investor100 is not a registered username either here or on the old platform so perhaps you are mistaken regarding the name under which you previously posted?nbc said:Was here a few months ago under 'investor100' which doesn't seem to be working for me now.
Have you factored in tax on rental income, maintenance costs, vacancy periods? Seems to me that €1275 - €800 = €475 p.m. may be assessable for tax depending on what other income you have.Overall outgoings are E800 pcm for mortgages(int only) and insurance for both properties. Income is E1275.
Do you have an "exit price" in mind at which point you will sell up? Or are you prioritising rental income over capital appreciation?Both properties are valued between E185,000 and E190,000 currently going on recent sales and overall am very pleased and glad I made the jump.
What about tax?nbc said:They are paying E650 pcm.
Overall outgoings are E800 pcm for mortgages(int only) and insurance for both properties. Income is E1275.
What is your contingency plan for the scenario in which the properties do not appreciate in value sufficient to pay off the mortgages and cover your costs (i.e. break even)? Do you have some other means/investments which can be used to cover these? Do you have an annual budget for emergency and ongoing maintenance/repairs?nbc said:Hopefully the profit will enable me to pay off the other. And yes I realise that capital appreciation is not guranteed. However I feel the liklihood that it will occur is much greater than not.
ClubMan said:What is your contingency plan for the scenario in which the properties do not appreciate in value sufficient to pay off the mortgages and cover your costs (i.e. break even)? Do you have some other means/investments which can be used to cover these? Do you have an annual budget for emergency and ongoing maintenance/repairs?
Perhaps - but falling property values is still an eventuality with a non zero probaility of occurring regardless of what people do in terms of property investment. Don't forget how many people reckoned eircom was a sure thing and the only way was up. Property is a market like any other (e.g. the stock market) and prices can go down as well as up based on demand and other factors. I'm just pointing out that such eventualities need to be assessed in terms of their likelyhood and, if necessary, contingency plans put in place to deal with them.cathybun said:If this was a real threat, nobody would invest in property.
cathybun said:I don't see how he wouldn't have enough to pay the mortgage back. The only problem would be if they depreciate, as opposed to remaining stagnant.
Not at all. When looking at any investment scenario it's necessary to look at the realities which includes both the positives and the negatives. There is no point in posting here and expecting only positive reassurance that you have done the right thing. The advantage of a bulletin board such as this is that you are almost guaranteed constructive and challenging feedback which is ultimately to your benefit if you are open minded enough to take it on board without dismissing it as negative criticism.nbc said:I feel as if some people are looking at all the negatives.
...
Come on guys don't be so negative!
ClubMan said:Perhaps - but falling property values is still an eventuality with a non zero probaility of occurring regardless of what people do in terms of property investment. Don't forget how many people reckoned eircom was a sure thing and the only way was up. Property is a market like any other (e.g. the stock market) and prices can go down as well as up based on demand and other factors. I'm just pointing out that such eventualities need to be assessed in terms of their likelyhood and, if necessary, contingency plans put in place to deal with them.
I have said it before and I will say it again: I was one of those who was too greedy, didn't sell early on and paid the price. This was totally my own fault and nobody else's. There - happy now?demoivre said:I don't think I have ever heard anyone say " Jeez I was a knob for not selling and taking me profit "
ClubMan said:I have said it before and I will say it again: I was one of those who was too greedy, didn't sell early on and paid the price. This was totally my own fault and nobody else's. There - happy now?At least I've managed to write off some of my eircom losses against subsequent capital gains in the meantime. And I don't think that shares are evil as a result of my own mistake.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?