Would you quit your job for 1 million quid?

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AndrewP said:
Meh, you are given £1m quid then spend £400k of it on deposits while taking on about £1.2m of debt, all on property, in Peterlee. There's a few potential flaws in the plan imo, the main one being interest rate fluctuations, could easily wipe out a lot of the profit.
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£900k actually ;)

Fixed rate mortgages each 5 years, its easy money tbh, I know a few people who do it.
Worst case is that you sell the houses, and get your money back, save for a horrific house price crash. And at the bottom end of the market, that didn't even really happen after the 2008 crash.
 


I live down south, £1M would be sweet as f**k but ain't going to get me through life.
 
PTR said:
Nah, houses go into a Limited company. The company has the debt on the balance sheet, but also the assets - which will be much more than the debt (75% LTV mortgages)
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What sort of yield are you talking like?

PTR said:
£900k actually ;)

Fixed rate mortgages each 5 years, its easy money tbh, I know a few people who do it.
Worst case is that you sell the houses, and get your money back, save for a horrific house price crash. And at the bottom end of the market, that didn't even really happen after the 2008 crash.
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I thought you were talking 25% deposits, isn't that the "normal" minimum for BTL? So £20k per house would mean £80k purchase price, so £60k per house x 20 = £1.2m?

Bottom end of the market crashed hardest from what I can see and 5 years comes along pretty quickly. Not enough diversity for a lifetime retirement plan, especially if you're buying every property in the same town.
 
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Is the question: could you live until your pension kicks in on that amount (absolutely) or would you quit, spend/save and maybe get a job you like more some time in the future (even more so).

I can draw from pension at 55 and intend to retire then anyway. So if it was a 400 large tax free lottery win that would do nicely over 10 years.

I would fecking love it.
 
Lambchops said:
a million - invest in property to keep the kids ok then work in the bar at the golf club or collect trolleys at tesco for my beer money
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You wouldn't like.

I worked in Sainsburys when I was 17 whilst at Sixth Form and got shafted to work one shift outside on trolleys when it had been belting down with snow, Worst thing going, I'm still cold to the bone now (10 years on)
 
sproates33 said:
You wouldn't like.

I worked in Sainsburys when I was 17 whilst at Sixth Form and got shafted to work one shift outside on trolleys when it had been belting down with snow, Worst thing going, I'm still cold to the bone now (10 years on)
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Snows here all the time. :lol:
 
No7 said:
A million is nowhere near enough. Maybe £8m. I would buy a lot of makeup and I would buy my parents a house. With the rest of the money, I’d try to meet Justin Bieber.

:lol::lol::lol:
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And people say that generation isn't ambitious enough.
 
AndrewP said:
I thought you were talking 25% deposits, isn't that the "normal" minimum for BTL? So £20k per house would mean £80k purchase price, so £60k per house x 20 = £1.2m?

Bottom end of the market crashed hardest from what I can see and 5 years comes along pretty quickly. Not enough diversity for a lifetime retirement plan, especially if you're buying every property in the same town.
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Buy houses for £60. 75% is mortgaged - £45k multiply by 20 = 900k, Spend £5k sorting them out. Value is now at least £65k - £1.3m.

Debt - 900K + Cash spent 400k = Assets - 1300k

You've lost literally nothing, but you have 20 houses, renting for £450/mo, with mortgage costs of approx £150/mo. Expect a bit of loss (no tenant & repairs), 10-15%, and you have £3k per house per year, so actually, £5,000 per month income before tax. Not bad, considering you can sell it all at any time you like.

That's 15% yield, if I'm calculating it right - £400k spend for £60k profit per year (£20k taken as a tax free salary, then £20k each in low tax dividends each - probably get about £50k after tax)
 
If my boss came in right now and said "SRG I'll give you a million quid to fuck off" I'd leave, without hesitation. It would take me 28 years of graft to take that home, I'd be daft not to.

If I won the millionaires raffle or something I would talk to a financial advisor, invest it, and evaluate my options in a year.
 
PTR said:
Buy houses for £60. 75% is mortgaged - £45k multiply by 20 = 900k, Spend £5k sorting them out. Value is now at least £65k - £1.3m.
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You said £400k deposit on 20 houses. That's £20k per house. That would have suggested a purchase price of £80. So you're talking £15k deposit on a £60k house and £5k to do each one up?

PTR said:
You've lost literally nothing, but you have 20 houses, renting for £450/mo, with mortgage costs of approx £150/mo.
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No voids, no scumbag DSS tenants knacking your house, no normal repair bills? Or are you factoring this in?

All it takes is an interest rate rise, coupled with a house price crash and the company goes under. At least your personal liability is limited I suppose. Too many eggs in one basket for my liking.
 
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