Asking / consulting financing for beginners (NIS) Let's say I brought home 175K NIS to buy a property. (…
Financing Question / Consultation for Beginners (NIS)
Let's say I brought NIS 175K from home to buy a property (investment length of 5 years or 25% increase in value of property)
I have the option to take out a fixed rate unlinked 1.25 interest, up to 100K.
Estimated net cash flow after taxes (in Israel and in the US) is: NIS 1150 per month.
If I take out a 50K loan and repayment according to Spitzer (principal + interest) for 4 years, it will be NIS 1068 per month.
My plan is to buy another property in a year.
I'd love to hear opinions, ways of action, what would you do instead?
The risk of the dollar exchange rate must be taken, in addition there are additional costs and taxes and rents that do not pay.
If the company gives you a fixed return you will run away like a fire.
The flow is theoretical
In practice you pay the taxes in the country before you get the refund from the US
This is a 37% federal deduction originally in the US
Also, check how much state tax you have to pay and if you must deduct withholding, add to 37% until you get the expected refund
And from Mr. experience, a slight error by an accountant in the report is enough for the repayment to be delayed by months to years.
An appraiser, a loan, taxes, tax coordination in Israel, and all this before the renovation of the property, which must require a few thousand more, and all this for 1000 shekels a month rent? Well done, sounds great (headache headache headache)
Take a good look at what you're doing so you don't lose your money.
Only selling expenses on the property are about 10%
What will you buy in the United States at ₪ 275000 ??
The monthly return compared to the cash flow is too low for my taste… You have a margin of less than NIS 100 and every small deviation you will have to take money out of your pocket.
Recommend making a balloon loan and repaying only interest, this is possible through the education fund and savings policy.
What is the question about the second property? You will have to bring more money one way or another and purchase another property…
I would look into a Grace / Balloon refund option and take all the 100k.
Sounds amazing, how do you raise capital at such interest rates? ?