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Seeking advice - to buy a house or not.

  • 27-05-2018 10:26pm
    #1
    Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭


    Let me give some background.

    40k basic salary
    Single
    Paying rent of ~3500 a year
    60k in bank.

    I was thinking of purchasing a property (2 bed apartment) and getting a 10 year mortgage. I want to be debt free as soon as I can and renting out to someone else will mean that will pay off at least the interest part of the mortgage.

    I would live in it and rent out a room to another person. I believe I could get rent of 45% of the mortgage repayment.

    Pro's:

    I wouldn't have dead money and I'd have someone paying towards my mortgage.
    I could go travelling for a short period yet still be gaining net value as I could rent out my room to someone else.
    With property prices increasing, my money will not be losing value.

    Cons:
    Extra costs such as management fees, insurance, bills being more expensive as split between less people. etc. (I don't know exactly how much this would add up to)
    If I lost my job (permanent and no reason for it to go) I might end up with a long commute or need to rent somewhere else myself.
    Not looking to go long term on this as I'd like to move home to the country eventually so property prices may go down? (But I can't see them going down in the eastern region)


    So what do you think I should do?

    Essentially, I'm looking for a gain in net value. My money is sitting in my account losing value now while property prices may go up year on year.

    If anyone has any other advice regarding what I should do with my money, I am all ears.


«13

Comments

  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Bump


  • Registered Users, Registered Users 2 Posts: 62 ✭✭Coinsguy


    I'm in a similar position to yourself. But how can you get a 10 year mortgage with the money you're on? I assume you want to buy somewhere in Dublin?

    Say you need 250k for a place and you need a mortgage of 190k - surely you couldn't pay that off in 10 OK 40k per year?


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Coinsguy wrote: »
    I'm in a similar position to yourself. But how can you get a 10 year mortgage with the money you're on? I assume you want to buy somewhere in Dublin?

    Say you need 250k for a place and you need a mortgage of 190k - surely you couldn't pay that off in 10 OK 40k per year?

    It's not in Dublin but near. 2 bed apartments could be bought for 200-220k.


  • Registered Users, Registered Users 2 Posts: 10,894 ✭✭✭✭phantom_lord


    Rent isn't really dead money, and in many cases can work out cheaper in the long-term. You're getting the use of an expensive asset with a lot of convenience (someone else is responsible for maintenance, and compare what's involved in moving when renting vs buying)

    Buying a home tends to be more of an emotional rather than financial decision. Don't feel pressured because you've money in the bank.

    Ireland too is a bit unique when it comes to property prices, in the US the long-term returns are about 1%.

    If you want to have you're money doing something, are you maximising your pension contributions?

    (impressive level of savings and rent btw)


  • Registered Users, Registered Users 2 Posts: 7,515 ✭✭✭BrokenArrows


    OP,

    My choice would be to buy a property. Thats what i did recently and i dont regret it.

    Now you have to realise that with ownership there are extra expenses. Everything related to the property is now your responsibility, where as previously it was the landlords.

    Everything from the €10 kettle to the multi 000's you may have to spend if you get a bad run of luck. ie Major plumbing issues, boilers, washing machine etc.

    Once you understand the costs then id say go for it.


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  • Registered Users, Registered Users 2 Posts: 2,994 ✭✭✭Taylor365


    Get the longest mortgage possible and just overpay.

    Saves any unfortunate events causing unwanted stress..


  • Registered Users, Registered Users 2 Posts: 2,435 ✭✭✭ixus


    220k -50k =170k @ 2.6% 4yr fixed with UB is approx 1610pm.

    You currently pay less than 300pm for a room.

    How will you manage the jump to 800pm assume other room is let full time ~50%?

    How will you manage if other room empty for a few months?

    Add property tax to annual expense.

    How will you save with new financial commitments?

    Putting 50k in plus kitting out, legal expenses etc will leave you without the safety net you currently have. Adverse circumstances could easily leave you in financial distress.

    Macro economics - Brexit and Trumps trade wars can have an effect on global economic cycle. Plus FED rate cycle.

    Being single and cash positive gives you a lot of freedom particularly of movement.

