23 years old and not sure what to do

[spinuscyn]

@rupereta Firstly - well done.

I definitely think you should up your pension contributions. It is by far the most tax efficient way to invest in Ireland. If I was you I would be putting in the max 15% and let it compound for years and years tax free.

I probably wouldn’t bu property as an “investment” but if you are moving out from home and need somewhere to live then it makes a huge amount of sense too especially if you can take advantage of the rent a room relief.

Be careful though if your total income for this goes even 1 euro over 14,000 all of it becomes taxable. At room rates in Dublin this probably means only renting one room really.

If I was you I would probably try to buy somewhere within commuting distance of Dublin, maybe a 3 bed, rent out two of rooms ensuring the amount comes to just under 14,000. This rent then will effectively pay your mortgage .

 

[spinuscyn]

For example you could afford something like this easily

https://www.daft.ie/for-sale/terraced-house-1-ballynakelly-mews-newcastle-co-dublin/3714752

Then looks like yiu could charge 580 per month for a room (this is the Max- for two rooms)

https://www.daft.ie/sharing/newcastle-dublin

Your mortgage would be about 1,100 per month according to this mortgage calculator. So that would mean this would cover your mortgage.

https://www.mortgages.ie/go/first\_time\_buyers/mortgage\_payments\_calculator/calc?&\_stage=2&\_section=first%5Ftime%5Fbuyers&\_calculator=Calculator%20Mortgage%20No%20MP&\_code=44970E17%2D1DE6%2D40B0%2D89C79230C5D31E9D&\_mobile=false&\_next=1&\_temp=N&fieldnames=%5Fstage%2C%5Fsection%2C%5Fcalculator%2C%5Fcode%2C%5Fmobile%2C%5Fnext%2C%5Ftemp&buyertype=First%20Time%20Buyer&houseValue=300000&amount=270000&term=30&singleordual=single&age\_1=24&income\_1=83000&age\_2=&income\_2=&contacttime=&comment\_mobile=

 

[startupchristian]

@rupereta Do you work at one of the big tech companies?

 

[rupereta]

@startupchristian Yes I do

 

[dnide]

@rupereta You are in an incredibly good financial situation for your age.

As others have asked, what work do you do? That is an amazing salary for someone with such little experience. Most jobs at your age out of college are less than half your salary.

Buy a house and rent out the other rooms to people is probably the best thing to do.

SPY is a good shout too. If you care to put in the effort to stock pick it could be worth your time but it's not easy and you won't always do better than the index. It is possible to time the market even though people say not to try.

There are large fears of an impending recession so it might be best to wait a few months before buying stocks. Bitcoin is a high beta tech stock so more volatile in the ups and downs, currently trending down.

People have been calling for this stock bubble to burst for years but it looks like it might actually happen now. It very well have been just like the dot com bubble with the peak a month ago. Just look at the chart of SPY, it's parabolic. QE is ending in the US next month so that's why the recent dip.

The fed is tightening into a weak economy with high inflation and inflated valuations with World War 3 looming and an ongoing pandemic. Not exactly ideal circumstances to be buying stocks right now.

I'm looking to buy a house soon too but the prices are insane. I'm thinking maybe since inflation is so out of control that when the banks start tightening the monetary policy that prices will drop. Also people currently don't have as much money since everything costs more so the demand might be lower. Or maybe just buy now.

Interest rates will probably rise to help curb inflation, just happened in the UK and is planned for the US, so your mortgage will be more expensive then. Raising interest rates might drop house prices since mortgages are more expensive meaning less demand but I have no idea if it will be more cost effective buying then or now.

It's definitely better to get a mortgage to buy a house though. Inflation eats into a lot of the interest and you can rent out a room to pay for the mortgage anyway all while the value of the property rises.

One last thing, people have been calling these times the everything bubble. The values of all assets are inflated currently because of all the money printing that has been done to stimulate economies since covid. This is why inflation is so hot. Now most banks are trying to reverse it because they went too far. This is potentially going to actually cause recessions and deflate the bubble. People have been calling this, the great reset.

Nobody knows what's going to happen for sure very uncertain times for sure. If there is a recession then the banks will need to print more money to help again but at that point inflation may get totally out of control. It would almost be worth putting some money into gold too just to be safe.