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What to do re property bought off plans?

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  • 04-08-2006 4:16pm
    #1
    tertretret
    Closed Accounts Posts: 1 ✭


    I’ve recently bought a property off plans, and I’ve paid down 10% of the purchase prize.
    I have 50k in savings and I’m wondering what I should do with it in the meantime?
    It’ll be 18 months before its built, and I take it I can pay off a chunk of my mortgage from day one of paying my mortgage?
    One other option is for me to purchase a second property with a friend, but am I right in thinking that I cant do this until I start paying off property one, IE when it is built?
    I ‘under borrowed’ by about 50k to purchase the property off plans..so in theory if I went in with a friend I would be able to buy a second property.
    So two things, where can I put my money where it will work for me for the next 18 months?
    Should I use it to pay off a chunk of my mortgage when my home is built? Or should I use that 50k to buy second property with a friend?
    Anyone been in my position before, if so what did you do?


Comments

  • Options
    #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Check your mortgage - there may be a condition in it that the mortgagor must use his own funds first. If not, do what you like -it's a commercial decision that only you can make. If I could know whether buying now is right, or reducing my debt, then I would be a millionaire by next week.


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    #3
    Diaspora
    Closed Accounts Posts: 213 ✭✭Diaspora


    I'd look at putting your €50k into a commercial property fund in the short term if you think that bricks and mortar are the one. Many of them have leverage structures of 70-85% so the returns are not much different but the risk is spread accross the market and for a 1-2% annual managment fee you have some of the best brains in the business making your decisions. The one proviso I'd look at is to check the exit charges.


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