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Ok, so I'm based in Ireland.
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Mortgage rates are currently 2.6% variable.
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Looking at a 2 bed apartment
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Loan of 180k
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Paying 3600 in rent a year
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I am single.
My idea is that I buy an apartment. The spare room can be rented out I believe for at least 6000 a year (500 a month)
I have been doing the calculations and I believe that it's a sure fire way for me to make money on it. Even if house prices fell by 10% I'd still be in profit.
My idea is that I can have a tenant that is paying towards the mortgage. I would save money by not renting.
I believe from my calculations I wouldn't just be saving on rent, I would be making money on it also. I have the file linked below. Please let me know what you think.
I have done the calculations on interest rates doubling and it's still feasible according to my figures.
The only way I can see trouble (I wouldn't be making money on the house) is if house prices dropped by 10% or more and the interest rate doubled.
BTW just in case law is different in the states, no capital gains tax on primary residence if sold and rental income for owner occupiers is tax free up to 14k a year.
https://drive.google.com/open?id=1noNzjJUaJxeeftjcEps86HwhiEaH-rc4
Submitted February 18, 2019 at 11:27AM by PM_sweaty_socks http://bit.ly/2Iz5HVp
