If you won £1,000,000 Friday
Discussion
OK answer to some questions.
Yes it is very possible to buy a flat in London for £200k, you could even stretch to a 2 bed house for a little bit more, in zone 3-6. Yes it's not gonna be a riverside or Park lane pad but that isn't the aim. The aim is to try to secure a £1250 income per flat\house. I previously had exactly such a property for rent so I talk from experience and it wasn't costing me 2 months rent in maintenance a year either (no where near that)
As for Gred_D, lol. I am not in the flush of youth (I wished), hopefully about to buy\move to my second house and believe me, I know all about bills. I am a company director (although not powerfully built) and I would consider myself priveleged\lucky enough to be earning a decent living from what I do and I'd still consider £2.5k adeqaute money to live assuming the big hits like mortagage etc are paid off, certainly not arrogant enough to write it off as pittance when you consider that a lot of people earn a lot less than that and still have to pay the mortgage and get by so lol at it not touching the sides but then I don't drink Veuve Clicquot bucks fizz for breakfast like you obviously do.
This is just in London, if I were to move abroad, I'd be more than happy with £2.5k a month, some people don't make that in 6 months in some of the places I am thinking about and I am not talking about 3rd world back end of nowhere places either and you would be able to live quite an extravagant lifestyle on that kind of income. To be honest with a £1m windfall, I would still work for a bit but only so that I could buy a very nice Villa abroad too and retire within 3-4 years.
Yes it is very possible to buy a flat in London for £200k, you could even stretch to a 2 bed house for a little bit more, in zone 3-6. Yes it's not gonna be a riverside or Park lane pad but that isn't the aim. The aim is to try to secure a £1250 income per flat\house. I previously had exactly such a property for rent so I talk from experience and it wasn't costing me 2 months rent in maintenance a year either (no where near that)
As for Gred_D, lol. I am not in the flush of youth (I wished), hopefully about to buy\move to my second house and believe me, I know all about bills. I am a company director (although not powerfully built) and I would consider myself priveleged\lucky enough to be earning a decent living from what I do and I'd still consider £2.5k adeqaute money to live assuming the big hits like mortagage etc are paid off, certainly not arrogant enough to write it off as pittance when you consider that a lot of people earn a lot less than that and still have to pay the mortgage and get by so lol at it not touching the sides but then I don't drink Veuve Clicquot bucks fizz for breakfast like you obviously do.
This is just in London, if I were to move abroad, I'd be more than happy with £2.5k a month, some people don't make that in 6 months in some of the places I am thinking about and I am not talking about 3rd world back end of nowhere places either and you would be able to live quite an extravagant lifestyle on that kind of income. To be honest with a £1m windfall, I would still work for a bit but only so that I could buy a very nice Villa abroad too and retire within 3-4 years.
Japveesix said:
You're not doing a very good job of not sounding like a flash a
hole 
£2,500 a month for me with no rent to pay would keep me pretty happy. You're not going to be jetting around the world in a private plane and dining at michelin places every night but then I don't really aspire to that anyway.
As said £2,500 a month is comfortably above average wage for the UK and most people pay rent/mortgage of £500+ a month from it.
Anyway, not everyone needs to earn £60k a year just to be able to get by, some people simply live cheaper and equally satisfying lifestyles
Having said that I'd still be working after winning a million, I'd just have a couple of new (cheap but fun 2nd hand) cars and a house all paid for. Which would be nice.
You're right, a job would still be a necessity - repairs and running costs to house, kids and cars and regular, not very luxury holidays are not cheap. I'd agree with the other poster, £2500 a month after just removing the mortgage payment would not go very far in my household.hole £2,500 a month for me with no rent to pay would keep me pretty happy. You're not going to be jetting around the world in a private plane and dining at michelin places every night but then I don't really aspire to that anyway.
As said £2,500 a month is comfortably above average wage for the UK and most people pay rent/mortgage of £500+ a month from it.
Anyway, not everyone needs to earn £60k a year just to be able to get by, some people simply live cheaper and equally satisfying lifestyles
Having said that I'd still be working after winning a million, I'd just have a couple of new (cheap but fun 2nd hand) cars and a house all paid for. Which would be nice.
It certainly wouldn't pay for a second home plus mooring & boat (and ideally somewhere nice warm and hurricane free) which is on my wishlist!
I'd leave the UK for starters and move somewhere warm all year round with generally a better quality of life.
£530k would go on this rather nice property just outside Sacramento, California from here;
With another say £20k to convert the 8 stall barn into a few car garage. Maybe less if it's filled with horses already, how much do glue factories pay these days?
£85k'ish on an enviably well specced ZR-1.
£35k'ish on a new SVT Raptor for when it rains.
