What would you do with 200k

chrishar

Say you're 30 and stripped off all your assets except for 200 k in your pocket. What would you do with it?


Would the first sensible thing be to buy a house outright?

Or would you use it for something else?

chockydavid1983

First thing would be open a bank account- wouldn't wanna be walking around with £200k in my pocket! :-)

Shedman

Go on one hell of a bender :beer: :rotfl:

HappyMJ

chrishar wrote: »

Say you're 30 and stripped off all your assets except for 200 k in your pocket. What would you do with it?


Would the first sensible thing be to buy a house outright?

Or would you use it for something else?

£200k in £20 notes would weigh some 10.9kg and have a volume of 15.85 litres. I'd need bigger pockets.

I could carry it but I couldn't put it in my pocket.

With half the money I'd buy 4 three bedroom terraced houses each worth about £100k with a 75% BTL mortgage (for tax efficiency) ensuring the rent paid the interest on the total amount of the mortgage investing the rest to earn to give me a small income each month.

I'd then live with my parents not paying them any rent as has been proposed on here many times even though I'm against that and I'd work part time as the income I could get from the remaining £100k would not be quite enough to pay all the bills.

In 15-20 years once the properties had doubled in value I'd sell one per year and retire on the proceeds and never work again.

ColdIron

Is this a hypothetical question or does it apply to you? There are many other factors to consider, personal circumstance etc. If you can provide the information you may get a useful answer, if not it is essentially unanswerable

chrishar

I suppose the question is of where to put money first. Like the savings fountain Martin Lewis created. However that fountain assumes you already have a mortgage I believe. So with the intention of working as little as possible and not taking any silly risks where would you put the money first? Doesn't have to be 200k but just a figure enough to buy a modest house outright for yourself to live in.

HappyMJ

chrishar wrote: »

I suppose the question is of where to put money first. Like the savings fountain Martin Lewis created. However that fountain assumes you already have a mortgage I believe. So with the intention of working as little as possible and not taking any silly risks where would you put the money first? Doesn't have to be 200k but just a figure enough to buy a modest house outright for yourself to live in.

I would not buy a house outright. I would only ever buy with a mortgage even if I had enough money to buy one outright.

You can pay much less in interest on a mortgage than you can earn by putting the money in investments such as regular savers, stocks and shares or your pension.

You should never ever put all of your money into one basket. Spread it about. Some in property, the house you live in, some in cash and some in your pension invested in stocks and shares.

nb73

I'd put £100k in the other pocket, just in case

typistretired

In this day and age you wouldn't be able to live on the interest on £200,000 even if you spread it across high paying current accounts isa etc. So buy yourself a small house minimum deposit which allows flexible repayment as if interest rates go up a lot you may want to pay the mortgage off faster.

colsten

I wish we had an "ignore thread" function on this forum.

grey_gym_sock

chrishar wrote: »

stripped off all your assets

buy some clothes.