This is a little different to the usual questions I get asked, but quite interesting to consider.  The windfall could come from a number of sources - an inheritance, some good property deals or - as this questioner suggests winning it!

THE QUESTION

If you won £500,000, how would you invest it to maximise your monthly cash flow?

THE ANSWER

The answer you would normally get from mortgage brokers/advisers is to use your cash as 25% deposits, get 75% mortgages e.g. you could buy 5 x £400k properties, put down 5 x £100k deposits; you could of course buy more properties at cheaper prices.

Whilst this would no doubt generate multiple fees for your broker (surely not why they advise it?!) it is also a finite use of your resources. Once you had used up your cash on 5 or 20 properties that's it; granted you should have created a good income for yourself, but your capacity to continue buying is exhausted.

As an alternative you can consider buying one property at a time -...

“I am full time in property” is a pronouncement heard frequently at property meetings. My question is, are too many people in too much of a rush to get to this nirvana like state, without fully realising the adverse effect it has on their ability to raise mortgages? Would they not be better to slow down and take their time reaching that pivotal moment in their lives until the ability to raise Buy To Let mortgages in particular was much less relevant?

Being full time in property is one of the most commonly voiced goals in property circles. To be able to create enough passive income from property to be able to give up the day job and become a ‘full time property investor’. It is frequently taught and encouraged on property courses and at meetings. It is held up as the definitive status symbol, to be worn almost as a badge of honour. Speakers will spit out the term ‘wage slave’ as a form of derision almost.

There is undoubtedly great merit in finally...