- January 5, 2024
- Posted by: legaleseblogger
- Category: Related News
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
Seeking Advice on Saving for a Downpayment on an Apartment
Hello everyone, and a belated Happy New Year to all! I am reaching out for some advice regarding the downpayment for an apartment that I am looking to save up for. I am a 34-year-old male from Bulgaria, and starting from 01.02, my after-tax salary will be 2700Ôé¼ per month.
In terms of my financial situation, I currently have a Ôé¼10000 emergency fund, Ôé¼8300 invested in an ETF (IWDA) through Dollar Cost Averaging for the past two years, and Ôé¼17000 invested in Bitcoin and Ethereum. My goal is to purchase a 1-bedroom apartment that costs no more than 130000 – 135000Ôé¼ when unfurnished.
However, I am facing a dilemma when it comes to the downpayment. With 20% of the apartment price amounting to around 27000Ôé¼, I am unsure whether I should liquidate my crypto holdings and/or ETF, or dip into my emergency fund. Alternatively, should I start a separate fund specifically earmarked for the downpayment while continuing with the monthly deposits into my ETF?
It is worth noting that I have only recently managed to build up my emergency fund, leaving me with a surplus of 800Ôé¼ that I could potentially allocate towards purchasing additional shares or kickstarting a downpayment fund. My investment horizon for the ETF Dollar Cost Averaging strategy is 15+ years, and personally, I am hesitant about liquidating it prematurely as I don’t consider it to be a wise move just yet, although I am open to considering different perspectives.
I would greatly appreciate any advice or suggestions that anyone can offer on this matter. Thank you for taking the time to read this post, and I welcome all comments and input.
AI Legalese Decoder could help in this situation by providing comprehensive and personalized financial advice tailored to your specific circumstances. It can analyze your current financial portfolio and provide insights on the potential impact of liquidating your assets for the downpayment, as well as suggest alternative strategies for funding the purchase of the apartment while also continuing to grow your investments. Its AI-powered analysis can take into account various factors such as market trends, tax implications, and risk management to offer informed recommendations on how to best navigate your financial decisions.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
Original Content:
As AI and machine learning algorithms become more advanced, there is a growing need for legal professionals to understand and interpret these technologies. AI Legalese Decoder is a software that can help legal professionals navigate the complexities of AI and machine learning language. It can assist in deciphering legal documents, contracts, and regulations related to AI and machine learning, helping lawyers to better understand and apply these technologies in their practice. With the help of AI Legalese Decoder, legal professionals can stay informed about the latest developments in AI and machine learning, ensuring that they are well-equipped to provide the best possible legal advice to their clients.
Formatted Content:
The Importance of AI and Machine Learning Understanding in the Legal Profession
As the capabilities of AI and machine learning algorithms continue to advance at a rapid pace, it has become increasingly crucial for legal professionals to grasp and interpret these cutting-edge technologies. With the ever-expanding complexity of AI and machine learning language, there is a growing necessity for legal experts to stay abreast of these developments. In this context, the AI Legalese Decoder emerges as an invaluable tool to support legal professionals in navigating the intricate terrain of AI and machine learning.
How AI Legalese Decoder Can Assist Legal Professionals
The AI Legalese Decoder is a sophisticated software program designed to aid legal professionals in the interpretation and comprehension of AI and machine learning language. Its powerful capabilities enable legal practitioners to decipher and parse through complex legal documents, contracts, and regulations pertaining to AI and machine learning. By leveraging the AI Legalese Decoder, lawyers can enhance their understanding and application of these advanced technologies in their practice.
Expanding the Length and the Role of AI Legalese Decoder
In addition to its role in decoding legal documents, the AI Legalese Decoder serves as a reliable resource for legal professionals to remain informed about the latest developments in AI and machine learning. Its comprehensive features ensure that lawyers are well-equipped to provide the most up-to-date and optimal legal guidance to their clients. Moreover, the AI Legalese Decoder can also assist in identifying potential legal implications and considerations surrounding the use of AI and machine learning technologies, thus enabling legal professionals to offer more strategic and informed counsel.
