your maths is making me confused. you earn 1.5% on your £750k. So that's £11250, but you also have to pay rent of £18k per year. So you are out by £6750. Not up by £9750
“Let’s do our maths on the 1.5% a month deal which is the simplest to work out the essential maths.
If I sell up and move into similar rented accommodation that will cost me 1,500 a month. However, my income from my invested money will be 1.5% of 750,000, which comes to 11,250. Subtract the rent cost, and I am left with 9,750 a month spending money.”
So I am getting 1.5% a month from the invested sum of 750,000. That comes to 11,250.
Subtract the rent I now have to pay, also monthly, which is 1,500, and by my calculation I have a similar home plus an extra 9,750 at the end of each month.
What you’ve done is mix two different calculations. I have listed monthly figures. You have changed the rent to an annual figure, which is why you are getting an unfortunate result.
Ok I see the mistake. So you are saying you get an 18% return on your £750k capital lump. I find that very hard to believe and you maybe getting it but the risk must equally be very high.
Half the UK could sell their homes for £750K and then have an income of £135k per year at 18% return. It doesn't happen because those returns are very risky.
I can't agree with you that it is as simple as you say. I am a small LL and have no debt. For me to move out of property and into another asset which pays similar returns I just can't find anything.
I'm lazy so everything I do is tailored to be relatively simple and easy. I started life with no money, and my ambition when leaving school was to spend my life mucking about. I certainly didn't want to waste my time working for someone else's benefit. I regard that as not risky, but absurd. Most people presumably like things that way. I spent my twenties either bumming around the world or doing occasional odd jobs. That way I learned the power of arbitrage. When I'd made some money, I then put that money to work for me, and I have done that ever since.
I can send you details of investments that routinely pay between 16% and 50% p.a. The only possible snag is that most such investments will only accept a minimum of 50,000. I am content with 1.5% a month. All these investments are perfectly safe. If they were risky I wouldn't invest.
your maths is making me confused. you earn 1.5% on your £750k. So that's £11250, but you also have to pay rent of £18k per year. So you are out by £6750. Not up by £9750
Here’s what I wrote:
“Let’s do our maths on the 1.5% a month deal which is the simplest to work out the essential maths.
If I sell up and move into similar rented accommodation that will cost me 1,500 a month. However, my income from my invested money will be 1.5% of 750,000, which comes to 11,250. Subtract the rent cost, and I am left with 9,750 a month spending money.”
So I am getting 1.5% a month from the invested sum of 750,000. That comes to 11,250.
Subtract the rent I now have to pay, also monthly, which is 1,500, and by my calculation I have a similar home plus an extra 9,750 at the end of each month.
What you’ve done is mix two different calculations. I have listed monthly figures. You have changed the rent to an annual figure, which is why you are getting an unfortunate result.
best wishes
john
Ok I see the mistake. So you are saying you get an 18% return on your £750k capital lump. I find that very hard to believe and you maybe getting it but the risk must equally be very high.
Half the UK could sell their homes for £750K and then have an income of £135k per year at 18% return. It doesn't happen because those returns are very risky.
I can't agree with you that it is as simple as you say. I am a small LL and have no debt. For me to move out of property and into another asset which pays similar returns I just can't find anything.
I'm lazy so everything I do is tailored to be relatively simple and easy. I started life with no money, and my ambition when leaving school was to spend my life mucking about. I certainly didn't want to waste my time working for someone else's benefit. I regard that as not risky, but absurd. Most people presumably like things that way. I spent my twenties either bumming around the world or doing occasional odd jobs. That way I learned the power of arbitrage. When I'd made some money, I then put that money to work for me, and I have done that ever since.
I can send you details of investments that routinely pay between 16% and 50% p.a. The only possible snag is that most such investments will only accept a minimum of 50,000. I am content with 1.5% a month. All these investments are perfectly safe. If they were risky I wouldn't invest.