What to do with 70k...

[22s]

Hi all,

I am in the nice position of having 70k kicking around doing nothing.

I would like to put it to good use and make stloads more money with it. My first thought is to get into flipping properties and work my way up the ladder Candy and Candy style. I'm 24, work in biz dev at a tech company, and currently don't own a house.

All ideas welcome, thanks in advance...

22s

[Simpo Two]

Can you be a property developer working only evenings and weekends, or would you give up the day job? Renovating properties and/or letting them is time consuming.

[22s]

I would do it part-time initially, then look to leave once I'd accumulated enough cash.

I've been reading a lot of (excellent) books around the subject and realise it is a lot more work than I initially thought, but I have no qualms about working evenings and weekends.

At this stage, I'm not sure being a landlord would suit as the cashflow would be so low on anything I can afford it would take forever to build cash to fund another property (unless I buy intelligently and remortgage a year or so later).

Another idea I had was buying a small studio in the middle of the city I live in and Air BNBing it... 5 nights of occupation would easily pay off the mortgage, and another couple of nights to ensure cleaning etc is taken care of... Could be a nice little earner. Everyone (and I mean everyone) my age uses Air BNB when travelling because it is just so much cheaper than a hotel, and not much more expensive than a hostel where you need to share a horrible room with a bunch of people you don't know...

[85Carrera]

22s said:

Another idea I had was buying a small studio in the middle of the city I live in and Air BNBing it... 5 nights of occupation would easily pay off the mortgage, and another couple of nights to ensure cleaning etc is taken care of... Could be a nice little earner. Everyone (and I mean everyone) my age uses Air BNB when travelling because it is just so much cheaper than a hotel, and not much more expensive than a hostel where you need to share a horrible room with a bunch of people you don't know...

Interesting idea. Which city are you thinking of and what occupancy rates are you expecting?

[jonamv8]

Buy a Ferrari 430 or a Lambo. You are 24 it will be an amazing experience and will give you further impetus to make more money when you flog it and get serious again. You only live once

[bigee]

jonamv8 said:

Buy a Ferrari 430 or a Lambo. You are 24 it will be an amazing experience and will give you further impetus to make more money when you flog it and get serious again. You only live once

Ah, a genuine PH answer...

[98elise]

85Carrera said:

22s said:

Another idea I had was buying a small studio in the middle of the city I live in and Air BNBing it... 5 nights of occupation would easily pay off the mortgage, and another couple of nights to ensure cleaning etc is taken care of... Could be a nice little earner. Everyone (and I mean everyone) my age uses Air BNB when travelling because it is just so much cheaper than a hotel, and not much more expensive than a hostel where you need to share a horrible room with a bunch of people you don't know...

Interesting idea. Which city are you thinking of and what occupancy rates are you expecting?

I've been thinking about Air BnB for a while as well. I have 4 normal BTL's but I want something that creates more cash, for more day to day effort.

[Simpo Two]

jonamv8 said:

Buy a Ferrari 430 or a Lambo. You are 24 it will be an amazing experience and will give you further impetus to make more money when you flog it and get serious again. You only live once

Or wait until he's 34 so he can afford one without wiping himself out. You can only spend money once

[Jasandjules]

If possible I would use it as deposits on two BTLs.

Actually, at your age I would have blown it on an Aston....

[KFC]

All depends how your career is looking and where the money came from I think!

'Biz dev at a tech company' could be anything from a min wage call centre job to something high end with share options.

If your career is going nowhere fast and that money was grannies inheritance, then buy a home to live in would be my answer.

If that £70k was a bonus from work and you're in at the ground level on a tech company you think is a huge winner, then you may as well blow it on a car as there will be plenty more where it came from.

Its easy for other people to say 'you only live once' but its not their money so only you can decide. I don't think you've given anyone anywhere close enough info to try and answer for you.

