Safe Investment Advice for Savings of $75K (Paid off Mortgage)

LTAN on 27/12/2018 - 11:01
Last edited 27/12/2018 - 11:18 by 1 other user

Hi All

I am looking for your advice for a safer way to invest my saving amount of 75K.

I have received redundancy package this year and saved extra from my salary. I have paid off my mortgage already. I put it in the Suncorp Growth Saver account at the movement with 2.9% interest.

Not looking for buying an Investment property as I have a land at the back of my house (total land size of my current property is 1250 square meter) and can be subdivide and build a house later or build two duplexes as per current council law. I am not looking for any of these options at the movement because my neighbor has the land size of 4000 square meter. This is a L shape land with narrow frontage and half of the land is at the back of my property. Their frontage is not enough for development.Who ever buy this property should buy my one for development. They are planning to sell now.

Kindly expecting your advice.

Advance wishes for NEW YEAR

Financial

Comments

  • Halo375 on 27/12/2018 - 11:22
    +1

    BMW.

    Seriously though - bank term deposits or saver accounts like what you have chosen are the safest options for you. They won’t offer you the highest growth but they’re safe choices.

    • TAN on 27/12/2018 - 12:33

      Thanks for your advise Halo , I have a BMW X5 already.

  • amazonaddict on 27/12/2018 - 11:38

    As I could guess from previous posts and replies, the best idea is to split the money into few chunks and invest in different sectors. (Stocks (low risk, medium risk, high rish), index funds, high rate personal lending, bank deposit, franchise partner ships, entrepreneurship)

    Anyway, 4000sqm? Where is the world are you?
    Anyway, congrats on paying off mortgage.. I have 20 more years to achieve that. :( How does it feel like?

    • TAN on 27/12/2018 - 12:31

      Thanks for your advice amazon addict .. I have nil knowledge of Stock , will try yo learn. Interest in franchise partnerships.

      This is one of the Western Sydney area close to Parramatta. Owner of the land said to me he bought it for 1000 pounds in 1951.Now 3.5M plus.

      Don't feel much about your mortgage. there are people have been renting for 30 plus years. You are better doing compare to them.

      • amazonaddict on 27/12/2018 - 13:02

        Thanks. Sure. I am trying to pay off as fast I can. At the current rate, I could finish the mortgage in about 10 years. But, the opportunity cost I am paying is bit high, like time with Family and friends and stuff. But, based on what you said, the neighbour must be in his 70s. What is the point on sitting on 3.5 million dollar at this age? I don't want to end up like that. I want to have 0 savings when I die, If I am lucky enough to live that long. Once again thanks.

        To make clear about the personal lending option, there are some reliable sites out there that help you loan some money to strangers. 6-12% roi. Regarding stocks, few of my friends do Option trading in American Market and make about 12-20% roi. But, researching for suitable stocks is really a pain and even if you subscribe to those stock pick gurus (costs around $2000 a year) it takes about 3-4 hours a week. If you have free time, read about Put,Call options. (Less riskier than trading)

  • elgrande on 27/12/2018 - 11:45
    +3

    You have paid off your mortgage… and your looking for financial advice?..

    I'd reccomend remortgaging your house and buying some appartments in Sydney Olympic Park.

    • [Deactivated] on 27/12/2018 - 11:56
      +1

      What cracking investment advice :p

      Seriously though, investment options depend on how long it will be before you need the money. 15-20+ years, put it in an ETF / Super etc and forget about it. Less time than that, then sure a 2.9% return is basically all you'll get (basically keeping pace with inflation).

    • TAN on 27/12/2018 - 14:33
      +1

      Thanks Elgrande , I have been with OZBARGAIN for more than 10 years and I have noticed many smarter people are here.I think I can get more Ideas from them.

      I don't need to remortgage because I have the same amount money in to my offset account of the interest only loan. Honestly I won't go for apartment option, have an Idea to build my dream house in few years.

      • TheBilly on 27/12/2018 - 14:40
        +1

        I have noticed many smarter people are here

        Lol

  • pernunz on 27/12/2018 - 12:29
    +1

    Whilst not $75,000, have you got Solar Panels on your property?

    I got mine installed (South Australia) this year and looking at a 3-4 year return on investment (~26% ROI)

    • Quantumcat on 27/12/2018 - 13:03

      He's intending that someone buys his property for development though, which may mean knocking down his house, making the solar panels worthless

      • TAN on 27/12/2018 - 14:36
        +1

        Thanks Prenunz , I have no solar panel as Quantumcat said It may knocking down soon, Any money spent on this property is worthless.

  • [Deactivated] on 27/12/2018 - 16:41

    Risk Vs Reward. The greater the risk the greater reward. Banks in Australai are virtually zero risk as all bank deposits are guaranteed by the government, but of course not a lot of reward - maybe 5%.

    Maybe look at vanguard managed funds or some other managed fund.

  • dcep on 27/12/2018 - 17:05

    keep your cash at savings

    we are just dipping from the tip

    you will know when it's time to take it out for investment

  • chansc on 27/12/2018 - 22:38

    Is it possible to use the 75K + fund in your offset as a deposit to buy your neighbour's land? You can then sell the combined land to a developer or develop yourself. Your fund in offset is probably not tax deductible so you may want to talk to your accountant. Note: I don't have enough knowledge of your financial situation and my posts are general in nature, please seek specific advice before acting.

  • meumax on 02/01/2019 - 10:51
    +1

    Where do you get 2.9% for the Suncorp saver account? I went to the Suncorp site and it says 0.2% base rate + 2.4% bonus if you grow account by $200/month and make fewer than 1 withdrawl/month.

  • Christian Schrampf on 18/01/2019 - 09:46

    Hi Everyone,

    There are online investment advice options now that are low cost (under 1% per annum) and very informative.

    Happy to chat with you about it, Christian 0412 816 856.

    https://www.quietgrowth.com.au/

    https://blog.quietgrowth.com.au/active-vs-passive-where-to-s…

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