100k what would you do?

Afternoon,

I have learnt that I am due to inherit in the region of above figure (after tax,IFA fee's etc) and was wondering what you think a 21 y/o male, living in rented housing with friends, should do with it?

Yes there is a million things, I am not planning on being stupid with it, as its a substantial amount.

But views about how to make it grow, or what is a clever thing to do with it at my age would be useful.

Cheers

p.s this isn't a thread about what I should definitely do with it, just to get some ideas from folks that have been in the situation, or have got large suns of cash sitting around

MX5.

1-bed flat / maisonette for yourself, but maybe not yet. I'm assuming you have little savings at the moment (maybe i'm wrong) but i'd leave it in a high-interest [2%!] account for a while before getting onto the housing ladder .. remember, a fool and his money etc. If you have existing debts, combine the flat purchase and deposit into an offset mortgage but this will require discipline .. get it right and what you are spending on rent now should eventually pay off the mortgage.

Keep it until house prices have bottomed out?

combine with some hard saving, and buy a place outright? Or even if you have to take out a tiny mortgage, you'll still be in a good position.

Having said that, I have no idea what property prices are like where you are.

+1

I would put it in property rather than giving it to a bank to look after.

Oh and buy a car thats going to appreciate in value as an investment £10k could buy you a very nice classic.

I'd NOT reccomend buying a place and renting it to mates - they will take the piss (as all students do), and either it'll cost you money, or friendship. if you are investing it, get it put in savings accounts, and for gods ake keep it locked away from the temptation to "just spend a little bit" - getting a house deposit that size takes people years of hard graft, so don't be tempted to squander it.

Or, spend the money on coke and hookers, it;s your cash, so your call =)

PS - sorry for your loss, hope the family is doing OK.

If you have any debts pay them all off then Big deposit on a £120-160,000 house (might not work where you live but here that would be a 3 bed semi with drive and a garage). Shiny new daily driver, something totally impractical for the weekend and a few quid into ISA's and some other products for a rainy day.

A typical mortgage used to work out that you paid about 2/12 times what you borrowed , in todays climate with the introduction of 30 / 40 / 50 year mortgage it can be more, using your £100k to buy into property , whether outright or as a good deposit will essentially save you £150K minimum over the term of a mortgage . Your £100k would go further at auction , possibly buying you a good buy to let property in a less expensive area which should generate a steady return until your plans change.

ETA , You could always put about £10k aside to buy the Busa Bug

http://cgi.ebay.co.uk/BOND-BUG-HAYABUSA-TURBO-0-60...

It'd have to be a really big one for that money though. . .