If you had the money

kryan1

If you had the money.
Question, if u had money to spend lets say €25,000 to buy something that then you could hire out and generate an income from, what would that be?
Just looking for ideas for a project I am doing for college. If anyone has any ideas, thoughts or inputs, that would e great,
thanks.
kevin

stepbar

Buy two cars, then put two taxi plates on them. Rent them out at 125 - 150 a week. 13k - 15k rent per year. Spend 3 - 5k on maintence / insurance etc. Return on initial investment in 2.5 years. Bit simplistic but you get the idea.

chump

stepbar wrote:

Buy two cars, then put two taxi plates on them. Rent them out at 125 - 150 a week. 13k - 15k rent per year. Spend 3 - 5k on maintence / insurance etc. Return on initial investment in 2.5 years. Bit simplistic but you get the idea.

Non depreciating vehicles I shure hope so.

I'd look into vending/food stalls at events and around cities at night.

I'd look at entertainment items like bouncy castles, Marquees, bars, disco lights etc.

If I think of anything else I'll post em up - good idea I must say

stepbar

chump wrote:

Non depreciating vehicles I shure hope so.

I'd look into vending/food stalls at events and around cities at night.

I'd look at entertainment items like bouncy castles, Marquees, bars, disco lights etc.

If I think of anything else I'll post em up - good idea I must say

Of course the cars will depreciate. For 7-8k you should be able to get a car that is capable of spending 5 years on the road as a taxi (properly serviced and all that).

Two taxi plates - 10k (Non depreciating Asset)
Two cars @ 7.5k a piece (Depreciating Asset over 5 years @ 20% per year. Write off after 5 years)

Lets say you rent the cars for 350 a week each (fully insured + serviced).
(as per http://www.taxitaxi.ie/how_to_become_a_taxi_driver.html)
Gross rent would be 36k. Lets say it costs 10k to insure both taxi's and 3k to service them, you would be left with 23k. Add in depreciation of c3k for the first year and you have a figure of 20k left. Lets say you have other costs of 4k. The final net profit could be in the region of 14k.

After 5 years profit could be anything from 50 - 70k + Asset of 10k = 60 - 80k. Sell the plates and at best you have tripled your money or at worst doubled. However taking the money out of the company might be a problem

Bit simplistic but I'm sure if it was all costed properly you could make good money from it. The above is only used as an example (very realistic)

@1k

Right:

25,000 initial capital.
Say two cars for 7k each,
Thats 11,000 left.
Insurance of 3,000 each
Five grand left
2x Taxi Plates
(5,000) based on above post

You earn 700 a week, thats 2,800 a month.
Assume quarterly servicing @1k per car (maybe too much?)
That leaves 9,200 per quarter for you

Paying off the 5k loan, year one income is about 37,000
less tax, thats 22,200 per year.
Less road tax (forgot it earlier) and other unforseen circumstances, thats 20,000 or so year one.

We ignore non cash charges as this is an appraisal, not a report.

With a life span of 4 years, you should pull in about 22,000 per year (factoring in increased servicing, plus other car related expenses)

All in all, at the end of 4 years, you're left with 80k (abouts)
Worst case, you get 60 grand or so.

kryan1

chump wrote:

Non depreciating vehicles I shure hope so.

I'd look into vending/food stalls at events and around cities at night.

I'd look at entertainment items like bouncy castles, Marquees, bars, disco lights etc.

If I think of anything else I'll post em up - good idea I must say

Taxi would be a great idea, but your failed to take into consideration the wages for the second driver.
Was thinking in the lines of a taxi, but like a drink link for rural drinkers that need a lift home from a pub? Get a few pubs with in a close proximity and say at closing time that you will take all their customers home for lets say 100 euro a week Monday - Friday! There would be a lot of other options on weekends than week days. It mite entice people to go out on week days therefore better for the pub and better all round. The pub can advertise it and they will know that they will have people till closing? If u get 5 pubs that’s 500 a week. Your initial expense would be a people carrier or van, and the license. It would only be one person therefore no need to worry about other wages unless demand is so good that you can then expand the business.

Bouncy castles are popular but there is also a lot doing them. Unless you could offer something different like you will supple music and lights r something but that will only be effective at night and with the majority of these being booked for the likes of christening, conformations, birthdays, this is like a 10-14 age profile that are using these the most. It’s a great idea but it need to be altered to suit a wider range of people.

Marquees I think would take up too much time and capital. Plus you would need to employ one or two people as well to set it up and stuff so don’t think it’s a practical solution, unless you have a bigger finance budget.

Thanks for the ideas guys.
Kevin

stepbar

kryan1 wrote:

Taxi would be a great idea, but your failed to take into consideration the wages for the second driver.

You'd rent out the two taxi's. Its up to the driver to make enough money to pay himself / herself a wage. You pay for the insurance and servicing. My proposal would suit the city where you can get top dollar, more so than the countryside.

democrates

A good education, then rent your time.

stepbar

democrates wrote:

A good education, then rent your time.

QFT

Sir_Ossis

democrates wrote:

A good education, then rent your time.

Are you joking? The value of labour and money is rapidly depreciating around the world.

mike65

Buy a set of plumbing tools. Rent an office and vend property for 1% of value.

Mike.

democrates

Sir_Ossis wrote:

Are you joking? The value of labour and money is rapidly depreciating around the world.

All the more reason to have a good education and high level skills that are in demand.

Specific circumstances may dictate otherwise, but generally speaking, that amount of money invested in stocks, bonds, commodities, hedge funds, the 4:30 at Redcar, a cheap foreign buy to let apartment, or gold, is unlikely to match what you could bring in if you invest in making yourself a professional. Even for entrepreneurs it's wise to have a sound fallback position.

Your point on the trend is well taken at the same time, the current world order suffers systemic flaws, the race to the bottom of labour price is just one symptom, protectionism will make a comeback in some countries unless there is reform of key global institutions.