cee_the_atheist
New member
Hi All
So i last posted 6 months ago about my investment strategy and alot has changed in that time
Id like to check back in again to see your honest opinion if you believe this is a sound plan for the long term
Abit of context is key to start i suppose Background :
26 Y/O Salary 60k plus bonus 15-20 k annually- Pharma Sales role
Also have rent a room scheme maxed at 14k a year
Pension contribution maxed 15% Davy Select Employer 8 % ( i have a review on my salary next month and will try ask my employer to match my pension contribution of 15% instead of a pay rise)
( I also add all my bonus in my pension as employer contributions and take my 1k tax free voucher each year so i dont really touch any of my bonus as it goes into an accumulating vangaurd fund in davy select
I Bought 3 bed house last year in a busy town 215k with a 180 k 15 year mortgage and currently renting out 2 rooms tax free and its paying most of my mortgage ( essentially living free atm ) . Because i took out a short term i my mortgage is 1300 but getting 96 % payed from rent a room scheme
This essentially allows me to save 2-2.5 k of my monthly net salary ( Total 3100 euro ) and my tenants paying my mortgage ( Not for everyone i know but im young so it suits me )
FAST FORWARD !10 MONTHS LATER I BOUGHT A SECOND HOME
My Plan:
So my major update is iv just bought a second property 5 minutes from my first property to which ill move into as i look to renovate cosmetic stuff nothing structurally needs done . Its a 3 bed 80sqm council house built in the 1960s so its bullet proof and the house is in a mature road inthe centre of a town in the south east . I bought it for a 175k and its abit of a bargain and the survey came back squeaky clean and will have keys in Janaury . I plan to rent with multiple occupancy all 3 rooms and also rent a room to a ukrananian to avail of the 800 euro tax free ARP scheme
I have alot of cash 90k aitting ona. 4% interest account in trade republic and lightyear as i knew i woudl be purchasing the house so i put 75 k down on the house leave a 100k mortgage with BOI @ 4.75 % to which i will look ot pay down as fast as i can
I have estimated that i will receive around 2 k tax free a month and could bump that to 2.8 k if i rent my other room in my other house to another Ukrainian but ill see how im going so i estimate i will receive if i max the multiple occupancy and rent each room leaving a bedroom to myself around 3.4 k paying tax just on 700
Both mortages at 2k will leave my a 1.5k profit each month
So my next step is i now own 2 houses and ill have 10 k in deposit remaining once i sign the contracts in the coming weeks and hand over the 75k plus solicitors fees stamp duty etc . Previously had 90k
SO basically my next steps is to pay down the BOI 100k mortgage at 4.7 % as fast as possible as its a high loan and i guaranteed rate of return and i expect this will take me 3 maybe 4 years
MY QUESTION TO YOU ALL
SO currently as a roundup
I have
40 k pension Davy
2 Properties with circa 400k with mortgages of 270 k with tax free rental income of ARP 1600 plus rent a room 1150
10 k in cash with trade republic
What do you suggest i do next ? I know ill have alot of comments saying im mad becomng a landlord but the way i see it is a way of growing an asset with instant easy cashflow if you live in a desired area ?
So i last posted 6 months ago about my investment strategy and alot has changed in that time
Id like to check back in again to see your honest opinion if you believe this is a sound plan for the long term
Abit of context is key to start i suppose Background :
26 Y/O Salary 60k plus bonus 15-20 k annually- Pharma Sales role
Also have rent a room scheme maxed at 14k a year
Pension contribution maxed 15% Davy Select Employer 8 % ( i have a review on my salary next month and will try ask my employer to match my pension contribution of 15% instead of a pay rise)
( I also add all my bonus in my pension as employer contributions and take my 1k tax free voucher each year so i dont really touch any of my bonus as it goes into an accumulating vangaurd fund in davy select
I Bought 3 bed house last year in a busy town 215k with a 180 k 15 year mortgage and currently renting out 2 rooms tax free and its paying most of my mortgage ( essentially living free atm ) . Because i took out a short term i my mortgage is 1300 but getting 96 % payed from rent a room scheme
This essentially allows me to save 2-2.5 k of my monthly net salary ( Total 3100 euro ) and my tenants paying my mortgage ( Not for everyone i know but im young so it suits me )
FAST FORWARD !10 MONTHS LATER I BOUGHT A SECOND HOME
My Plan:
So my major update is iv just bought a second property 5 minutes from my first property to which ill move into as i look to renovate cosmetic stuff nothing structurally needs done . Its a 3 bed 80sqm council house built in the 1960s so its bullet proof and the house is in a mature road inthe centre of a town in the south east . I bought it for a 175k and its abit of a bargain and the survey came back squeaky clean and will have keys in Janaury . I plan to rent with multiple occupancy all 3 rooms and also rent a room to a ukrananian to avail of the 800 euro tax free ARP scheme
I have alot of cash 90k aitting ona. 4% interest account in trade republic and lightyear as i knew i woudl be purchasing the house so i put 75 k down on the house leave a 100k mortgage with BOI @ 4.75 % to which i will look ot pay down as fast as i can
I have estimated that i will receive around 2 k tax free a month and could bump that to 2.8 k if i rent my other room in my other house to another Ukrainian but ill see how im going so i estimate i will receive if i max the multiple occupancy and rent each room leaving a bedroom to myself around 3.4 k paying tax just on 700
Both mortages at 2k will leave my a 1.5k profit each month
So my next step is i now own 2 houses and ill have 10 k in deposit remaining once i sign the contracts in the coming weeks and hand over the 75k plus solicitors fees stamp duty etc . Previously had 90k
SO basically my next steps is to pay down the BOI 100k mortgage at 4.7 % as fast as possible as its a high loan and i guaranteed rate of return and i expect this will take me 3 maybe 4 years
MY QUESTION TO YOU ALL
SO currently as a roundup
I have
40 k pension Davy
2 Properties with circa 400k with mortgages of 270 k with tax free rental income of ARP 1600 plus rent a room 1150
10 k in cash with trade republic
What do you suggest i do next ? I know ill have alot of comments saying im mad becomng a landlord but the way i see it is a way of growing an asset with instant easy cashflow if you live in a desired area ?