Future proofing when house buying

Wesser

I am a single lady living in dublin.

A house has come up that I like and can afford. It is a very small 2 bed house in Dublin. Only 70m2. It is easily within my budget. I would need to do work to it though in particular I would need to move the bathroom upstairs and therefore take a slice off one of the bedrooms. This would leave me with a large master and a very small second bedroom. It would mean that if I wanted to rent out the room to a tenant.....to help cover the mortgage....things would be very tight in terms if space. I also think.... i might meet a nice man and have a baby in the next few years. It would be a tight squeeze. Not much room for expansion. But very affordable at the moment and suitable for a single person for sure.

On the other hand I could push my budget to the max and take every penny the bank is offering me and all my savings and go for a chunky 3 bed. Giving me.... no cash, no savings, but 2 rooms to rent and... future proofing myself?

My job is super stressful and I'm not sure I will be able to maintain this level of productivity forever. It would be nice to have the luxury of a few quid in the bank .... or maybe the luxury of 2 rooms to rent out?

Is there anyone who has ever had to make this decision or has any anecdotes?

Thanks

Carlos Orange

Bought a house this year with 2 bedrooms. Just myself and no real intent for any more so I am reconfiguring it to a 1 bedroom. Area wise it is a little bigger than yours. If the unexpected happens there is a little room out back I could add a bedroom to or I could switch the sitting room to a bedroom since the dining room/kitchen should be decent size.

If a kid comes along unexpectedly a little savings and some financial space is probably a good thing. Ideally kids will come with a partner to help pay for them but you never know.

Ursus Horribilis

If this turns into your forever home, having bathroom upstairs will screw you when you become old and decrepit.

Sleeper12

Wesser wrote:

Is there anyone who has ever had to make this decision or has any anecdotes?

This is a tough choice. I don't think there is a right or wrong answer to this. Some people thrive on stress and others hate it.
If it were me I think I'd buy smaller now. Its all you need right now. If you meet a nice guy (several offers above ) there will most likely be two incomes then. And it might be easier to move to a bigger home

MIN2511

How much could you potentially get for rent if you bought a 3 bed and rented out 2 of the rooms? The rental limit is 12k per anum and you'd have to declare income over 12k.

If you're a first-time buyer, you need 10% if you were buying subsequent homes you'd need 20%.

Personally, I would go for the 3 bed (maybe slightly cheaper) rent out 2 bedrooms and if you meet someone, get married or have a kid, you'd be alright for a while.

Sleeper12

MIN2511 wrote:

How much could you potentially get for rent if you bought a 3 bed and rented out 2 of the rooms? The rental limit is 12k per anum and you'd have to declare income over 12k.

It went up to 14k in the budget

sullivk

Bought a 2 bed house when it was just myself and my son 7 years ago. It was the best house I could afford and really suited us at the time.
Since then I've married, had another baby and am now pregnant with our third. We are moving to a larger 4 bed house in January.

I think if it suits you now then go for the 2 bed. I wouldn't be basing decisions on things that may (or may not) happen in the future. We have had a lovely home for the past 7 years and now a little equity from the sale of that to go towards our new house so I definitely can't complain.
If you meet a lovely man and have lots of babies you may both want to move on from a 3 bed anyway.

Is there any potential for expansion with the 2 bed... attic or room for small extension etc.?

Wesser

Thanks for all your posts.

Yes there would be a attic there and a small garden. But overall the plot is quite tight.



The bathroom definitely needs to be moved upstairs as I am not prepared to walk through the kitchen wrapped in a towel. It is more hygienic and convenient.

Estate agent wants final decision by Thursday. So totally confused.
Afriad+++ of a massive jump in house prices in January. Sick to the stomach to be honest.

DoozerT6

You say the master bedroom is large - if you bought the two-bed and moved the bathroom upstairs, could you take some space from BOTH bedrooms? That way you'd still have a nice sized master, and a smaller but adequate second bedroom.....