Total so far, £670k - not factoring in various incumbent taxes.
I'd probably set aside around £100k to put myself through a few years of American university, with the aim of continuing to support my lifestyle comfortably at the end of it - and use the remains of the lottery money to life a relatively comfortable lifestyle in the meantime.
£530k would go on this rather nice property just outside Sacramento, California from here;
With another say £20k to convert the 8 stall barn into a few car garage. Maybe less if it's filled with horses already, how much do glue factories pay these days?
£85k'ish on an enviably well specced ZR-1.
£35k'ish on a new SVT Raptor for when it rains.
Total so far, £670k - not factoring in various incumbent taxes.
I'd probably set aside around £100k to put myself through a few years of American university, with the aim of continuing to support my lifestyle comfortably at the end of it - and use the remains of the lottery money to life a relatively comfortable lifestyle in the meantime.
Looking at these replies it seems that the advice from PH is that investing in property is THE best investment from now till the end of time!! Can't believe how many want to 'pay off mortgages' and 'pay for a property outright' - there is probably not a better time to borrow money, how long are interest rates going to be at 0.50% for?
You can borrow large sums for 3% p/a with a decent deposit! Why pay off your mortgage unless it is at a v high rate currently, even if it was then use some of the £1M to reduce your current high rate by providing a larger deposit with it. Why is there so much confidence in the housing market? where can you all see house prices going in the next 5/10/20 years? Do you know something I don't?
Surely the answer is invest the £1M in a diversified portfolio which does not include JUST property and either rent a nice house or get a cheap mortgage on one.
By 'paying off the mortgage' and 'buying houses for cash' you are putting all your eggs in one basket and not maximising your capital.
You can borrow large sums for 3% p/a with a decent deposit! Why pay off your mortgage unless it is at a v high rate currently, even if it was then use some of the £1M to reduce your current high rate by providing a larger deposit with it. Why is there so much confidence in the housing market? where can you all see house prices going in the next 5/10/20 years? Do you know something I don't?
Surely the answer is invest the £1M in a diversified portfolio which does not include JUST property and either rent a nice house or get a cheap mortgage on one.
By 'paying off the mortgage' and 'buying houses for cash' you are putting all your eggs in one basket and not maximising your capital.
BoRED S2upid said:
Interesting to see how much people would spend on cars and how many without factoring in insurance, repairs and running costs! How much to insure 250k worth of cars? Got to be 5 figures for most of us.
And you have to keep them somewhere decent....can't leave them outside or under a tarpaulin!The relaity is that if you have £1mil to spend and say you buy a house for £500k and £250k on cars the other £250k would be gone in ten years maitaining the house and cars.
Pay of my debts, the OH's and each set of parents respectively
set up a trust fund for my little brother, nothing extravagent, but enough to give him a good start in life
get myself a new place with a decent garden / garage / workshop, decorate to my taste
spend a bit too much on the VX
get a slightly more practical run around for my daily
get the other half a new car for carrying her around and the dog
get another dog or 2
holiday let somewhere in the alps for winter and summer holidays
toys, jet ski, boat, quad, motorbike and liscence, entertainment systems in house and garage / workshop etc
holidays, nice and hot ones, ones where I can scuba dive, wind surf and kite surf, sit back on a nice warm beach enjoying a drink, and also winter ones too where I can pretend I can snowboard better than I really can
keep the rest in the bank to spend as I wish, clothes, gizmo's, gifts. I have trained myself not too spend too much too freely, why the hell shouldn't I enjoy it for my modest gamble. As long as I'm relatively responsible, it wont all be spunked up the wall within 4 weeks of winning, and if it is, I probably wouldn't remember anyway
set up a trust fund for my little brother, nothing extravagent, but enough to give him a good start in life
get myself a new place with a decent garden / garage / workshop, decorate to my taste
spend a bit too much on the VX
get a slightly more practical run around for my daily
get the other half a new car for carrying her around and the dog
get another dog or 2
holiday let somewhere in the alps for winter and summer holidays
toys, jet ski, boat, quad, motorbike and liscence, entertainment systems in house and garage / workshop etc
holidays, nice and hot ones, ones where I can scuba dive, wind surf and kite surf, sit back on a nice warm beach enjoying a drink, and also winter ones too where I can pretend I can snowboard better than I really can
keep the rest in the bank to spend as I wish, clothes, gizmo's, gifts. I have trained myself not too spend too much too freely, why the hell shouldn't I enjoy it for my modest gamble. As long as I'm relatively responsible, it wont all be spunked up the wall within 4 weeks of winning, and if it is, I probably wouldn't remember anyway
Just been reviewing some figures and it seems that REAL house prices, house prices adjusted for inflation, showed no real increase from 1975 up until 1997 - thats 22 years!!! Are we not heading that way again? You either need to keep 'trading' in and out of the market to realise the gains or sit tight for a long long time!! Property is not very liquid either so 'trading' it quickly is virtually impossible.