    All factors to be considered.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    ixus wrote: »
    220k -50k =170k @ 2.6% 4yr fixed with UB is approx 1610pm.

    You currently pay less than 300pm for a room.

    How will you manage the jump to 800pm assume other room is let full time ~50%?

    How will you manage if other room empty for a few months?

    Add property tax to annual expense.

    How will you save with new financial commitments?

    Putting 50k in plus kitting out, legal expenses etc will leave you without the safety net you currently have. Adverse circumstances could easily leave you in financial distress.

    Macro economics - Brexit and Trumps trade wars can have an effect on global economic cycle. Plus FED rate cycle.

    Being single and cash positive gives you a lot of freedom particularly of movement.

    All factors to be considered.

    Let's say I'm paying 3500 on rent a year.

    I'm saving 16/17k. Why am I saving money for? The biggest expense in a persons life is their mortgage so ultimately the money I'm saving is spent on a house anyways.

    So I have looked at mortgages and the interest part of the mortgage could be paid off by a tenant. The capital part would be paid off mostly by me which is essentially going into my bank account as value.

    I am aware of extra costs, but are the extra costs more than the 3500 I pay on rent? I doubt it. Also house prices can going up which means my money in the bank right now loses value year on year.

    Basically the question can be summed into, will house prices increase for the next few years and will they ever go down?

    I have a pension plan available from employer but I haven't been paying into it yet.


  • Registered Users, Registered Users 2 Posts: 2,994 ✭✭✭Taylor365


    Pussyhands wrote: »
    I am aware of extra costs, but are the extra costs more than the 3500 I pay on rent? I doubt it.
    Well bills, taxes and fees can ring up €400-500 a month.


    Per month you're probably looking at:


    Management fees at least €100.
    Elec + Gas average €100-150.
    Broadband + other $hite €50-100.
    Property tax €34


    You'd be doing good spending less than €300 a month just owning it and keeping the lights on.


  • Registered Users, Registered Users 2 Posts: 7,515 ✭✭✭BrokenArrows


    Pussyhands wrote: »

    Basically the question can be summed into, will house prices increase for the next few years and will they ever go down?

    Will the house prices rise for the next few years? Maybe.

    Will they ever go down? Definitely.


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  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Taylor365 wrote: »
    Well bills, taxes and fees can ring up €400-500 a month.


    Per month you're probably looking at:


    Management fees at least €100.
    Elec + Gas average €100-150.
    Broadband + other $hite €50-100.
    Property tax €34


    You'd be doing good spending less than €300 a month just owning it and keeping the lights on.

    Outside of management fees and property tax and maintenance I'm paying those anyways.

    The only increase would be bills divided by 2 instead of 4 as of now.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Will the house prices rise for the next few years? Maybe.

    Will they ever go down? Definitely.

    Down below current prices?

    I'm looking at the property price register. Just looking at the area I was possibly thinking about. Someone bought an apartment for 126k in 2013 and sold for 200k in 2017. What a great feeling that would be.


  • Closed Accounts Posts: 783 ✭✭✭nsa0bupkd3948x


    Pussyhands wrote: »
    Down below current prices?

    I'm looking at the property price register. Just looking at the area I was possibly thinking about. Someone bought an apartment for 126k in 2013 and sold for 200k in 2017. What a great feeling that would be.

    Have people forgotten about the crash already?


  • Registered Users, Registered Users 2 Posts: 7,105 ✭✭✭SteM


    Pussyhands wrote: »
    Down below current prices?

    I'm looking at the property price register. Just looking at the area I was possibly thinking about. Someone bought an apartment for 126k in 2013 and sold for 200k in 2017. What a great feeling that would be.

    In all honesty, it's easy to pick and choose an example like that if that's the outlook you desperately want to see. You're asking if prices can go below current prices? Of course they can!

    2013 was slump era, you're not buying in a slump if you're buying now.


  • Registered Users, Registered Users 2 Posts: 6,921 ✭✭✭Alkers


    Pussyhands wrote:
    I'm looking at the property price register. Just looking at the area I was possibly thinking about. Someone bought an apartment for 126k in 2013 and sold for 200k in 2017. What a great feeling that would be.

