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Unread 5 Feb 2005, 18:41   #51
demiGOD
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
PPS Property prices go up by 5-20% per annum? How the hell can people buy houses in the first place?
house loans -
-get approved a loan for $200,000 - finance it through monthly payments - house appreciates to lets say $250,000 the year after - sell the house for $250,000 - you have $250,000 from selling the house, at the same time you pay off the $200,000 loan - you made $50,000 from just owning a house and selling it within a year

ofc, with $1mil, i dont need loans and financing, which is better..
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Unread 5 Feb 2005, 18:43   #52
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by demiGOD
if i had 1mil, ill buy 2 big houses that will appreciate at 15-20% (and will go up as cost of living goes up), so i make around 30-40% of the money invested every year - have both houses rented, the money i make from my tenants will be used for maintenance of the houses - whatever's left will be put in a savings bond, or a mutual fund - i will keep working to pay the usual personal bills and expenses - this way i make money off of the 1mil no matter where the economy goes

-but then again, thats just me..
Sounds like you read this out of a book. Unfortunately it's not as easy as you try to make it sound. Renting out expensive houses is extremely hard, and on top of that, you will lose most of that money to real estate commisions. Also, you make the mistake of assuming property values will continue to go up. All signs point that the U.S. is in the middle of a housing value bubble, so I expect prices will drop about 25% sometime in the next 5 years.

Also, how do 15-20% = 30-40%?
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Unread 5 Feb 2005, 18:43   #53
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Re: £10,000 per month or £1,000,000 once?

You do realise that loans come with interest don't you?


And by interest I do not mean a passing fancy for the odd game of badminton.
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Unread 5 Feb 2005, 18:47   #54
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
At 20% a 200,000 dollar house in 1995 would now be worth ~1.24 million.
its not a constant 20% because of the same reason you mentioned, its a trend continuously going up but its a variation of 5-20, with a little of 2% here and 30% there, and with the odd appreciation of properties back in 2002, but still is a trend of appreciation, which is good in california because youre positive that its always going to be a good investment for owning a house
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Unread 5 Feb 2005, 18:47   #55
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
You do realise that loans come with interest don't you?


And by interest I do not mean a passing fancy for the odd game of badminton.

Housing loans are ridiculously cheap in the U.S. right now. Like 5% cheap.
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Unread 5 Feb 2005, 18:50   #56
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
You do realise that loans come with interest don't you?


And by interest I do not mean a passing fancy for the odd game of badminton.
fixed interest, might be overwhelming on the 1st half, and really easy towards the end of the loan, but thats if you plan to keep the house, most home owners buy houses to invest, and sell it that moment where a boost of appreciation is noted - but like i said, i wont have any loans with $1mil
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Unread 5 Feb 2005, 18:53   #57
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by Azof
Also, how do 15-20% = 30-40%?
off of 2 houses bought like mentioned on that post but i didnt say its easy.. if you want an easier way of investing without much work, play stocks.. but then again, you can lose a lot in a matter of hours so, screw that shit.. heh
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Unread 5 Feb 2005, 18:55   #58
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by demiGOD
its not a constant 20% because of the same reason you mentioned, its a trend continuously going up but its a variation of 5-20, with a little of 2% here and 30% there, and with the odd appreciation of properties back in 2002, but still is a trend of appreciation, which is good in california because youre positive that its always going to be a good investment for owning a house
This guy disagrees.

PS I don't know what you were saying about prices continually going up. According to this they went down in the early 90s. I'm pretty sure the early 90s are within the last sixty years. That guy thinks they're going to go/slow down as well
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Unread 5 Feb 2005, 18:57   #59
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by demiGOD
off of 2 houses bought like mentioned on that post
are you using the same perception as numbers that the white house is running off? it would explain a lot
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Unread 5 Feb 2005, 18:57   #60
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Re: £10,000 per month or £1,000,000 once?

Demigod not the best person to invest money shocker.
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Unread 5 Feb 2005, 19:01   #61
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Re: £10,000 per month or £1,000,000 once?

i heard about this system where you bet on black and if you win its cool but if you lose you just double your first bet and you keep on doing this if you're losing for 15 spins of the roulette wheel and by the 15th attempt you're bound to have won and all you need is like $120k or something which is practically nothing and you're bound to double that money up which is nice and prolly the best way of investing your money
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Unread 5 Feb 2005, 19:04   #62
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Re: £10,000 per month or £1,000,000 once?

You only double your money if you win the last bet dace
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Unread 5 Feb 2005, 19:05   #63
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
You only double your money if you win the last bet dace :(


Yeah because other than that it's a SOLID LOCK OF A PLAN!
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Unread 5 Feb 2005, 19:08   #64
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Re: £10,000 per month or £1,000,000 once?

