Looking for Some Investment Ideas

Danger on 25/08/2023 - 18:45
Last edited 26/08/2023 - 00:09

Howdy Bargainers,

I'm looking for some ideas on an investment.

As of this month, my account balance of an offset account is equivalent to my outstanding mortgage ($400k). From next month, my offset account would be in surplus.

I'd like to utilize my surplus for some investment opportunities. I'm open to investing in property or shares.

My current thinking is to pay $300k towards my mortgage and then refinance it to get that $300k back as an investment loan to buy an investment property.

Situation:
Family of 4 (2 kids).
Do not own any investment property or shares.
Family income $180k Gross

Any other ideas?

Financial Investment

Comments

  • Almost Banned on 25/08/2023 - 18:54
    +1

    Like the debt recycling idea.
    I'd consider ETFs and an ongoing investment plan for them.

  • Protractor on 25/08/2023 - 20:57

    Making money?
    No brainer.
    Invest in a psychological counselling business. There will be more demand than supply from hereon in.
    You will be able to name your price,terms and conditions going fwd. If you dive into the govt model trough, you'll never look back.
    :/
    Or given you have 2 kids>

    https://blog.stockspot.com.au/sustainable-ethical-etfs/

  • impoze on 25/08/2023 - 21:10

    can you explain paying $300k towards your mortgage to refinance it and get the $300k back as an investment loan?

    thanks

    • conan2000 on 25/08/2023 - 22:02
      +2

      Taking a loan for investment purposes is tax deductible.

      • ATTS on 26/08/2023 - 18:48

        How do you learn about tax ?

  • AustriaBargain on 25/08/2023 - 21:36
    +1

    For 300k you should probably pay an expert to tell you what to do that will leave you most ahead.

    Greens won't have majority for decades so investment property could be it, I bet we see median house price of at least two million before the bubble bursts. It's like being rare beanie babies before the market collapses, except people need to live in the beanie babies to survive!

  • dukun on 25/08/2023 - 21:43

    I would get an investment property. Say a house for $600K, borrow 80%, interest only, get one you can rent out for $500 a week. Loan repayment at 6% of $480K is $550 per week. Keep it at least 7 years, longer better. With current interest rate, immigration and house shortage; you can tenfold your money in 7 years.

    Your investment is $120K when you purchase $600k property. So when property price doubles from $600K to $1.2M, you tenfold your money. Leverage.

    The repayment is almost covered by the rent innitially, however interest is going down next year and rental is only ever going up, so eventually even out or surplus down the line.

    • blocky27 on 25/08/2023 - 23:19
      +4

      Bro a $600k house is not gonna be worth $1.8m in 7 years

      • dukun on 26/08/2023 - 10:20

        Sorry, I meant 5-fold. Got too excited. $600k become $1.2m in 7 years.

  • conan2000 on 25/08/2023 - 22:05
    +1

    There's a couple of ways to think of investments as well. I have investment properties and shares. Shares paying dividends are no hassle, and can be fairly low risk depending on where you invest. Property investment is a lot of paperwork and can come with a lot of hassle with maintenance, renters not paying etc etc, but likely more lucrative for the level of risk given the tax breaks in Australia. I prefer to diversify investments personally, which you should be able to do with $300k of investment loan as a starting point.

  • Trying2SaveABuck on 25/08/2023 - 22:52

    assuming your mortgage is for an Owner occupied property my [non financial advice] is pay off your house

    there is no 'tax' benefits to your owner occupied home

    • Danger on 26/08/2023 - 00:08

      Thanks.I get what you saying however I'm thinking to invest while getting tax benefits on an investment loan.

      • Trying2SaveABuck on 26/08/2023 - 07:01
        +1

        that is more recycling thing which makes more sense - it depends on your 'outlook' on investments no one 'really' knows whats going up and down if they did they would be a billionaire in Dubai with servants taking care of their needs and supermodels…also taking have of ones needs….

        as someone had said you could always just do the index fund thing VAS/VGS or something like QUAL - i dont know if it is 'worth it' assuming the interest rate on your loan is around 6-7 percent you might be 3-4 percent better off in the 'long run' in the short term who knows so depends on your investment time line

  • geshc on 25/08/2023 - 23:07

    someone on ozbargain said bitcoin is the future!

    • holdenmg on 26/08/2023 - 00:18
      +2

      If that were true, why would they tell you (unless they needed you (or your money)) to make their future brighter?

  • GettingThePlus190s on 26/08/2023 - 07:00

    ETF

  • Ghost47 on 26/08/2023 - 08:49

    Sounds like you’re leaning towards property, invest in that. Basically risk free in Australia.

    • Danger on 26/08/2023 - 09:29

      Yes, looks that way. I've wasted enough time in 'timing the market'.

  • impoze on 26/08/2023 - 10:05

    Can I ask what state you're in?

    If Sydney, which areas would be worth looking at?

    • Danger on 26/08/2023 - 10:09
      +1

      I'm in QLD.

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