barrenwuffett
Registered User
- Messages
- 11
What you should do is press the pause button and put some effort in to learning about the investing and the possibilities available to construct a wealth generating portfolio over time. And then make the best decisions based on a proper understanding of the techniques and options available.
While Jim might have been a little sharp with his post he is right. The is a large amount of posts on AAM on this topic.
Your paying 2.25% on your home loan. Pay 70k off this and you save around 120 euro per month on your mortgage. In turn add this saving to your monthly payment.
Apartment 1500pm X 12= 18000. Roughly 5k interest 130@3.95%. Say 1500pa maintenance for apartment pa. Another 1500pa repairs prtb etc. So after expenses you would pay tax on remaining 10000@52%=5200 in tax to revenue. Thats if all goes well no voids no bad tenants.
So now you see where Jim is coming from.
No expert but I would pay down mortgage as quickly as possible. you cannot get 2.25% guaranteed anywhere at the moment. Maybe few euro into education fund college comes quickly. As top tax payers any excess max those pensions.
Your in a great position. KISS as they say in my case anyway Keep It Simple Stupid. enjoy the weekend.
Should we buy the property on a 20 year mortgage and use some of our extra income to pay down the mortgage as early as possible, leaving us with an asset providing passive income come retirement?
Our rate at the moment is 2.25%. A buy to let rate would be 3.95%
Our rate at the moment is 2.25%. A buy to let rate would be 3.95%
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