Comments on: How to retire with less than 200,000€ in investments https://mrsmoneyhacker.com/how-to-retire-with-less-than-200000e-in-investments/ Helping people view money differently while chronicling my own path to financial independence in Ireland and Canada Sat, 30 Nov 2019 11:40:03 +0000 hourly 1 https://wordpress.org/?v=6.9 By: Meagan https://mrsmoneyhacker.com/how-to-retire-with-less-than-200000e-in-investments/#comment-16 Sat, 30 Nov 2019 11:40:03 +0000 https://mrsmoneyhacker.com/?p=564#comment-16 In reply to FIIRELAND.

Ya, I’m not sure I would personally be comfortable with the interest only option but thought I’d share for those who are.

I ran your scenario through my worksheet and buying at 230 and renting for 1850 would bring you a return of 7,743/year or 10.3% using interest only option at a tax rate of 33%. Renting for 2,000 would net you 8,949/year and yield 11.9%. Or if you go traditional mortgage at 4.75% that goes down to 2,556/year or 3.4% for 1,850 and 3,762/year or 5% if you can get 2,000 BUT with the added element that your capital is being paid off and you would get that additional return once you sell.

Another tip I read from another FI member was that they rent to families longer term and unfurnished as a means to ensure they will mind the place a bit more than if you furnished it. I suppose it’s more of a hassle to move then too so ensures they stay a bit longer.

]]> By: FIIRELAND https://mrsmoneyhacker.com/how-to-retire-with-less-than-200000e-in-investments/#comment-15 Sat, 30 Nov 2019 10:08:01 +0000 https://mrsmoneyhacker.com/?p=564#comment-15 Interesting thoughts. The rental market in Ireland seems to be very different to the US where they talk about the 1% rule etc..

Personally wouldn’t want to pursue the interest only option BUT I can understand the attraction of clearing it all through as tax deductible.

We’re looking for another property and considering commuter belt for best ROI. modern 3 bed apartment for sub 230 and can rent for 1850-2000..

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