Despite the hyperbole, investing in property in many places probably would be a good idea. If you had invested a million pounds in London property ten or fifteen years ago you'd be laughing today (at least doubled your money, in other instances like with ex-local authority properties far more than that).

However, looking at houses at as an investment like a bond or shares is slightly misleading. Over time houses need repairs, maintenance and management. if you rent them out then you need to have systems (or people) in place to collect rent, manage tenancies, relet properties, deal with legal issues, carry out minor day-to-day repairs, etc.

Even if you leave a property unoccupied and just sell after x months (which is pretty crazy in most circumstances) you'd need to be wary of legal fees when selling, repairs still need to be carried out, security (squatters) and so forth.

Having said all this, property still can make a good investment. It's one area of the economy which is not corporate dominated (well, mortgages obviously are, but the ownership/management of property) partially because historically it attracts government intervention in the form of rent control (at least in Europe).
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Unread 5 Feb 2005, 19:09   #65
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Re: £10,000 per month or £1,000,000 once?

You should play russian roulette I hear if you win you clean up.


*giggle*
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Unread 5 Feb 2005, 19:11   #66
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Re: £10,000 per month or £1,000,000 once?

My parents' house is now worth about three and a half times as much as it was ten years ago, which works out at about 15% a year, so it's not that ridiculous a concept.
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Unread 5 Feb 2005, 19:22   #67
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by Proteus
My parents' house is now worth about three and a half times as much as it was ten years ago, which works out at about 15% a year, so it's not that ridiculous a concept.
Does that bear out across a region of 60 million people, ie the UK, though?
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Unread 5 Feb 2005, 19:25   #68
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
You only double your money if you win the last bet dace
Actually, if you win the last bet you only double your initial bet. If you start with $1, and eventually win a $1.05m dollar bet having lost the rest along the way, you'll still only gain $1.

Quote:
Originally Posted by DemiGod
off of 2 houses bought like mentioned on that post
x/2 * 20% + x/2 * 20% = x *20%, not x * 40% you buffoon. Other people have been trying to get this across to you, but you've been ignoring their subtle overtones.
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Unread 5 Feb 2005, 19:28   #69
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Re: £10,000 per month or £1,000,000 once?

Point. How the hell did I miss that?
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Unread 5 Feb 2005, 19:31   #70
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
Does that bear out across a region of 60 million people, ie the UK, though?
Obviously not, but it means that if you can pick a good market (or if you're just very lucky) you can make more than just 5-10%. (I'm not implying that demiGOD would be able to do this, of course.)

Quote:
Originally Posted by MrL_JaKiri
x/2 * 20% + x/2 * 20% = x *20%, not x * 40% you buffoon.
Well that just about ruins my plans to buy 10 £100,000 houses and triple my money in a year.
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Unread 5 Feb 2005, 19:38   #71
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Re: £10,000 per month or £1,000,000 once?

Seriously though guys I lost £5k doing that "doubling up" thing, don't do it.
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Unread 5 Feb 2005, 19:40   #72
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by Dante Hicks
Seriously though guys I lost £5k doing that "doubling up" thing, don't do it.
It only works if there is no limit to the potential bet money. You don't have infinite money, and most casinos (and similar) have betting limits for precisely this reason.

Generally, the only people who actually try it are those who try to 'beat the system' without thinking it through.
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Unread 6 Feb 2005, 10:03   #73
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by MrL_JaKiri
x/2 * 20% + x/2 * 20% = x *20%, not x * 40% you buffoon. Other people have been trying to get this across to you, but you've been ignoring their subtle overtones.
?!??!?!
x/2(.2) + x/2(.2) = x(.2) ??!????!?
hmm let me look at it from another algorithm based on your equation from your post...
x/2(1/5) + x/2(1/5) = x(1/5) ?!??!?!??!?!??????????!!!!!

dude.. what the **** are you talking about??
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Unread 6 Feb 2005, 10:10   #74
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Re: £10,000 per month or £1,000,000 once?

I've never actually met someone who just flat out denied mathematical truth
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Unread 6 Feb 2005, 10:21   #75
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Re: £10,000 per month or £1,000,000 once?

Clearly he hasnt thought to try this with actual numbers.

Or maybe he has...
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Unread 6 Feb 2005, 10:22   #76
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by demiGOD
x/2(1/5) + x/2(1/5) = x(1/5) ?!??!?!??!?!??????????!!!!!

dude.. what the **** are you talking about??
"Mathematics"

Lets try this shall we.

Where x = 1

1/2 * 1/5 + 1/2 * 1/5 = 1/10 + 1/10 = 2/10 = 1/5 = x *1/5.

