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Early 20s with high salary and big chunk saved...should I buy a house?

  • 27-03-2021 9:03pm
    #1
    Registered Users Posts: 118 ✭✭ Paddyg96


    I'm lucky enough to make a very good income (>200k) and have about 100k saved. I currently live with my parents and really want to move out.

    I'm not tied to any place for work or other reasons, but I have this cash and I guess I see it as a good opportunity to get on the property ladder early.

    If you could buy in the 400k-600k anywhere in Ireland as a 24 year old man, where would you look? part of me loves the idea of buying a lovely home somewhere by the sea in Wexford or waterford....but Dublin is where I have the most friends and other things to do.

    All i want is somewhere nice to live right now, that I know will also hold it's value very well (or appreciate) and would be relatively easy to rent/sell in 5 years or so if I wanted to.

    But really....should I even buy? or would it be better to just rent while I'm still so young


Comments

  • Registered Users Posts: 8,598 ✭✭✭ John_Rambo


    You're in a fantastic position, well done.

    I'd go for location above anything else and then look to build quality. In the right location with the right build you're very unlikely to loose out be it apartment or house. You're friends are in Dublin, giving your savings and income I'd stick to the capital and choose a well sought after location with good amenities and public transport. Some of the seaside community villages in Dublin on the DART line don't seem to depreciate and tend towards high rental yields if you ever get the wonderlust.


  • Registered Users Posts: 2,700 ✭✭✭ cronos


    Paddyg96 wrote: »
    I'm lucky enough to make a very good income (>200k) and have about 100k saved. I currently live with my parents and really want to move out.

    I'm not tied to any place for work or other reasons, but I have this cash and I guess I see it as a good opportunity to get on the property ladder early.

    If you could buy in the 400k-600k anywhere in Ireland as a 24 year old man, where would you look? part of me loves the idea of buying a lovely home somewhere by the sea in Wexford or waterford....but Dublin is where I have the most friends and other things to do.

    All i want is somewhere nice to live right now, that I know will also hold it's value very well (or appreciate) and would be relatively easy to rent/sell in 5 years or so if I wanted to.

    But really....should I even buy? or would it be better to just rent while I'm still so young

    I'm curious what you work at? May I ask. Serious salary.

    In answer to your question I think buying is a good idea if you don't see the housing market going down in the next few years. Would you buy and live alone? Or you could buy and rent a room in the house. With that sort of income it really depends on what you want to do as that gives you a lot of options.


  • Registered Users Posts: 1,295 ✭✭✭ External Association


    Paddyg96 wrote: »
    I'm lucky enough to make a very good income (>200k) and have about 100k saved. I currently live with my parents and really want to move out.

    I'm not tied to any place for work or other reasons, but I have this cash and I guess I see it as a good opportunity to get on the property ladder early.

    If you could buy in the 400k-600k anywhere in Ireland as a 24 year old man, where would you look? part of me loves the idea of buying a lovely home somewhere by the sea in Wexford or waterford....but Dublin is where I have the most friends and other things to do.

    All i want is somewhere nice to live right now, that I know will also hold it's value very well (or appreciate) and would be relatively easy to rent/sell in 5 years or so if I wanted to.

    But really....should I even buy? or would it be better to just rent while I'm still so young

    Early 20s greater than 200k salary per annum. Do you mind me asking what you work in?

    A house would be no problem. Maybe an island ;)


  • Registered Users Posts: 201 ✭✭ cal naughton


    According to post history the person is a YouTuber. Sensible decision putting that income into a home for yourself. That income may not last forever.


  • Registered Users Posts: 8,755 ✭✭✭ Shedite27


    Definietly a good idea to think about investing your position, I'm not sure you'll get that big a mortgage tho from the banks given you age (how long can you show your have $200k per annum) and contract (is your income guaranteed or fluctuate year-to-year). Maybe talk to banks and mortgage brokers before you fall in love with a house.


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  • Registered Users Posts: 8,834 ✭✭✭ markpb


    At your age, I wouldn’t have thought that buying a house was a good long term strategy. What happens if you decide to work in a different part of the city (assuming WFH isn’t a thing), a different part of Ireland or even a different country? Will you absorb the costs of selling, possibly taking a hit if it has fallen in value? Would you become a landlord instead, taking on the risks and responsibilities that that entails?

    Alternatively what if you decide you want to travel for an extended period of time or meet a partner who wants to live elsewhere?

    Having your own place is great but renting gives you a lot of flexibility especially at a time in your life when charge happens frequently.


  • Registered Users Posts: 523 ✭✭✭ DataDude


    Paddyg96 wrote: »
    I'm lucky enough to make a very good income (>200k) and have about 100k saved. I currently live with my parents and really want to move out.

    I'm not tied to any place for work or other reasons, but I have this cash and I guess I see it as a good opportunity to get on the property ladder early.

    If you could buy in the 400k-600k anywhere in Ireland as a 24 year old man, where would you look? part of me loves the idea of buying a lovely home somewhere by the sea in Wexford or waterford....but Dublin is where I have the most friends and other things to do.

    All i want is somewhere nice to live right now, that I know will also hold it's value very well (or appreciate) and would be relatively easy to rent/sell in 5 years or so if I wanted to.

    But really....should I even buy? or would it be better to just rent while I'm still so young

    I feel somewhat well positioned to answer this. I’m a few years older than you now. Was earning more like €100k at 24 and was a few years later before I got above €200k - but close enough. Biggest difference is that I do have the requirement to commute to Dublin.

    I’ve been renting up until now, relatively cheaply to the point in puts me under zero financial strain (as would be the case for you). Starting to consider buying now due to plans of marriage/kids etc.

    How I saw my future changed hugely and numerous times between 24 and now. And for that reason I wouldn’t look to buy a ‘forever home’ if I were you (i.e. the house on the sea you’ve described). Personally I’d lean towards renting but it you felt compelled to buy, maybe pick up a 2-bed apartment close to your friends and consider renting out a room to pay the mortgage. If I had my time back, that’s probably what I would have done.

    It sounds like you’re running an online business of sorts. So who knows, maybe in a few years you’ll be earning €500k+ and fancy a move to LA or some low tax region. The house on the beach of Curracloe won’t make much sense at that point.


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