What would you do in my Situation?

Glacier

I'm 24 & inherited E750,000 house, no mortgage and have E75-80,000 in investments & savings and you wanted to get rich, what would you do?

Bluehair

Glacier wrote: »

I'm 24 & inherited E750,000 house, no mortgage and have E75-80,000 in investments & savings and you wanted to get rich, what would you do?

Umm...... (me scratches head).... you are rich :rolleyes: Enjoy it....

stepbar

Glacier, you've been lurking round these boards for a while now and TBH there's a lot of stuff we "could" say but at the end of the day you need to concentrate on a path in life and stick to it. You seem very unsure as to what path in life you want to take. To be fair it can't have been easy to be in your suitation at 24.

If you want my advice (for what it's worth), you need to invest in yourself. Invest in a career. Invest in something that you want to do and do it. You could probably do with going to a good career advisor and doing some tests to see what sort of profession would suit you. Volenteering / Going away on a trip round the world before you make that decision may be a good idea. There's no rush. Remember you retire at 65 But I think you need to make the call, otherwise you'll spend your life wandering aimlessly not knowing what to do.

Tyrant^

buy low sell high ? ( houses, stocks, business)
You should eventually get rich then !

Poncherello

Stepbar is right, very good advice

Get a good accountant, there are plenty of low risk ways of making that money work for you while you decide what you want to do

Mint Sauce

Glacier wrote: »

I'm 24 & inherited E750,000 house, no mortgage and have E75-80,000 in investments & savings and you wanted to get rich, what would you do?

if that was me, carry on with my current job, live comfortably on my wages, i have no mortage and rent to pay, and maybe take some time out and consider my options, whats your interests, ambitions, dreams, etc

von Neumann

750k +80k is not that much in the grand scheme of things.

Invest in yourself (Education / personal development /golf membership / Health, Dental Care etc).... and work your socks off.

Just don't let it go to your head .

El Stuntman

bear in mind that the value of your principal asset (the house) is dropping like a stone by the day and will undoubtedly settle at a level far below your 750k 'valuation'

either sell it now or plan to live in it for the long term, one way or another it's not going to make you rich

shnaek

What stepbar said. Invest in yourself. Very good advice there.

gabigeist

Make a long term plan. I am in a similar situation. I have inherited about 300k and have saved about 80k and I am 28.

The key (as others posted) is to decide what you want to do. I want to be in a position to retire in 20 years (I may not but I want to be financially secure enough to retire if I want). To do this...

Use my 80k savings as a deposit on a house for me. Take out a 20 year mortgage and use my income to fund this mortgage.

Invest the 300k in a mixture of stocks and property. I aim to have €1m (excluding own home) in 20 years so I'm going to stick half in stocks immediately and the other half will go on deposit until I think property has started to bottom out (6-12 months hopefully). I will then buy an investment apartment with the 150k on deposit and I'll balance it so that the rent covers the mortgage over 20 years.

Assumikng house prices/rent go up 4% per year over 20 years and stocks go up 6% per year, I should then:
1) Own my home outright
2) Own apartment generating c.3k per month
3) Own stocks worth c. 500k

Inflation will knock about 40% off those real values and I won't be mega-rich but with this as a safety net, I think I can take more career risks and hopefully start to earn mega-money that way.

Anyway, that's the financial side of it - family etc is the enjoyable part

kmick

Talk to a financial advisor. Dont go for one of the free ones though. They are always linked in commercially and are not independant. Really your only decision is what to do with the 80k. I mean unless you are going to sell the house and trade down for an apt or something. By the sounds of it the 80k is already in investments and savings so again it may not be advisable to move out of those depending on returns. Do you work?

Diarmuid

umm, you are rich.
Now the idea is to maintain and grow that wealth. Get some independent financial advice for 2 or 3 sources and you should have a better idea.

Glacier

You think the house value is going to continue to drop, does anyone see a rebound?

Shad0r

I definitely wouldnt sell the house anyway unless you have no choice. It will eventually be worth more than the 750k you are being told its worth now. Also being told your house is worth 750k now and selling it for that are two very different things.

The best advice I've heard is to invest in yourself. Figure out what you want to spend the rest of your life doing and go get taught how to do it. You will have very little overheads, and while you aren't wealthy enough to live off the money you have for the rest of your life you are in a really really good place to become very wealthy if you make the right choices with your money.

First thing I'd do is stick the cash you have into some form of low risk investment (not shares!)

Glacier

At one point it could have been worth E850, do you really think it's ever going to hit that again?

Shad0r

Of course it will. Its just a matter of time. Apparently house prices have on average doubled every 7 years since the end of the 2nd world war. We've had a recession in there too.

It's basic supply and demand. We will always need somewhere to live and the population is increasing all the time. Eventually things will level out and the demand will overtake supply again.

Glacier

Anyone agree with that?

stepbar

Why are you concentrating on the value of your house? At the end of the day you will have to find somewhere else to live even if you sell your house. Forget about selling your house. You have no need to TBH. Invest in yourself. Anything else is futile at this point.

pocketdooz

stepbar wrote: »

Why are you concentrating on the value of your house? At the end of the day you will have to find somewhere else to live even if you sell your house. Forget about selling your house. You have no need to TBH. Invest in yourself. Anything else is futile at this point.

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