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/biz/ - Business & Finance

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897888 No.897888 [Reply] [Original]

I've got around £100k inheritance and a mortgage free house at 21.

How much intrest could I get a month from letting this sit in various bank account? How do I make money from this with the least effort possible?

Should I pay off the mortgage on my parents house before I go? As a love gesture?

What would YOU do?

I've got to see an IFA, but I thought you guys would know your shit about personal finance too.

>> No.897898

From sitting in a bank account? Like 1%. Invest in index funds.

Only pay off the mortgage if you're paying more in interest than you could be earning.

>> No.897903

>>897888

Are you saying that you own your own home and your parents still owe on their home? Are your parents still alive or this inheritance money from them or another relative?

How much is the mortgage?
Do you plan to keep this house for any reason in the future?
Does this house have any sentimental value to you?

150k in burger dollars is not a huge amount of money in the grand scheme.

If your parent's home has a small mortgage left on it, then I would just pay it off and rent it out, or whatever you want to do with it. If the remaining balance is a large percentage of your inheritance, then I wouldn't just immediately pay it off.

If you don't care about the house and have no plans for it, I would just flat out sell it.

>> No.897906

go get a business broker and buy a small business. don't know about the welsh hell across the pond, but the small business administration will give a 90% loan to value for an existing small business.
So you've got £1M purchasing power here. if you get a basic business at the average price of 10% capitalization rate you'll be making £60,000 per year after financing but before taxes. use that to pay off your parents mortgage. once its paid you've got £5,000 a month play money.

>> No.897941

>>897898
I was thinking about investments, but I'm terrified I'll fuck up and loose it all.

>>897903
I've lived with them my whole life, they were left the house and they're giving it to me, they're only in their 40s. My mam and dad are still kicking, it's my grandparents that died.

I was going to live in my grandparents house, it's all in good condition and looks good, aside from some decorations.

When my parents die I would most likely either leave it for my little brother or sell it and he can live with me if he's not out in his own.

No idea what the mortgage is on my parents house, but I know it gets paid off when my old man dies.

>>897906
I have absolutely ZERO idea how to do any of that, I'm almost sure I'd do something wrong or buy something stupid and have the whole thing blow up in my face.

>> No.898151

Bump

>> No.898250
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898250

>>897941
Well I just googled business brokers london. and found this page
http://www.entmagazine.com/start-ups.html

looks like they've got government sponsored training camps for chaps like you to teach them how to become a boss.

You'd do something wrong and stupid with any other investment too. You're just as vulnerable now, doing literally nothing with the money. With this you won't lose it all. If you fuck up badly you can re-sell the business. try to build a business that a retard could run. Laundromat for instance. then hire someone a hair above retard to run it for you.

If your laundromat blows up I'm sure the insurance will pay you in full.
beginner business investments
apartment buildings
laundromat
storage facility
parking facility

anyway that's what the broker is for to match you and your capacity with a business that you can run.

some businesses that you should not run as a beginner include
convenience stores
gas stations
grocery stores
restaurants
pubs
bars
anything with more than 5-10 staff.

set yourself free anon, you might fuck it up, but that's okay its not fucking brain surgery. Its a long checklist of stupid shit, and mostly give this paper to this person, and make a lot of phone calls.
Say you fuck up half way and are only making £3000 a month extra

>> No.898261

Sell the house, buy 3 more with the money, rent them out.

In the beginning, you'll have a smaller net income because most of the rent will go towards the mortgage. After 5 years,, you'll be sitting on 3 paid off houses though.

>> No.898368

>>898250
I might go into it with my dad, where as I'm more text book minded he seems to really know how this type of thing actually works "in the real world".

On my own I'd get overwhelmed and end up ruining everything.

That does sound like a killer way to make money while sitting back and relaxing a bit more.

Thanks.

>>898261
I was thinking about renting out houses, but I'd be worried that I didn't have the heart to kick people out or someone would just fuck the place up and cost me a fortune.

>> No.898386

>>898261

>just pay a house off in full in five years!

>no big deal at all!

>> No.898414

Buy common stocks that pay dividends.
Reinvest half of dividends, help parents with other half.

>> No.898794

>>898386
But he would probably easily be able to afford a massive down payment on each, don't see why not. With a good amount of rental income, he could meet those kinds of payments.

>> No.899139

Thank you all, I don't think there's much else I could do with it to make more money.

Thanks.

>> No.899151

100k isn't much, and in a ZIRP environment you're not going to make much.

Unless you know what you're doing, I'd be careful with securities and especially buying a business. If you have no sense of accounting, operating leverage, and a strong understanding of business models, I'd take the time to learn before you do anything.

My inheritance is about an order of magnitude larger but I can't touch the trust fund until I'm much older. These fuckwits at the bank have lost me $100k YTD with 25% in bonds.

How? They have no incentive to give a fuck. But it shows it's not easy to make money unless you're in it for the long haul.

No one cares about your financial situation more than yourself. In that sense there's no one more qualified to manage your money, because you have a strong incentive to care about the results.

But unless you know what you're doing, you could lose a large portion or all of it.

So, I'd recommending taking a deep breath, learning about businesses, valuation, portfolio management and so forth... and then, when you're ready, do something with it. That could be years down the line, but you're young so it'd be good for you.

Good luck friend.