PaddyBloggit
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You can close it yourself paperclip. Look at your first post ... you should have the option to close thread available to you.
90k windfall -Buying rental property Dublin City Centre? Reading "Rich Dad Poor Dad".
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I think it's a bit of a mad idea too to make a bet of everything you have on one asset class which you are already invested in through another property.
Theres no hurry in this country to buy property. Thats for sure. If you cant sell the property for at least the same price you bought it for on the day you buy then you've lost money. The day you buy is the day you sell is my motto where property is concerned. Plus property often only makes sense as an investment compared to equities when it's leveraged with a mortgage however taking on more debt in this uncertain climate is highly risky.
More madness in my opinion. Many people have been stung by rental guarantees which arent worth the paper they are written on. Much better to see if you can negotiate a cheaper price in return for giving up the rental guarantee. How often would you see yourself taking flights to Turkey to check on your property? Personally if I was going down the property route I'd rather get a cheap property in Berlin or somewhere closer but with a different exposure which was not to the Irish economy. At least you know its rock bottom, regulated well by local and EU laws and will be valued in Deutschmarks if the Euro collapses. Plus a lot easier to fly to in times of increasing oil and flight costs. But one thing I wouldn't do is increase my exposure to Irish property unless I really knew what I was doing. If I was you I'd pay off the negative equity on my original house, sell it and rent but thats me
Theres no hurry in this country to buy property. Thats for sure. If you cant sell the property for at least the same price you bought it for on the day you buy then you've lost money. The day you buy is the day you sell is my motto where property is concerned. Plus property often only makes sense as an investment compared to equities when it's leveraged with a mortgage however taking on more debt in this uncertain climate is highly risky.
More madness in my opinion. Many people have been stung by rental guarantees which arent worth the paper they are written on. Much better to see if you can negotiate a cheaper price in return for giving up the rental guarantee. How often would you see yourself taking flights to Turkey to check on your property? Personally if I was going down the property route I'd rather get a cheap property in Berlin or somewhere closer but with a different exposure which was not to the Irish economy. At least you know its rock bottom, regulated well by local and EU laws and will be valued in Deutschmarks if the Euro collapses. Plus a lot easier to fly to in times of increasing oil and flight costs. But one thing I wouldn't do is increase my exposure to Irish property unless I really knew what I was doing. If I was you I'd pay off the negative equity on my original house, sell it and rent but thats me
I find rich dad poor dad series are interesting books that give good ideas - provided you take them with a grain of salt The author does keep repeating that you shouldn't copy him, you should find your own way.
The main idea is buy assets, i.e. those that produce positive cashflow, i.e. invest for cashflow rather than capital gains, which is pretty sound, if more property investors followed it, fewer would now be in trouble.
And use leverage, i.e. borrowing to increase your returns on real estate. From that point of view, you should aim to find a property that will provide you with POSITIVE cashflow even if you buy it with a mortgage. Split your windfall into deposits for several properties, all providing you with positive cashflow.
If you can't find such properties, then don't invest yet
Another point - it's not easy to find GOOD investment properties to buy, you need to be prepared to look at 100 or so properties to buy one good one... Are your prepared for that?
The author does keep repeating that you shouldn't copy him, you should find your own way.The main idea is buy assets, i.e. those that produce positive cashflow, i.e. invest for cashflow rather than capital gains, which is pretty sound, if more property investors followed it, fewer would now be in trouble.
And use leverage, i.e. borrowing to increase your returns on real estate. From that point of view, you should aim to find a property that will provide you with POSITIVE cashflow even if you buy it with a mortgage. Split your windfall into deposits for several properties, all providing you with positive cashflow.
If you can't find such properties, then don't invest yet
Another point - it's not easy to find GOOD investment properties to buy, you need to be prepared to look at 100 or so properties to buy one good one... Are your prepared for that?
Complainer
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What value to you put on your own time in these cashflow calculations?
That is a good question! It's different for everyone but obviously the potential returns need to be worth it, it terms of time invested as well as money and risk.
It' also suggested in the rich dad series that to be successful at property investing, you must actually LIKE it, like looking at properties, like educating yourself about related issues etc. If it's horribly boring, then don't do it.