Hi all,
We have some land overseas which we are planning to sell and bring over the money into Australia. We are immigrants and both working at the moment. We haven't bought our first house yet but will probably use this money for a downpayment. However, What would be the best way to put this money into use in terms of investments and stuff? I was thinking about putting 60% as initial downpayment 20% for emergency and 20% for investment but we are open to different suggestions and ideas.
Red is cool though!
Zero!
*dealer proceeds to take down both black AND red bets and dump them into the chipper machine*
Dump it into my account
Transferred!
Superstar!
High yeild investment AMG A200?
Or, from this thread, how about you and your husband learn to take control of your debts and pay your bills on time using the the money received from your overseas houses?
That is all taken care of.
However much for downpayment. Rest in the offset account unless you're looking at a sub-$300k property.
I could sure use 10K for envelopes
Boats & hoes
Put it in super as a non-concessional contribution.
Why? Property prices are high and growth forecasts are low. I'd rent for the next 10 years even if I had the money. Look at the maths. It's cheaper to rent most properties and invest the money in something else.
You could just invest in cash term deposits and still earn enough to cover the rent.
Sure it might be cheaper to rent. But in 10 years time, you've got nothing, and your landlord? They've got 1/3 of a mortgage paid off, and equity to buy another investment property.
I would hold off purchasing a house at the moment since the prices have been stagnant and some decreasing in the last year. With that amount of money, you will be making too little if you leave it in a term deposit.
Investing in exchange-traded funds is a good option as they normally yield good return. Do your homework and look at the performance of different funds over a 1, 5 and 10 year period. Here's a good starting point.
Maybe look at government bonds as well if you don't need the money immediately. The interest rate is much higher than a term deposit (which is >3% p.a compared to a government bond with 4-5% p.a and interest payouts every 6 months) however your money will be locked away for longer intervals i.e 5-10 years.
It’s a good time buy property for residence n take advantage of low interest rate to pay off loan.
This will position you well when the market comes back in few years n interest rate n rentals increase.
Booze and lot's of it !
Put 100% in the offset account.
$300k is enough of a deposit to get a house in a good area where you will be shielded from the real estate downturn. Prices are already a lot lower than last year, and in a top 10 suburb, they're not going to drop much more.
I am thinking about getting something in Pointcook - Vic
You’re nuts. $300k is enough deposit for a $1.5m house. You can get a house in a much better suburb than Point Cook for $1.5m.
deposit is meaningless if you can't service the loan
@Baghern: Even a million would put OP well ahead of the Point Cook house median and buy him a place in a nicer area, with a relatively small loan.
@[Deactivated]: Op may have a $300k deposit, but may earn $50k a year now. No way they could service or get a loan for $700k with that. They obviously know the amount they can device, and are looking at appropriate areas. Not everyone wants to be mortgaged to the eyeballs
@[Deactivated]: You are incredibly out of touch. The median wage is about $53k a year. Even at the "average" wage of $70k odd, you still can't service a $700k loan. $700k is about a grand a week for repayments.
Someone that is on mid-high $60k a year will end up with about a grand a week after tax. Do you honestly think it's a good idea to spend 100% of a wage just on mortgage repayments?
Even if OP and their partner make $120-130k between them, this still means they are spending more than half their combined wage on mortgage repayments. One of them loses their job, or injures themselves, they are screwed. Your line of thinking is why there are going to be a lot of people in a lot of trouble, mortgaged to the hilt, with borderline repayment ability, when interest rates creep up.
@brendanm: The average wage is ~$85k. The Median wage includes part time and casual workers, and children working at Mcdonalds. The full time working wage is a lot higher. $53k a year would be well below entry level on a professional job.
@[Deactivated]: Might want to check those stats. Pretty sure median full time only is low 60s. Does everyone have "professional" jobs? Even still, $85k isn't servicing a $700k loan.
all terrible ideas
buy a nice safe LIC like MLT or AFI, well diversified and yields close to 6% grossed up
VDHG
Define your financial situation first…
Then think about your income sources to figure out whether or not good to go with a mortgage loan. If you are not preferred to go with a mortgage loan, then think of more income sources and save money. Don't be hurry to buy your first home, you should have a good understanding of your financial situation.
Cheers!
There's two perspectives.
Black or Red.