Alternatively:

(x/2*5) + x/(2*5) = (1/(2*5)) * 2x = x/5

Did you even THINK before posting that you witless dunderpate?

Furthermore, that's not an algorithm. Christ.

Last edited by MrL_JaKiri; 6 Feb 2005 at 10:34.
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Unread 6 Feb 2005, 11:36   #77
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
I've never actually met someone who just flat out denied mathematical truth
Is he American?
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Unread 6 Feb 2005, 11:59   #78
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Re: £10,000 per month or £1,000,000 once?

In terms of alcohol demiGod, does drinking 2 half-pints get you more drunk than drinking one pint?
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Unread 6 Feb 2005, 13:16   #79
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Re: £10,000 per month or £1,000,000 once?

This thread suddenly delivered
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Unread 7 Feb 2005, 00:26   #80
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by MrL_JaKiri
"Where x = 1

1/2 * 1/5 + 1/2 * 1/5 = 1/10 + 1/10 = 2/10 = 1/5 = x *1/5.

Alternatively:

(x/2*5) + x/(2*5) = (1/(2*5)) * 2x = x/5
.
i understand that equation, you witless dunderpate (thats an interesting derogatory phrase, btw) i confused myself with the appreciation rates on 2 separate amounts with whole numbers, thats why i inadvertantly added them both to come up with 40% - my bad

anyway, it seems like a lot of you guys would rather acquire the money and spend it instead of investing (although it was mentioned without specifics) - its just to me, personally, buying property is the least risky of all investments, i understand JBG's link on california property values cycling (although its still an increasing trend) but obviously, if the value drops, is not a good time to sell, just like when dealing with stocks

if anybody's got a better idea for investing a huge lumpsum, or even better on investing 10K at a time, please post accordingly (Yahwe..)
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Unread 7 Feb 2005, 00:30   #81
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by demiGOD
?!??!?!
x/2(.2) + x/2(.2) = x(.2) ??!????!?
hmm let me look at it from another algorithm based on your equation from your post...
x/2(1/5) + x/2(1/5) = x(1/5) ?!??!?!??!?!??????????!!!!!

dude.. what the **** are you talking about??
it also just dawned to me how stupid this post was - and no matter how much i hate to give the i was drunk excuse - i was drunk.. so thats that.. my bad
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Unread 7 Feb 2005, 00:40   #82
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Re: £10,000 per month or £1,000,000 once?

Admitting your mistakes is entirely admirable. I would pos-rep you but the system won't let me.
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Unread 7 Feb 2005, 18:06   #83
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Re: £10,000 per month or £1,000,000 once?

Quote:
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Admitting your mistakes is entirely admirable. I would pos-rep you but the system won't let me.
I did it for you
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Unread 7 Feb 2005, 18:18   #84
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Re: £10,000 per month or £1,000,000 once?

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Unread 8 Feb 2005, 08:13   #85
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Re: £10,000 per month or £1,000,000 once?

If you look at DM's bit ... the 10k will eventually wear off and be almost considered useless, with me being 21 at this very moment it will prolly mean that i have to start saving the moment i am getting it so I do not have to work at the age of 56 :| if you estimate i become 80 or 90 or so (a very frightening thought)

while the 1 million could be invested and an anual return rate of 7 to 9 percent should be made of it , and big money generates big money (if you are smart) so the million will grow each year, more then the inflation and will only increase my current standard of living, which means that I can just stay in the same situation i am now, with mucho better life circumstances and a capital which is constantly growing, till a point where i can start consuming it so it will be about 0 when i reach the age of 90.

I think that is the best option.

(with an anual intrest rate of 3%, 10000 now would be worth 4010 in 30 years ... i still have 30-50 years to go then, so i should save up a ****load now to just have some decent money then.)

http://berflonet.nl/~theamion/calculation.htm for those intrested in an intrest rate of 3% a year, if you live for 64 years from now it is about 5k a month on average, a grand total of 3,4 mill received, where as 1 mill with 8% ROI might give you more, should calc that through, but at 0810 i am not that arsed.

