What would you do?

[Billy ray]

I'm about to list my property for sale. I know if it sells I have probably cost myself 10% from market peak, but meh, it is what it is.

All going well, and taking account of that 10% cut i could have got 12 months ago, i should find myself with about $1.25m after costs/loan payout - but no place to live.
The plan is then to rent in a suburb (i probably cannot afford to rebuy in this location i plan to rent atm as i need too many bedrooms for a few more year - once some children leave i should then be able to afford to buy if i want to)

So, to my post. If you had $1.25m to invest across a range of places and timeframes, what would you do?

One option i am thinking is to split the cashinto 5 x 250k TDs and get about 5% - but will be taxable. but even after tax, that interest (plus diverting what i am paying now for my home that will cease), will allow me to rent somewhere. I think rates are likely to stay high for at least 12-24 months so may as well lock in 5% while i can.

A suboption of this, split between TDs and some bluechip shares

Another option is to buy two investment properties, in two diff markets. thinking a capital city (maybe perth or brisbane) and maybe a larger regional town with low rental vacancy(?)
so use some of my cash to put down 20% deposit for each and borrow the other 80% for each.
- as an aside, anyone ever leased to Defence housing or NDIS clients?

After a few years, use remainder of my cash to re-buy a home, or, continue to rent in places i cannot necessarily buy and perhaps buy another IP as rates come down and my returns from investments fall back.

any other options you guys would suggest? or thoughts?

 

[PoppedCorn]

Buy bitcoin

 

[PoppedCorn]

All of it billyray
All in

 

[Billy ray]

All of it billyray
All in

bet on black?

 

[PoppedCorn]

Hell yeah
Once you've gone black u never go back



Apparently

 

[ash_1050]

After a few years, use remainder of my cash to re-buy a home, or, continue to rent in places i cannot necessarily buy and perhaps buy another IP as rates come down and my returns from investments fall back.

Depends on your risk tolerance.
If you want to preserve and grow capital then term deposits
If you want to take a relatively safe risk then dividend paying bluechips
If you want to take a safe risk then blue chip shares
If you want to take a less safe risk then small cap stocks
etc

It comes down to whether you want to buy a home again in the future, and if so what your timeline is on purchasing. Within 36 months then a term deposit is your best bet, inside 60 months dividend bluechip paying stocks etc.

 

[BIRDBRAIN]

I actually would put a percentage in bitcoin but that's just me, I wouldn't expect others to understand. Honestly it seems an odd plan to sell and not really have any plan for the cash, are you mortgage adverse because seems you could easily buy the house you're planning to rent if you take on a bit of debt. Term Deposit will give you some cashflow but ultimately you are losing money via inflation. Shares are looking very high right now, maybe a DCA strategy where you put in X amount per month would do well incase we have a pullback.

 

[Billy ray]

I actually would put a percentage in bitcoin but that's just me, I wouldn't expect others to understand. Honestly it seems an odd plan to sell and not really have any plan for the cash, are you mortgage adverse because seems you could easily buy the house you're planning to rent if you take on a bit of debt. Term Deposit will give you some cashflow but ultimately you are losing money via inflation. Shares are looking very high right now, maybe a DCA strategy where you put in X amount per month would do well incase we have a pullback.

selling now as the home is a 6 bedroom place and has no public transport and kids are all in high school (but none drive).
so for next 3-5 years while at high school i am driving 500-600km a week doing nothing but kid drop offs and pick ups for school, for work, to friends etc etc

so this place doesnt work for me and family any more.
and as kids one by one leave - granted could be a while- we will be able to drop from 6 beds to 5 beds to 4 beds and maybe eventually 3 bedder
basically, i cant see a future where i live back in this place with less kids or no kids - too big and not convenient.

obviously selling and buying again is an option, but not many 6 bedders in the areas i am looking at moving (for sale anyway). there are some for rent, and even more 5 bedders (but still not a huge amount), so in a pinch, i could get some of the teenagers to share with eachother (with room dividers for example) if the tradeoff is a place that is a 5-10 min walk to the beach etc. so a 5 bedder could work.

but the way i see the future in terms of living arrangements is to rent a 5 bedder, maybe 12-24 months, then a 4 bedder for another 12-24 (and at this point i could buy a 4 bedder as heaps of them, or if i enjoy renting and downsizing, wait a little longer and then rent (or buy) a 3 bedder

i just think the transaction costs of buying and selling houses every 12-24 months isnt feasible.

 

[Billy ray]

I should add that if i happen to find a 5 bedder that is amazing in areas i like for sale, i could buy it and when kids move out (depending on floor layout) rent out a room to a student or something. But so far I haven’t found any suitable floor plans. Hence i dont think I’ll buy a home for myself for 4+ years when its back to a 4 bedder situation.

But an IP before that is an option to get back into a housing market somewhere

 

[BIRDBRAIN]

What if you bought a nice 4 bedder for later, rent it out with a plan to move in ~5 years down the track? Tenants probably **** it in that time

But you're right must be hard to find 5 and 6 bedroom houses.

