If you would win $1M

amother

Lotus

Fri, Jul 08 2022, 1:04 pm

amother [ White ] wrote:

How is 1 mil getting anyone a house these days? 😀

Fixed that for you Smile

😜😩you’re so right

amother

Maroon

Fri, Jul 08 2022, 1:33 pm

amother [ Apple ] wrote:

I BH have a house and no it's not financially smart to pay off the mortgage, so I'd use it to renovate/extend our house and the rest I'd invest in additional real estate, probably house for rental income.

Not to go off topic, but can someone explain (in laymen's terms) why it isn't smart to pay off a mortgage?

mommyhood

Fri, Jul 08 2022, 1:54 pm

amother [ Maroon ] wrote:

Not to go off topic, but can someone explain (in laymen's terms) why it isn't smart to pay off a mortgage?

The thought is that good investments can earn more in interest/income than you’re paying in interest for your mortgage so better to keep the mortgage and invest the excess cash.

amother

Silver

Fri, Jul 08 2022, 1:54 pm

Offer for my husband to quit his job (which he loves, as a special ed rebbe) and start a special ed school in our city (which he would love to do, and would be fantastic at, but financially he can't swing it).

Now here's my hashkafic question here. Would it be a fair to do that if we weren't going to be able to pay full tuition long term? And with this money, we would? Maybe the right answer is to put it into investments and use it to slowly, over time, enable us to pay full tuition?

#BestBubby

Fri, Jul 08 2022, 2:01 pm

amother [ Maroon ] wrote:

Not to go off topic, but can someone explain (in laymen's terms) why it isn't smart to pay off a mortgage?

If your mortgage rate is low - like 4% and your investments can earn 8%,
your better off investing than paying off mortgage.

Also, there are tax breaks for mortgage.

Still, many people feel it is safest to have your home paid off.

amother

Hydrangea

Fri, Jul 08 2022, 2:34 pm

#BestBubby wrote:

In any major city, you could not buy more than 2 homes.

In the most expensive cities, only one home.

In Cleveland there are houses for $200,000....

Fri, Jul 08 2022, 2:39 pm

I’d probably have several huge arguments with DH who would want to put the whole lot into savings for us and the kids, where as I would move house!

amother

Peachpuff

Fri, Jul 08 2022, 2:44 pm

s1 wrote:

I’d probably have several huge arguments with DH who would want to put the whole lot into savings for us and the kids, where as I would move house!

I already told DH that if we ever win the lottery we will split it 50-50 and he can do whatever he wants with his half.

amother

Peru

Fri, Jul 08 2022, 2:48 pm

Tzedakah.
Redo our basement.
Add a bathroom.
Redo existing bathroom.
Go on a trip to EY
Redecorate parts of house
Invest the rest

amother

Peru

Fri, Jul 08 2022, 2:51 pm

#BestBubby wrote:

In any major city, you could not buy more than 2 homes.

In the most expensive cities, only one home.

,

In cities like Los Angeles, you can't find a house for a million.
In cities like Detroit, you could buy 3!

amother

Peru

Fri, Jul 08 2022, 2:51 pm

amother [ Hydrangea ] wrote:

In Cleveland there are houses for $200,000....

Not that many anymore!!! They are running in the 300000s

amother

Peony

Fri, Jul 08 2022, 3:20 pm

#BestBubby wrote:

In any major city, you could not buy more than 2 homes.

In the most expensive cities, only one home.

I see 3 houses currently under contract in my area that your could buy for a combined price of under $550,00. And that's if we're looking at the after tax amount. If we're using a full million as the amount, you could buy many more homes. 😊 But I'm not really sure what your point is. I said it's possible to buy multiple homes out of town for a million. Even just two is multiple.

amother

Honeydew

Fri, Jul 08 2022, 4:04 pm

amother [ OP ] wrote:

I was watching one of the Mr. Beast clips where he was giving out millions and it got me thinking - what would I do with it.

So here goes:

Buy a house
Buy another car
Get houses to invest in
Need a new outdoor grill
Cut my hours at work

What would you do with a million?

I would use it towards the purchase of a 2 family house. I live in Brooklyn, so it would maybe cover half, but then I can have lower monthly mortgage payments because of the large amount down. I would use most of it for the house, save up to 20% of it for renovation or rezoning costs. I'd live in the house and use the other part for my business (which is why rezoning may be necessary) - I'd expand my business so I can increase my income.

amother

Aster

Tue, Oct 25 2022, 12:55 am

ha I know this is old but I want to comment Smile

I would redo a bathroom and finish off an area for a guest room. I would buy one piece of jewelry. I would give tzedakah. And I would put some in our regular bank account to ease the month to month. The rest I would invest, whether in real estate, or otherwise.

amother

Taupe

Tue, Oct 25 2022, 12:57 am

amother OP wrote:

Buy a summer/weekend home that I can eventually move to full time when I'm ready to leave the city.

amother

Bellflower

Tue, Oct 25 2022, 1:00 am

I would invest - stocks/real estate - and hopefully have a steady extra source of income. Much better than spending it on something.

#BestBubby

Tue, Oct 25 2022, 1:02 am

Interesting that nobody said they would become a stay at home mother.

Maybe a million is not enough.

Or more urgent needs (house).

amother

Bellflower

Tue, Oct 25 2022, 1:05 am

#BestBubby wrote:

Interesting that nobody said they would become a stay at home mother.

Maybe a million is not enough.

Or more urgent needs (house).

If you invest a million dollars, a very conservative estimate would be an income of $40,000 (probably much more). You can do what you want with the money - you can decide to stay home if that's what you want to do. It's certainly almost a second income (after babysitting expenses, for example).

amother

Springgreen

Tue, Oct 25 2022, 1:05 am

#BestBubby wrote:

Interesting that nobody said they would become a stay at home mother.

Maybe a million is not enough.

How long would it last? Probably not too long if I quit my job...