caliburn

If you are moving to Australia with say $250k and no job, what would you do with your money? Assuming a small family of 3....

bcworld

No job assumes you can't get a mortgage.

Therefore I'd be renting somewhere that I'd really like to live, even if it's somewhere I couldn't actually afford to buy later.

coolshadows

Rent, buy a car, then relax and explore. Put the rest in the bank as a future deposit on a house (when you are ready).

GOBLIN

Invest the money and create an income stream for my family. I would also ensure that I'm not living off /depleting the savings.

caliburn

Thanks Goblin, that's a good advice. How would you have invested it? Fixed income, equities, funds etc.?

Red_V_Roger

Buy a Winnebago and head out bush.

With the other $249K, I'd spend it on beer and women.

oz bound

Firstly I would use it very wisely, prefer the invest to create an income idea.

Once I had a job I'd use what I'd need for a deposit on a mortgage $20k or what ever the banks are looking for right now. The rest is investment.

Live within your means regardless of what you have in the bank.

It will be very hard at first when you get here you might feel like you're spending money like water I know I felt like that anyway! Get yourself a good financial advisor from the start who will keep you right.

Personally I wouldn't use it to buy a car outright, not a large amount anyway maybe a couple of grand on a wee runaround just to get mobile. I've seen a fair few of folk waste anything from $30-40k on a car on arrival only to not like the cars they've bought, sell them on after 9 months and lose a small fortune on them!

Don't forget, "the more you have the more you spend"

You are in a fantastic position and I hope you use it to your advantage and that it works for you

Ellie x

Seabird

Get everything you can secondhand to start with - there are some great secondhand furniture bargains to be had. Try the local Lions Club... Only cost you less than 1000 pounds for a full house of furniture, then you can chose what you want over time and work out where you can get bargains.

AlliF

At least spend a small amount of it on a decent trip around the country - you may not have time/money to do that one you have a job and mortgage. Its surprisingly difficult to get the time to see this huge country properly once you are committed to a job.
Then invest a large chunk until you are ready to buy a house.
Dont be too miserly with it though as you need to live life for today as well as tomorrow! Enjoy!

IndieG

Keep $200k in a fixed deposit [EDIT - short term - 3-6 month]. Keep $50k aside for expenses, although aim to spend only $20k until you find a job. Once you find work then move the balance savings into a fixed deposit too. Wait until a year or two before even thinking of buying....

harrip

I'd stick it in an instant access online savings account so I get around 5.8% ($1200 per month) return. Term deposits give little more than this and rates are on the up - so why lock it away? This would give me the freedom to withdraw cash as I need it (rent, deposits etc) and have the flexibility to use it for a deposit should the right house come along.

Recognising it won't last for ever I'd do this whilst looking for a job and using the opportunity to see a bit of the country.

GOBLIN

There are a plethora of investment options avilable. It's more of an individual choice to see what you and your partner are comfortable with. I would advise that you see a couple of good financial advisors especially those that are recommended by satisfied clients. As with any important decision, get a 2nd opinion 3rd opinion etc do all the rsearch you can, before you invest.

If you're the entrepreneurial kind, then the best option is to invest in your own capabilities. Become self employed or start/ purchase a small business. However, before you decide, putthe money in a savings account so that you continue to accrue interest on it.

harrip

Could struggle on that one - not sure there are that many in Australia...

caliburn

Thanks for the fantastic advice Ellie, especially on avoiding common pitfalls. Btw, why do you think we should put only the minimum deposit on a mortgage? Wouldn't a larger deposit reduce my interest burden?

oz bound

Yes it would but here are my reasons for why I would not do this.

1. That money can earn you money elsewhere so therefore could in theory be used to cope with any interest burden if needed to.

2. I believe it should be factored into your borrowing any serious interest increases and the effect they would have on your repayments before you borrow anything.

3. I don't believe in having large amounts of money sitting in a house, houses can lose value pretty quickly if a market crashes and then you're out of pocket. "Your house is only worth what someone will pay for it" It could also be argued that "equity" could cushion a crash but I don't like the idea of that.

Hope I don't come across as lecturing! These are just my opinions and what I would do if in that position, not saying at all that they are fact!

Ellie x