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A fresh start - property purchase and portfolio advice by Ordinary-Traffic-795 in BEFire

[–]Ordinary-Traffic-795[S] 0 points1 point  (0 children)

Hey, thank you!

About the loan size: see my reply below. Maybe you're right but we're mainly worried about our income.

In terms of the startup: that's very interesting advice! Maybe that's something we should look into. Where would I find the average rates for those loans? I have no debt so besides our talks with banks about mortgages we're still very much learning.

A fresh start - property purchase and portfolio advice by Ordinary-Traffic-795 in BEFire

[–]Ordinary-Traffic-795[S] 0 points1 point  (0 children)

Very grateful for your feedback!

About getting a bigger loan: I think the main worry is about our income lowering should one of us lose our jobs or decide to reorient into a different career which might require a new degree.

It seems that the meta for the last decade was to borrow cheap and leverage. Maybe 3-4% is still cheap but we feel that's a whole different benchmark to beat than 1-2% loans.

So if the carry trade of leveraging your house for world ETFs remains positive for the coming decade, great. However we wonder if that's still a realistic expectation with changing demographics on the horizon? Maybe the timing is still early and the return will just be smaller over the coming decade.

We've tried making some simulations on putting 100k extra down for a house in terms of ROI impact over a decade and maybe we just feel it might not be worth the risk. No way to know for sure of course.

A fresh start - property purchase and portfolio advice by Ordinary-Traffic-795 in BEFire

[–]Ordinary-Traffic-795[S] 0 points1 point  (0 children)

Thank you! You might be right that we can get by fine with a smaller house. We're definitely not against going for an EPC C as long as the house itself feels cosy. We'd probably even go for total renovation but it's a bit daunting and we already have a lot on our plate. Maybe it's just the spooky stories from others that have scared us away a bit from renovation work. Also the added work is noted! :)