Investing properties equity after sale?

dan76n on 01/02/2016 - 07:59

We are selling our house which we have a fair bit of equity in (500k+) and are looking at our best options for safely investing this for a year or 2.
We plan to move back to the NSW south coast and purchase a house.
We are looking at a few scenarios.

Online savings account. If we go down this path I'm willing to use my mobile phone porting skills to take advantage of introductory offers if that's possibles?

Buy a property in Robina and sell it in 12-24 months. This eliminates $30,000 rent per year but at the risk of a property market slump. Essentially if we rent we will get to offset the $30,000pa with interest form our savings. We aren't high income earners (wife on paternity leave helps) so won't pay heaps of tax on the interest.
if we bought we would need to take into consideration the stamp duty from buying and agent fees from selling.

Term deposit is an option but limits us to buy if we find a property between now and 1-2 years time. (So does buying a property at Robina.

Financial

Comments

  • tomleonhart on 01/02/2016 - 08:26
    +1

    For 1 or 2 years I'd consider high interest saving account. Shares/ property / bonds are all long term investment IMO.

    I'd split that 500+k into several accounts as i know some of the bank only pay high interest up to 200k. And in case a crisis hit and the bank go belly up, you're guaranteed 250k by the gov.

  • mskeggs on 01/02/2016 - 08:45
    +3

    Would an option would be to buy now where you wish to end up now, and rent that out until you move there? That way you are assured if there are further price rises you have already secured your property, and you get the rent for the time it is let out.

    • dan76n on 01/02/2016 - 11:56

      Yes this is probably one of my options linked with using online savings as we can access the funds if need be.
      Wife is a little hesitant in buying down there without living there for 10+ years. She wants to rent down there for a while too.
      Prices Wollongong to Gerringong have hopefully peaked now.

  • Donaldhump on 01/02/2016 - 09:18

    rams 3.4%, up to 200k. just open multiple sub accounts. in same scenario is you, and it sucks.

    i live in robina for 440 a week coincidently

  • ukulele on 01/02/2016 - 09:45

    The thing with property is that transaction costs are too high with stamp duty etc for just one year or two years.

    • humdingaling on 01/02/2016 - 10:25

      ^^ associated costs of buying/selling property outweigh pretty much any capital gains/rental income you will likely get in most cases

      unless you have a property which you can flip but that would generally require you to do some serious work on the property (while fending off other people who do this for a living)

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