    And what about the poor chap who had to sell it for 126k.

    What is you personal situation? Are you young/old etc? Is a 2 bed apartment going to be suitable for your needs for the next 15 years if the market crashes and you're stuck in negative equity?


  • Registered Users, Registered Users 2 Posts: 229 ✭✭ConnyMcDavid


    You'd be very lucky to have a landlord that would replace things like kettles. You do pay for maintenance for rented apartment indirectly via loss of deposit or price increase. Which is why lots of tenants are reluctant to get landlords to replace things, and just do it themselves.

    You should buy, but wait another 3-4 years.


  • Registered Users, Registered Users 2 Posts: 3,332 ✭✭✭davo2001


    Pussyhands wrote: »
    Down below current prices?

    I'm looking at the property price register. Just looking at the area I was possibly thinking about. Someone bought an apartment for 126k in 2013 and sold for 200k in 2017. What a great feeling that would be.

    OP do you rememeber 2007-2014???

    Are peoples memories that short?


  • Registered Users, Registered Users 2 Posts: 1,417 ✭✭✭Diemos


    OP, it sounds like you have your heart set on the purchase.
    If you can afford the repayments, go for it.
    As it is your home, it should not be viewed as an investment.
    Putting a roof over your head is an expense.

    We are in a boyant market at the minute, looking at property purchased 5 years ago is pi$$ing in the wind, go back 5 years more and you will see the futility of looking back.

    Renting is not always dead money, it has it's upsides.
    But personally in the current market owning has many more upsides.
    We bought last year, our mortgage is cheaper than our rent was, we now have a bigger place, in a nicer area.

    House prices will fall again, but not for a few years yet.

    Good luck OP.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    davo2001 wrote: »
    OP do you rememeber 2007-2014???

    Are peoples memories that short?

    Sorry, my first sentence and second sentence were unrelated to each other.

    I was just generally commenting about the price difference of a house bought an sold then and thinking it must feel like winning a sum in the lotto.

    And I don't remember 2007-2014. I only started working in 2013 and rent demand was through the roof then anyways.


  • Registered Users, Registered Users 2 Posts: 2,435 ✭✭✭ixus


    I tried to highlight some real risks which you appear to discount.

    Additional factors are big ticket items like cars and weddings. Wedding could easily set you back 20k up front.

    Risk in terms of owning a 2 bed apartment is starting a family and being stuck there when too big for it. Caught in negative equity in a sellers market. Especially if you are a distance outside the city. This was a common event during the last decade.

    For example, I know a couple earning high income who bought at top, a small 3 bed townhouse. They need to move as family is too big. They're only back flat now from negative equity but have to save a deposit like everyone else.

    Am a little surprised the next generation are so insulated from the last decade.


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  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    ixus wrote: »
    I tried to highlight some real risks which you appear to discount.

    Additional factors are big ticket items like cars and weddings. Wedding could easily set you back 20k up front.

    Risk in terms of owning a 2 bed apartment is starting a family and being stuck there when too big for it. Caught in negative equity in a sellers market. Especially if you are a distance outside the city. This was a common event during the last decade.

    For example, I know a couple earning high income who bought at top, a small 3 bed townhouse. They need to move as family is too big. They're only back flat now from negative equity but have to save a deposit like everyone else.

    Am a little surprised the next generation are so insulated from the last decade.

    Having looked at what properties were being sold for 5/6 years ago I have decided not to look into buying any further. Costs are blown up so much in such a short period although they were coming from a drastic low.

    I think I'll take a risk and see what it's like in 2/3 years.


  • Registered Users, Registered Users 2 Posts: 777 ✭✭✭dRNk SAnTA


    Pussyhands wrote: »
    Having looked at what properties were being sold for 5/6 years ago I have decided not to look into buying any further. Costs are blown up so much in such a short period although they were coming from a drastic low.

    I think I'll take a risk and see what it's like in 2/3 years.

    Maybe you weren't living this country during the crash?

    I bought my first property in 2017 and had been doing a lot of research on house prices around that time.

    From what I could see, 2012/2013 was the bottom of the property market in Dublin.

