Row 23811

Row ID: 23811 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 23811 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Hi all,

I have a question regarding liquidating financial assets to purchase a recreational property with a cabin with full utilities.

The property is for sale for about $100,000. Realestate tax is fairly low in the country I'm interested in purchasing (in europe). Interest rates on personal loans are also comparable to mortgage interest rates, which stand at around 4% compounded yearly in the country.

On the personal finance side, I try to contribute about a third of my income to a portfolio of stocks and bonds, both inside and outside a retirement savings account. This comes out to roughly $12,000 per year.

The ultimate point to my question is whether it's financially viable to buy a property like this, which cannot be used as a primary residence - buying it would mean I still have to pay rent at my primary residence. So although the property could be resold, I don't view it as an investment. The focus of my question is on the handling my securities investments.

The three options are 1) don't buy anything 2) finance 80% of the purchase or 3) buy outright. Each option successively requires the sale of more of my assets. Financing on a 10 year loan would require smaller sales of my securities and payments of somewhere between $800-1000 per month, which would be just under my annual contributions to investment accounts for the year.

It seems like you'd want to keep the money invested, so you don't alternatively pay the cost of missed asset appreciation by selling the invested securities. On the other hand, continual net contributions is what you want for building long-term wealth. From a strict financial perspective, not buying is the right answer. It seems you'd want to only buy with excess income after you've met your investing goals.

Am i thinking about this correctly? There is the chance that the property will appreciate in value and stay liquid, but I'm not counting on it.

Thanks in advance.

FieldValue
text Hi all, I have a question regarding liquidating financial assets to purchase a recreational property with a cabin with full utilities. The property is for sale for about $100,000. Realestate tax is fairly low in the country I'm interested in purchasing (in europe). Interest rates on personal loans are also comparable to mortgage interest rates, which stand at around 4% compounded yearly in the country. On the personal finance side, I try to contribute about a third of my income to a portfolio…
label r/investing
dataType post
communityName r/investing
datetime 2024-05-21
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Raw Record

{
  "text": "Hi all,\n\nI have a question regarding liquidating financial assets to purchase a recreational property with a cabin with full utilities.\n\nThe property is for sale for about $100,000. Realestate tax is fairly low in the country I'm interested in purchasing (in europe). Interest rates on personal loans are also comparable to mortgage interest rates, which stand at around 4% compounded yearly in the country.\n\nOn the personal finance side, I try to contribute about a third of my income to a portfolio of stocks and bonds, both inside and outside a retirement savings account. This comes out to roughly $12,000 per year.\n\nThe ultimate point to my question is whether it's financially viable to buy a property like this, which cannot be used as a primary residence - buying it would mean I still have to pay rent at my primary residence. So although the property could be resold, I don't view it as an investment. The focus of my question is on the handling my securities investments.\n\nThe three options are 1) don't buy anything 2) finance 80% of the purchase or 3) buy outright. Each option successively requires the sale of more of my assets. Financing on a 10 year loan would require smaller sales of my securities and payments of somewhere between $800-1000 per month, which would be just under my annual contributions to investment accounts for the year.\n\nIt seems like you'd want to keep the money invested, so you don't alternatively pay the cost of missed asset appreciation by selling the invested securities. On the other hand, continual net contributions is what you want for building long-term wealth. From a strict financial perspective, not buying is the right answer. It seems you'd want to only buy with excess income after you've met your investing goals.\n\nAm i thinking about this correctly? There is the chance that the property will appreciate in value and stay liquid, but I'm not counting on it.\n\nThanks in advance.",
  "label": "r/investing",
  "dataType": "post",
  "communityName": "r/investing",
  "datetime": "2024-05-21",
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}
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