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Starter home or not?

  • 20-11-2017 2:20pm
    #1
    Flora12
    Registered Users, Registered Users 2 Posts: 22 ✭


    Hi
    I am wondering if anyone has any advice on the following.... I am considering buying a two bedroom apartment with a view to living in it for a couple of years and then hopefully upgrading to a larger home.
    I will be taking out a small mortgage on this , about half of what I could potentially borrow. My question is this should I just bite the bullet borrow more now and buy a bigger place? Is there any pitfalls I am missing in borrowing again in a few years time to upgrade? I am a single applicant 34 yr old.... I feel that I have to get something now and stop throwing my money away on rent....any advice appreciated


Comments

  • #2
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    In theory it's a great idea. Not paying rent, and instead paying off a valuable asset that you can re-sell.

    But in real life things go in directions you never can guess. So make sure you buy somewhere you'd be happy to stay forever. Lots of people fell into this trap already, and it can easily go wrong.


    I'm not saying don't do it, but I am saying make sure you don't buy something you hate, cos if you get stuck there, you'll not be a happy camper.


  • #3
    Flora12
    Registered Users, Registered Users 2 Posts: 22 ✭Flora12


    [Deleted User] wrote: »
    In theory it's a great idea. Not paying rent, and instead paying off a valuable asset that you can re-sell.

    But in real life things go in directions you never can guess. So make sure you buy somewhere you'd be happy to stay forever. Lots of people fell into this trap already, and it can easily go wrong.


    I'm not saying don't do it, but I am saying make sure you don't buy something you hate, cos if you get stuck there, you'll not be a happy camper.

    Thanks for the advice, you are totally correct I guess I am wondering if I should borrow to my Max now or just borrow a small amount for the apartment and then maybe look to borrow again in the future to upgrade ( that is banks willing!)


  • #4
    Grassey
    Registered Users, Registered Users 2 Posts: 2,393 ✭✭✭Grassey


    Flora12 wrote: »
    Is there any pitfalls I am missing in borrowing again in a few years time to upgrade?

    Don't forger the deposit requirement for a FTB is 10%, goes to 20% for subsequent purchases. Some people get stuck in trying to bridge that gap.


  • #5
    catrionanic
    Registered Users, Registered Users 2 Posts: 2,091 ✭✭✭catrionanic


    Grassey wrote: »
    Don't forger the deposit requirement for a FTB is 10%, goes to 20% for subsequent purchases. Some people get stuck in trying to bridge that gap.

    Yup. You’re also relying on the assumption that house prices aren’t going to go up. If they don’t, or if they drop, you’ll be stuck in this house for many years to come.... so make sure that you buy somewhere you could realistically live in for 10 years or so, if you really had to.


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