Holl (@HOLK) on getquin

Holl

@HOLK

2Mon·

Portfolio Feedback

Good morning,

Real estate or shares? Equity or debt capital?

I would like to hear your opinion.

I looked at a house 3 weeks ago and am in talks with the owner.

The house costs between €500,000 and €525,000. We are still in negotiations. It really is in very good condition. Nevertheless, I don't want to agree to the €525,000 directly.

With all the ancillary costs and renovation work, I'm looking at €600,000 - €610,000.

My family will give me €365,000.

I have €32,000 in my custody account with my broker.

I will currently receive a loan with interest of 3.6 - 3.8 %.

My share portfolio is still a little bit close to my heart... Even though I'm totally in favor of the house (location, rooms, energy status, etc.), it's still a good investment. Top.

Thank you in advance for your opinion/tips/evaluation.

Kind regards

Holl

#eigenheim
#eigentkapital
#fremdkapital
#immobilie

9 Comments

2Mon

You will sell all of your 31 positions into a single position that is "Im - Mobile". I would think carefully about this. How much "real estate" do you need and can you live with the fact that you will be paying off the loan for X years? Do you also have additional reserves in case you need more? Nowadays, it's not so easy to plan renovation work in advance.

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Björn@Kapital_Koala

2Mon

I would always weigh things up for myself and sleep on it for a week rather than making a decision too quickly that will change your whole life.

Make a list of pros and cons and write down all the pros and cons.

Be aware that a property for your own use will severely restrict you in terms of savings rates, vacations, etc.

On the other hand, you may have the opportunity to save money because you are closer to your work, no rent or similar.

Many factors.
Personally, I would always go and look at 2-3 other properties to get a better feel for the one I'm mainly interested in. That way you can better weigh up what needs to be done, what it will cost and whether it's still the price I'm willing to pay. (-;

Good luck!

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Soprano@Soprano

2Mon

What do you mean by I receive €365,000 from my family? As a loan? As a gift? From life insurance if you transfer one of them?

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Hodlinvestor@Hodlinvestor

2Mon

So if I received 300k as a gift from the family, I wouldn't give it much thought.
Except whether the property is worth it and whether it's right for my family.
But not whether it's a property at all!

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User03@User03

2Mon

What was your reason for starting to invest in shares?
I myself started with the principle that I would never sell it and that it should grow year on year (apart from replacing individual positions if necessary, of course).
Was that also your principle or reason? Do you really need the money to pay off the loan or is it not necessary to liquidate the portfolio? Then you would have two pillars to rely on in addition to the property

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Waldo@Waldo

2Mon

The loans for Real estate purchases are a way of leveraged investing. The right kind of effort can multiply an investment towards increased income and overall wealth.

However, a portion of bad luck, personal (health) setbacks, mixed with bad choices, can ruin things...

I see it as a risky leveraged investment with a large potential. I've done it and am happy my past self made the sacrifices, but I'm cautious to do it again...

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Tony T.@Tony_Chopper

1Mon

An inheritance of €365,000 is a great deal; I think very few people are lucky enough to have that. My thought would be as follows: take the inheritance, invest it well and cleverly, let your portfolio grow, continue to invest yourself and multiply the money many times over in five to ten years. During this time, you will strengthen your position in the company where you work, perhaps climb the career ladder again and consolidate your position. During this time, you continue to rent and are flexible in all respects. In five to ten years, you look around again and watch the market until then. Interest rates change, real estate becomes cheaper, or not... nobody knows for sure. You can then still take your inheritance out and put it into a property, but with a good return over the years you will have increased your money and have more leeway. If you take the inheritance now and buy the property, this will put a brake on your portfolio, at least in the short term. My opinion 😊 Good luck 🍀

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