Buy or rent.

blowin3

Maybe this a stupid question but just looking for advice. I am renting at the moment and I have been willed a considerable amount of money 130k. I am paying 550e a month rent and am thinking of buying a house for 100k and putting 20k into renovating the house. I had planned to immigrate with the money but now maybe houses are a good investment and maybe the way to go. thanks again for the advice. I live in Ennis Clare.

The_Morrigan

OP you might want to give your location here as property prices or value for money are not equal across the country at the minute.

who_ru

Depends on your age and how badly you want to see the world. Also your occupation. Are your job prospects good here? Remember taxes here are high and will stay that way for a long time. Would you have a better standard of living abroad?

blowin3

The job prospects not great due to age. I have done a bit of traveling and I can put that on hold for a year or two. But what I am asking should I keep paying the rent or buy I feel that buying now and being mortgage and rent free makes sense. Ok most of my capital will be invested but maybe now is the time to buy.

murphaph

I wouldn't buy a house where employment opportunities are relatively poor unless I was already in retirement. That makes little sense. The empty estates in such places are testament to that. Are you near retirement age?

blowin3

I have 10 years for that to kick in. But my logic is that why pay 6000 a year on rent and only get a low return with money on deposit in a bank etc. I am also married and have a child going abroad the money would be gone and I would have noting to show for it. The house I am looking at is in a well established area and with schools and shops close by. The other thing I will be able to sign here if needs till some thing comes up and I also have the option to rent if I need to move abroad. Thanks for the advice I am just trying to clear up in my head is this the correct thing to do.

MouseTail

At your stage in life I would buy, to have security for my family, especially in retirement and old age.

ClonNGB

blowin3 wrote: »

Maybe this a stupid question but just looking for advice. I am renting at the moment and I have been willed a considerable amount of money 130k. I am paying 550e a month rent and am thinking of buying a house for 100k and putting 20k into renovating the house. I had planned to immigrate with the money but now maybe houses are a good investment and maybe the way to go. thanks again for the advice. I live in Ennis Clare.

Don't forget the taxman will take a big chunk of your money as inheritance tax

Tigger

ClonNGB wrote: »

Don't forget the taxman will take a big chunk of your money as inheritance tax

Not if it was from a parent

murphaph

10 years to retirement age is close enough. I'd buy in an area I was happy with to see my days out.

blowin3

Thanks guys but less of the old age please I am still convincing myself that I am still young . Thats the way I am figuring it leave in the bank and get no return and pay rent, buy home saving myself 550 a month on rent and can sell in the future or rent if I need to move abroad to live.

Santa Cruz

As you live in Ennis I would say that you will get a good property for that figure or indeed not all of it. I would recommend buying a property. Then you can either live in it mortgage free or rent it out while doing a bit of travelling. It certainly is a security.

I checked Daft and there are over 300 properties listed for Clare priced between 75000 and 125000. One example below

http://www.daft.ie/sales/36-bishops-court-ennis-clare/941432/

You have been given a great opportunity with that inheritance and if you can have a house mortgage free that will make like easy even on a modest income.

PLUG71

blowin3 wrote: »

Maybe this a stupid question but just looking for advice. I am renting at the moment and I have been willed a considerable amount of money 130k. I am paying 550e a month rent and am thinking of buying a house for 100k and putting 20k into renovating the house. I had planned to immigrate with the money but now maybe houses are a good investment and maybe the way to go. thanks again for the advice. I live in Ennis Clare.

If your buget is 20k you can almost be sure you will need more

Anyway I would buyfor two reasons:_

1. You will get a nice house for your money.
2. Renting is dead money imo.

turninggreen

Another option. Since you are renting and have no mortgage / property hold in this country you could consider leaving for a year and see what life is like on the other side. After the year you decide to stay and buy in your new adopted country or return and buy here. I know prices may have risen a little but I doubt significantly in your area. If you buy now and then decide to leave, you will have the hassle of renting your house and I can assure you that nobody will care for your house like you do.

blowin3

turninggreen wrote: »

Another option. Since you are renting and have no mortgage / property hold in this country you could consider leaving for a year and see what life is like on the other side. After the year you decide to stay and buy in your new adopted country or return and buy here. I know prices may have risen a little but I doubt significantly in your area. If you buy now and then decide to leave, you will have the hassle of renting your house and I can assure you that nobody will care for your house like you do.

I have that option to move abroad but scared to make that move with my family. This may sound wrong but at least in Ireland you have the safety of the welfare state. Don't flame me for that statement I have worked and payed taxes all my life and hopefully I can again. But it has to be taken into consideration as sad as it is but its a safety net that I will not have if I go abroad.

murphaph

€130k on cash is reckonable as means and would wipe out any dole payment you're on. That same value in a house you own yourself is not reckonable means for the means test! Food for thought.

blowin3

murphaph wrote: »

€130k on cash is reckonable as means and would wipe out any dole payment you're on. That same value in a house you own yourself is not reckonable means for the means test! Food for thought.

That is correct murphaph at the moment I am being on my stamps but down the line I will be means tested if I don't find work. That is also an insinuative to buy as your home does not count. I had planed to immigrate but doing that might mean losing everything and too big a risk with a wife and a child. So with the advice here ( thanks again) I will put in an offer for the house and stay safe and not take any risks. If down the road I want to immigrate I can rent my property and have an income and a place to come back to if needs be. I will take into account this fact when doing up the house that I might have to rent it and not put in high end stuff. Thanks again for your input.