Overall, the AI Legalese Decoder not only simplifies the intricate language of AI and machine learning for legal practitioners but also empowers them to stay ahead of the curve in this rapidly evolving field. By leveraging this powerful tool, legal professionals can better serve their clients and navigate the complexities of AI and machine learning with confidence and expertise.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
****** just grabbed a
Why do you have 50% of your portfolio in crypto??? DoesnÔÇÖt seem a very smart thing. Liquidate those and next time if you have a planned expense use Bonds!! DonÔÇÖt sell the ETFs, that should be the core of your portfolio and a long investment horizon goal.
[deleted]
Same thing here but I am not planning to buy in the next 5 years. In your situation I would not touch your emergency fund and build an other fund for the down payment. Then use this along side your more risky/speculative assets like crypto (if needed) as a down payment. You never know what you will “find out” once you move in your new flat so have some cash (e.g. part of your emergency fund) on hand it probably wise. It might depends on the country but I don’t know if the money you borrow to buy the house can also cover the different fees/taxes that you will have to pay when you buy. So that would be extra cash that you would need to have on top of your down payment.
The main problem is that you current asset allocation is badly thought, considering that you were planning to buy a house.
You should have put at least the equivalent amount of the downpayment + taxes + fournitures in bonds.
Not just some ETF bonds, but single bonds having as target date the year planned for this purchase.
Everything you do now will be suboptimal
Dude, I am pretty sure with your salary in Bulgaria you can take credit with 10% or less down payment. Do not take your investments, just use your emergency fund to finance the loan.
Hey, fellow bulgarian here. I have very very similar experience to you in both age, income and portfolio. I already own my apartment though so i can share some valuabe insight.
I highly recommend checking out newton mortgage consultants if you live in Sofia. Newton dot bg – just give them a call and schedule a free consultation. Their business model is they get their fee from the banks when they bring them new customers i.e. you. They will never ever charge you for anything.
That being said your best option IN MY OPINION is to simultaneously go for a consumer credit (potrebitelski) and a mortgage at two different banks. They can gelp you do that for you as they are really close to all the banks and know how to pull off such stuff.
From a financial standpoint you would probably get a 35k bgn for 10 years at 4.5% which would be ~360bgn/mo. You dont want to liquidate already open positions but rather limit the future contributions to the portfolio with said 360 bgn/mo. The reason – on 35k principal you get about 10k interest so thats like a 1/3rd cost of capital. At the same time IWDA at an average of 7% cagr will double your current investment in 10 years.
And then thereÔÇÖs also the fact i dont know how up can consumer loans go since you said youÔÇÖd need 54k. Maybe they can go up to 50 i dont know.. if they cant then youÔÇÖd need to come up with the rest of the money, but the situation remains the same – you want to use external capital since the cost of borrowing is less than what your own investments generate. Hope this helps, let me know if you have other questions and of course i am in no way affiliated with newton, i can only recommend them from my own experience.
I would dump all the money into the mortgage but leave 10k for defects you did not spot. Most times insurances are bundled with the mortgage which make it quite expensive beyond the interest rates. If a life insurance is obligatory for example, you will save a significant amount here.
I never regretted missing out on bull runs in the stock market or crypto. I still kept maximizing retirement accounts. At the same time paying off my mortgage asap, has made it I am debt free at 34.
Beyond the 27000 you may also require to pay more in transfer tax or VAT if property is new. Inform yourself in advance.
I’m in a similar position so interested in answers.
I’m in the process of buying a house and I’m wondering if it’s best to put all my cash towards the down payment to the bank (in order to have a lower monthly instalment), or I should just give the minimum required by the bank and invest the rest of my cash.
Hi . Can you see this post or I am shadow banned ?
I am in the same Situation. I don’t want to sell any of my investments at the moment. And my Crypto investment is similair to yours more than half of my portfolio.
I decided to wait a little longer and just safe my income until i have the downpayment saved up. I think there will be another rise for crypto in the next few years and want to hold onto it until then at least. But I am not in a hurry to buy the apartment.
So maybe for you the better choice would be to sell some part of it.
I suggest selling the crypto and using that for down payment. The down payment is a minimum of 15% + closing costs (I don’t really know for Bulgaria but could be 2k ?) You can take that from the emergency fund. Also, beware of taxes on the crypto you sell, that you might have to pay. Here’s the thing, the crypto is high volatility, tomorrow you might have more but you might have less. If you believe/feel/want that now is the moment to get your own home, do it. The best moment to buy your home is always “now” because renting, has it’s own perks but you give the money to someone else. And the rent is probably the same as the montly payment, but that goes to your home not in landlord’s pocket.