There are many different options for how to manage your money after selling a house in Australia. It is important that you take your time and explore all the possibilities before deciding on one. The most common methods of managing this money can be broken into three categories: spending, saving, and investing.
The best way to save money and get a return on investment after selling a house in Australia is through an income stream fund which will provide monthly payments. It might also be important to note, that using platforms where you can sell your home without an agent may actually help you save a tonne of money on real estate agent commission.
Here are 6 options for saving your money after selling a house in Australia:
An annuity is an income stream fund that makes monthly payments for a set time period. If you are 65 years old you can purchase what is known as an ‘annuity’ which will pay you $1000/month until your death, provided of course that you meet the terms and conditions (i.e.: sign up for at least 10 years.)
In Australia, you can purchase an annuity from a superannuation fund or from a private provider. There are many different options, so it is important to explore the different providers and compare them based on their fees and guarantees to ensure that you will receive a fair return.
An annuity provides a guaranteed monthly income stream for the rest of your life. It is a very stable and safe way to save money after selling a house in Australia, but you will need to make sure that the provider is reputable and able to deliver on this promise before committing your money.
2. Low-Risk Investments
Income stream funds are not the only investment option available, there are other low-risk investments such as term deposits, cash management accounts and bonds that you can choose from. Again, it is important to compare the interest rates of all these investment options before choosing one.
3. Shares and Investments
Another option for how to save money after selling a house in Australia is through shares and investments (i.e.: property). This is probably the riskiest option, but it also has the biggest chance of getting you the highest return on your investment.
Yes, when in doubt just stick to cash! Remember that when managing money after selling a house in Australia there is always an opportunity cost which means that by choosing one option over another you are losing potential income. For this reason, it is important to manage your money sensibly and look at all the possible options before making a choice.
5. Invest In Gold
If you are looking for a safe option for how to save money after selling a house in Australia, then putting your money into gold may be one of your best choices! It is generally accepted that gold will not lose its value and is often seen as a safe option in times of economic uncertainty.
6. Invest In Houses for Passive Income
This is similar to investing in shares and investments but it can be done with less effort than purchasing and managing individual properties. Instead of buying one or two houses yourself, you could invest in a property syndicate. A property syndicate invests in numerous properties which you purchase shares instead of purchasing each house individually.
It is of course possible to save money after selling a house in Australia without investing, but this will mean that your money goes straight into savings accounts where it will not provide any return on investment. This means that you are missing out on potentially hundreds of thousands of dollars. We hope these tips will help guide you through some of the best ways to handle your financial situation after selling a house in Australia.