Beansprout said:
Would be interesting to hear your thoughts on that...what else is in that price range apart from yachts?
Well, a fairly limited number of things. The obvious candidates are aircraft (of the private jet variety), property and Old Master artworks. That's why I asked what could be done with £125m that couldn't be done with £100m.
Obviously, almost anyone winning a sum of that order is going to indulge themselves, and for most people, a trip to their nearest Ferrari/Porsche/Aston Martin (etc) dealer would rapidly occur .... if not a trip to all three. I would advocate the latter. Actually driving supercars is not always what you expect it to be, and a Porsche Turbo is a VERY different experience from a DB9 .... so give them both a try. Personally, I would advocate at least two cars: a supercar (of the Ferrari/Aston calibre), AND a day to day car, like a big Audi, Jag, Merc, BMW, etc. I am also a firm believer in having something a little less conspicious (Toyota, VW) etc. Parking an Aston in Tesco car park makes you stand out as a poser and a plonker, and the car stand out as a target. So, we're up to maybe £200-£300k for that little lot. And if you want to increase that and indulge in an Enzo ..... well, welcome to the waiting list.
/EDIT - that last bit sounded like I meant I'm on the Enzo waiting list. For the sake of clarity, I'm not. I just meant you'll have a lengthy wait.
Then, especially amongst a group of techno weenies like you find on here (
), there's going to be some serious buying of computer gear, home audio gear, radio controlled models and so forth. But you're not even going to start putting a tiny pimple, let alone a dent, in £125m (or £100m) with computers and sound gear, unless you buy simply for the sake of buying. So, let's say £100k for a home cinemea system. I put together a no-holds-barred system for $130k (about £76k, but excluding the cost of building the cinema itself) and that included a $30,000 projector and a top-end $15,000 16-seat cinema seating system . I didn't economise on anything, so spending more than that won't be easy. Add £50k for a sound system (as opposed to home cinema) and we're in the talking £130k, but round it up to £150k. That, and the cars, is still under half a mill.
It'll take a little while to organise that lot, and even longer to find/buy/build your dream home. If you stuck your £125m into half decent investments, that lot is perhaps 6 months of income, after which you still have your £125m.
So, now get serious. Property. Where do you want to live, and how spectacular do you want the property to be? The price of a large townhouse in a top area of central London IS going to put a serious dent in your £125m, but it may well also increase in value. So, arguably, it's an investment .... provided the property market doesn't crash. If it does, you can say bye-bye to a large chunk of your winnings, at least for some years 'til the market recovers.
And, valuing multi-million pound properties is an art form .... and potentially a con. Any property is only worth what you can get someone to pay for it. Many very expensive properties come on the market at 'trial' prices, and if they don't sell, they drop. Buying a $40m property isn't a great investment if it's worth $28m a year later, because you were the only one mug enough to pay that price. And no, I haven't done that, but I
did look at the property it happened to.
So if you're really indulging in a grand old pile, careful consideration needs to be given to exactly what and where, and for how much. Personally, I'd much rather be out in the country and instead of an admittedly very impressive house in a swanky neighbourhood in a major city, that same $40m will buy you a 5000 acre working estate (with a revenue from it), and the space to build a 50,000 sq. ft custom designed house, three pools, 5000 ft runway for the Gulfstream and, by the way, custom-designed and purpose-built home cinema and music room for you to install that fancy gear you bought earlier. Oh, and it'll pay for the build too. And leave change.
But DON'T think it ends there. What about power? A couple of 100kW generators and transfer switches is going to be $40k or so. And don't forget about staff, unless you want to spend your life vacuuming, cleaning windows and maintaining that 5000 acres. Oh, and furniture. Decorating a 50,000 sq.ft house takes effort, thought and money, and Ikea just doesn't cut it.
So, having decided just how big a house you want, then comes the investment bit of the problem. Someone mentioned turning that £125m into a £billion. It is NOT that easy. If you're going to do it by chipping away a million or two at a time, it is going to take quite a while. If you're going to expect to double up, you're going to be taking some spectacularly large risks. It's certainly possible to increase a large sum, but I'd suggest it's a lot easier to turn £1m into £8m than it is to turn £125m into £1billion. If you know what you're doing and have the capital to back it, making £1million in property isn't hard to do, and that'll double your £1m starting point. But to do it starting at £125m means buying a LOT of properties and doing a LOT of work. You'll run yourself ragged if you try and, if you're sitting on £125m, why would you run yourself ragged? Why, in fact, would you do absolutely anything you don't wan't to do? Do you want a bigger yacht than Paul Allen
that badly?
A couple of people have said they'd carry on working if they won this this lottery. I fully understand that. I'm not doing badly and haven't needed to work for years, but I have. Why? Because I enjoy what I've been doing. It's a challenge. So I've done it because I enjoy it and wanted to do it. The instant I stop enjoying it or wanting to do it, I'll stop doing it. In fact, I've already stopped a fair bit of work as I wanted to travel less.
And THAT is something not many people have mentioned in this thread .... travel. With a lottery win like this one, there is virtually no limit on the amount of travel you can do, where you can stay or how you get there. But I did say "virtually" no limit. Even with £125m, you're going to put sizeable dents in it if you elect to charter a Gulfstream everywhere you want to go. London to California for a few days is going to set you back the best part of £150,000 for the jet charter alone. Half a dozen of those and you've blown a million. You can't keep that up for ever on £125m. No matter how much £125m seems to be, it is NOT enough to play the billionaire lifestyle for ever.
And that is precisely why I queried what £125m will enable you to do that £100m won't? The answer is you can buy some extra stuff, for sure, and it'll bring in a tidy little extra income for sure, but it is NOT the quantum leap in wealth that puts you in the next category ... that of the private jet and yacht brigade. Or at least, not if you want to preserve the bulk of the capital. You can join the private jet set, for sure, but it'll put one hell of a dent in that money to buy a plane (which is a rapidly depreciating asset), and it'll rapidly eat into it if you regularly charter. And if you decrease the capital by buying indulgences, you decrease the income you can generate from it, and
that has a cumulative effect. The secret is balance.
£125m is certainly enough to set anyone (and their family) up in a luxurious lifestyle, and it's enough for fancy cars, big houses, the best education for the kids, first class scheduled flights, 5 star hotels, gourmet restaurants, and so on. But don't plan on buying too many Picasso oils, or huge yachts. You aren't in that league.