    You must keep in mind that this was following a collapse of the banking system, collapse of public finances, and massive unemployment.

    You can't treat it as the market's normal equilibrium.

    Nobody knows how current prices compare to that normal equilibrium, either. That's the judgment call you need to make.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    True.

    My head is wrecked. I think I'm in a pretty good position financially with 60k in the bank in my mid 20's and I don't want to lose being in a good position by not making a good decision.


  • Registered Users, Registered Users 2 Posts: 28,732 ✭✭✭✭drunkmonkey


    Your in a good position financially, when the market corrects it'll be apartments take the biggest hit first and especially 1 or 2 bed, your still young I'd keep saving and enjoy your 20's and 30's as much as you can. Your rent is reasonable so your not under pressure to buy.
    If you've 120k in the bank in your 30's you'll be in a great position, market should be functioning properly by then, you might also have a partner that wants to live somewhere else and you won't be stuck trying to shift and apartment if there gone out of fashion which has happened in 07.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Your in a good position financially, when the market corrects it'll be apartments take the biggest hit first and especially 1 or 2 bed, your still young I'd keep saving and enjoy your 20's and 30's as much as you can. Your rent is reasonable so your not under pressure to buy.
    If you've 120k in the bank in your 30's you'll be in a great position, market should be functioning properly by then, you might also have a partner that wants to live somewhere else and you won't be stuck trying to shift and apartment if there gone out of fashion which has happened in 07.

    Also true. Cheers mate. :)


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Well folks, back again.

    So was thinking...would anyone suggest going for a 25/30 year loan?

    Could spend maybe 160k on a 2/3 bed apartment....mortgage repayments of maybe 900.

    Tenants would be paying off the mortgage and I could sell in a few years.

    Thoughts?


  • Registered Users, Registered Users 2 Posts: 777 ✭✭✭dRNk SAnTA


    Interest rates are low and getting lower (new Ulster Bank rates sub 3%).

    There is no advantage to a short mortgage, it makes your minimum repayments higher and increases pressure on you, because your minimum repayment to the bank will be higher.

    My view: best to take as long a mortgage as you can get (it's the cheapest loan you'll ever have), and have lower monthly repayments and lower pressure.

    If you have the capacity to pay back higher amounts, then you've got two options:

    1) make overpayments to reduce the mortgage faster (and save on the amount of interest being paid over the course of the mortgage term)

    2) invest money in something that would provide 5%-10% percent net returns (easier said than done) and you'll be covering the cost of the interest and making the cash work better for you.


  • Registered Users, Registered Users 2 Posts: 2,435 ✭✭✭ixus


    Please don't give bad math advice.

    160k at 2.3% at 30 yrs is over 60k in interest on principal.
    25yrs is 50k.

    At 3% there is 15k of a difference.

    OP. You are liable for income tax if you become a landlord. Unless you are living there and renting rooms in which case it would be tax free.


  • Registered Users, Registered Users 2 Posts: 235 ✭✭Mach 3


    Just for a bit of perspective - a well built house back in the boom, very near a hospital(Dublin) would set you back €450-500,000. Timber frame houses 2-3 miles away are now priced at €750,000+, for a worse location and lower quality build.
    In the intervening years wages (for most) has not kept track with inflation, and are still below wages of ten years ago.
    The thought that interest rates will keep reducing is niave. Just like the €30,000 cars/suv's peeps are driving... On jobs that could disappear on a trade war - EU counter attack on US multi media headquarters in Ireland.
    A home to live and a house, are two entirely different entities, make sure you know which one you need /like.

    Ignore good advice at your peril.


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  • Registered Users, Registered Users 2 Posts: 118 ✭✭Squozen


    Is your money just sitting in the bank or is it actually giving you a return?


  • Registered Users, Registered Users 2 Posts: 85 ✭✭Chopper83


    Now is not the time to buying a property for investment in my opinion. You are in a very healthy position and without knowing your personal circumstances it doesn't seem like you are under major pressure to move other than investing. Some good advice on this thread already.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Squozen wrote: »
    Is your money just sitting in the bank or is it actually giving you a return?

    No I have 60k sitting in the bank losing value.


