25 yr old with about 30k in savings and on a salary of 70k looking to make my next steps

[besjoux]

I’ve done plenty of research on this sub and feel a bit lost. I’ve about 24k in savings and about 6-7k in crypto and that’s about it.

I’ve small amount in my pension (maybe 8k). I haven’t joined the pension scheme with my new company I started with in January.

Realistically I will buy my own home with my partner in about 4-5 years. So I’m wondering what’s best to do with the pot of money I’ve now..

So far, I’m considering the following:

(1) buying an apartment in Dublin and renting it out, and restarting my savings

(2) Lumping my savings into Trade republic (for the 4% interest) and another amount into EFTs via DEGIRO.

My rent is cheap, only €600 per month and I have no debt or any other high expenditures. I also expect my salary to increase to 100k+ in about 5 years as I only just became qualified in my field and that’s the average within the timeframe above.

Where do I go from here?

 

[cameronb67]

@besjoux Do you mind me asking what you work at? Looking at career change, given your age and salary, I Might go down whatever you're doing

 

[besjoux]

@cameronb67 I’m a chartered accountant, tough gig within the big 4 but love my job now that I’m qualified

 

[laxdax]

@besjoux Wow, didn’t realise Big 4 paid that much early on

Edit: Turns out they don’t, he left after he qualified

 

[dinu]

@laxdax They don’t, he left Big 4 after qualification.

 

[besjoux]

@laxdax They don’t. I left after I qualified !

 

[zekavica]

@laxdax They don't, he left after he was qualified.

 

[laxdax]

@cameronb67 Probably tech, finance or sales. Most likely tech e.g. SWE, data analyst, cybersecurity

 

[dinu]

@laxdax None of the above. Probably worth just waiting until OP replied before guessing.

 

[ilovejesus1971]

@besjoux Join your employer pension scheme as a start anyway

 

[besjoux]

@ilovejesus1971 I agree with you on this. I’ve delayed doing it but I think I’ll start a second pension under my new company

 

[hiskingdomconsul]

@besjoux That’s a great salary for that age, what industry you in? Fair play man

 

[besjoux]

@hiskingdomconsul I’m a chartered accountant, tough gig within the big 4 but love my job now that I’m qualified

 

[zekavica]

@hiskingdomconsul He left after he was qualified.

 

[timmay_95]

@besjoux

(1) buying an apartment in Dublin and renting it out, and restarting my savings

Don't do this

The mortgage may mean that buying a home in 4-5 years (and getting a mortgage) isn't an option.

Also while buying an apartment is often a good investment it may not see the rent covering the capital portion of the mortgage. This could mean a stream of additional capital investments which may cause difficulty for your stated goal.

 

[besjoux]

@timmay_95 I see your point, my initial argument to this would be that each time your paying that mortgage your acquiring equity, and the real cost is the interest, so it’s about feeling confident on whether the property could appreciate over time ?

 

[keepwalkingon]

@besjoux The bank doesn’t calculate your equity in a property so it doesn’t t count when you calculate for a new mortgage and you don’t get 4x your salary since your not a first time buyer and 20% deposit will be required bad idea

 

[timmay_95]

@besjoux Yeah it's a good investment in general.

The problem is when you are trying to save for a specific need it can really throw you off.

 

[cal_reacher]

@besjoux I’ve just bought an apartment in Dublin (with wife). Small enough, but outstanding location. We got it for what I would say is a fair price. We plan on renting out one bedroom. Eventually, we plan on renting out both bedrooms (have separate free accommodation elsewhere, wife will use apartment for job but might quit after kids).

Renting out one bedroom will cover roughly two thirds of the mortgage. Renting out both rooms will be a 1000 euro above mortgage (before tax).

 

[psquared]

@timmay_95 This is good advice, seconded. I looked into this myself and ran into the same issues. If you already have a job and earn roughly €40k a year from it, you'll be taxed on about half of the rental income, so it probably wont cover the mortgage. Not to mention the headache of being a landlord, especially if you're young and want to travel/move around.