Also the 10k a month doesn't allow for any big purchases which a loan might help, but that would seriously cut in on your monthly revenues ....
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Unread 8 Feb 2005, 08:15   #86
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Re: £10,000 per month or £1,000,000 once?

http://berflonet.nl/~theamion/calculation-plain.htm for those of you without IE (like i found out while watching this page in firefox)
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Unread 8 Feb 2005, 12:40   #87
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by Knight Theamion
while the 1 million could be invested
So you're saying you don't want a system where you have to save, you'd prefer a system where you have to save?
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Unread 8 Feb 2005, 13:07   #88
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by JonnyBGood
Point. How the hell did I miss that?
you were still giggling
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Unread 8 Feb 2005, 14:29   #89
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Re: £10,000 per month or £1,000,000 once?

i think i would go for the 10k a month. if you wanted a house you cud just get a mortage like everyone else, and with a guarenteed income of 10k you wont miss repayments.

ive just looked for a ortgage quote from the northern rock building society for a anual income of 120k and ya can get a mortgage for £480.000, imho thats more than enuf to get a pretty good house
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Unread 8 Feb 2005, 14:41   #90
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Re: £10,000 per month or £1,000,000 once?

Quote:
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Financial investment advice
You really shouldnt be posting in this thread
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Unread 8 Feb 2005, 14:54   #91
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Re: £10,000 per month or £1,000,000 once?

Quote:
Originally Posted by Mek

ive just looked for a ortgage quote from the northern rock building society for a anual income of 120k and ya can get a mortgage for £480.000, imho thats more than enuf to get a pretty good house
I can see you've not been to London.
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Unread 8 Feb 2005, 14:59   #92
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Re: £10,000 per month or £1,000,000 once?

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Originally Posted by Yahwe
I can see you've not been to London.
It is more than enough to get a pretty good house. He never said where you would be living.
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Unread 8 Feb 2005, 15:02   #93
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Re: £10,000 per month or £1,000,000 once?

I am gonna buy myself a club, some hard men and some whores and the money will come rolling in :P
And also I will become a loan shark so gimme my million.
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Unread 8 Feb 2005, 15:30   #94
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Re: £10,000 per month or £1,000,000 once?

I assume this is either tax free or the 10k is a post-tax figure (as I doubt the government would let you get away with all that with no tax on it). If not the tax and so on takes a big chunk out of what you have to work with.

With this assumption, I'd go for the 10k. I could get a good house round here with an easily affordable mortgage, and its not like Cambridge is a cheap area, Plus a couple of thousand to play with a month, all bills and food counted in, and have an easy 3k to put away to keep me going once inflation makes 10k a month not such a good amount. Also of course, 25 years down the line when this is starting to be a problem, youve paid off the mortgage and theres another 2.5k a month to play with. And a house thats all yours.

OK, so I'd probably have to spend a few months saving for a deposit for the house, but then I have another 8 months to go on my lease anyway, and I'd want to take my time over choosing a house, given I'd not want to move again if I could help it. Equally there would be a few things here and there - like a car - that would require a couple of months saving of the 2k spending money (I dont like flash cars, I'd be too terrified to drive anything expensive) . I think it would prove quite difficult to consistently spend 10k per month, assuming its not gambled away or something similar, which takes the money but gives no return. Eventually you will have all the expensive things you want, so it wont be hard to save.

Plus you will probably have less bother from your family asking you to buy them things if youre just getting 10k per month than if you get a sudden 1million windfall. You clearly cant immediatly afford to buy them cars or pay off their mortgages, so they are less likely to try asking.

So......who feels like giving me 10k per month
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Unread 8 Feb 2005, 15:51   #95
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Re: £10,000 per month or £1,000,000 once?

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So......who feels like giving me 10k per month

10k of what...sperm? Put me down for half and find someone else for the rest.
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Unread 8 Feb 2005, 15:58   #96
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Re: £10,000 per month or £1,000,000 once?

If I had to go round asking on internet message boards for sperm I think that would be time to kill myself.
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Unread 8 Feb 2005, 16:46   #97
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Re: £10,000 per month or £1,000,000 once?

you didnt have to neg rep me for that!! I've done far worse posts than that
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Unread 8 Feb 2005, 16:49   #98
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Re: £10,000 per month or £1,000,000 once?

There should be some kind of internet sperm women could use and when you request a bio they give you information about how good at the internet the guy was and wouldn't it be amusing if you picked someone who if you knew them in real life you'd never consider them a suitable sperm donor but because you only knew about their internet abilities you ended up choosing them and then your baby came out with two heads or something.

And the tagline could be "even with two heads he's more likely to get laid before his father".


That reminds me of a transformers episode I saw once actually...
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Unread 8 Feb 2005, 16:56   #99
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Re: £10,000 per month or £1,000,000 once?

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you didnt have to neg rep me for that!! I've done far worse posts than that
I havent neg or pos repped anyone. At all.

I'm too placid. And lazy.
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Unread 8 Feb 2005, 16:58   #100
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Re: £10,000 per month or £1,000,000 once?

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Originally Posted by JonnyBGood
That reminds me of a transformers episode I saw once actually...
Enough bargaining! REMOVE YOUR HEADS!
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