  • Closed Accounts Posts: 3,948 ✭✭✭0gac3yjefb5sv7


    Pussyhands wrote: »
    No I have 60k sitting in the bank losing value.

    How did you manage to save so much on that wage? Fair play!


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Pheonix10 wrote: »
    How did you manage to save so much on that wage? Fair play!

    To be honest, I live a very frugal lifestyle. It's not that I even make these decision, I just see waste as bad...it's just my psyche.


    For instance. Most people spend 20 euro a month on their phone. I looked at all the deal out there and saw 48. I don't ring people often and I am on wifi a lot of the time so I decided the 10 euro option was good for me. If I need extra data abroad or whatever I'll pay a few euro extra.

    Take opportunities when they present themselves. If a shop is closing down and they're selling runners half price, buy 2 or 3 pairs. Don't open them until you need them.

    Going to the shop for food? Browse by the reduced section. I picked up a sandwich for 75c when it would have cost probably 2 quid otherwise.

    I don't go to pubs/clubs/restaurants really at all as it's not what I enjoy doing so maybe a lot of money is saved there.

    For me, I never have to save. Saving isn't something that I choose to do. I spend money on the essentials and then things I want to spend things on and the rest is money that won't be spent.

    I find it hard to explain how I do it really. I just value my money. 60 euro for an addidas hoody? No thanks I'll have a look on sportsdirect and get one for 20 euro or less.

    I don't live the most eventful life but I still do things that cost money and I have bought things with substantial costs too.


  • Registered Users, Registered Users 2 Posts: 680 ✭✭✭jim salter


    In my opinion the maths don't add up. The OP is currently on €40k/yr, started working in 2013 and has saved €60k in less than 5 years (obviously the OP didn't start on €40k) but that is saving €1,000/mt every single month since starting work. Pays approx €291/mt on rent (if in Dublin this is very low regardless).
    It seems very unusual to me.


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  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    jim salter wrote: »
    In my opinion the maths don't add up. The OP is currently on €40k/yr, started working in 2013 and has saved €60k in less than 5 years (obviously the OP didn't start on €40k) but that is saving €1,000/mt every single month since starting work. Pays approx €291/mt on rent (if in Dublin this is very low regardless).
    It seems very unusual to me.

    I started work in Dublin on 23k and saved 7k in one year.


  • Registered Users, Registered Users 2 Posts: 1,813 ✭✭✭Wesser


    There is no way you would be able to afford to repay in 10 years anyway. Yes you should pick a 25 year mortgage but you can always overpay if able.


  • Registered Users, Registered Users 2 Posts: 680 ✭✭✭jim salter


    Pussyhands wrote: »
    I started work in Dublin on 23k and saved 7k in one year.

    In my opinion the numbers still don't add up, sorry.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    jim salter wrote: »
    In my opinion the numbers still don't add up, sorry.

    Well they do.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Wesser wrote: »
    There is no way you would be able to afford to repay in 10 years anyway. Yes you should pick a 25 year mortgage but you can always overpay if able.

    I think I could.

    I'd rent out a room or two in the house.


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  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Been thinking hard about this again and thinking of a 30 year mortgage as it's the cheapest money you'll ever get

    Mortgage payment of max 1k a month. Rent room oit for 600.

    I know for a fact an apartment in this block was rented for 1300 a couple years ago.

    I just feel real unease that my money is losing value. I want to be wealthy


  • Registered Users, Registered Users 2 Posts: 7,105 ✭✭✭SteM


    3 months in and you've gone from a 10 year mortgage to a 30 year mortgage. You've gone from expecting 45%of the mortgage being paid to expecting 60%+ of it being paid.

    Do you expect your life to remain the same over the next 30 years? All of the plans you're making will go out the window when you meet someone somewhere down the line and the plans will be readjusted. It doesn't happen to everyone but it does to the majority of people, that's life. No point in thinking too far ahead. If you can get approval for a 2 bed place that you'll be happy in for the next few years, rent out a room and go from there. Not sure what other advice you expect from people here that you haven't gotten already tbh.

    Do you pay into a pension by the way?


