The Grinder
Registered User
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I am considering selling my home and renting a similar property. The house is worth about €300k and the mortgage is paid off. To rent a similar property would cost about €10k p/a in the area. I’d leave the €300k in a fund like Irish Life’s protected consensus - which netted about 7.5% pa over the last 10 years.
The annual rent of €10k represents 3.3% of €300k. It’s looks probable in my view that this fund and equity based funds will outperform property by at least 3.3% over the coming 10 years. Also by selling now I won’t be exposed to any down turn or stagnation in the property market. In six years time I could then review buying back a similar property at better value.
Any comments on the merits or not of such steps.
Thanks
The annual rent of €10k represents 3.3% of €300k. It’s looks probable in my view that this fund and equity based funds will outperform property by at least 3.3% over the coming 10 years. Also by selling now I won’t be exposed to any down turn or stagnation in the property market. In six years time I could then review buying back a similar property at better value.
Any comments on the merits or not of such steps.
Thanks