You never know what way your life will turn out. I bought a one-bed apartment many years ago thinking it would do me for the next 3/5 years or so, until I traded up and/or met someone. Lo and behold, I'm still single, still in my apartment, and can't afford to move. It still serves my needs as it stands, but ideally I should have bought a two-bed, both for guests and potentially renting out the second room. I have come to the conclusion that I'm not really suited to living alone long-term. It tends to make me a bit of a hermit. But I'm stuck with it for the foreseeable.

I'd buy the two-bed and save yourself the financial headache you envision with the three-bed. I'm guessing it's close to town? If that's the case then you will have no problem renting out the second room whatever it's size. If, in years to come, you do meet someone and want to move on, then you'll have two salaries to work with, and not one.

sullivk

Wesser wrote:

The bathroom definitely needs to be moved upstairs as I am not prepared to walk through the kitchen wrapped in a towel. It is more hygienic and convenient.

Put a small ensuite into your large master bedroom. Rent second bedroom to a nice, gorgeous man. Make him walk around the kitchen in a towel. Winner!!

Or, convert attic with a small ensuite- rent it out. Convert second bedroom into a bathroom and walk in wardrobe for yourself!

Seriously though, it's a tough decision. You don't want to spend every available penny on a bigger house that you don't really need but then again you don't want to be stuck in a teeny house with a family a few years down the line. Don't let the estate agent pressure you either way.

Is there much interest in the 2 bed house from other parties?

Wesser

I am the lead bidder at the moment.

But yes there is others interested..... there is interest in all houses in Dublin at the moment I'm afraid!

Turtle_

Go with the smaller one. Leave a rainy day fund. Talk to an interior architect about the best way to utilise the space.

If sprogs came along, you'd have a roof over your head that you can afford easily. Might allow you to take longer maternity leave. Much safer than a house you can barely afford.

riclad

go for The 2 bed , you can always add on an extra bathroom if its needed ,If you meet a man , if he,s working you ,ll have the option of buying a larger house .you can,t predict the future so theres no
point in trying to prepare for anything that might happen.
Most houses in dublin will have a few bidders on them.
choose a house and close the deal soon.

bleary

Congrats, it's going to be great. I was in a similar position recently
I went with the smaller house

First there is more competition for three beds precisely because you have dual incomes with a kid on the way bidding for them, one I looked at went for approximately 50% more than the two bed I bought. I didn't think it was worth it.

Second even though I technically could afford it realistically to be comfortable I would feel that I had to rent a room out, besides the hassle of vetting someone I just didn't want to have do clean up ,split bills ,be sociable etc etc at the moment.
With my job I just want to come home and relax.

If I move I felt my two bed would be easily rented and in general there is less to do and maintain. Cleaning is quicker ,less furniture to buy etc.
Looking back I really feel I would have been putting myself under a lot of unnecessary pressure for little gain for me as I wanted to live on my own anyway.

It's big enough to have visitors but too small to have people there all the time which suits me really. If that changed I think I would sell it easily enough.
Storage wise I have a shed an attic etc so don't really miss an extra bedroom.

Wesser

Thanks for all your posts. Very helpful.

I suppose when I mean future proof I mean taking on a Tennant ( short term future) t as much as havng a baby. To have that second income stream.... it would be a very small room to offer to rent.

Fundamentally, this house.... i like it but I don't love it?
Aaaahh! What to do!

caviardreams

I think very few people find their absolute dream home, that ticks all the boxes and they fall head over heels in love with OP (unless they are lottery winners ). I think it's about compromising on what you can afford and your deal breakers and then finding something that fits you and your budget.
You can never predict the future and what will happen so you just have to go with what you think makes sense I think.

I would say with the 2 bed you would have more room (and less pressure) financially - and also the option to live on your own and not rent it out if you want (I own a 2 bed apartment and love not having to share, I would hate if I had to rent out the spare room but everyone is different), also if you lost or wanted to change your job it may give you more breathing space with a smaller mortgage.

