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  • #999964
    bigmem
    Member
    • Total posts: 4

    Gday everyone. Nice to meet you all. Im not very good at blabbing on so ill get straight to the point. Im going to have a good chunk of cash come my way soon. Something in excess of 500k. Now ive got a mortage but id like to invest rather than paying off. Any ideas, suggestions or maybe you have an idea that needs funding.
    Looking forward to your response.
    YNWA

    #1222070
    Jason Ramage
    Participant
    • Total posts: 3,160

    Howdy,

    Curious, why would you not want to pay off your personal mortgage? from a tax perspective, it could be more advantageous to do this and borrow for investing.. but hey, not a lot of into as to why in the post, might pay to seek advice from an accountant to ensure you are on the correct path with appropriate tax strategies as well.

    All the best..

    J

    Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au   P: 61 3 8324 0344    M: 61 412 244 888
    #1222071
    JamesMillar
    Participant
    • Total posts: 1,676
    LucasArthur, post: 268273, member: 34537 wrote:
    Howdy,

    Curious, why would you not want to pay off your personal mortgage? from a tax perspective, it could be more advantageous to do this and borrow for investing.. but hey, not a lot of into as to why in the post, might pay to seek advice from an accountant to ensure you are on the correct path with appropriate tax strategies as well.

    All the best..

    J

    Spot on Jason.

    bigmem what sort of risk profile applies to you? Do you want to put this all in a high risk investment like small to medium business?

    #1222072
    bigmem
    Member
    • Total posts: 4
    LucasArthur, post: 268273, member: 34537 wrote:
    Howdy,

    Curious, why would you not want to pay off your personal mortgage? from a tax perspective, it could be more advantageous to do this and borrow for investing.. but hey, not a lot of into as to why in the post, might pay to seek advice from an accountant to ensure you are on the correct path with appropriate tax strategies as well.

    All the best..

    J
    Thanks for the response, sorry ive never really posted anything or been a very social media person. Well my thoughts are, I have around 170k of equity in my home. Now would it make more sense investing the cash in other properties, distribute the deposits over a few, to avoid LMI and have the rent leave you a small amount per month, but enough to service the loan.
    So in a nutshell have 5 properties all returning small amounts that equate to 1 property paid in full and the return is roughly the same as the 5 properties combined. Only dofference is having a larger port folio and having capital growth.
    Cheers guys

    #1222073
    JamesMillar
    Participant
    • Total posts: 1,676
    bigmem, post: 268276, member: 116829 wrote:
    Thanks for the response, sorry ive never really posted anything or been a very social media person. Well my thoughts are, I have around 170k of equity in my home. Now would it make more sense investing the cash in other properties, distribute the deposits over a few, to avoid LMI and have the rent leave you a small amount per month, but enough to service the loan.
    So in a nutshell have 5 properties all returning small amounts that equate to 1 property paid in full and the return is roughly the same as the 5 properties combined. Only dofference is having a larger port folio and having capital growth.
    Cheers guys

    I would first considering eliminating non deductible debt first using an offset account. What you do from there requires a quite a bit of thought and analysis across tax and investment elements and you aren’t going to get that from a forum. I recommend you see your accountant and then possibly a licensed financial adviser (unless you prefer to DIY investments because you are confident you can outperform an adviser).

    #1222074
    bigmem
    Member
    • Total posts: 4
    JamesMillar, post: 268275, member: 5318 wrote:
    Spot on Jason.

    bigmem what sort of risk profile applies to you? Do you want to put this all in a high risk investment like small to medium business?

    Id rather go small or medium business. Im just having difficulty consentrating on a certain field, real estate, commericial, business. I thought maybe if a few suggestions fly my way, I could possibly get my backside moving.

    #1222075
    bb1
    Participant
    • Total posts: 4,472
    JamesMillar, post: 268277, member: 5318 wrote:
    (unless you prefer to DIY investments because you are confident you can outperform an adviser).

    The fact the question is being asked on a forum, I wouldn’t suggest any DIY options,

    #1222076
    JamesMillar
    Participant
    • Total posts: 1,676

    ok.

    bigmem, post: 268278, member: 116829 wrote:
    Id rather go small or medium business. Im just having difficulty consentrating on a certain field, real estate, commericial, business. I thought maybe if a few suggestions fly my way, I could possibly get my backside moving.

    Ok. Are you thinking of operating your own business in these spaces or simply investing in someone else’s?

    Word of caution. The SME space is very high risk. Yes when it works you can reap the rewards from being in early but many fail completely which means your money is entirely lost. There are listed small cap investment funds that offer exposure to somewhat more mature early stage businesses and that may be worth considering.

    #1222077
    RunicConvenience
    Member
    • Total posts: 186

    if you want to have a good investment you need to have assets, not expenses on your table already. I would pay down that mortgage use the equity for investing into the business you want because if it is not making you money it is costing you money so anything personal debt should be avoided if possible so you can reduce your needed income while your business grows.

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