Buying house...I know I need to make up my mind but any advice!!

thewhitetable

I have been thinking about buying a house for a while now. I am self employed so can't get a mortgage but I have been very good at saving. Of course I can't spend all of it as I need to have a fall back. I am looking at a house for €40,000 which needs work doing of about €20,000 which I would get a loan for. (Although its an old house so other things could come up) I really like the location of the house but its not the best place in terms of work and it would not be a good investment, so I really need to plan on living there for a long number of years. I will be going from sharing to living/working on my own so that's a consideration as well! This is a big decision! Buy house and settle there (I would love doing it up, doing the garden etc.), splash my savings on traveling the world instead or wait until I have saved more to afford a house that would be a better investment or in a better location for work (however house prices could rise so my extra saving's might mean little in a few years) No kids, single, late 20's.

If you were in my situation what would you do?

Pinkycharm

I was in your situation a few years ago trying to get on the property ladder and out of a rental. I bought it to live in and did so for a few months and then rented it when I got a mortgage.

I bought a run down house for €31,000 and put about €20k into it and rented it. Best investment I ever made because I just sold it for €85k to a family getting on the ladder themselves! I'm late 20s too, have a partner and baby. Bought another property using half that money to do same and other half of the money paid a lump sum off my mortgage for my home.

I'd take the risk but it paid off for me.

thewhitetable

Thanks pinkycharm! I really don't think I would be able to sell on this house and get back what I would put into it...if I was able to sell it on at all. Houses in a better condition are up for sale in the area priced €60,000- €80,000 and are not selling. I think if I bought this house it would need to be somewhere that I would live for a long time and not something to make money out of. So I need to think would I be happy to live here for like 10 years +!

thewhitetable

Thanks pinkycharm! I really don't think I would be able to sell on this house and get back what I would put into it...if I was able to sell it on at all. Houses in a better condition are up for sale in the area priced €60,000- €80,000 and are not selling. I think if I bought this house it would need to be somewhere that I would live for a long time and not something to make money out of. So I need to think "Would I be happy to live here for 10 years +"

Diane Selwyn

Do you have an itch to travel? When I was in my late 20's I thought I would like to buy a house but was nowhere near being financially set up to do it and went travelling instead and have no regrets about it. You are worried about your proximity to work - do you mean that you would be cutting yourself off from your customer base? Would you like to meet someone and/or have kids in the next 5 or 10 years? There are many considerations (and unknowns!) so its definitely worth spending some time thinking over the decision.

Pinkycharm

thewhitetable wrote: »

Thanks pinkycharm! I really don't think I would be able to sell on this house and get back what I would put into it...if I was able to sell it on at all. Houses in a better condition are up for sale in the area priced €60,000- €80,000 and are not selling. I think if I bought this house it would need to be somewhere that I would live for a long time and not something to make money out of. So I need to think "Would I be happy to live here for 10 years +"

Definitely a hard decision to make so!! If that is the case, I'd hold out for a while because something you actually want will come up and it'll have been worth the wait.

100% don't rush into it anyways no matter how much you think you may want that particular house.

thewhitetable

Diane Selwyn wrote: »

Do you have an itch to travel? When I was in my late 20's I thought I would like to buy a house but was nowhere near being financially set up to do it and went travelling instead and have no regrets about it. You are worried about your proximity to work - do you mean that you would be cutting yourself off from your customer base? Would you like to meet someone and/or have kids in the next 5 or 10 years? There are many considerations (and unknowns!) so its definitely worth spending some time thinking over the decision.

I love going on holidays but love coming home as well! Never did the traveling thing like most of my friends but never felt the urge to. Maybe I will want to do that when I am 50 when they are all settled down! I am more itching to have fun designing and doing up my own space! I have the ability to buy a house, because of the prices at the moment, but that does not mean that it would be the best decision. My work is mobile so I would just be traveling further but that is for about half the week, the other half is working from home.

thewhitetable

I am secure in my rented house at the moment sharing with others but who knows how long it will be before someone has to move out. Renting on my own would be very expensive and I really don't want to be moving house a lot, its such a hassle!

MouseTail

Have you spoken to a mortgage broker? Self employed people can get mortgages, they may have to jump through more hoops, but it is possible.

I'm guessing you are in your 20s and single? I wouldn't buy a house you couldn't sell on if I were you. I would either get a mortgage for a better house, or continue to save. You are at a time in your life when things could change radically (career, meeting a partner, travel etc).

thewhitetable

Tried for mortgage but no luck, would need 3-4 more years of good accounts. It's a bit of a catch 22! I need to show good profit to get mortgage but I also want to show less profit (on paper) so that I pay less tax!! I really would prefer not to have a large loan anyway, I want as little to pay back as possible bearing in mind my living expenses will increase with house maintenance, all bills paid by me etc. I have very specific needs and this house meets 90% of them so that's why I'm thinking seriously about it. If its somewhere that I want to live is resale really, really important????

Pinkycharm

If you like it and its somewhere you really want to live and see yourself living there for the next 20-30years or so, its the house for you. Your already probably doing up plans in your head for it and you never know maybe if you did try sell it it would go! If you'll be mortgage free its a great start out!