ok guys, i've got this property that is paid off (i.e no mortgage) and is earning $1350/month... looking at the market nowadays i think i can get $500k+ for it if i sell it... i inherited the property and also live a relatively comfortable life too, so its really just extra cash flow atm... i've been stacking gold and silver but haven't really accumulated much yet but i'm really liking it so far, and i'm contemplating on whether i should keep the property or sell it and go all into precious metals.... i know i'm probably asking a very biased crowd on this forum, but i just want to get a broader perspective on this alternative... my accountant doesn't know much about PM's put yourself in my shoes, and tell me what you would do?? get physical gold/silver?? what proportion?? where should i store it?? keep the property?? stock market? donate to charity? etc... ***of course i won't treat the advice as professional investment advice, and the usuall blah blah blah disclaimer...
If I was in your position I would sell the property and go 45% silver 45% gold and keep 10% in cash just in case
House will depreciate and lose value in the current and near term market. Precious metals will appreciate maybe greatly over the next five to ten years but maybe not. Do you need the income ? Are you willing to risk a solid income producing asset for the risk of putting that money into precious metals instead of holding the realestate? Big decision M8, I asked myself the same sort of question recently. I'm still renting.
What you should do and what you would do are two very different things. Personally, I'd either just keep the house and not rock the boat. You can just buy PM"s with the income it generates. OR If you don't mind downgrading, sell the house, buy a smaller house/cheaper area, and buy PM's with the $50K-$150K you make.
Never happy really are we ? You stated you live a relatively comfortable lifestyle, Many people here are into pm's to one day swap them for property. you have inherited the property and now thinking of selling to buy pm's. Depends on your age, goals and stage in life and it depends on what else you earn. look at selling costs and buying back into property costs. why not keep the property ? and spend the $1350 cashflow per month on pm's (then you have both). lucky you !
What is your real estate situation? Do you already own a place? If so, which place is better? If you have a place of your own and want to stay there, sell the access property or rent it out, pay off any mortgage you may have the split any profits 50/50 into PM's. If you have a potential windfall that would get you out of debt I would make that the priority. In the long run you will have probably doubled your money, leaving alot of budget room for precious metals.
Wow lucky you!! I'd go and see a solicitor, set up some sort of trust or something, keep the property but transfer it into the trust, use the income from the property to buy PM's. If you live a comfortable lifestyle already then you must be able to use some of your income to purchase PM's, there's no excuse for not having much if you're comforatble. You should also have your own SMSF.
I get the point but what if you consider it from the point of view that the arse might just about be ready to drop out of the realestate market? 500k in value loses 25% over the next five years ? 500k right now could get you 125 oz of gold and 6000 oz of silver with over a 100k in change for a rainy day. If you'd bought two weeks or so ago you would already be up over 20k in value which would more than cover a years income from the house with less than an 80% investment of it's value. Of course it could go the other way and drop right after such a purchase is made but with the global economy in it's current state of affairs not very likely over the mid to long term is it. If faced with buying property or Pm's at the moment or nearly any other investment take a look at what the really big money is doing.
the concern of that property sounds too much, we can't have it sending you grey. Probably the best thing to do is sign it to me and I will take all your worries away. My services come free of charge.
i don't really need the extra money... it just gets spent on stupid stuff here and there but recently i've been putting it in pm's the reason why i'm interested in the possibility of selling the property is because i think i've probably missed the market's peak and the Aussie property market can only go down from here... what do people think about that?? if i do sell, i was thinking going into pm's for at least the next 2-5 years then moving back into property... do people think that the timing is good for that?? also, what are the storage options on holding large amounts of gold and silver??
He owns something that earns him 1000/month and he didn't pay for it. PM's can't do that, you don't see any returns until you cash them in. The house is basically an insurance policy if he loses his job, needs medical bills, pays for a nice holiday each year etc. Smeagol, you are already where most of us want to be in the years to come if we swap PM's for property. Except we are hoping to use the PM price windfall to get us a property in the future on the cheap, but you've gone past go and have it now, and you didn't have to save money to buy bullion to sell later. Ignore the the actual value of the property or it's potential decline in value (after all you didn't buy it) and just focus on the rental return that you can get now. That's free money!!!!!!! Edit to add: just read your last post, if you don't need the money just blow it on boats, cars, women and beer. Edited again: it sounds like you need to take a long hard look at more than just whether you should sell a house and buy gold or silver. :/
You don't need the money but have no problem risking hundreds of thousands of dollars on an investment which nobody knows for sure will do, all to make more money? I think you need to sit down and write down some goals and what you really want out of life. why not once a month use that money and do something really exciting. Jump out of a plane, go on a bush walk, holiday, go karting, whatever. Write down a list and enjoy life. Most people spend their life worrying about money and how to make more. It seems you have passed that stage, so now just enjoy life since you only get one.
I think the property market will definately go down along with the vale of the aussie dollar. So if you cash out now and convert your $$$ to PM's while the AUD is high, you can't loose. You are preserving your wealth in todays ecconomic climate, as we all know its not going to get much better than it is now.
1)Sell it now. 2)Payout any loans you have ( House and cars etc) 3)Put $250000 on cash deposit for 6 months. 4)Buy 20 oz of Gold. 5)Buy 1000 oz of Silver 6)Buy Westpac and NAB 7)Buy Envestra 8)Buy Duet Group 9)Buy Wesfarmers Just saying.
+1 in a nutshell, keep the property. The hard work has been done, all you have to do is maintain it, pay the taxes, and reap the benefits.
1. If = is further speculating, 2.Of course it could go the other way= is also taking a risk, 3. Why be greedy? he inherited a house (debt free) which gives him $1,350 per month to put into pms' or trips, or "insert here". talk about hit the jackpot !
I think youd be foolish (and thats the politest word I could think of) to sell the property under your stated circumstances. Property prices may fall by another 10 percent but rents wont. Depending on your income you have a number of options. 1. Sell property, buy PM and watch your spouse / partner walk out the door. (Pro: Shiney maybe worth a lot of money one day, Con: Youve just given up a cash producing asset and tomorrows news paper reads something about China having found a new metal to replace industrial silver) 2. Keep property, buy PM with your rent (likely to be the safest option) 3. Keep property, leverage against your rental income / partial mortgage to purchase another property (this is personally what I'd do, interest only spend the principal on making the house / unit look pimp and attracting higher rents) 4. Keep property, get a loan from the bank (research research research) maybe 50 - 100 K and buy PM theres likely to be a raft of tax benefits in doing this for investment purposes. Might be risky if you went the margin loan option but without knowing more (dont tell me) I couldnt really say what you'd be eligible for in terms of borrowing products. 5. Move to Thailand / any other developing country, and live like you would want to live here on your rental income.
