Someone hands you $125K...

[MikeH]

Re: Re: Re: Re: Someone hands you $125K...

Originally posted by bfg9000



What about dividing the amount to make a minimum deposit on a number of units, yourself living in one, and then rent out the rest until property values raise to the point where it makes sense to sell them off.. Perhaps this would work best in a University town..

I'd just buy a place and have an affordable mortgage and live in it and keep working, would be a great chance to get on the property ladder, which I can't at the moment 'cause it's stupidly expensive round here.

I'm happy enough, don't need to be a millionaire.

[pchang]

Originally posted by chegitz guevara
Pay off all my debts. Open a business.

The rest of the commies will be revoking your membership in about 5 minutes.....

[C0ckney]

Originally posted by bfg9000


A secret business. Something illegal, perhaps. Don't use that money to deal drugs, CG. There has to be a better use for it..

with that sort of inital outlay, drugs would be a very solid investment, if a bit on the risky side.

[Brundlefly]

Originally posted by Japher
A minimum depost usually doesn't bring the mortgage down enough to have competitive rents. So, if you mean mimium such that you cash flow cancels out payments, then ya that might be a good idea... if you don't mind being a landlord.

Yes, that's what I mean. If the rent can cancel out payments and upkeep that's all you need. Where you hope to make money is by purchasing in an area where property values are very likely to increase. Sell all the units in 5 years and make a bundle..

I recently read something interesting about how to choose the right location for real estate. Toll Brothers, a wealthy builder on the East Coast, recently revealed how they pick new sites for development. They locate where all the Starbucks are in a given county and then search for undeveloped land in a 20-mile radius from each Starbucks. Apparantly, Starbucks attracts wealthy people..

[chequita guevara]

Originally posted by bfg9000
A secret business. Something illegal, perhaps. Don't use that money to deal drugs, CG. There has to be a better use for it..

No, it just an idea I had, which I think will be really successful, so long as no one else gets there before me.

[el freako]

Re: Re: Re: Re: Someone hands you $125K...

Originally posted by bfg9000

What about dividing the amount to make a minimum deposit on a number of units, yourself living in one, and then rent out the rest until property values raise to the point where it makes sense to sell them off.. Perhaps this would work best in a University town..

The housing market is so overvalued here in the UK that rent's will not pay the interest on mortgages so that method will lose money.
If you add in the fact that house prices are 40% above their long-term trend then it also makes furthur capital appreciation extremely unlikely.

In short I think that would be an excellent way to make yourself bankrupt.

[General Ludd]

Why would I want to be a millionare?

I'd either buy a house/studio or just hold on to it for when it's needed.

[Brundlefly]

Originally posted by chegitz guevara


No, it just an idea I had, which I think will be really successful, so long as no one else gets there before me.

I had a friend who had an idea like that once. He came up with a way to modify a hooded cat litter box to completely remove cat smell no matter how long since you've last cleaned the box. He had a piece of ductwork extend from the top of the box to the exhaust fan in the bathroom. Where the ductwork attached to the litterbox, there was a small fan inside the ductwork which helped push the air from the box upward to the exhaust fan..

It worked really well and he thought he had a unique product based on his own patent research. However, when he began the patent process, an attorney discovered that a similar product had been patented. His dreams of being a litterbox tycoon were destroyed.. At least he gave it shot, though..

[General Ludd]

Originally posted by bfg9000


I had a friend who had an idea like that once. He came up with a way to modify a hooded cat litter box to completely remove cat smell no matter how long since you've last cleaned the box. He had a piece of ductwork extend from the top of the box to the exhaust fan in the bathroom. Where the ductwork attached to the litterbox, there was a small fan inside the ductwork which helped push the air from the box upward to the exhaust fan..

That's a terrible idea.

[Provost Harrison]

Same as MikeH - would make a handy deposit...

[Brundlefly]

Re: Re: Re: Re: Re: Someone hands you $125K...

Originally posted by el freako


The housing market is so overvalued here in the UK that rent's will not pay the interest on mortgages so that method will lose money.
If you add in the fact that house prices are 40% above their long-term trend then it also makes furthur capital appreciation extremely unlikely.

In short I think that would be an excellent way to make yourself bankrupt.

What about on the fringes of metropolitan areas along well-traveled roads? Areas like this which are largely rural but where expansion driven by city folk is likely only a year or two away usually have reasonable housing prices.

[Japher]

I need that, my cats litter is stinky.

[el freako]

Re: Re: Re: Re: Re: Re: Someone hands you $125K...

Originally posted by bfg9000


What about on the fringes of metropolitan areas along well-traveled roads? Areas like this which are largely rural but where expansion driven by city folk is likely only a year or two away usually have reasonable housing prices.

I suggest you read up on 'The Greenbelt'

Now is an absurd time to invest in UK residential housing, in 3-4 years it will probably be much better.

[Flubber]

Re: Someone hands you $125K...

Originally posted by bfg9000
Tomorrow, someone hands you a check for $125,000. What do you do with this money? How would you invest it to become a millionaire? Oh, and btw, you no longer have a place to live, so you need to consider that as well...

THis is not that theoretical to me in a sense. If I sold my house, I would likely garner net proceeds of between 120-150K. However I choose to continue to have a home.(Housing values have appreciated for the 3 years I have owned this home)

If I had no house and was handed 125K, my decision would be the same . I would use the bulk of the money to purchase a home (making a 25% payment against the purchase price to avoid having to buy mortgage insurance). If there was much left I would choose some broad-based mutual funds.

[Pekka]

I would invest 50k safely, 25k to banking account (I'd live with that money for all my studies, rest of them, easily, glorious) and 50k I'd use to set up the company with few of my talented buddies from school we've been dreaming of.. with that much capital straight cash, we'd get another 50k easily as loan, and 100k would be enough for us to get it going on and run it for a year or two alone.