£500k invested in lots of flats/small houses in fairly grotty areas (DSS tenants), aiming for 7-9% ROI (maybe optimistic but I hear is very doable).
£150k to move to a nice house in the country & get it how I want.
£25k to pay off mortgage/debts and get gifts for some friends.
£10k on a car (sensible I know!)
£215k invested in whichever way medium term, not touchable.
Become a property developer with the remaining £100k, start small, flats in auction and try and build it up while the interest off the above keeps you ticking over, hopefully in 10 years I've been successful and can fully retire.
£150k to move to a nice house in the country & get it how I want.
£25k to pay off mortgage/debts and get gifts for some friends.
£10k on a car (sensible I know!)
£215k invested in whichever way medium term, not touchable.
Become a property developer with the remaining £100k, start small, flats in auction and try and build it up while the interest off the above keeps you ticking over, hopefully in 10 years I've been successful and can fully retire.
F458 said:
Just been reviewing some figures and it seems that REAL house prices, house prices adjusted for inflation, showed no real increase from 1975 up until 1997 - thats 22 years!!! Are we not heading that way again? You either need to keep 'trading' in and out of the market to realise the gains or sit tight for a long long time!! Property is not very liquid either so 'trading' it quickly is virtually impossible.
You could gamble on the likelihood of another bubble in 20-40 years time, which would see you gain a nicely inflated retirement cash injection.Maybe it's the relative ease with which you can invest-to-let in property, since the commodity is fixed and regulation/maintenance are the only real concerns in the day to day running of the business.
The alternatives would be more involving, such as trading or starting a business; requiring your commitment all day every day to make it work.
On the other hand, I could well be talking complete b
ks 
if you look at ANY investment against inflation it looks less rosey, over 20 years it would need to rise by over 60% just to keep time with long term inflation of C.3%
i've just found an interesting press article:
http://www.zoopla.co.uk/press/releases/027/house-p...
i've just found an interesting press article:
http://www.zoopla.co.uk/press/releases/027/house-p...
Surprised at the number who said they'd blow £100K+ on car(s) if they won a £million.
Unless you already have a lot of savings I'm not sure how you'd be able to afford to.
If I bought a new house (something nice but not too OTT) and then furnished it and made nice then that's at least £400 to £500K, then paid off loans and mortgage on current house, that's another £180K gone. Would need to finish off a few items on the current house before I could rent it out so another £20K there.
So that's reduced my outgoings by £1800 per month, added another £600-ish from renting the house and I've £300K worth of savings to add to my retirement fund.
To piss £100K+ on a car(s) would be crazy IMO, would erode all the benefits of having the win.
Unless you already have a lot of savings I'm not sure how you'd be able to afford to.
If I bought a new house (something nice but not too OTT) and then furnished it and made nice then that's at least £400 to £500K, then paid off loans and mortgage on current house, that's another £180K gone. Would need to finish off a few items on the current house before I could rent it out so another £20K there.
So that's reduced my outgoings by £1800 per month, added another £600-ish from renting the house and I've £300K worth of savings to add to my retirement fund.
To piss £100K+ on a car(s) would be crazy IMO, would erode all the benefits of having the win.
50% in my bank, 50% in OH's bank, go on holiday for 2 weeks to think about it, then come back and sit down and decide what to do.
Likely a couple of improvements around the house, £50k on some frivolities and the rest invested for income. Not enough to be massively life changing these days.
Likely a couple of improvements around the house, £50k on some frivolities and the rest invested for income. Not enough to be massively life changing these days.
- Spend ~£100k on buying my brother a small house that needs tidying up. He's saving to do this at the minute.
- Send my parents off round the world somewhere (£25k?) and give them a gift too (£100k?)
- Then pay off my mortgage (£109k)
- Pay off the £6k ish I owe on the Z4MC (financed just over 1/3 of it for those who are nosey)
- Would buy an Atom 3/similar for £35k (sell the Z4MC)
- Also buy something sensible (the new 330d just announced or a new X5/similar - £45k)
- Go back to Vegas in July and play in the WSOP Main Event ($10k buy-in plus probably another $10k on travel/other events whilst I'm there - £15k ish then?)
- Buy maybe 3 properties and employ my Dad to manage renting them out - income would pay him some and me the rest (£400k)
- Treat a few deserving friends (group holiday/something similar - £15k)
- Bank the remaining 150k - maybe a few random spends (home automation/geeky gadgets?), but largely kept to one side in anticipation of upgrading the house/any future kids, etc.
If only.
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