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    SteM wrote: »
    3 months in and you've gone from a 10 year mortgage to a 30 year mortgage. You've gone from expecting 45%of the mortgage being paid to expecting 60%+ of it being paid.

    Do you expect your life to remain the same over the next 30 years? All of the plans you're making will go out the window when you meet someone somewhere down the line and the plans will be readjusted. It doesn't happen to everyone but it does to the majority of people, that's life. No point in thinking too far ahead. If you can get approval for a 2 bed place that you'll be happy in for the next few years, rent out a room and go from there. Not sure what other advice you expect from people here that you haven't gotten already tbh.

    Do you pay into a pension by the way?

    Not paying into one yet but i have the option in work.


  • Registered Users, Registered Users 2 Posts: 7,105 ✭✭✭SteM


    Pussyhands wrote: »
    Not paying into one yet but i have the option in work.

    That's something you should look into starting imo. As important as a mortgage you're unsure of getting.


  • Moderators, Business & Finance Moderators Posts: 10,669 Mod ✭✭✭✭Jim2007


    Pussyhands wrote: »
    I just feel real unease that my money is losing value. I want to be wealthy

    You are uneasy about your money loosing value and your solution is to throw out every rule of thumb in investing and you’ll be come wealthy!

    When you invest in a property you ignore all the best advice:
    - You borrow to invest
    - You fail to diversify within the asset class
    - You invest in a high risk asset class
    - Normally holding more than 7% of your portfolio in property is considered high risk and you are going to go for 100%
    - You accept a low rate of return for a high risk investment.
    During the last recession the Irish saw more of their personal wealth wiped out than any other EU nation for exactly this reason. It does not matter about bank bailouts etc... if you ignore the rules you have to expect to take the hit when the recession comes.

    You have got the Swiss attitude to spending, now following their investing approach a good solid equity portfolio and an objective to retire by 55 or 60.


  • Registered Users, Registered Users 2 Posts: 118 ✭✭Squozen


    Listen to Jim. Jim is smart.


  • Registered Users, Registered Users 2 Posts: 8,239 ✭✭✭Pussyhands


    Jim2007 wrote: »
    You are uneasy about your money loosing value and your solution is to throw out every rule of thumb in investing and you’ll be come wealthy!

    When you invest in a property you ignore all the best advice:
    - You borrow to invest
    - You fail to diversify within the asset class
    - You invest in a high risk asset class
    - Normally holding more than 7% of your portfolio in property is considered high risk and you are going to go for 100%
    - You accept a low rate of return for a high risk investment.
    During the last recession the Irish saw more of their personal wealth wiped out than any other EU nation for exactly this reason. It does not matter about bank bailouts etc... if you ignore the rules you have to expect to take the hit when the recession comes.

    You have got the Swiss attitude to spending, now following their investing approach a good solid equity portfolio and an objective to retire by 55 or 60.

    I understand your points.

    The last recession was a once in a generation thing.

    House prices may not rise massively but at least my mortgage is being paid and the value is stored. So technically I'm making money on renting a room out and having half the mortgage paid for.

    Investing in stocks is risky imo with the all time highs being reached.

    I wouldn't be paying tax on any of the rental income as I'd be owning and living in it and I wouldn't pay tax on any increase in property value.

    That's why I'm seeing property as much better option than any other.


  • Registered Users, Registered Users 2 Posts: 7,105 ✭✭✭SteM


    It may have been the first recession for you but there was one in the 80s.


  • Registered Users, Registered Users 2 Posts: 2,994 ✭✭✭Taylor365


    Pussyhands wrote: »
    I wouldn't pay tax on any increase in property value.
    In the same vein as you don't pay taxes on stocks that increase in value.


    You pay when you go to sell.


  • Registered Users, Registered Users 2 Posts: 235 ✭✭Mach 3


    Taylor365 wrote: »
    In the same vein as you don't pay taxes on stocks that increase in value.


    You pay when you go to sell.

    I stand to be corrected, but unless things have changed, after one year living in your principal dwelling, any profit from the sale is exempt from tax. Likewise any loss can be offset against future CGT.

    Of course very few take into account the interest payments on the mortgage, which is quite high for the first ten years.


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