I bought my first house and land in Willagee, Western Australia for 130k back in 2000. At the height of the market recently I reckon I could have maybe got 540k for it but decided to sell it recently for 500k. With the proceeds I have paid out my mortgage, paid back the bank for the loan I used to purchase my share portfolio(120K) now worth atm 100k and am now completely debt free. I now rent privately a property in Melville, Western Australia through a friend of a friend. Originally they were to rent the property out through an agent for $600 but when I offered a years rent up front they were happy to take $500 per week (26k). The hosue is 50% bigger and the land is almost double the size (900+sqm). As it stands now I have 150k in cash, 100k in shares (semi-speculative,as seen below) and have guaranteed accomodation for the next 12 months and possibly beyond given that the housing market does not jump through the roof. I'm planning to plonk the cash in the bank at around 6.5% and add to it as much as I can each fornight. Question is have I done the right thing? Any thoughts appreciated :)
