What would YOU do with $1m

N

newbie1

Hi all

Just curious to see how others would spend $1m if they had it and what would be some clever options out there.

1) Use it all to purchase a nice home, paid for and debt free & convert current (small) home loan into an IP
2) Pay off the current home - use some of the money to upgrade it & invest in a few properties
3) Use all of it to invest in more properties than you could with option 2
4) Save a little, spend a little, gamble a little, invest a little...
5) Your ideas?..

I know someone in a similar situation and it got me day dreaming...

She's planning to blow a big portion on things that hold little value. Hmm... it would be nice to live for the moment but i can't help thinking what it could do for me in yrs to come... (if i live that long!)
 
I'd invest the whole lot. IP's, some shares (blue chip with full franked div), some for speculation (fun) and give some to charities.
I'd look very carefully at how I might benefit from doing some or all of this through my super fund.
If my kids are reading this, then I'd match them dollar for dollar on money they save for a car. If they're not reading this, they can save and buy their own bloody car, like I had to when I was young(er).
 
I'd rent a castle (well, there's a large vacant hotel near where I live, close enough), employ a bunch of minions at regular going rates and make them do my bidding. Money would be gone within two years but would then come back in force.

1M isn't enough money to do much with, really. With 10M I could build the castle and accommodation for the minions as well and get some serious software licenses.
 
ha ha - funny.

1M really isnt much in the big sheme of things but it's heaps if you start from nothing. Or if you use it wisely anyway.
 
$1m isnt much? Ok, well ill take it if no-one else wants it.

With $1m i would be set for life. The process:

- Purchase PPOR worth ~ $700k pay cash
- Use this as collateral on a commercial IP. Use 80% val of PPOR ($560k) as a 30% deposit on a $1.9m Comm IP.
- Purchase a Comm IP that would have a good 5 year (min) lease in place which would give ~$50-70k after P&I loan as CF+

Now, put the $50-70k into an offset on the Comm IP for the next 5 years, and wait to re-negotiate on the lease, if increase to an acceptable point then retire.

What about the other $300k? spend a little bit on the new house, put some aside as a buffer etc. Nothing to charity as when i retire i plan on starting a charity so the more i can set myself up now the better that will be off in the future.

Use the remainder after a nice buffer is set to buy some shares or a couple of resi IP's.

So in 5 years I will be 27, a $1m PPOR debt free (by then) and hopefully ~ $100-120k CF+ from IP's with a nice equity buffer from reval of comm IP after lease negotiations.

What if lease doesnt get increased? Wait another 5 years and be content with $50-70k CF+ a year :)
 
I would invest the million into property, (residential and commercial), and also nab myself a carwash.

It is something we intend doing a bit further down the path, but I guess it would hasten things along nicely. At the moment our stuff accumulated is IP's and land. I don't believe we need financially for much of anything, we do lead content lives, basically do as we want, travel as desired and have always been involved in philanthropy, that never took money to do or be involved in per se.

You gunna transfer my million electronically or am I getting a cheque? :p

Oh, and thankyou!
 
If I was thinking small, $25k would pay off the PPoR and we could live off the interest of the remaining $999,975 forever. I could get a greenhouse, hydro setup, chickens and sink a bore. Only need about $10k a year to live off, really, that's barely more than the dole.

But paying rent and salary for half a dozen people, outfitting their offices, buying software for half a dozen workstations ... doesn't go far. You seen what IT people expect to be paid these days :eek: Small amount of money would buy us time in a motion capture studio but we couldn't get our own without oodles more dosh. Oh, the things we'd do if we had several million ... *droooool*
 
I'd buy back time so I could be Belu's age again :D and, with the same knowledge and life experience that I have now. That would be a bargain for a million dollars ;)
 
Invest in a mix of resi and commercial IP's, along with 50- 100k going into our business startup for advertising, tv promotion, and equipment.
 
i'd pay out all debt, go on a holiday and take a breather for 6 months - the last 10 years have been a real whirlwind - and then plunge back in with resi developments.
 
pop the cash in some offsets to reduce IP LVR's to zero. Pop remaining cash into fixed interest - this will more than pay for living expenses and allow me to become a full time investor. Rennovate current IP's to improve cashflow and get into small developments in good locations
 
I'd use it to leverage into another business.

The income from the business would be more than enough to live on and service the debts, and the rest would be used to aquire more property.
 
An old drunk replied when asked the same Q, "What would you do if you won $1M?"

"I'd spend $800,000 on women and booze"............"and I'd probably waste the other $200,000". :p
 
buy $1,000,000 worth of Citibank shares at $2 or Bank of America. And hope it goes to $20.

if so $9,000,000 profit in 2 years when the market recovers.
 
Hi, an interesting number for someone Belu's age.

Like Michael, I'd exchange it for time, 25 years.

And it works out to be $40000 per year.

The wage someone would get working for another person.

KY
 
Take it with me on my property shopping trip to the USA on Tuesday. Leverage it into $5M of CF+ commercial property. :)

Yields about 10% on NNN leases, mortgage about 6% (on 80% of purchase price), so cashflow profit 5.2% on $5M = $260K pa.

Yep, that'd do nicely. Hubby could quit work. :)
 
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