

With putting against the offset you are guaranteed a return of say 4.5% after tax due to interest 'saved' which could be the same as earning 5.85% to 9% before tax (depending on tax bracket). This is low risk so lesser reward (but lesser losses). Buying an IP will increase your risk but can give you greater reward/loss.

 

We are in a similar position with bitcoin- I want to sell but my husband says "wait". I also wanted to sell when our portion was valued at $10k... and $20k.. and $40k but thankfully held on.

Would you be more disappointed if your crypto value dropped to $10k total (knowing at one point it was worth $70k)... or more disappointed in 12-24 months if it was worth $300k or even $500k and you had sold it for $70k?

I have no idea where it could go (I don't think anyone does) but for me because i'd be more disappointed in the latter situation, we have decided to hold on for the ride- maybe you should too

 

If you feel like your 60K or 70K can be 100K tomorrow, or 150K by February, keep riding that thing a month or so longer.... but at some point you should take some profits off the table and reduce your PPOR mortgage down. There's nothing boring about paying your home loan off. It opens up countless other opportunities for thrillseeking

 

In terms of exit strategies, I offloaded 20% after my first 500% gain to break even now I feel all of this is bonus money.. ive just been hodling since then in the hope of putting it into a solid IP also! Really unsure of where to go now though...

 

Maybe you can actually make it a reality. Talk to a good broker. So great to see someone who is not letting greed take over and is taking control of the risk. Congrats on the windfall mate.

 

I don't mean to speak out of place here, but I wanted to follow up on your comment about not being able to have kids.

If you both want kids (and it’s fine not to) then that $60,000 might help.

For example commercial surrogacy is still available in some countries I believe (I think I even read about a gay couple going to the US for a surrogate).

 

Thanks Leo.

 

Hadn't thought about diversifying my investment portfolio in such a way...but you're right. I guess that really is an option! another option to consider.... Thanks for bringing it up.

 

I'm not selling any of my crypto until I can buy 3 x more houses in QLD in 2018 AND buy me a Lamborghini Huracan