maybelline
Registered User
- Messages
- 49
Why property? With all the uncertainty out there, have you considered stocks, savings accounts etc. With the timeframe you are lookng at, compounding is your friend....
If you invested €3,600 a year for 30 years at 4% you would end up with just over €200,000.
Sorry stifster - my post above didn't fully get the original point you were making.
I now see the point you were making
i.e. instead of putting €300 a month into an asset that stands still, put it into a deposit account account.
Fair enough point by you in theory - totally irrelevant in practice thoiugh.
THere's nbo way the asset will not go up significantly in nominal terms over the course of the 30 years.
ANd assuming reasonably high leverage,it is nominal terms that matter most in that instance.
Now consider all the variables. price rises/falls, CGT, interest rates, savings rates, pension fund performances.
My feeling is that if property prices settle and then start to rise at small increments but steadily, perhaps at the level of inflation, then property, due to the fact that for a small initial investment you get a large asset, is a good investment.
Hi All
I have a apartment that i rent out.the mortgage is interest only and the rent just about covers this.I do have to the cost subsidise of management fees to a tune of about 200 euro per month.I do feel (hope) that this will pay off in the future so crazywater i think property is a good long term inverstment. If i made a profit i would put it in to my AVC .
Cheers
!RAY
Anyway i feel that i will only have to pay this for 1 to 2 years
Hi FLAX
I bought the apartment two years ago.It has increased by about 90-100 thousand. I pay my mortgage interest only (1100 euro per month)and the rent is 1,100 .The management fee is 200 per month which i pay myself.Anyway i feel that i will only have to pay this for 1 to 2 years and in 5 years time the apartment will be worth a lot more.I am in the lucky postion of been able to subsidise the apartment at the mo.
Cheers
Ray
Hi CCOVICH
I feel that interest rates will decrease, the price of the property will increase.As will my own wages to help offset this. The rent i charge is about 100euro under the going rent ,so the rent can be increased (Did not use a estate agent so took this off the rent ).
!RAY said:Its a gamble but i can afford to subsididise at the mo so i am in a lucky position.
!RAY said:Also all loses i show against the property i can offset against capatial gains tax.
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