Hello! I’m in search of some recommendation and opinions from skilled buyers. I stay within the EU.
My annual wage is 30k. Month-to-month expenditures are 700 or 8.4k yearly. I’m able to save 1800 month-to-month or 21600 yearly. Whereas majority has confronted rising expenditures, I’ve managed to lower them by having payed off my mortgage. I’ve a pleasant 2-room condominium (120k). My objective is to purchase sooner or later an condominium in new growth (round 350k), there is no such thing as a hurry. New developments in my nation are out of attain for almost all since value development has been enourmous. However my 1st objective is to construct a portfolio that may cowl two instances my present expenditures (1400 a month). I’m not positive how life like that is with my present wage and financial savings, however not less than I’m not ranging from scratch. I’m additionally fascinated by beginning a small enterprise (does not require massive funding).
My present funding portfolio is 46k invested in development and dividend shares (I get 1.2k in dividends yearly, which I reinvest). And I’ve spare 22k on a deposit. I’ve contributed to my pension funds as nicely (35k).
My 1st possibility is to purchase a 150k condominium for renting it out with 25k down cost. Rental cost (520€ after tax month-to-month) will cowl mortgage cost. At present rates of interest I will not get any money move at first. Expectations of annual condominium value development is round 4%. There’s a small oversupply within the rental market, however rental costs are secure and mustn’t go down anymore. After I handle to hire it out, I could make a number of greater repayments of the mortgage and have optimistic money move. I do know there may be additionally emptiness and restore works. Then lastly, I can begin shopping for index funds with my month-to-month financial savings.
2nd possibility can be to divide this 22k into smaller elements, add month-to-month financial savings as nicely and begin rolling this into some index fund. I do know index fund won’t pay me dividends, however not less than I need not assume learn how to beat inventory markets at first.
Your ideas?