creating an income from E200,000 ?

mark 2008

Hi. Anyone got any suggestions how I could create a yearly income from 200,000 euros ? Needs to be something dead safe so i don't lose it . any ideas ? Thanks. Mark

bren2002

Tempted to say, can't be done. But define 'income'? €200 p/m?

GerardKeating

mark 2008 wrote: »

Hi. Anyone got any suggestions how I could create a yearly income from 200,000 euros ? Needs to be something dead safe so i don't lose it . any ideas ? Thanks. Mark

Have you consdered property. They say it is a butyers market. For that amount one could get a two bad apartment and rent it out, should clear €500 a month.

ntlbell

GerardKeating wrote: »

Have you consdered property. They say it is a butyers market. For that amount one could get a two bad apartment and rent it out, should clear €500 a month.

but it's not "dead safe"

if he doesn't want to lose it buying in a failling market would be doing just that.

IamBeowulf

Invest it in Postbank's Premium Saver account. 4 % return and instant access. No risk. That'd give a return of 8k p.a. which is better than investing in property and renting it out for 6k p.a. (500 p.m. x 12)

bren2002

You might get a 2 bed apartment in Galway for 200K. You wouldn't get a decent 1 bed in Dublin. Never mind the 'dead safe' requirement.

We need to know what is considered an income?

OP could try www.askaboutmoney.com - just be careful where you post the question or the thread locking Nazi's will be down on you like a tonne of bricks!

bren2002

Also be advised, in the current banking climate, only the first 20K of your deposit with any institution is State guaranteed. Put it in the wrong bank and you could lose it.

Northern Rock is the only place to be in Europe at the moment. Fully backed by the UK govt.

GerardKeating

bren2002 wrote: »

You might get a 2 bed apartment in Galway for 200K. You wouldn't get a decent 1 bed in Dublin. Never mind the 'dead safe' requirement.

Actually some prices in Galway City on a par with Dublin...

Some 2-Beds in Tallaght for about 250K, mortgage the extra, and take the payments from the rent.

Nothing is 'dead safe' even leaving it in a current account...

eclectichoney

IamBeowulf wrote: »

Invest it in Postbank's Premium Saver account. 4 % return and instant access. No risk. That'd give a return of 8k p.a. which is better than investing in property and renting it out for 6k p.a. (500 p.m. x 12)

8k less DIRT at 20% of course.

And if you spend the interest as an 'income' your principle would be falling by about 5% per annum in real terms, and so would end up diminishing over time to very little.

stepbar

You could buy a section 23 / 50 property and offset your taxable income against it. Maybe it could be an idea to borrow money to purchase 2 properties and use the 200k to reduce your LTV.

But remember if you do buy property you would be classed as an investor and subject to higher interest rates as a result.

eclectichoney

and you would no longer be eligible for the ftb stamp duty rate even when you buy aproperty asan owner occupier later on

unclebill98

Some Bank Bonds might be good. Some of the 3 yr bonds have returned 50% up. But thats not a yearly income...

Talk to a FPM in your local bank.

Dub13

Have you looked into the French Lease back scheme,I am doing one at the moment.Some benefits of this are...

VAT back,you get the 19.6% VAT back from the government,lets say you buy a 200k house/villa or Apt.The VAT saving means that you only pay 167224 euros. That means that you buy at 32776 euros below market value, and in effect means 32776 euros instant equity.


You will get a guaranteed yield from a management company for betweent 9 & 11 years.You should be able to get at least 5%.

Its not for everybody but worth a look.

escobar

I have a house I've rented and it doesn't really work out too well. Start up costs maintenance hassle with tenants etc...

If you're into it I definitely wouldn't buy for 6 months to a year.The market should settle down then . No point losing 5-10 grand on the value of the property.

Normally houses are rented out to cover the amount borrowed and capital appreciation is the real earner. Not going to happen at the moment though. You probably would have to borrow to buy somewhere in Dublin anyway. Taking into account the interest on mortages I would recommend investing it to get 4 to 4.5 percent saving account instead. More profit there...

Another idea for you might be investing in Irish forestry funds . It's an asset backed investment with good returns. Think it's for a min five year term . 8% per year return and your profits are tax free. Definitely check in to it.
http://www.irish-forestry.ie/forestry_investment_facts_faqs.htm

kaiser sauze

What sort of return are you expecting, hoping for?

mark 2008

Thanks for the info everyone. yeah my hope is to quit a job i really really hate, and somehow live off the interest ,and drawing down some of the capital each year, supplementing it with a low wage part time job or seasonal work (while living as cheaply / greenly as possible) I'll be taking a good look at some of the suggestions. Thanks. cheers. Mark

100gSoma

IamBeowulf wrote: »

Invest it in Postbank's Premium Saver account. 4 % return and instant access. No risk. That'd give a return of 8k p.a. which is better than investing in property and renting it out for 6k p.a. (500 p.m. x 12)

Where you getting this "No risk" thing from? Postbank is a joint venture between An Post and Fortis bank. If it goes bust you get 20,000euro maximum compensation... Thats a risk right?

~Check the website.. its not state guaranteed or anything like that