Should I buy this apartment?

AndreWebDev

Hi All,

I'm looking to buy my first apartment. I currently live at home with my parents, this apartment is around the corner from their house.
It's 5 minutes to the DART station and I have access to 3 different bus routes. My life wouldn't change much apart from having mortgage repayments, but
primarly independence. I'm still close to where I socialise, and one of my best friends lives in the estate.

It's a 1 bed apartment on the north side of Dublin city. It costs 175K and I think I'm in a good position. I'm 25, I work in IT as a web developer earning 50K a year.

I have 65K in savings, and I will look to use 50K as a deposit. The rest would cover stamp duty, solicitor fees, and gutting the place. I want everything brand new.

Mortgage wise I can get 175K (3.5*50) so my mortgage will be 125K. probably 150K at worst.

Is this a good idea?

Thanks

AndreWebDev

AndreWebDev wrote: »

................

Mortgage wise I can get 175K (3.5*50) so my mortgage will be 125K. probably 150K at worst.

Is this a good idea?

Thanks

You can no doubt afford it and it's somewhere to live, location suits.

The good idea depends on your longterm objectives. How long do you reckon a 1 bed apt will suit you?

In a few years will you be keeping it or wishing to sell and trade up to a larger property?

The model of buying a starter home and looking to trade up or use it as an investment property has been shown to not go as planned.

Col_30

It sounds like a good idea to me, but if you can somehow make the numbers work, I would try and buy a 2 bed apartment instead of a 1 bed.

The resale on a 2 bed will always be better if you need to sell up.

You'd be better protected against another downturn in the economy by being able to rent out a room. You'll never have an issue renting a room being that close to the Dart.

Maybe you'll discover after a while that you don't like living alone?

You could also think about starting a family in a 2 bed and move on when the timing is right, instead of being stuck in a 1 bed with a kid and having no choice but to sell up and move on.

SozBbz

I'd echo the point about a 2 bed apartment being a safer bet. Have you seen any come up in that or similar developments that you could afford? You could even take a tenant for now if you wished which would probably cover most if not all of your mortgage costs, but it gives greater flexibility for the longer term.

Bob24

Only buy if you are reasonably sure it will suit you for at least 5 years or if you're comfortable with becoming a landlord.

If you're ok with those previous points, you seem to have done well and put yourself in a fairly comfortable position to afford it without stretching your finances, so yeah I'd go for it.

AndreWebDev

Augeo wrote: »

You can no doubt afford it and it's somewhere to live, location suits.

The good idea depends on your longterm objectives. How long do you reckon a 1 bed apt will suit you?

In a few years will you be keeping it or wishing to sell and trade up to a larger property?

The model of buying a starter home and looking to trade up or use it as an investment property has been shown to not go as planned.

I reckon it will last me a while. I don't plan on having kids until I'm in my 30s. So if I get 5 years out of it I'll be happy. I'll then rent it out. I like the idea of having another income.

My parents are landlords so I have seen the good, the bad and the ugly of the industry.

Theboinkmaster

I would never buy a 1 bed like the other posters have suggested, 2 bed all the way.

AndreWebDev

AndreWebDev wrote: »

........... I like the idea of having another income.

............

Does two mortgages appeal too?

AndreWebDev

Col_30 wrote: »

It sounds like a good idea to me, but if you can somehow make the numbers work, I would try and buy a 2 bed apartment instead of a 1 bed.

The resale on a 2 bed will always be better if you need to sell up.

You'd be better protected against another downturn in the economy by being able to rent out a room. You'll never have an issue renting a room being that close to the Dart.

Maybe you'll discover after a while that you don't like living alone?

You could also think about starting a family in a 2 bed and move on when the timing is right, instead of being stuck in a 1 bed with a kid and having no choice but to sell up and move on.

There's a 2 bed in the adjoining estate for 195K. It's been for sale for a while so it could have pyrite issues as the estate has history. I'll consider it, because it's nice to have the option to rent out the second room to a mate to help with the mortgage, or use it has a home office.

AndreWebDev

Augeo wrote: »

Does two mortgages appeal too?

If the rent covers 70% of the mortgage, yes I'd be quite happy with that.

I expect salary increase to about 70K by the time I'm 30 so it will be manageable.

Mickiemcfist

AndreWebDev wrote: »

If the rent covers 70% of the mortgage, yes I'd be quite happy with that.

I expect salary increase to about 70K by the time I'm 30 so it will be manageable.

If your parents are in the industry would they not be a good sounding board, rather than unknown strangers on the internet?

Hollister11

Mickiemcfist wrote: »

If your parents are in the industry would they not be a good sounding board, rather than unknown strangers on the internet?

I think a variety of opinion helps also. I'm just hoping that I don't make the same mistake as the previous generation.

Yourself isit

Hollister11 wrote: »

I think a variety of opinion helps also. I'm just hoping that I don't make the same mistake as the previous generation.

That apartment still seems cheap. You're probably still on a massive discount relative to the boom.

I don't think the wheels will come off this time in the same way.

Zaph

There's a bit of shenanigans going on in this thread which has resulted in the OP being banned, so I'm closing this now.