What would you do if you won $1mill?

Just for fun....what would you do if you won $1,000,000 tomorrow?

 

Remember one thing....tomorrow never comes!

 

That's boring @datto !

 

Yes, but it's true. We all know what the chances of winning the lottery are, sweet FA.

You could play the lottery all your life and never win the big one. But, by investing in property you may become a millionaire many times over.

OK then. If I won a million I'd buy a sandwich shop.

 

Buy a few mines in WA

 

Geez, when I started writing an answer it was pay down debts. Which is boring!

Unfortunately 1mill really doesnt go too far.... so my strategy will be to build more money first (chunk deals), then look at income replacing investments with that capital.

Answer #2 is:
1. Temporarily sit the money in PPOR Offset (and if no PPOR Debt, put it against the IPs, firstly the one with the highest interest rate), till I am prepared to make better use of the money. Organise to get laser vision correction. (Costs like 6k, right?) Pay back parents and partner the money I owe them. (That's only small sums of money)

2. Take North Epping home off the market immediately and properly consider doing a knockdown and rebuild at North Epping. Then sell that for big bucks. 1 top of the range family home on that land could sell for 2-2.5mill. (Chunk deal) This will set me up with cash for further investing. Once that has sold... a good holiday is in order. (Still done on a budget though!)

3. I should continue to rinse and repeat North Epping strategy, and it can be done anywhere. Find something in a good area that's undervalued, knockdown + rebuild or just extend out or up. Whatever makes sense.
-->Mega millionaire here....

4. Once I have created my millions that's been set up from the above, then invest for cashflow. NRAS, shares etc. Pay down debts on everything as money allows so everything is debt free* Assuming the non deductible debt already has been wiped out, i'd start with highest interest rate on the deductible debts.
*well, better to keep the funds in offsets... it will feel debt free but still available to use!

4. Retire and see the world... buy a classic car. (atm we share a 10 yo car between the 2 of us). Allow the partner to buy the car he wants too.

 

I wouldn't tell anyone.

 

Look for income producing asset so hubby and I can start cutting back on work

 

I would retire.

 

I'd buy 4 places in Adelaide market with subdivision potential at later years. Should generate 41k plus a year, every year, after all costs.

 

I would give up working Saturdays.

 

I would pay down a few of my properties and live off the rent

 

1) Buy an acreage in adelaide hills
2) Buy a horse
3) Install fibre cabling so the internet doesn't suck

 

Maybe it already has but you've forgotten and you can't remember what you've already forgotten

 

Pay off my PPOR loan and drop back to 4 days of work a week ( from 5 days ) to keep a healthy PAYG income stream coming in.

That would allow me to comfortably apply 50%+ of my net PAYG income towards regularly topping up share/ETF investments. At the same time would be able to continue leveraging to buy IPs. Would step into doing small-scale development ( partly because I enjoy the process of building ). This to me is a relatively diversified approach.

All the above would leave me with a significantly-sized offset account applied against IP loans.

Perhaps retire from PAYG work in 6 years instead of 11 years or drop down to 3 days per week at 6 years.

 

Buy a $2.5M commercial IP with an 8% yield. Assuming closing costs of $200k and interest rates of 6%, this would leave you with $98k a year (before expenses other than interest).

 

Move to Utah & become a Mormon.

 

Pay down some debt instead of selling off a few IPs as I move into the next investment phase.

 

Buy a parking lot in sydney...which will be about a mil. Maybe more if it has some views.