[sideways sid]

So the PH answer would be:
- Gear up with mortgage to get two studios to enjoy economies of scale for your AirBnB idea.
- Use the surplus income after repaying the interest on the mortgage to finance a 360/430/Vantage.
- Worry about repaying the the capital later, when the car is worth enough to cover it!

[loafer123]

Be aware that AirBnB may well breach the lease terms of many flats/studios. A colleague had to stop doing it, although he did well for a while.

[22s]

85Carrera said:

Interesting idea. Which city are you thinking of and what occupancy rates are you expecting?

Dublin around Temple Bar. No-one wants to live there because it's full of people puking in the streets but everyone who visits Dublin wants to stay (and puke in the streets) there. No idea on occupancy rates but TB is constantly jammed with tourists so would expect most weekends to have some interest.

KFC said:

All depends how your career is looking and where the money came from I think!

'Biz dev at a tech company' could be anything from a min wage call centre job to something high end with share options.

If your career is going nowhere fast and that money was grannies inheritance, then buy a home to live in would be my answer.

If that £70k was a bonus from work and you're in at the ground level on a tech company you think is a huge winner, then you may as well blow it on a car as there will be plenty more where it came from.

Its easy for other people to say 'you only live once' but its not their money so only you can decide. I don't think you've given anyone anywhere close enough info to try and answer for you.

Wasn't a bonus from work but work going well... Already been offered a job at a startup back in London at 2x my current salary and think I have potential to make many x that in next few years. "Career" holds no real interest for me though - want to do my own thing (hence this post).

sideways sid said:

So the PH answer would be:
- Gear up with mortgage to get two studios to enjoy economies of scale for your AirBnB idea.
- Use the surplus income after repaying the interest on the mortgage to finance a 360/430/Vantage.
- Worry about repaying the the capital later, when the car is worth enough to cover it!

This sounds good... Would rather a 458 though

loafer123 said:

Be aware that AirBnB may well breach the lease terms of many flats/studios. A colleague had to stop doing it, although he did well for a while.

How did he get rumbled? I can't imagine this would happen very often unless there is a concierge or permanent security.

[loafer123]

I think the neighbours complained to the freeholder.

[Crimp]

Buy some BTL's
I have one and hopefully buying another couple over the next few months with a view of getting a portfolio.
Sick of the daily rat race TBH, and only need £2k month, as the better half has a good job.

[SirBlade]

I would advise you to invest in blue chip dividend yielding stocks, where you can expect mailbox money at a rate of 2.6%.
Let it compound by reinvesting the annual dividends, until you are ready to retire.

22s said:

Hi all,

I am in the nice position of having 70k kicking around doing nothing.

I would like to put it to good use and make stloads more money with it. My first thought is to get into flipping properties and work my way up the ladder Candy and Candy style. I'm 24, work in biz dev at a tech company, and currently don't own a house.

All ideas welcome, thanks in advance...

22s

[KFC]

anonymous said:

[redacted]

You're making it sound all a bit easy and risk free. Bear in mind he has a full time job and no property buying or developing skills!

[z4RRSchris]

forget being the next "candy" you're too late to the party.

70k go buy a lambo. I'm in a similar boat and am doing the same, ablit I'm a few years older.

[22s]

z4RRSchris said:

forget being the next "candy" you're too late to the party.

70k go buy a lambo. I'm in a similar boat and am doing the same, ablit I'm a few years older.

The problem is that as with anything that makes money, you're always "too late to the party". Want to make an app? You're too late to the party. Want to sell something online? You're too late to the party. Want to start a fast casual restaurant? You're too late to the party. I think if I took that attitude I would never end up doing anything!

I have no interest in buying a car right now... I would hardly use it as I live in the city and it would just be a huge waste (of my money and of the opportunity to enjoy it).

Sounds like property is the way to go, thanks for the advice everyone!

[z4RRSchris]

the other things you've mentioned you can create a great business if you have a great idea, however if you wanted to start a burger joint in shoreditch, again your too late to the party.

ploughing 70k into property in a stagnant market. not the greatest idea.