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Investment

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  • 29-01-2021 11:46am
    #1
    parkview01
    Registered Users Posts: 2 ✭


    Hi. Following the sale of a property i will have post tax approx. €150,000, I want to re invest this money but not sure what the best way to do this is, my original plan was to look at the dublin/commuter town property market but im not sure what effect CV19 wil have, also investment mortgage rates are very high, leaving little return, am I better looking at stock/bond markets, I have no experience in this so would appreciate any help?


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    #2
    DonalK1981
    Registered Users Posts: 370 ✭✭DonalK1981


    Assuming you are living in a property yourself, with a mortgage or cleared, why not rent that one and apply for a residential mortgage on the new property and live there for a while?

    Also commuter towns would have property under 300k also some within Dublin as well and with 50% deposit that helps with a lower rate on your mortgage too.


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    #3
    TiGeR KiNgS
    Registered Users Posts: 1,435 ✭✭✭TiGeR KiNgS


    parkview01 wrote: »
    Hi. Following the sale of a property i will have post tax approx. €150,000, I want to re invest this money but not sure what the best way to do this is, my original plan was to look at the dublin/commuter town property market but im not sure what effect CV19 wil have, also investment mortgage rates are very high, leaving little return, am I better looking at stock/bond markets, I have no experience in this so would appreciate any help?

    One word, two syllables 'GameStop'.


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    #4
    Nonoperational
    Registered Users Posts: 7,401 ✭✭✭Nonoperational


    Lol


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    #5
    Mad_maxx
    Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    parkview01 wrote: »
    Hi. Following the sale of a property i will have post tax approx. €150,000, I want to re invest this money but not sure what the best way to do this is, my original plan was to look at the dublin/commuter town property market but im not sure what effect CV19 wil have, also investment mortgage rates are very high, leaving little return, am I better looking at stock/bond markets, I have no experience in this so would appreciate any help?

    what kind of yield would you be content with ?

    both IRES and Hibernia are paying in excess of 4% right now , IRES is the largest landlord in the state , Hibernia covers commercial property

    both will give you broad exposure to property in multiple areas so you have diversification , you should take a ten year approach though , thats why the dividend rewards you for patience


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    #6
    parkview01
    Registered Users Posts: 2 ✭parkview01


    Thanks for the replies folks, I had thought on IRES myself but i keep getting drawn back to owning a new property, previous purchases have worked out well for me.

    My homework tells me I can buy a 3 bed in Naas or Kildare for example for under 250k, Motgage 30/40% all be it at 4 ish % but get a month rent of 1600 plus, Would that not be a better option than getting 4% from a the likes of RIET or HIBERNIA even allowing for tax and annual repairs?

    I realise tenants do not always pay and repairs can be expensive but ive been pretty luckly up to now plus in 15/20 years The 60/70 % loan would be paid for, maybe Im wrong!!

    Thanks


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    #7
    Mad_maxx
    Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx


    parkview01 wrote: »
    Thanks for the replies folks, I had thought on IRES myself but i keep getting drawn back to owning a new property, previous purchases have worked out well for me.

    My homework tells me I can buy a 3 bed in Naas or Kildare for example for under 250k, Motgage 30/40% all be it at 4 ish % but get a month rent of 1600 plus, Would that not be a better option than getting 4% from a the likes of RIET or HIBERNIA even allowing for tax and annual repairs?

    I realise tenants do not always pay and repairs can be expensive but ive been pretty luckly up to now plus in 15/20 years The 60/70 % loan would be paid for, maybe Im wrong!!

    Thanks

    it might well be a better option , Naas is certainly a good location

    i thought you might have been referring to a cash investment but your figures look good so you obviously have studied it carefully


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    #8
    EndaHonesty
    Closed Accounts Posts: 1,544 ✭✭✭EndaHonesty


    parkview01 wrote: »
    Hi. Following the sale of a property i will have post tax approx. €150,000, I want to re invest this money but not sure what the best way to do this is, my original plan was to look at the dublin/commuter town property market but im not sure what effect CV19 wil have, also investment mortgage rates are very high, leaving little return, am I better looking at stock/bond markets, I have no experience in this so would appreciate any help?

    I recently put 150k of low risk pension money into Tesla. I realise it's risky, and have taken professional advice, but I personally I think Tesla will get to 4k per share by 2025, at least.

    If I'm honest, I actually believe Tesla could get to 10k per share, so 12x. I personally love that potential upside.

    I have property rented out too and it's not a simple arrangement. Revenue are all over it and you have to pay your taxes on property a year in advance, which personally I think is ridiculous. IMO, if you want to buy property you should set up a limited company and buy it within that.

    The stock market is crazy at the minute, there are huge gains available. I believe you're better off in it than out of it.

    If the stock market collapses, property will collapse too, but stocks will recover quicker than property.


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    #9
    Kilboor
    Registered Users Posts: 1,224 ✭✭✭Kilboor


    EndaHonesty wrote: »
    I recently put 150k of low risk pension money into Tesla. I realise it's risky, and have taken professional advice, but I personally I think Tesla will get to 4k per share by 2025, at least.

