+1 You should probably examine your motives first, Why and What for ? I think the housing value of this country is about to get the same sort of readjustment the rest of the western world has suffered recently, so if the reason is to hedge the current $ value for the future as opposed to riding things out for the next ten years then you have a valid reason there. You always have the option to sell large or small portions of your stack if need so the argument that PM's can not provide an income is moot. The way the world is at the moment PM's are probably the most stable hedge for the near to long term future you will find. Similarly they are probably (tho not guaranteed but NOTHING IS) going to be rising in value quite a lot. Even if they remained static and housing or other asset prices fall you could still buy back in with better purchasing power if the Aussie dollar drops against other currency's or the Housing market deteriorates as expected. As for storage , get physical, dig a hole, get a floor safe, steer clear of paper or large amounts of shares until things pan out on the global front. As above though ask yourself why you are considering this move. Someone obviously worked long and hard to pass this onto you for sure, but it is your responsibility now to do with as you see fit. You mentioned you think you might have missed the market peak and I think you are right but it isn't going to get any better any time soon worse if anything. Why were you stacking in the first place ? To not piss your money away ?
If there are not a lot of taxes involved, sell the property. Before taxes and insurance, you are getting about 3.24% return on your money. Assuming you cannot increase the rent significantly, your property is an underperforming asset. Even if you keep the money in real estate, you can do far better. I believe Renovator and Contrarian are the two main real estate guys on this board. Go to the real estate section and get their opinions of whether or not to keep the property. What to reinvest the money into is a separate question that everyone will have an opinion on.
Sell the property now - spend half of what you make on PM's (your choice on the G/S ratio), put the rest in short term deposit to spend on shares and/or property when both these markets crash.
I'd sell the house, spend half of the cash on women, booze, and fast cars........then just waste the other half.
Keep the property. If you must sell, sell the house and buy a bigger house if you want an investment. Accumulate silver and gold......sell silver and gold and buy property..... Property is more valuable than silver and gold....sorry guys..... If you sell your property to buy silver and gold, you may regret your decision one day.
E The rich never have to. When the housing bubble hit here in the U.S. many people couldn't run from their homes fast enough. When you had $150 K home that lost $25-$30 K in value or more and an adjustable rate mortgage that kicked in, you really have to think about bailing. That was in 2008. Some of those homes are still vacant and one I know of recently sold for $85 K. I will take gold any day.
The property was inherited, debt free ! No need to sell this hard asset which is generating an income which inturn builds a pm's foundation. one generation earns it, the next comes along and blows it.. think carefully.
I think it would be silly to sell a house which is bringing in an income to buy gold or silver. Yes the house may go down in value but it will still be bringing in an income. Gold and silver could also go down in value or stay the same for years but doesn't bring in a steady income. I would keep the house and just buy gold and silver with part of the income from it every month.
If it were me. I'd sell the property, buy a few cheap (60-100K) 8%+ cash flow properties in New Zealand, or another country other than Australia (using a discretionary trust). Put 100K into silver bullion. Any cash remaining I'd put into a foreign currency denominated bank account. But that's what I'd do.
Perhaps somewhere like Hawke's Bay: http://www.stats.govt.nz/Census/200...pShot.aspx?tab=PopulationDwellings&id=2000029 http://www.realestate.co.nz/1843155 http://www.realestate.co.nz/rental/search/regions/39 But I'd need to do a lot more research as to the exact property.
Since there are so many opinions here this can go to everyone. Why not just put 100% of what you get from the sale of the house into silver? We all feel and know silver will continue to go up and that silver is quite cheap at the moment. If his lifestyle is such that he would not be financially burdened by not having access to the monthly income from rent or the funds from sale available immediately, then why not go all in, long on silver? Just my 2 cents. Be happy to hear everyone's opinion.
