what to do with cash?!?

M

murrayo

what's a guy to do with 500k cash?!?

Hi,

first off, thanks to everyone here, I have read the forum for the last year & have learned some useful information & tips here!

Some advice / opinions please;
My wife & I have moved to Queensland (1yr ago) and we will have approx 500k AUD on deposit (at 8.1%) very shortly.

We are renting at the moment, I own a few IP's abroad (purchased a long time ago & I have no intention of selling them)

We would like to buy a PPoR for cash (around 500k ish ) , but we are hesitant to buy, when we see that the market seems to be rapidly on the decline.... when maybe if we hold off, we could get more house for our money?

The reason we have the lump sum in the first place was a gamble on selling property at what we perceived to be the 'top of the market' abroad, and as it turns out we were right / lucky !

So, hold out & wait to buy PPoR? Investment property ? hold cash? other suggestions??

Thanks in advance!!:)
 
Hi ,

thanks for the reply!

We are mid 30's , starting a family, both working , not looking for huge risk , but also not adverse to a bit if it makes sense !

looking forward to some ideas!!

Thanks,

Murrayo
 
Buy now for what will make u happy

You may get a reduction on x % over the next x months..............but then I can smell a moderate recovery, or at least a re establishment of the floor over the next 12 mths

ta
rolf
 
murrayo said:
So, hold out & wait to buy PPoR? Investment property ? hold cash? other suggestions??

Thanks in advance!!:)
Click to expand...
You could always put 400k into the ASX spread over 6-8 top 20 stock
factor in the div's franking credits in a few months time hope for C-G
or find a undervalued property,money in the bank just goes backwards
once the ATO and everyone takes their share..IMHO..willair..
 
willair said:
You could always put 400k into the ASX spread over 6-8 top 20 stock
factor in the div's franking credits in a few months time hope for C-G
or find a undervalued property,money in the bank just goes backwards
once the ATO and everyone takes their share..IMHO..willair..
Click to expand...

buy $500k centro shares...

when they hit $5 a pop sell em, and have 10mill to play with....

if they go under, rent for next 50 years?



centro is great opportunity, but the days are running out, very quick now @ these prices.

DYOR this is not advice, its an open forum, and thats all.
 
willair said:
You could always put 400k into the ASX spread over 6-8 top 20 stock
factor in the div's franking credits in a few months time hope for C-G
or find a undervalued property,money in the bank just goes backwards
once the ATO and everyone takes their share..IMHO..willair..
Click to expand...

I agree with the shares but there could be some more turbulance so IMHO don't jump into it straight away.
Also you need somewhere to live so why pay rent?
The property markets will soon stabilise because interest rates have peaked and are about to fall, and ofcourse any capital gain on a PPOR is tax free

Cheers
 
Thanks very much for the replies, keep 'em coming !!

I will look into Gold & Silver (I know NOTHING about that though)

I suppose a better question is;

What would you do with 500k cash , today?
 
Murray, what country are your remaining properties?
You want to take on board the RBA announcement yesterday.

Hard to tell where the bottom will be in the US economy, and global credit.

The stabilization of global credit conditions is just one hurdle.

Another is who is going to do all the new borrowing when credit conditions stabilize. I can't see how the US consumer can manage to bounce back to previous levels of expenditure/investment. And I don't think Chindia consumption will fill the vacuum left by a strung out American middle class.

THe greatest risk is a global recession and further deterioration in credit conditions, which will put further downwards pressure on asset prices.

My view:
- 1/3 cash at 8%+.
- 1/3 Aussie oil stocks (Woodside, OilSearch, AWE). if your time line is shorter term consider entering when the 50day EMA crosses above the 200EMA and exit vice versa. If your outlook is longer term, use 140 and 350day EMA. These won't deliver overnight riches but will preserve the greater portion of gains and keep you out during bear runs. I like oil cos the negativity of a global recession isn't likely to outweigh growing global demand.
- 1/3 dollar cost averaging or buying dips in silver bullion
 
I'm with Rolf. Start looking around for potentials for a nice family home and bargain hard. It's a great time to negotiate a bargain in most areas at the moment. The herd is still frozen in limbo land waiting for a sign. :)
 
murrayo said:
What would you do with 500k cash , today?
Click to expand...

I would keep it all in the bank for now - $40 k income pa is not a bad thing to have on the side.

Other than that, some small investments into very diversified capital protected long/short funds....

Cheers,

The Y-man
 
I'd write out of the money puts against various equitys.


murrayo said:
Thanks very much for the replies, keep 'em coming !!

I will look into Gold & Silver (I know NOTHING about that though)

I suppose a better question is;

What would you do with 500k cash , today?
Click to expand...
 
You must log in or register to reply here.

Similar threads

S
Newbie Here - looking for Advice
Replies
10
Views
3K
smokyjoe
S
T
New Investor
Replies
8
Views
2K
TFE
T
Carrot01
please help, I'm out of my depth!
Replies
17
Views
3K
Carrot01
Carrot01
B
What's your price?
2
Replies
27
Views
4K
Tillie
T
MsAli
Next steps - expanding the portfolio
2 3
Replies
52
Views
10K
Mindmaster
M
Back
Top