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

Hmmm, having a bad day? Feeling snarky?? Jeez...

I was responding as per the poll, ie "Option 10. Any more thoughts?"

My thoughts were/are that for that amount (with no leverage), then I would chose something else, ie shares.

 

Not so fast, hobo

If you care to re-read the first post Options 1 to 9 are related to real-estate and from the question it was implied that that your thoughts be related to real estate as well

 

So you don't want any responses that might indicate that in that specific instance, perhaps real estate is not what people would choose?

 

Any and all comments are most certainly welcome that's what makes PC a great source of knowledge.

 

How are these people losing their life savings? Trading, likely with leverage.

Per your example, If you bought MQG at the Absolute peak of the market, $102 in May 2007 you have since received dividends of $20.67 with average franking level of 50%, so call it $23.50 grossed up. So, your capital has been returned. After buying at the very highest price the stock has ever been, before the greatest market crash since the great depression. Hardly a stellar result, but then again hardly the end of the world given the circumstances Now change the entry price to $30 / $40 / $50 / $60 / $70..........

But you are correct, education is important....and most should not "trade" stocks or "play" in the market.

 

Anyone experienced with investing in arm chair developments? How are the risks and returns?

 

Ah - welcome to the world of CFDs and other highly leveraged plays.

I use to play with commodities, and o/s indexes.......as well as the penny stocks and the Aussie blue chips. And used different funds, accounts and instruments to do so.

As a day trader, you use whatever is available to you.....and you don't necessary take advantage of franked dividends per se......but play off others who are buy and selling to take advantage of dividends. For example, a high paying dividend stock like Macquarie will continue to trade high as it gets closer to going ex-dividend and then tanks post dividends ....and then recovers in normal market conditions.

As a day trader, you can play the upside and the downside......and everything in between.

Does that answer your question?

 

Yep, as expected

 

How do people lose life savings on the stock market. Easy. Being highly leveraged........and not being able to withstand the day to day movements of anything that can happen outside of your control.

 

The only one we've had experience of thanks to Somersoft/PropertyChat is the one by EOS which hasn't been going well for their clients in 2 projects in Perth.

 

I've worked with some developers who fund through these methods - I personally wouldn't bother for the returns offered. The biggest issue is delays until realisation of profit - a 20% return from a project at 12 months may be considered quite healthy, but a delay to 24 months see's the return as quite absymal compared to the risk involved.

 

No you big silly, that's why I'm on a RE site, not a shares site.

 

EDIT: This was in response to a post by @York, which is now deleted. So, carry on, nothing to see here, I'm just talking to myself.

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I understand all of that, and yes it was obvious that the intention was for answers to be generally property related.

But with options such as "9. Buy land on Mars, Moon etc", it was also fairly obvious that the question wasn't intended to actually develop into any sort of serious stats, lol. And it wasn't a poll, so it's not like my response skewed a vote or anything.

I'm a bit surprised at the angst. I responded genuinely: I'm a property investor, but if I only had $50k, and couldn't leverage it, I truly would put it into the stock market. Not as a "day trader", not because it is "easier to make money in shares than in property", but because, well, it's only $50k, and the property-related options listed have their fair share of risk as well.

I've obviously made the mistake of trying to respond seriously. My apologies. I change my vote to buying land on the Moon.

 

US was easier than anything I purchased in Aus. 2 unit building in palm beach for $35,000 usd. $5,000 Reno and its rented for $1,800 usd per month right away. No issues for the 12 to 18 months I had it and sold for a 100% odd profit

 

It's a bit like OTP for developments isn't it? Too much uncertainty. Probably better off doing a JV with a like-minded investment partner. Easier said than done of course.

 

I'm loving this! Looking for something like this to crank up a little extra pocket money from the parents unused backyard space so they don't have to sell and lose a well located property. Portable Granny Flat might be the ticket. Corner block so would have it's own street frontage.

 

Now we are talking. Wanna buy one off me?

 

blue chip, dividend paying companies

 

I saw a development site in London a few years back which had planning approval to do something similar. The design slotted a narrow structure over an alleyway between two buildings.

It'd be harder to do something like that with the Cottesloe plot as there are windows on the side of the apartment block beside the laneway. But I think that something could be done. Whether you'd get DA approval...

Were I investing $50K then I'd split it with $30K to $40K going into a cheap stockmarket tracker, and the balance into a cheap bond fund. Set it up to reinvest dividends, and leave it alone.

 

You can buy into property syndicate. There are few professional and licensed outfit that may suit you.

They have few development on the go in few different states.