Buy or Rent - Dublin city

Patsy167

What would you do in the following situation:

• Currently in a house share and our landlord has just notified us that she is taking back the house so I am considering whether to buy or rent for my next move (mid-30's).
• I've a strong preference to live as close to the city centre as possible.
• From looking online the rent prices are high and supply is limited (Breaking news here!) - €1k a month for a single room in a house share
• Max I can afford is €300k (mortgage & savings). A 1-bed apartment seems to be as far as I can stretch. 2-beds or more would be my preference for security but that seems a pipe dream unless I consider a long daily work commute.

I've no strong desire to own a property but I can see myself staying in Dublin for the next 5 years so buying seems like the most sensible option. Is there anything obvious I'm missing or should consider?

DubCount

Buy. Ideally move a bit further out to get a 2 bed. Think of the rent you would pay over 5 years, and the possible rent a room tax free extra income if you buy a 2 bed. Besides, you may not have an option - not many rentals available.

The_Conductor

I'd suggest hang off on making any decision as long as possible. We've had 3 interest rate rises, and another .75% is flagged for 6 weeks time (given the inflation figures out today its considered likely- the EU figure for October is 10.7%). People's borrowing capacity is flagging- and when people can't borrow- despite the lack of supply, prices will surely follow. The market has clearly turned- the downside to buying now is asset depreciation in the medium term (I'd consider anything under 10 years to be medium term)- however, you have to offset this against what it might cost you to rent elsewhere.

Notwithstanding that you are in your mid 30s- I'd suggest keep your powder dry- if you have a sizable deposit saved up, you could be in a very good position to buy what you want, where you want it, if you just hold off for a little bit..........

Just wait until next April when the moratorium on tenancy termination ends- it would appear to be probable that there will be a sizable number of the types of property you are discussing hitting the market.........

IWW2900

https://www.boards.ie/discussion/comment/119817149#Comment_119817149

This is good advice.

SwimClub

Probably not the answer your looking for but I'd consider moving to somewhere with a lower cost of living.

Keep your savings and come back if and when you can afford to live in a place you're happy with.

DownByTheGarden

https://www.boards.ie/discussion/comment/119817149#Comment_119817149

I think they might be at work right now on a way to extend that moratorium, because the 100% know what they have done and what the consequences will be. Temporary doent ever mean temporary in Ireland.

Bass Reeves

https://www.boards.ie/discussion/comment/119818254#Comment_119818254

The moratorium created as many problems as it solved. Making it temporary was a way to prevent a constitutional case. However the 4k odd termination notices that are currently in place and who know how many are being issued at present will mean if it is lifted there will be 4k++ units that are rented having to be vacated virtually all together.

How is the government going to cope with that. Because of regulations and the moratorium there will be no replacement properties coming on line. The government have created a horrible vista for themselves. There is no confidence by smaller LL in getting any sort of fairness in the rental market.

However that is not here nor there. OP you must be in the same situation. You do not have to vacate until next March/ April unless your termination notice is up now.

My advice is to look at all your options. A 200k loan over 30 years will cost somewhere in the region of 800/ month compared to 1k/ month rent. However management charges and property tax will add another 120-150 to that. On the plus side you will be secure for however long you want to be.

Unless there is substantial supply coming on stream I cannot see a market collapse. My own opinion is a 10% correction at most maybe slightly more in Dublin.

You seem to be more interested in the central part of Dublin. Maybe consider as another poster said to look further out. However central apartments will always sell better longterm. Against that a two bed will give you the option of taking in a tenant which changes the economics completely. The income from the second bedroom would be around 8-10k per year at least tax free

Maybe try to look for something along a good public transport route. On buying and reselling in 5-6 years there is a risk if we have strong new supply you may take a loss, however there is also probably a great chance that prices will remain steadfast with a modest increase.

If you come across something nice that you like I would not be afraid to purchase however I would be more inclined to look at different two bed options. Consider even commutable towns with a decent rail service into Dublin. Again this depends on the nature of your work and if you work evenings and nights.

handlemaster

947 properties in Dublin under 300k. This shouldn't be an issue to buy

Bass Reeves

https://www.boards.ie/discussion/comment/119819033#Comment_119819033

When you toggle the filter, set 150k as the base because anything below that may need refurbishment or be in an area you might not want to live in, if you set 270k as the upper price to allow for auctioneer underpricing, there is about 350 properties of which 250 are two bed.

However there was some two beds townhouses in that as well. Seemed to be a few option in Inchacore, but I do not know Dublin too well.

Still there is options. If property is slow selling unless you think prices will fall through the floor there .ay be options there to look at