What would you buy for $50k cash (No borrowing)

Shares qualifies under option #10

I've been buying lots of managed funds recently as my gut feeling is that my Sydney IPs are slowing in growth and I'm very near my serviceability limits. They are looking very promising, currently growing about 2-3% per month before tax and distributions.

edit: fixed % growth, bad typo.

 

That is stupid high growth for shares without leverage. May I ask which managed fund?

 

There is always an easy exit - but we may not like the consequences of the decision being made. I would always go for property over an exotic trend for the day option.

With research, find a potential rental return in regional areas. However, you would also need to do your research on potential demand. Alternatively, look outside the borders of Australia. You will be surprised at what $50,000 could buy you.

So - I guess (unsurprisingly), I opt for #2.

 

US is scary, it being a land of litigation and all. Any other countries where foreigners can safely conduct business for not much money? I was reading about Eastern European countries but they are not without trouble.

 

Holy crap what a typo, I meant 2-3% per month However I have only been holding them for a short time so I expect them to 'smooth out'.

I have several funds split across different sectors but my favourite would be Forager Aus, which has gone up 12% in the 2.5 months that I've held it.

 

Oh - you spend too much time reading The Telegraph.

Media always makes it seem so much worse than the reality. However, if that is your concern, there are always ways to mitigate your concerns - be that through establishing an LLC or taking out insurance or whatever makes you feel ok.

At the end of the day, it doesn't matter where you invest. You have you weigh up the risk/rewards as well what makes you feel comfortable.

The questions that need to be asked when considering investing overseas, is how safe is its economic/geo-political climate. What are your returns. What are your risks/rewards.

After doing your due diligence.......like any other investment......if you feel ok, go for it. At the end of the day, it is your decision. And yours alone.

 

Nice. I think if you can get around 12% to 14%/year (without leverage) then that is a good return. Anything over 20% has too much risk associated with it.

 

I remember reading that US has more lawyers per capita than anywhere else or something like that. Surely they are not all handling basic legal work. @Terry_w might have some insight.

The usual DD aside, legal threats are a real issue.

Ass(et) protection through structures is always an option but not at $50k though. @MTR pointed out that it only makes sense if you invest in enough properties to make the whole exercise worthwhile.

Anyone bought from Bid4Assets.com | Online Real Estate Auctions | County Tax Sale Auctions | Government Auctions ?

 

lol, not unless you have US$, otherwise you cou be tacking 40% if it's Au$.

 

Properties around the world for $50k

Real Estate for $50,000 Around the World | JetSetCitizen.com

 

I bought Macquarie Bank below $30 a share in 2012.......and sold recently for about $80 (if challenged, I am happy to provide true $$, and dates/times).

Trading the stock market is seriously a different animal from investing in property.

Unless you are willing to make a living from the stock market and you invest your time and commitment to learning and profiting from it.......and know that your family depends upon your success or failings, I wouldn't recommend it to anyone.

I have seen too many people lose their life savings in the stock market and cannot, without a conscious, not say anything.

That is: the buy and hold strategy of IPs doesn't work in the same way in the stock market.

Macquarie traded at nearly $100 before the stock market crash of 2007/8. It took years for it to trade back to an asking price that is almost close to 2007.

If you bought in 2007, you are still underwater.

 

+1 for the above post. People think property investing is hard wait till they do some real investing

 

Pfft, I bought $2k worth of shares, doubled my money, woot!
Oh...

 

Can you do that consistently over and over for years?

I did. I supported my family for years as a day trader while being a stay at home mum when my children were young. Would I recommend that life style to anyone. No. It is stressful. It takes commitment to long working hours. And it's lonely and high risk profession.

I was .......and have always been.....the main income earner for my family. That isn't putting my husband down. We have different strengths.......and without him, I couldn't do what I do.

 

I once bought a $2 lotto ticket and won $53. Multiplied my investment by 26.5 times

 

Yeah, well you did ask what WE would do with it, not what YOU should do. If you don't know/understand an asset class, then don't invest in it - simple.

 

Well done. Let me know where you bought your ticket. I might enjoy the same odds.

 

Well, if you don't understand the OP then don't reply - simple. I did say invest in real-estate

On a serious note though, are you saying that shares are easier to make money than property?

 

Haha.. Rocherlea is about as glamorous as the name suggests

 

Always bought online at lotterywest website. It checks the entries and puts money back (if any) automatically - less hassle that way.