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Original poster

what would you do with 100k if you were me

21 replies

tawt · 26/05/2020 20:19

We don't have a lot of money, I'm on a part time wage and looking for other work and DH is a FT carer for a family member. We live in a private rented property and have no savings. We have significant debt.

In an ideal world DH and I would start our own business and we've discussed in some detail going into property development.

I would want to pay off our debt and get a mortgage. DH wants to start our own business. I do too but I'm risk averse and ultimately we can't agree on what type of business. I'm very cautious and he's more lets just go for it.

If you were in receipt of this amount of money what would be your priorities? All suggestions welcome!

OP posts:

blackteaplease · 26/05/2020 20:23

Do all of the DIY required in our ramshackle old house. Buy a new car and then stash the rest into savings split between me and dh and the three kids.

Namechange8186 · 26/05/2020 20:26

If it was me I’d be getting a boob job and doing a ton of traveling once this is all over

However If I was you I’d probably get on the property ladder And clear debts . Not sure what the business idea is you have so I guess you need to figure out how much you need to do it !

PegasusReturns · 26/05/2020 20:28

Clear the debt and put down a deposit on your own home.

Definitely don’t go into property development unless you have significant skill/experience.

madnessitellyou · 26/05/2020 20:29

Do everything that needs doing to the house then put the rest on the mortgage. It’d make a nice dent in it so we’d be able to pay it off sooner. Might put some aside for a couple of nice holidays.

Siablue · 26/05/2020 20:30

How much would it cost to buy in your area? Could you get a mortgage on your salary? If you could buy a place I would.

How much is the debt?

turtletum · 26/05/2020 20:30

I'd clear debt and get a mortgage as I'm risk adverse too. However, the current property market is tricky, house prices are likely to fall, but mortgage rates are great for the borrower.

KellyHall · 26/05/2020 20:32

Get a mortgage and pay off debts.

Any viable business plan would get a new business loan from most banks. Just make sure it's a limited company so your private home isn't put at risk.

PontiacBandit · 26/05/2020 20:36

Be debt free and use any left as a deposit on house. New businesses are too hit and miss to risk that sum of money.

TeacupDrama · 26/05/2020 20:36

Sensible suggestion

pay off all your debts completely
set up a rainy day fund ( covid has shown we all need one) 3 months livings expenses minimum 6 would be better
the present is not a good time for making long term financial decisions so invest it in a savings account for now
do you need anything? a car upgrade
some people might set aside £2-5000 for a holiday

Can you blend your idea and DH's and buy a house that is just about liveable and do it up then sell on and then do the same a few times each time there should be bigger deposit smaller mortgage then you should be able to have a house for you to stay in more permanently and maybe there will be enough equity to buy a second house for his ideas by this time it could be his fulltime job so it provides an income stream

sessell · 26/05/2020 20:37

Clear debt and get mortgage. Look to save an emergency 6 months survival fund. That way you will always have freedom to walk away from bad situations and choose a better option. For the business look into a govt backed startup loan - if the business fails you won't have to pay it back.

Eskarina1 · 26/05/2020 20:37

A friend of my husband sold his house and invested in property development. It went wrong and he lost most of his money. Get on the ladder, hopefully save a lot through paying off debt and paying a mortgage with a good deposit and crazy low interest and save for when the time is right to start a business

Happydaysforever123 · 26/05/2020 20:42

Oh my lovely pay off your debt, put a deposit on a property for yourselves, then develop it in your spare time let that be your first development. If you add loads of value to it sell it and buy a bigger property so you can make more money next time.

InFiveMins · 26/05/2020 20:44

I would go with your suggestion and clear your debts but would you be able to get a mortgage in your position? Clear your debts and then what would be left - could you use some of that for a new business perhaps?

rookiemere · 26/05/2020 20:49

Clear your debts
Put down a deposit on a property. Maybe you can get a doer upper which is habitable. That way you could renovate it gradually and if it's feasible sell at a profit at the end and then repeat.

I'd be very wary of investing any of it into a business proposition on its own as I think to make money that way you need to be very clear about what business you want to get into and be prepared to put in a lot of hard work to make a profit.

Original poster

tawt · 26/05/2020 20:53

These are great suggestions, thank you.

I think renovating our own house is quite a good compromise to being with.

OP posts:

Didiusfalco · 26/05/2020 20:56

Buy a house that needed renovating and see if I could do it up and make some money on it if I was you. If it turns out to have made no money, its not a problem because you have a lovely house that you can just stay in.

DuckALaurent · 26/05/2020 21:06

Just had similar dilemma with 80k.
Decided to pay off unsecured debts then extend our home. Leftovers for DD’s future and a little for a holiday and odd treat.

I did the maths and to move to a better home would take up all the money (debts paid off was always non negotiable) that was left over and possibly increase our mortgage and I didn’t want that.

It was a choice between A). taking risks on a new house that would swallow up it all but be bigger.... or B). reign in some dreams and be happy with doing up our existing house.

I wanted to come out more secure financially so B is the path we have chosen.

cyclingmad · 26/05/2020 21:07

Pay off debt first
Second have rainy day incase you lost your job
Third with money left over look at buying if possible and lower expectations e.g. buy a doer upper

I wouldn't be starting a business in these times especially if your not super clear on what the business is and no firm plan in place. It will be a money pit.

DuckALaurent · 26/05/2020 21:08

Sorry forgot to add that then our home would be worth more so we could choose to stay of we now loved it or sell then. Recouping some of the money spent that way. Either way it benefits us in the end.

fluffi · 26/05/2020 21:42

If I were you I would:

pay off all debt
put aside 6 month living expenses into savings
put aside money for legal & moving costs and essential goods/furntiture if you did buy a home (not sure if you're renting furnished or unfurnished @tawt?)
deposit for mortgage and any "doing-up" costs for your first home depending on how much work you want to take on

As others have said get a fixer-upper and "prove" your property development idea that way. If you've not done it before you might hate it and at least you'll have only spent the money on your own home rather than potentially losing in a business.

Original poster

tawt · 27/05/2020 11:13

Ideally I wanted a home that we wouldn't be moving from for a long time as we've moved a few times over the years as is common with renting. And so our kids could decorate their room the way they wanted to.

However, having read most people suggesting buying a doer upper, it does make sense. A plus of moving often is that you realise you can make anywhere (within reason!) a home. We'd also have the flexibility of staying a month or 2 longer in our rental should the property require extensive work that would need to be carried out before we moved in.

OP posts:

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