You would be doing very well to hang on to €10k pa of that rental income, after taking account of all expenses and taxes.Apartment is valued currently at ~€380k, and would likely achieve €2000/month in rent.
It's Clontarf / Killester / Raheny. Obviously there's a big range in house costs in those areas but I've seen plenty within budget too. We don't need a 5 bed detached house or anythingOut of interest what is your perfect location?
That's not the right way to look at this choice.So in theory we'd end up with an asset at the end while still paying the same amount of money monthly.
It's Clontarf / Killester / Raheny. Obviously there's a big range in house costs in those areas but I've seen plenty within budget too. We don't need a 5 bed detached house or anything
As an aside, asking rents have fallen appreciably in the docklands since the start of the pandemic...
Yeah, agreed - not sure how easy it will be to sell. Although we are in a two bed.I live in the docklands area and watch the market closely. There is a lot more stock of apartments on the market and at lower prices. I think the one beds are going to be squeezed quite a bit.
This is an interesting way of looking at it. BTW we are saving €3000/month when you take the rainy day fund into account which is 40% of our net income - would you say this is too little? We have been basically aiming to save the cost of what our rent would be + a bit more.This is what I would do in your shoes......A 650k house with a 10% deposit (585l mortgage) is ~2,300 pcm. If you sold up and took a small mortgage of 200k, the payment is ~800pcm. I would pretend that your monthly payment is 2,300pcm of which 800 is the actual payment and you can treat the other 1,500 as income. Or aggressively pay off your 200k mortgage over 5 years and you would have turned a 380k asset into a 650k asset.
What is slightly concerning is that you are only saving 2,000 pcm at the minute but have no mortgage or rent outgoings.
Yeah, agreed - not sure how easy it will be to sell. Although we are in a two bed.
FWIW
FWIW = For What It's Worth.What's that?
I suspect that flawed thinking is the reason this question comes up on an almost daily basis on AAM.Once its gone, its gone..
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?