Would you really spend £750k to generate £2500 per month?
I give you £1000000 What are your first five items you buy?
- Thread starter Vertiginous
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Would you really spend £750k to generate £2500 per month?
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Caporegime
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You guys do realise the houses are STILL worth 750k which can be recouped at a later date.
After 10 years you'd have say 400k cash with interest, probably more and the houses will probably increase in value anywhere between 850-1mil.
THe real way to do it is buy a run down house way under market value, do it up, generate some rent for several years, then sell the house whenever the market is good. Buy again when the market is down(if possible) and do the same.
In the same period that money at say 5% interest would be worth maybe what 1.1-1.2mil if you never touch a penny of it?
30k is more than most people make in a year, god knows what the average is these days, its well above it and assuming you're living with mortgage/rent costs then that goes even further.
Property has worked for thousands of people for hundreds of years. basically getting a return of a higher yield than you can get from interest in a bank is relatively easy.
A worthy investment. Would only take him 25 years to regain the 750,000 invested.
In 25 years with compounded interest you would have massively more than 750k cash and as above you'd still have the houses.
After 25 years at 5% interest £2500 a month is a touch under 1.5mil, and you still have the original value of the houses which could(but unlikely) to have gone down and could have gone up substantially. You'd realistically expect the house prices to go up at least 15-20% over that time.
The reason real estate is good is, rent basically didn't go down during the recession while the amount that 750k could have made in the bank DID go down significantly. Real estate has stood the test of time and has worked in almost any economy with a strong return.
Unless you're buying land and building houses, which can take years and a fairly large chunk of cash upfront, then buy to let is about beating the interest rate the same cash could make in the bank. 5% more interest over 25 years well.
£750000 savings in 5% a year interest over 25 years nets you 2.6mil, at 10% interest over 25 years you end up with 9mil.
Every single percent has a huge consequence, if you get a 7-8% return on your investment you are essentially making millions more over 25mil than sticking it in the bank, if a recession happens and drops interest to 1-3% while your houses are still bringing in 7-8%(a really good buying price can get you higher still) which doesn't dip in a recession is worth SIGNIFICANTLY more over time.
When you factor in things like inflation. 750k vs 25 years later and having 2.6mil isn't going to be massively different tbh. However 9mil 25 years later, that moves you from doing pretty good to rich, 750k at 5% untouched for 25 years doesn't change an awful lot.
This is all an aside, most peoples goals is to use that 2500k a month to secure a mortgage on another property, then rent that, then some months later building up a bit more cash you get another property, and another mortgage. After 10 years you've gone from 5 houses at 2.5k a month income to 15 houses and 7.5k a month interest and something you can tend to run part time on top of a normal job. Long term investment and someone could retire 5-10 years early and on top of their pension they can still be bringing in another 100k a year.
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Yep.
Where you gonna get 5% interest on cash?
Even if you did make £400k after 10 years that's still an abysmal return on £750k in my opinion.
You can't really rely on values going up too much either. I doubt those glory days will return for a long long time.
I'd spend around 50-80k on a fast saloon like an M5 or E63. Then I'd spend about 400-500k on 3 properties to rent.
I'd live off the 2k per month I'd get from rent for about 6-12 months. Sooner or later I'll be approached by some dodgy characters who'll want to convert my properties into cannabis farms and meth labs. Probably strike a deal with them, and make roughly 100k per month. After about five years, I'd have net 6m dirty cash from the farmers and chemists, during this 5 years I'd spend 1m of the dirty money on high class escorts, taxi fares and cocaine. Therefore at the end of the 5 year period I'd be left with 5m cash, 500k in assets and 500k spare from the initial 1m. At this point I am unsure what I would do. I may choose to sell the houses and have 5m cash and 1m legitimate money and live happily ever after.
I'd live off the 2k per month I'd get from rent for about 6-12 months. Sooner or later I'll be approached by some dodgy characters who'll want to convert my properties into cannabis farms and meth labs. Probably strike a deal with them, and make roughly 100k per month. After about five years, I'd have net 6m dirty cash from the farmers and chemists, during this 5 years I'd spend 1m of the dirty money on high class escorts, taxi fares and cocaine. Therefore at the end of the 5 year period I'd be left with 5m cash, 500k in assets and 500k spare from the initial 1m. At this point I am unsure what I would do. I may choose to sell the houses and have 5m cash and 1m legitimate money and live happily ever after.
1. Pay off mortgage
2. Go to nearest Aston dealership
3. Pick up a really expensive bag for the Mrs.
4. Holiday somewhere lavish and exotic.
5. Quit job! Would need some good investments first.
Then once I've had my fun the usual give parents / brothers an easy life.
