Nomansland
Registered User
- Messages
- 70
Hi,
I currently have 20K cash to invest and am looking at investing it in a 3 bed semi costing 200k. Myself and my partner currently have a 157K mortgage outstanding on a house valued at 235K. If the investment property costs 200K, the stamp duty will be 8k, legal fees 2k, and the cost of kitting out the house would be 10K. All this would bring the aquisition price to 220K. I only have 20K to deposit. Will the bank give me a 100% mortgage, i.e 200K based on the positive equity on my primirary residence.
Based on the above figures and moderate house price inflation of 4% over the next 5 years, a 5 year 3.8% fixed mortgage rate payed over 30 years, rental income of 600 euro per month for 5 years, my calculations tell me that my 20K investment would yield a return approx 42K, i.e >100%. Is there something I am missing or is these figures right. I also belive that on a 200K house I would pay no CGT until the house was sold for >254K due to stamp duty, legal fees and furniture/decoration costs been included in the aquisition cost as well as the house price been indexed for inflation. Is this true?
Also could anyone tell me on where I could read up on section 23 (tax desiginated area)? The revenue website is still down.
I currently have 20K cash to invest and am looking at investing it in a 3 bed semi costing 200k. Myself and my partner currently have a 157K mortgage outstanding on a house valued at 235K. If the investment property costs 200K, the stamp duty will be 8k, legal fees 2k, and the cost of kitting out the house would be 10K. All this would bring the aquisition price to 220K. I only have 20K to deposit. Will the bank give me a 100% mortgage, i.e 200K based on the positive equity on my primirary residence.
Based on the above figures and moderate house price inflation of 4% over the next 5 years, a 5 year 3.8% fixed mortgage rate payed over 30 years, rental income of 600 euro per month for 5 years, my calculations tell me that my 20K investment would yield a return approx 42K, i.e >100%. Is there something I am missing or is these figures right. I also belive that on a 200K house I would pay no CGT until the house was sold for >254K due to stamp duty, legal fees and furniture/decoration costs been included in the aquisition cost as well as the house price been indexed for inflation. Is this true?
Also could anyone tell me on where I could read up on section 23 (tax desiginated area)? The revenue website is still down.