property idea,Please help!

kcera

Hello,Im 18 and I have been lucky enough to have been left 15,000euro,Instead of blowing it partying I want to buy something that will give me back money.I am looking for suggestions as because the only thing I can see myself making profit off is real estate.
Heres My plan-approach the bank looking for a mortgage for 60000,For the properties for around this price I would get 600/700 euro a month rent,If I pay 400euro a month for the mortgage,It would take 13 years roughly to pay off.I would be making two or three hundred euro a month profit(excluding taxes/charges).

What do yous think? Please this is a serious post only serious responses,Thanks very much people.

P_Cash

U won't get a mortgage,

I'm assuming ur a student

topper_harley2

You'd have some party for 15 grand ;-)

Do you really want to be tied down to a house and being a landlord at 18? IMO it sounds like a pain in the a$$ (being a landlord, especially so young).

Also, investing all of your money in property market is probably not a good idea. You have zero diversification.

I'm assuming you are you working, or else where are you planning on getting the 400 quid a month to pay the mortgage? If you are working, then an emergency fund of about 3 months wages is required, do you have that in place? Do you have evidence of saving to show the bank you can afford a mortgage?

What if you were made redundant, how would that affect you?

Where are you going to live? Can you afford rent and a mortgage at same time?

If it were me I don't think I'd buy a house to rent it as an investment.

kcera

Thanks for your input,Yes working full time 40/50 hours a week,No chance of being let go.

What would you lads invest your money in If you had that amount and were my age.

once again,thanks again.

topper_harley2

You didn't answer half the queries I asked :-)

The emergency fund is important. I would suggest putting some of the 15K into that (if you don't have one). Park it in instant access saving account. I know you said no chance of being let go but its important to have that cash on hand.

At that age I wouldn't have known enough about investing to be honest, so I'd just have stuck it in saving account.

gordongekko

kcera wrote: »

Thanks for your input,Yes working full time 40/50 hours a week,No chance of being let go.

What would you lads invest your money in If you had that amount and were my age.

once again,thanks again.

College and a trip to Thailand

arrowloopboy

low cost etfs ,spend 50 quid on a few books on the subject.

P_Cash

gordongekko wrote: »

College and a trip to Thailand

No better advice there, invest in your future.

That or oil stocks

kcera

Thanks for all your reply's,I do plan on going to college in september but what I am really looking for is to try and get a monthly return of this money.I will look into buying stocks but really have no interest to be honest.

Triangla

Hi OP, you've not accounted for tax on your rental income which will have to be paid.

Also, you will have to put aside a percentage to cover wear and tear and the odd emergency repair etc.

On paper with no deductions rental income might sound like a no brainier. Look a little closely and you might see yourself coming away with very little in return.

kcera

Thanks Triangla, Think I will have to do more research on this topic before I commit.Thanks for everybody's input

Triangla

kcera wrote: »

Thanks Triangla, Think I will have to do more research on this topic before I commit.Thanks for everybody's input

Consider investing in your future.

I don't mean this in a vague sense. Work away part time in college but make sure you spend as much time as you can getting the most from college.

Join a club/society, get involved in your studies and make a real effort to do the best you can do.

Consider using the money for when exam time comes and you're not having to work to make ends meet.

Make a promise to yourself to use it for books, fees etc and not to party any of away. In a literal sense do not piss your future away.

That's a nice bit of cash to have in reserve and come work placement or eventually finishing and looking for a job it would be nice to have that in tact. You could even use it to sort out a J1 off the beaten track to places in the USA where you could make a bit more money than other students who all head to the same place.

Try Bonkers.ie to compare savings accounts. Avoid interest up front accounts as these in effect pay simple and not compound interest. An post offers some savings products not liable for DIRT.

Best of luck with your studies, enjoy this time of your life. If you work smartly you will set yourself up for a very good future.