Have you ever wondered what you would do with your current home if you drank for the better? Is it better to sell it and get a quick pension, or do you support it and collect it regularly? It pays to sweat time, the result vs my surprise.
Manel Adam (31 years old) and Eva (28 years old) currently lived in a flat panel house with a size of 2 + 1, which is in their personal ownership near the center of the regional town, with a thorn price of about 650,000 K. Adam works as practitioner with her own surgery, Eva is a teacher. They don’t have children yet, but in the foreseeable future they would try to start a family.
For this reason, they decided to find the property of buying a new family house in a quiet village, about 15 km away from the town. The total income of the household is on average around 65,000 K msn. The purchase price in the amount of CZK 3,700,000 was paid by the city from its own resources (400,000) and the remaining 3,300,000 by mortgage.
The mortgage was agreed for 30 years and the monthly payment for the three-year fixation of the rate year is 16,077 K, including the fee for keeping the mortgage here. The cost of running the house is estimated at about 5,000 K msn, including insured real estate. Manel have a very long time set up personal financial full, securing incomes, both current and future (pensions).
Adam and Eve at this moment is a dilemma of how to deal with the apartment – sell and rent it? It should be noted that thanks to their above-standard standard, the funds would be obtained by sale or rent completely freely and could be forced, for example. for an investment that would help halve the mortgage payment period. So let’s think about how we have the possibilities.
in about reforms can be found here
As for the apartment, we have two alternatives, either sale or rent. After researching the local market, we found that the rental price of the same apartment in this location ranges from 4,500 K to 5,500 K, depending on the equipment, without energy. If we cover with it 5,000 K, then after deducting the fee into the repair fund, reserves for gossip of the apartment and tax, we are at the share of about 2,000 K of the net profit. If we go on sale, we have 650,000 K of free funds available.
When renting nm is the income from the apartment to provide a charge of about 2,000 K msn. If we did not invest it (ie they put away this supply without appreciation), after fifteen years we will remember 350,000 K. In this way, let’s own an apartment, its value could be around 1 million K.
If we rent regularly, we will invest, for example. through mutual funds, so at 8% valued in 18 years, about 800,000 K. In the case of an increase in the value of the apartment by 350,000 K (since it is an apartment in a panel house, so we do not assume an increase in its price) and its subsequent sale they were able to repay the balance of the mortgage bond in advance.
We consider the disadvantage of this variant to be the limited possibility of diversification in funds due to the relatively low volume of funds, which does not allow us to invest in more than two or more funds, which is somewhat insufficient.
Upon sale, we have 650,000 K immediately available. Investments of such a high level will be much more diversifying than the lease option, in which we rely on only two funds in the fund, relying on rising real estate prices and invested assets. In this way, we can spread the risk not only between several funds, commodities, certificates, but also into several regions and industries. Appropriate distribution of investments of this amount at the same 8% valued maturity after 14-15 years.
If we compare both variants, the sales variant is not only financially efficient, but mainly due to the much diversification of my risks. In common sense, if we lay 10 eggs in one coke and tear it, we will most likely lose our eggs, if we lay this egg in a few coats and tear one, we will lose only one hundred eggs. This alone will ensure sufficient diversification in the investment world.
What is an open catch fund
The open-end fund is established in such a way that in the case of small investors the company invests jointly through a professional investment manager of the company. The small segments thus form a large amount of income, which the fund manager invests in various securities. Whenever an investor receives a so-called catch sheet, they are involved in all the fund’s investments.
The current share price is usually determined on a daily basis and its value corresponds to the exact value of the assets that fall on one floor.
Hints and tips
Diversify, diversify, diversify, ie. distribute investments not only in the amount of funds, but also industries, regions, certificates, commodities, etc.
Think about how and for what purpose you invest, it will be possible to determine the investment horizon with great accuracy.
Do not choose the fund according to the performance achieved in the last year in the month, especially according to the performance over a long period of time.
Find out as much information as possible about the selected fund. The longest ones can be found in the fund’s articles of association, which must be available when purchasing share certificates.
Don’t invest in it, don’t understand emu.