Thinking of Buying - Advice Needed!

acorn1984

Hi all,

As a result of my never-ending internet searches of daft.ie, I have recently come across a couple of properties that I am very much interested in buying. There are several thing that are holding me back from investigating things further:

1. Although I have a permanent job, I want to have the flexibility to be able to move should I get itchy feet.
2. Neither I nor anybody in my family can give me any advice on the perils of mortgages etc.
3. I'm unsure whether, if on a First Time Buyer mortgage, it is possible to let a property?

Purely through a series of mindful google searches, I have gathered the following information:

- The cost of the property = 100,000
- A mortgage over 25 years = approx. 500/month
- Similar properties have been let for approx 700/month.

Taking into account fees, taxes, maintenance etc. is it relatively safe to assume that this property would indeed pay for itself?

I would really appreciate some/any advice on this matter as I am a complete and utter amateur when it comes to property.

Dr. Dodger

acorn1984 wrote: »

1. Although I have a permanent job, I want to have the flexibility to be able to move should I get itchy feet.

Hi OP, I'm afraid I stopped reading after this sentence and it's probably where you're interest should have stopped tbh

Lyn256

You need to consider all the additional expenses that come with owning a house
House insurance, life insurance, property tax and maintenance on the property to name a few.

Also, if at a future stage you decide to rent the property-you will pay over 30% of your rental income in taxes.

So looking at all of the above-maybe, not such a good idea for you at the moment

odds_on

And unless you have a buy to let mortgage, your mortgage company will probably have a clause in the mortgage agreement prohibiting letting the property.

Have you looked into all the laws and regulations of renting a property? The RTA 2004, Housing Standards for rented Accommodation and your rights (very few) and obligations as a landlord.

I am a complete and utter amateur when it comes to property

If you rent out the property, you will be considered as a professional landlord and any errors due to insufficient knowledge of the laws could cost you in the region of 4 or 5 figure penalties.

acorn1984

Thanks for the responses.

Dr. Dodger wrote: »

Hi OP, I'm afraid I stopped reading after this sentence and it's probably where you're interest should have stopped tbh

Yes, I was expecting a comment along these lines. Perhaps I should reframe what I meant: although I am currently in a permanent job, I may be in a position in the future whereby I will need to relocate for career purposes.

Lyn256 wrote: »

You need to consider all the additional expenses that come with owning a house
House insurance, life insurance, property tax and maintenance on the property to name a few.

Also, if at a future stage you decide to rent the property-you will pay over 30% of your rental income in taxes.

So looking at all of the above-maybe, not such a good idea for you at the moment

Thanks, Lyn256. I hadn't considered life assurance in all of this.

In all seriousness, I am not looking to make a profit out of renting in the future, nor am I foolish enough to flippantly embark on a lifelong mortgage commitment without giving it the due consideration. What I would like to know is whether, taking into account current property prices and a brisk rental market, how plausible would it be to purchase my own place?