2. Go to nearest Aston dealership
3. Pick up a really expensive bag for the Mrs.
4. Holiday somewhere lavish and exotic.
5. Quit job! Would need some good investments first.
Then once I've had my fun the usual give parents / brothers an easy life.
Caporegime
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1. Pay off remaining £200k of mortgage.
2. Buy a large but fast car, something like an RS6. £100k.
3. Give my parents £100k.
4. Buy a couple of properties. £400k.
5. Invest the remaining in unit trusts or something having skimmed off £10k for the holiday of a lifetime.
Pretty standard really!
2. Buy a large but fast car, something like an RS6. £100k.
3. Give my parents £100k.
4. Buy a couple of properties. £400k.
5. Invest the remaining in unit trusts or something having skimmed off £10k for the holiday of a lifetime.
Pretty standard really!
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Buy 20 150k houses or flats to let all on btl repayment mortgages.
Pay off 100k on this mortgage, sell up and build my own place circa 500k
Fast track my start up firm with some of the rest.
Pay off 100k on this mortgage, sell up and build my own place circa 500k
Fast track my start up firm with some of the rest.
I'd give it back unless I'd earnt it, I don't take charity.
But for the sake of argument, I performed a contract killing and you paid me £10m?
I'd buy a tract of land, a huge PA system and stage, a lot of beer, then I'd throw a massive festival for charity. I'd probably buy a new PC as well.
I'm not too fussed about money, I'm at the point in my life where I know I could make a lot of money. But provided my bills are paid I could do without the stress of it all. More money, more problems.
Hell, if I could I'd take the paycut and go down to 30 hours a week tomorrow. But not zero, yet, you can't sit in the sun all day for the rest of your life, and if all your mates are working, what are you supposed to do all day?
But for the sake of argument, I performed a contract killing and you paid me £10m?
I'd buy a tract of land, a huge PA system and stage, a lot of beer, then I'd throw a massive festival for charity. I'd probably buy a new PC as well.
I'm not too fussed about money, I'm at the point in my life where I know I could make a lot of money. But provided my bills are paid I could do without the stress of it all. More money, more problems.
Hell, if I could I'd take the paycut and go down to 30 hours a week tomorrow. But not zero, yet, you can't sit in the sun all day for the rest of your life, and if all your mates are working, what are you supposed to do all day?
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Pay off both mine and parents mortgage, plus I'd probably buy a different house - say £450k gone
Money to "play" with - £150k
Leaves me with about £400k, realistically I'm not going to have given up work on £1m, though with no mortgage I'll have a really rather nice life! So it would either need to be invested, banked (doesn't seem worthwhile though, you'd get what, 2% return and inflation would overtake it pretty soon) or buy a couple of flats to rent, but i'm not convinced there's any real return in that - though it's unlikely I'd lose out too much plus if it's anywhere near a city centre you're pretty much guaranteed income.
Money to "play" with - £150k
Leaves me with about £400k, realistically I'm not going to have given up work on £1m, though with no mortgage I'll have a really rather nice life! So it would either need to be invested, banked (doesn't seem worthwhile though, you'd get what, 2% return and inflation would overtake it pretty soon) or buy a couple of flats to rent, but i'm not convinced there's any real return in that - though it's unlikely I'd lose out too much plus if it's anywhere near a city centre you're pretty much guaranteed income.
The first thing I'd buy would be a slap-up meal for my family to celebrate. (1)
Then I'd be looking at new cars for myself (2) and my wife (3), paying off my debts (4) and getting someone in to sort out the house (5).
Items 2, 3 and 4 would probably get shifted around in order but I think that would be the top five.
Then I'd be looking at new cars for myself (2) and my wife (3), paying off my debts (4) and getting someone in to sort out the house (5).
Items 2, 3 and 4 would probably get shifted around in order but I think that would be the top five.
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Soldato
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1. Pay off mortgage
2. Hip replacement for Mum
3. Renovate house exactly as I want it
4. New cars
5. Whole family holiday
2. Hip replacement for Mum
3. Renovate house exactly as I want it
4. New cars
5. Whole family holiday
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a) House
b) No expense spared honeymoon
c) New car for the other half
d) Pay off mortgage of current property
e) Invest in redeveloping property we have abroad.
If I didn't have to spend it all - then the a & b would be priority. Then the rest I'd invest/put into savings.
b) No expense spared honeymoon
c) New car for the other half
d) Pay off mortgage of current property
e) Invest in redeveloping property we have abroad.
If I didn't have to spend it all - then the a & b would be priority. Then the rest I'd invest/put into savings.