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Here's what I would do if I got 2 millions reais (I am brazilian ;) - Pay some debt close family members have (parents, brothers) - Buy an apartment, in the s

by inerte 18y ago

Here's what I would do if I got 2 millions reais (I am brazilian ;) - Pay some debt close family members have (parents, brothers) - Buy an apartment, in the same price range I've been looking for in the last couple months (150k tops). Would not buy something more expensive, "just because I can"; - Put everything else in the bank. 80% in the most conservative investment the bank has. 15% on middle stuff; - Travel the world for several months, maybe a year; Then come back, and look at the money again. I think one of the most important things you should do, is simply to not spend much money in the near term. 2m is lot, but it's not enough to live like James Bond. You can't sustain a lifestyle of champagne with hookers while cruising the Mediterranean on yatches. Not for more than 6 months anyway. Going for a 600k house also looks dumb to me. Or anything else too expensive that you wouldn't buy if you didn't had the 2m. Like a Ferrari. You've gotta give time to adapt to your new richness ;) You've gotta understand that you simply aren't used to have a lot of money. Not that I am personally... but I have read stories about lottery winners going to Vegas or blowing all the money on frivolities just because they now can do it. It's the last thing I want to happen to you! And congratulations :)

anatoli 18y ago
Since he's in Canada, 600k would get him an OK house in a good neighbourhood or a good house in a decent/undervalued neighbourhood, not anything great... besides, he would most likely get a mortgage, so he could afford to go even higher than that. 150k would get him hardly anything, unless he lives somewhere in the middle of Saskatchewan. (I speak from personal experience, I own a loft in Vancouver.) I agree with your overall point though.
- thenduks 18y ago
  I mostly agree, you don't want to spend less than 500K on a house if you live anywhere near a major city. But if you live outwards a bit (say, an hour from Toronto or similar) then 400K gets you a massive 3 story house in a quiet neighborhood. Depends on what you're into.
agotterer 18y ago
I agree that spending (wasting?) 150K on a sports car makes little sense from an investment prospective. But what is wrong with buying a house? Its considered an investment. At some point he can hopefully sell it for more then he paid for. Additionally I wouldnt spend the majority of the money on a house, but I want to play devils advocate here.
- inerte 18y ago
  Nothing, as I said, I would buy an apartment, just because that's what I've been looking for in the last months. So the gist is that I wouldn't change my plans just because now I can buy something 4 times more expensive. If I thought, pre-2m, that a 150k living space was enough for me, a 600k place sounds like a waste of money. anatoli corrected me on the pricing, but the essence remains: Do not spend the new money on new, used-to-be-expensive things.

by inerte 18y ago

anatoli 18y ago

Since he's in Canada, 600k would get him an OK house in a good neighbourhood or a good house in a decent/undervalued neighbourhood, not anything great... besides, he would most likely get a mortgage, so he could afford to go even higher than that. 150k would get him hardly anything, unless he lives somewhere in the middle of Saskatchewan. (I speak from personal experience, I own a loft in Vancouver.) I agree with your overall point though.

thenduks 18y ago
I mostly agree, you don't want to spend less than 500K on a house if you live anywhere near a major city. But if you live outwards a bit (say, an hour from Toronto or similar) then 400K gets you a massive 3 story house in a quiet neighborhood. Depends on what you're into.

agotterer 18y ago

I agree that spending (wasting?) 150K on a sports car makes little sense from an investment prospective. But what is wrong with buying a house? Its considered an investment. At some point he can hopefully sell it for more then he paid for. Additionally I wouldnt spend the majority of the money on a house, but I want to play devils advocate here.

inerte 18y ago
Nothing, as I said, I would buy an apartment, just because that's what I've been looking for in the last months. So the gist is that I wouldn't change my plans just because now I can buy something 4 times more expensive. If I thought, pre-2m, that a 150k living space was enough for me, a 600k place sounds like a waste of money. anatoli corrected me on the pricing, but the essence remains: Do not spend the new money on new, used-to-be-expensive things.