 

[Billy ray]

What if you bought a nice 4 bedder for later, rent it out with a plan to move in ~5 years down the track? Tenants probably * it in that time

But you're right must be hard to find 5 and 6 bedroom houses.

Yeh it is an option - with that risk. My IP could be my future ppor.

I know my situation is quite unique. Hence the call out to get thoughts.

 

[PoppedCorn]

Renting is yuk tho
We are building and have to rent and it's just dead money

We sold just before the peak, its hard to time a top and we had a number, that it then hit, so we sold
We factored in the rent while building but it's still yuk knowing it's going to someone else

 

[Billy ray]

Renting is yuk tho
We are building and have to rent and it's just dead money

We sold just before the peak, its hard to time a top and we had a number, that it then hit, so we sold
We factored in the rent wbile building but it's still yuk knowing it's going to someone else

Yeh i know its dead money. But so is maybe 2-4 lots of 50-70k of stamp duty each move. Plus removalists. And other fees.

Hopefully the universe finds me a 5 bedder which has a self contained section/granny flat that i can just buy once,and i dont need to do multiple moves

 

[Shane Sheridan]

Have you tried the ask Billy Ray thread in GD?

 

[Billy ray]

Have you tried the ask Billy Ray thread in GD?

 

[Lagooner]

Bunk beds. You get the house you want now and your kids will want to move out sooner. It’s win win.

 

[HirdyLannister]

Look into industrial properties, the returns are so much better than residential.

 

[Eagle Of Destiny]

I'm about to list my property for sale. I know if it sells I have probably cost myself 10% from market peak, but meh, it is what it is.

All going well, and taking account of that 10% cut i could have got 12 months ago, i should find myself with about $1.25m after costs/loan payout - but no place to live.
The plan is then to rent in a suburb (i probably cannot afford to rebuy in this location i plan to rent atm as i need too many bedrooms for a few more year - once some children leave i should then be able to afford to buy if i want to)

So, to my post. If you had $1.25m to invest across a range of places and timeframes, what would you do?

One option i am thinking is to split the cashinto 5 x 250k TDs and get about 5% - but will be taxable. but even after tax, that interest (plus diverting what i am paying now for my home that will cease), will allow me to rent somewhere. I think rates are likely to stay high for at least 12-24 months so may as well lock in 5% while i can.

A suboption of this, split between TDs and some bluechip shares

Another option is to buy two investment properties, in two diff markets. thinking a capital city (maybe perth or brisbane) and maybe a larger regional town with low rental vacancy(?)
so use some of my cash to put down 20% deposit for each and borrow the other 80% for each.
- as an aside, anyone ever leased to Defence housing or NDIS clients?

After a few years, use remainder of my cash to re-buy a home, or, continue to rent in places i cannot necessarily buy and perhaps buy another IP as rates come down and my returns from investments fall back.

any other options you guys would suggest? or thoughts?

I would buy 2-3 affordable houses with reasonable sized blocks of land in neighbouring regional cities to capital cities.

 

[Billy ray]

I would buy 2-3 affordable houses with reasonable sized blocks of land in neighbouring regional cities to capital cities.

this is still my plan
i decided to rent it out for 12-24 months (i have tenants in for 12 month lease atm, and will either list it when 9 months up so i can try sell and settle when lease ends) or if they give an indication they want to stay longer, give them 12 more (or 6 more) and again 3 months from end list and sell
and then yeh, buy a unit on the gold coast, a house in outer suburban perth near train lines, and then a regional centre home

 

[Eagle Of Destiny]

this is still my plan
i decided to rent it out for 12-24 months (i have tenants in for 12 month lease atm, and will either list it when 9 months up so i can try sell and settle when lease ends) or if they give an indication they want to stay longer, give them 12 more (or 6 more) and again 3 months from end list and sell
and then yeh, buy a unit on the gold coast, a house in outer suburban perth near train lines, and then a regional centre home

Guildford would suit nice but might be too expensive

 

[Billy ray]

Guildford would suit nice but might be too expensive

i was thinking basso
but yeh on that line or somewhere where the metronet east-west line in southern suburbs will cut thru

 

[Kram]

It's ridiculous atm, stuff usually gets sold in less than a week.

i was thinking basso
but yeh on that line or somewhere where the metronet east-west line in southern suburbs will cut thru

I'm looking along the Maylands/Inglewood border, could met you halfway at the Bayswater Hotel for a beer one day!

 

[Billy ray]

It's ridiculous atm, stuff usually gets sold in less than a week.

I'm looking along the Maylands/Inglewood border, could met you halfway at the Bayswater Hotel for a beer one day!

yeh im hoping by time i am in position to do the above, thigs are settled somewhat
i hope to sell mine when things still hot and then chuck money in some rolling 3 month TD's and buy when a little more cool
but who knows
i'll prob be offered to buy the place i am renting from its owner and i would jus buythat lol!