Am I mad - using redundancy payment to buy another property

RATM

Irishder wrote: »

All again thanks for the replies, really appreciate it. Ok so housing is not te way to go. Any other investment ideas out there? If you had day 100K how would you invest.

Have a read through this thread from start to finish
http://www.boards.ie/vbulletin/showthread.php?t=2056765135

Be aware that it is a risky stock so if you have 100k to invest then it shouldn't make up more than 10% or max 15% of your portfolio.

I'll declare a vested interest here as I am a holder, got in back in October at 31c a share and will be buying more next week. It briefly hit 41c yesterday but the main news we're all waiting on is the lifting of a uranium mining ban by the Greenland government- I believe this will happen in April or May this year and when it does the share price will take off like a rocket.

The compamy owns the Kvanefjeld mine in Greenland which is the biggest Rare Earth resource in the world outside China as well as being the fifth largest Uranium resource in the world. It is of global significance as the rare earth metals under the ground are used in tons of devices such as smartphones, LCD TV's, hybrid car batteries, wind turbines, the list goes on and on. Both South Korea and China are very interested in this company-the CEO was on a trade mission to Korea in December and met with executives from Samsung and Hyundai, both who are big consumers of rare earth metals. Koren government themselves are building more nuclear reactors and are interested in securing their uranium supply without having to depend on the Chinese.

A few brokers analysts have predicted the price in 12 months to be in the $2.30 range. I tend to take that with a pinch of salt as brokers have a vested interest to sell as many shares as possible. But even if they are only half right we are still looking at returns of 500% in under a year, in other words a €10k investment now would turn into €50k in a short space of time.

Anyway do your own research into it, never rely solely on any strangers financial advice.

Barracuda1

Irishder wrote: »

Both myself and my wife are being made redundant and will end up with a nice redundancy package between us. I currently have a house bought in 2007 on a tracker mortgage. meeting payments no problem. I am thinking about buying an investment property to rent out. I will be buying this with cash assuming i get a job in the mean time. Anyone see any obvious holes in this plan? or am i mad to do this and i should just pay off the mortgage.

IMO i think property is a good buy at the moment. Prices in some parts of the country and undervalued. You would not build a three bed semi for what they are selling right now. I feel there is going to be a stronger demand for rented property in the future as mortgages are harder to get. Where Irishder is intending to buy will have a good market. I myself look at buying a house in Waterford and renting it out. With the announcement of pharmacutal comany investing 44m eur in the next few years is the lifeline the south east needs. There will be a tendancy to build more in towns and cities versus the countryside as roads in some counties will not be looked after as much. I see on Daft.ie sites for sale in the midlands less than a mile from towns selling for 25k and upwards. These sites are fully serviced (water,electricity) and have decent roads. One other think is that if you leave the money in the bank inflation will eat away at any gain you will make. Invest the money in property and you'll make up part of your income in rent and in 10-15 years sell it off and by then prices will naturally rise.

Toyota 1976

spend it wiesely though best of luck wiht uit

Galego

Barracuda1 wrote: »

10-15 years sell it off and by then prices will naturally rise.

Back to the 2007 idea of "property can ONLY gain in value"!?

Barracuda1

Galego wrote: »

Back to the 2007 idea of "property can ONLY gain in value"!?

Over a longer period of time not the philosphy of overnight as what alot of people did.

Galego

Barracuda1 wrote: »

Over a longer period of time not the philosphy of overnight as what alot of people did.

Not saying Ireland will head the same way but look at the Japanese house prices for the last 20 years........

Irishder

Barracuda1 that was exactly my thinking.

roro2

Barracuda1 wrote: »

IMO i think property is a good buy at the moment. Prices in some parts of the country and undervalued. You would not build a three bed semi for what they are selling right now. I feel there is going to be a stronger demand for rented property in the future as mortgages are harder to get. Where Irishder is intending to buy will have a good market. I myself look at buying a house in Waterford and renting it out. With the announcement of pharmacutal comany investing 44m eur in the next few years is the lifeline the south east needs. There will be a tendancy to build more in towns and cities versus the countryside as roads in some counties will not be looked after as much. I see on Daft.ie sites for sale in the midlands less than a mile from towns selling for 25k and upwards. These sites are fully serviced (water,electricity) and have decent roads. One other think is that if you leave the money in the bank inflation will eat away at any gain you will make. Invest the money in property and you'll make up part of your income in rent and in 10-15 years sell it off and by then prices will naturally rise.

Mortgages will be harder to get, but yet prices will naturally rise? This doesn't really add up. But I don't really see mortgage availability being lower than the 2010 - 2012 period anyway. Sure prices may be higher in 10-15 years, but for someone who is looking for a job and may need access to cash if this doesn't happen as quickly as required, you'd have trouble finding a much more illiquid place to put the cash than a property in Waterford.

Irishder

I will not be buying or investing in anything until i get a full time job. Really appreciate all the feedback on this

blops2013

Will you not be entilted to any dole if you have an extra property?

makeorbrake

blops2013 wrote: »

Will you not be entilted to any dole if you have an extra property?

The capital value of the 2nd property will be taken into account as part of a means test for J.A.

BostonB

If getting a new job isn't a problem. Consider using some of the money for a trip that you you wouldn't normally make as you wouldn't have enough leave when working. Obviously if you don't know when you'll get a new job, you wouldn't do this. I wouldn't get into property unless your job was secure and had a cash cushion for unexpected expenses and tax's etc, and you could buy the property without a mortgage.

blops2013

makeorbrake wrote: »

The capital value of the 2nd property will be taken into account as part of a means test for J.A.

Can you explain abit more please.

The_Conductor

blops2013 wrote: »

Can you explain abit more please.

This explains it in detail