Opinions on buying a duplex?

froger

Hello,

I have posted previously about if I should use my inheritance to purchase a house or wait for another few years before making a purchase. I did make some offers on one or two places but they didn't work out for various reasons.

I am getting really fed up of rental places as rents are beginning to rise (passing on property tax etc) and the hassles in getting repairs done is not worth it.

So at this stage I am thinking about purchasing a duplex apartment as I have seen some for in around the 140,000 - 160,000 price range. I would be looking at making an offer in around 115,000 (max would be 125,000). With an offer like this I would still have some inheritance left, which I will move to a long term savings account.

The idea would be that I would save what I am currently paying out on rent (minus property tax, refuse charges, property maintenance which I don't pay now) and invest it in savings accounts.

In the future when I need a bigger place, I would look at renting out the duplex (it is in an area that has a lot of rentals), or look at selling it on. I would be committing to living in it for at least 5 years.

What are your opinions on this? Is my value around right for a duplex in Cork?

The_Conductor

Depends on the area- but I do think you're being optimistic price wise (most duplexes are 3 beds). If someone needs to sell, you could bag yourself a bargain- but expecting a 25% discount on asking price for a duplex sounds a bit overly hopeful in my opinion.

If you give us specific examples, we can comment on them.

ted1

I'd advise againest it..I'd say buy a house instead. The resale value and resale ability of a house will grnreall trump over apartments.

amtc

I love my duplex - very warm, and illusion of a house without upkeep!

The_Conductor

amtc wrote: »

I love my duplex - very warm, and illusion of a house without upkeep!

You don't have a management charge and the necessity for public liability insurance with a house though!!! It really is six of one, and half a dozen of another.......

amtc

yeah, but I have a garden front and back which is maintained, bins included, window cleaning - suits me.

froger

smccarrick wrote: »

Depends on the area- but I do think you're being optimistic price wise (most duplexes are 3 beds). If someone needs to sell, you could bag yourself a bargain- but expecting a 25% discount on asking price for a duplex sounds a bit overly hopeful in my opinion.

If you give us specific examples, we can comment on them.

The ones I am looking would be only 2 bedroom 75 to 85 sq meters in size. Most are on the west side of the city, near to the University hospital.

My fear with buying a 3/4 bed house would be that it might be harder to sell on in 5 years time. I would expect that values still have a bit to fall no matter if a house or duplex.

My reckoning is that with a duplex it should at least have more rental potential if the market was not there for sales. Also a duplex in my opinion are good ideas for busy couples looking for a first home, no outside space to maintain etc.

I haven't viewed any yet, but also wondering what type of differences should I look out for between a normal house and duplex (management fees etc).

strandroad

froger wrote: »

I haven't viewed any yet, but also wondering what type of differences should I look out for between a normal house and duplex (management fees etc).

Management fees
Parking arrangements
Bin arrangements
Storage for bikes/tools/car stuff
The fact that you're living above someone/below someone so you want to make sound does not travel

johnwest288

If you have the option...go for the house.... Its the Better buy at the end of the day in most cases:cool:

handlemaster

I would go for the house. You are already thinking of renting it out. The house would be a saver bet in my opinion and easier to shift in the long run. Ireland has fallen out of love with apartments.

seamus

froger wrote: »

In the future when I need a bigger place, I would look at renting out the duplex (it is in an area that has a lot of rentals), or look at selling it on. I would be committing to living in it for at least 5 years

All other factors are irrelevant. Anyone getting into the property game today needs to play the long game. Renting a property out isn't as simple as collecting money and forgetting about it. You need to make sure you're insured, carry out regular inspections, carry out repairs and maintenance in a timely manner, and the most stressful part of all - you need to try and find good tenants.

Also if you are renting out that property and buying another, then presumably you will need a mortgage to buy the second place, which is a stress you can avoid right now by buying a property which will stand to you for 20 years if not more.

I live in a duplex and I'm very happy. The only issue is storage. I have access to a good big attic, which is helpful, but I would give my right arm for a small garden shed and room in a garden to work on my bike. Climbing in and out of the attic twice a day can be a pain.
The houses on my estate also pay managment fees and use the communal bins and parking, so the garden is really the only thing which I miss.

The advice I'd give to someone starting out is - if you're young with big plans ahead of you, buy a house. If you're older and you've no children to look after and want a property that's easier to look after, then a duplex may be the way to go.

froger

seamus wrote: »

All other factors are irrelevant. Anyone getting into the property game today needs to play the long game.
.......
Also if you are renting out that property and buying another, then presumably you will need a mortgage to buy the second place, which is a stress you can avoid right now by buying a property which will stand to you for 20 years if not more.

I don't want to play the property game, trying to make a return on my investment in a financial sense. The return for my money, as I see it, is the secruity that owning a property would provide over renting. Rents are now creeping up, and you are always at the mercy of the landlord giving you notice if they want to sell, inspections, hassling them for simple repairs.

I really don't want to be tied down into something for 20+ years and carrying a mortgage to try and get the "perfect place", which as a first time buyer is a big move to get right!

I understand the hazards and that I might lose some of what I put in. Surly even if the bottom fell out of the housing market even more, a Duplex in around Cork City would still have some market value and re-saleability, likewise other properties would be after falling as well.

I am glad though that some people actually like living in a Duplex, the idea of no garden to maintain is a big plus for me. I will check out some terrace/town houses as well just to see what else is out there.

amtc

Mine has a storage shed which is great.

I love my duplex, and it's really well built. Had a house before and I could hear everything next door.

trippeltri

Hello OP, I am looking to buy a place in the Cork area as well, and looked at 3bed and duplex.
About the value: I think 115K is optimistic, 125K might be spot on for a recent, 2 bed, 80sq meters duplex in a nice area (thats according to the Property Register )
But your average 3bed town/terraced house is often not bigger than 80sq meters (for 160/180K) so you would still need to rent out when/if you need more space.
Good luck

froger

Thanks for all the replies,

I have looked at a few duplexs around Cork, and don't really like the layout of them, a terraced house/town house offers a better solution for me.

I have noticed now that there are some smaller 2/3 bed, places around Cork that sold for around the 30k mark :eek:

TheDriver

i saw a 4 bed duplex in mallow guiding at 115k so depends on where you want to buy, having said that you could get a 3 bed semi for 90k in the town at a push......