As somebody else says, even if the room is small it will probably rent very easily if you are close to town/in a good area.

davindub

If you are unsure, maybe look at the 3 bed. If it is the kind of 2 bed I am thinking of with no bathroom upstairs, it's actually hard enough and relatively expensive to add the additional bathroom and obviously you have the refurb cost as well. What area is the 2 bed and what cost? If on the Southside you can probably get a 3 bed in a nice area on the Northside for the same cost.

ted1

I'd go for the three bed, especially if you need to lose space in the two bed for a bathroom.
Having two rooms to rent will allow you earn 14k tax free , if your job is stressful you could take time off and let the renters pat your mortgage and as they are licencees you could get rid of them when you need to.

Wesser

Than k s for your posts. It is on the northside. 270 is what I have offered.

There is no specific 3b in mind. Hypothetical house that may or may not come up this year.

thierry14

Wesser wrote: »

Than k s for your posts. It is on the northside. 270 is what I have offered.

There is no specific 3b in mind. Hypothetical house that may or may not come up this year.

Brand new 3 beds A3 homes in D15 now for under 300k

Hollywoodrath off the N2 is one I think

You'll get something back with the new government rules too, maybw up to 20k

Worth looking at imo

Sleeper12

Wesser wrote:

Than k s for your posts. It is on the northside. 270 is what I have offered.

The best of luck.

davindub

Is that 270 firm or could you get up to 300-330 ish? That would make a big difference at the moment.

You should get a 3 bed for 270, it will be hard to get areas like Santry, Beaumout, Artane, Greater Raheny, Baldoyle, 10 months ago you would have.

But watch these areas anyway, sometimes something comes up that is cheaper but obviously check the house throughly. There was a rush of price increases during the summer and the market seems to have levelled out, you might find houses requiring refurb going in around your price point.

But look at areas like Glasnevin (East finglas properties), Cabra (careful where & what you buy)(pref near new luas), Swords. Having 2 rooms to let the above areas should generate the tax free amount and mostly pay your mortgage.

PhoenixParker

I wouldn't move to any of the areas you can get a new build three bed house for 270 in Dublin as a single person.

Not because theyre not nice areas, they are, but because they're predominantly family areas where you won't have easy opportunities to socialise with other similar people.

Ghekko

For now if you are happy and content in your own company I'd buy the 2 bed and have some financial leeway for a life! The house size mightn't be suitable for renting a room - you'd want to really get on with the tennant. As for having a family, your potential future partner may have a bigger house so ye could live there and rent yours out, or sell both and buy something to suit you both.

BabySlam

I suggest you write down your "must haves" and weed these out until there are only 3 or 4. If a house meets those 3 or 4 things it may suit you very well.

No house is perfect, or I should say No house is perfect for everybody. What must you have?

Wesser

Very helpful replies. Yes I have alot of leeway with my budget. But I am afraid to go higher. Fundamentally, as already suggested, I need a chance of direction in my career in the next few years and I know that I will earn less with that. So I am afraid to push up my budget.

catrionanic

I'd go for the three bed.

Me and my husband bought a tiny two -bed last summer in Dublin. We now have a baby due in a couple of weeks, which is fine, but would like to have baby number two within the next couple of years. However, we now need a 20% deposit to move on. And with my drop in income, as I'll be working part-time, any LTV that the bank will give us will be significantly less. So we may well be trapped here in this super small house for longer than we originally thought we would.

I wish we had gone for a bigger house in a less desirable location that would give us a bit of breathing space.

HeidiHeidi

Given your current situation as described, I would not sink everything I had (including future income) into a house based on what might or might not happen in the future.

Before "the future" happens, you have to live the intervening period, so leave yourself enough money to do that. I suspect I'm a lot older than you, but I've done the rent-a-room thing when I first bought, and believe me it wears thin very quickly when it's your house and you have "strangers" living in it. Maybe that's just me, but if you spend every penny on a 3-bed on that basis you might come to regret it.

My advice all day long would be buy the two-bed, leave yourself a cushion for contingencies, and just to live a comfy life on, and worry about the future when it happens. Then if something - like illness, having to take leave, change in jobs, whatever - happens, you won't be put to the pin of your collar trying to maintain mortgage repayments (and on that note, interest payments longterm are only going to go one way, and that's up).