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Anyone any feedback on the calcs I did.....that a 317k apartment only needs to accumulate by 2.25% annually over the next 30 years, to reach the same point where the initial costs of purchase plus the subsidising amount would get earning 3.5% sitting in the bank....seems to me like this property could be a good bet....
Firefly
Firefly
Theres a fool born every minute!
I couldn't follow them unfortunately. Personally I don't think either is a particularly good idea for what to do with €20k.
Thats well inexcess of 110880 fools since this thread started. Maybe there is a supply shortage of properies in Ireland after all!
P
poormouth
Guest
Folks,
A bit of anecdotal evidence on the state of the housing market .
It sounds boomier than ever. An acquaintance of mine put his house up
for sale recently. Had approx. 30 viewers and presently a number of active bidders. Looks like it will go for well above asking.
A bit of anecdotal evidence on the state of the housing market .
It sounds boomier than ever. An acquaintance of mine put his house up
for sale recently. Had approx. 30 viewers and presently a number of active bidders. Looks like it will go for well above asking.
Can you give an idea of the Location. I suspect it is in a "highly sought after area".
P
poormouth
Guest
Where is Galway don't know other details
Firefly, only an idiot would invest his 20k + 10k in the bank earning 3.5%. The long run return on the stock market would be about 10% (give or take a few %). Plug that into your figures, and after 30 years you would have over 2.2 million, non inflation adjusted.
For your property to make that, it would need to appreciate by 7% a year. That's a tall order considering that property in the long run (100 years) has returned 2% a year, and we are on the back end of the longest bull run in property ever. If your property falls in price at the beginning of your calculation, you're looking at more like 10% + appreciation.
On the raw figures subsidising rents does not make sense, and decades of good property investment practice are not going to be overturned by this wishy washy new age property economics we're experiencing.
But its a new paradigm....!!!
30k @ 10% per year over 30yrs is ~520k, not 2.2m.
It's €20k initial deposit plus an additional €10k a year.
T
TallSpoon
Guest
That's a tidy looking building and looks cheap as chips from an Irish prospective. But this looks cheaper
Well hows about 2,550-3,000 sq ft of new build in Massachusetts, not far from Boston, for the price of a ahem... micro cottage in Glasthule. Builders are offering incentives and prices are still falling so don't hurry ya here.
http://www.tollbrothers.com/homesearch/servlet/HomeSearch?app=model_description&plan_id=26703
Holy Toledo!
See ya folks, I'm moving to Liepzig!- Status