From AAM 23.03.2008

The craziness continues…how could anyone in this situation contemplate doubling up for investment purposes?..what advice would you offer Dave?

"Myself and my girlfriend have 2 appointments booked with my banks mortgage advisor and an estate agent for this week. We are not sure whats best to do in relation to house buying.
My girlfriend has a 2 bed apartment she bought a little over a year ago for €400,000, she previously had a 1 bed apartment which she sold to buy the 2nd one, so her mortgage is not too bad at €1000 odd a month.
I have been saving hard for 2 years now and have managed to save €25,000 with the intention of buying somewhere as an investment. We are due to get married next year, but have agreed to put that back a few years if need be so we can have a 2nd property as an investment, I know we are in a very lucky position to be able to do this , but we worked hard to get here.Anyway, with the current housing prices and the way it is heading I have found myself being able to afford a 2 bed apartment for €285,000.Ultimately our goal is to have a house and if possible have the 2nd property as the investment but now this chance to have 2 apartments possibly as investments has arisen.
Not sure if its easier to buy a house off the backs of 2 apartments or should we just stay with the one apartment and use the saved money as a house deposit.
The down side is if we sell the apartment we have already due to current prices we will loose money not being able to get the €400,000 she bought it for.
Any advice welcome.

Thanks and regards, Dave".

Until he comes onto the 'pin, I wouldn’t offer him any advice or even feel in the least like commenting…

Well he seems to be fully aware of the current market;

So as far as I’d be concerned, he’s a big lad and old enough to make his own decisions. I know what the general thought pattern is on the Pin, but who’s to say won’t make a killing on this in 10 years compared to some other investment.

the guy is doing this as an investment in his head where he could make some money out of other folks but my feeling is that he is going to be the one lining someone elses pocket. He must be pretty I’ll informed to be doing this right now the day of the amateur prop investor would appear to be at an end for now

While we’re talking AAM, this is a fascinating thread

It has everything:
a mad opening idea
“it’s easy money”
“a yield of 4.94%” is a good yield in magic property land
forgetting about tax
68k is an “average salary”
A second mortgage after buying a property

As soon as I read this, I assumed it was a troll

It was me , a trolling 8)


Not sure if it’s a troll…to me it seems the perfect example of the dualism (and lack of intelligence) going on in the market…

‘our’ apartment is still worth 400,000…it’s just all the other ones that we can buy now at 285,000…

With that kind of logic, who needs investment skills?