    If I'm honest, I actually believe Tesla could get to 10k per share, so 12x. I personally love that potential upside.

    I have property rented out too and it's not a simple arrangement. Revenue are all over it and you have to pay your taxes on property a year in advance, which personally I think is ridiculous. IMO, if you want to buy property you should set up a limited company and buy it within that.

    The stock market is crazy at the minute, there are huge gains available. I believe you're better off in it than out of it.

    If the stock market collapses, property will collapse too, but stocks will recover quicker than property.

    As long as you can afford to lose up to 60% of that "low risk" pension money you should be fine but that's insanity to me.


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    #10
    JeffKenna
    Registered Users Posts: 4,510 ✭✭✭JeffKenna


    EndaHonesty wrote: »
    I recently put 150k of low risk pension money into Tesla. I realise it's risky, and have taken professional advice, but I personally I think Tesla will get to 4k per share by 2025, at least.

    If I'm honest, I actually believe Tesla could get to 10k per share, so 12x. I personally love that potential upside.

    I have property rented out too and it's not a simple arrangement. Revenue are all over it and you have to pay your taxes on property a year in advance, which personally I think is ridiculous. IMO, if you want to buy property you should set up a limited company and buy it within that.

    The stock market is crazy at the minute, there are huge gains available. I believe you're better off in it than out of it.

    If the stock market collapses, property will collapse too, but stocks will recover quicker than property.

    I hope your professional advise warned you that Tesla is a share similar to GameStop that has short sellers all over it and Wallstreetbets backing it. While it's not on the scale of GameStop that's the reason why Elon Musk does be tweeting about GameStop and short sellers.


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    #11
    littlevillage
    Registered Users Posts: 2,835 ✭✭✭littlevillage


    EndaHonesty wrote: »
    I recently put 150k of low risk pension money into Tesla. I realise it's risky, and have taken professional advice, but I personally I think Tesla will get to 4k per share by 2025, at least.

    If I'm honest, I actually believe Tesla could get to 10k per share, so 12x. I personally love that potential upside.

    I have property rented out too and it's not a simple arrangement. Revenue are all over it and you have to pay your taxes on property a year in advance, which personally I think is ridiculous. IMO, if you want to buy property you should set up a limited company and buy it within that.

    The stock market is crazy at the minute, there are huge gains available. I believe you're better off in it than out of it.

    If the stock market collapses, property will collapse too, but stocks will recover quicker than property.

    Enda, if you are being honest here and have actually stuck 150k into Tesla recently, on the advice of a professional.... You are a crazy man.

    Firstly why pick just one stock? Why not diversify a bit? In future, Tesla are going to have stiff competition why not throw a few quid on some of those competitors

    Secondly, Tesla has already had a metioric rise last year but is clearly stalling at the moment and even the most sycophantic brokers are limiting its chances of further rises to about $900 (that's only a couple of % higher than where it is at the moment). Most brokers are in fact predicting a big fall.

    Thirdly, I sold out of Tesla myself last week. I honestly think its peaked.


    My advice, you are probably looking at a few % profit at the moment, I'd realise that profit by selling off most of that Tesla position now....and I'd seek out some different professional investing advice for what to do with that money.


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    #12
    stronglikebull
    Registered Users Posts: 477 ✭✭stronglikebull


    EndaHonesty wrote: »
    If the stock market collapses, property will collapse too, but stocks will recover quicker than property.

    If the markets collapse they will both recover, yes, but individual companies may not. If you've picked a company that doesn't recover, then your money is gone.
    Investing in a property means you always have the property. The problem would be the ability to pay the loan in times of difficulty, and if the rental market also collapses (like it did 12 years ago) then this may result in losing the investment.

    Isn't the saying diversify or die?

    As to the OP, with good equity going into the purchase, it's pretty low risk. With the housing shortage too it's hard to see a rental market collapse as per the last crash, as housing is not in over-supply this time.


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    #13
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    Enda, if you are being honest here and have actually stuck 150k into Tesla recently, on the advice of a professional.... You are a crazy man.

    He said he took professional advice, he did not say he followed it, nor the type of professional he consulted.

    I have no idea if he is genuine or not, but yes there are people out there who do this kind of thing. Luckily most of them realize their mistakes early on and get out before they get badly burned.

    But there are those who have total confidence in their own abilities despite all the evidence to the contrary and will jump from one sure thing to another loosing a slice of their pot each time until it’s all gone. The worst I have personal knowledge of is a guy of 28 who burned his way through an inheritance of £7m over a ten year period and then decided to seek our advice!


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    #14
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    stronglikebull wrote: »
    As to the OP, with good equity going into the purchase, it's pretty low risk. With the housing shortage too it's hard to see a rental market collapse as per the last crash, as housing is not in over-supply this time.

    It’s only hard to see if you are not looking for it! Property bubbles are a regular occurrence in the developed world, you’ll like through two or three of them in a life time. Some will be regional, more national and a few international.

    Most likely the current crisis will cause some regional or local crashes as life styles change.

    Property is a high risk asset class, all the evidence is there to justify it. Ignore it if you wish.


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