Where to invest with half million cash sitting

Discussion in 'Where to Buy' started by Moses, 6th Feb, 2018.

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  1. Moses

    Moses Active Member

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    Hi guys.. Just need your suggestions..
    Whr can i get the good return with that amount of money..
    *Considering of buying an Acerage block but not familiar with this.
    *Should I start constructing units on my land blocks (640sqm/690sqm) with existing houses?
    *keep buying more properties within 300-500k range
    Or I'm open to any suggestions..
    Kindly help
    Regards
    Moses
     
    Moses, 6th Feb, 2018
    #1
  2. dabbler

    dabbler Well-Known Member

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    I think yachts are a good bet.....will call mine.."The Ark"
     
    dabbler, 6th Feb, 2018
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  3. Blacky

    Blacky Well-Known Member

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    Black
    Red
     
    Blacky, 6th Feb, 2018
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  4. dabbler

    dabbler Well-Known Member

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    Will green light that one.....
     
    dabbler, 6th Feb, 2018
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  5. Perthguy

    Perthguy Well-Known Member

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    It depends on where they are.
     
    Perthguy, 6th Feb, 2018
    #5
  6. TMNT

    TMNT Well-Known Member

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    How on earth is an acreage of land going ti create an income!
     
    TMNT, 6th Feb, 2018
    #6
  7. Sackie

    Sackie Well-Known Member

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    That was Noah, not Moses :p

    Greatest businessman of his day. Managed to keep his company afloat, while the rest of the world was in liquidation . :D
     
    Sackie, 6th Feb, 2018
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  8. wylie

    wylie Moderator Staff Member

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    Have you got approval to build on your current blocks?

    Are you talking about adding granny flats or splitting blocks and building on a new clear block?
     
    wylie, 6th Feb, 2018
    #8
  9. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Really depends on your risk profile and goals. There is no one answer.

    I personally buy, hold and duplicate...with different levels of value adds along the way depending on the market(s) and cash reserves at the time.

    I like the McDonalds strategy - it's not the best burger and not the sexiest, but you know what you're going to get and you can keep duplicating it with success.
     
    MyPropertyPro, 6th Feb, 2018
    #9
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Is it really cash or a loan/release of equity?

    Have a main residence? Have a debt on it?
     
    Terry_w, 6th Feb, 2018
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  11. dabbler

    dabbler Well-Known Member

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    Someone did not pay attention in class :)

    They were buddies though....right ? :D
     
    dabbler, 6th Feb, 2018
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  12. Medine

    Medine Well-Known Member

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    Suggest to connect in with one of the great financial planners here and pay a fee for your whole situation to be assessed before you make any decisions ;)
     
    Medine, 6th Feb, 2018
    #12
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  13. Moses

    Moses Active Member

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    No approvals yet..
    Already got a granny flat in one of those so not too inclined in building units on that one as of now..
    May be the other one..
    Got an old house at the front and pretty sure i can build 2 at the back..
    But by adding units, inly cash flow wud increase.. Capital gains wont be that much.
    Regards


    Mix of both.just released some equity..
    Main residence debt is 290k.
    Regards

    Long term as long as I can hold it
    Have seen some good examples..
    Thinking of buying in a group with friends to avoid over exposure.
    Regards

    Thanx
     
    Moses, 6th Feb, 2018
    #13
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You would probably want to pay off the main residence debt with any cash first
     
    Terry_w, 6th Feb, 2018
    #14
  15. Ted Varrick

    Ted Varrick Well-Known Member

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    Isn't Bitcoin currently trading at a huge discount?
     
    Ted Varrick, 7th Feb, 2018
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  16. rjw180

    rjw180 Well-Known Member

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    Came here to post that. Gone up 24% in 24 hours!!!

    Could consider doing a reno/flip or get DA and flip. Depending on how you play it, possibly you can avoid CGT also...
     
    rjw180, 8th Feb, 2018
    #16
  17. virhlpool

    virhlpool Well-Known Member

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    How can one avoid CGT in that case?
     
    virhlpool, 8th Feb, 2018
    #17
  18. rjw180

    rjw180 Well-Known Member

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    I'm assuming you could claim that property as your PPOR. If you're not planning on ever selling your actual PPOR...

    Or maybe if you get valuations on it before and after you "move out" you'd only have to pay Capital gains on your actual PPOR for the period you weren't living in it. I'm not an accountant, but might be worth exploring with a qualified professional if that option or something similar would work.
     
    rjw180, 8th Feb, 2018
    #18
  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It would be revenue account not capital. taxed as normal income.
     
    Terry_w, 8th Feb, 2018
    #19
  20. Ted Varrick

    Ted Varrick Well-Known Member

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    But this taxable income should be reduced dramatically by the eye-popping transaction costs, so all hope might not be lost...
     
    Ted Varrick, 11th Feb, 2018
    #20