R
I've another 40k in shares in the company I work for, they're all mine (no taxes owed on sale).
purplealien said:How long did it take you to save up €100,000?
Don't think i'll ever get to that stage in this life!
Why not invest in property abroad?
oldtimer said:How are you avoiding paying DIRT on your credit union account?
jhegarty said:one bit of advise... if the company goes belly up you are in double trouble.. half you saving gone and no job.....lots of enron people got really badly burned this way...
I've another 40k in shares in the company I work for, they're all mine (no taxes owed on sale)
Hi,
My present financial situation is that I've about 60K in the Credit Union
earning approx 3.5% I've another 40k in shares in the company I work for, they're all mine (no taxes owed on sale).
CCOVCH is correct with regard to buying property also. If you purchase abroad, you lose your FTB status at home.
rob523,
I would take the view that if you are going to buy a home in the next few years, the sooner the better. Even the most pessimistic economists are predicting that house prices will stay flat in real terms i.e. they will keep up with inflation for the next two years and may pick up after that.
As you will be borrowing at least two thirds of the value of your new home, even keeping pace with inflation will beat the pants off any messing about with high interest accounts.
I am not recommending Irish residential property as an investment - the short term prospects are mediocre at best. I'm just saying that if you are going to buy in the next few years anyway, the chances of you beating house price inflation with low risk investments are very slim.
OK look...
I know that this is an investment forum and every dog in the street knows that Irish residential property is a nervy place to invest your money at the moment.
But consider this..
1. Rob has saved like crazy to build up 60k and earn 40k in shares in his employer's company. Rob does not want to risk that money in the stock market or other medium to high risk investments.
2. If Rob cashed in the shares (40% of his assets tied up in his employer's fortunes is too high by any standard) and put all his money into Northern Rock at 4.15% after three years he will have 110,294. Let's say he messes about with high interest accounts and gets that up to 112,000. A 12,000 profit.
3. If he buys an apartment for 350,000 and borrows the 250k. The apartment only has to rise in value by 1% per annum to give Rob a 10,605 profit after 3 years. A 1% rise in value per annum for 3 years is a pretty appalling return and a drop in value in real terms.
I know that Rob has legal fees, fit out costs and even if he rents a room will be paying more for the mortgage than he is for rent at the moment. My point is only that saving cash into a bank account to try to beat the housing market like walking up the down escalator - one step forward, two steps back..
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