Buy or Wait? \ Big Savings \ Low Rent

Murph3000

Hi everyone,

Looking for thoughts. I spent a lot of my life living and working abroad. Recent circumstances have led me to return home.

Now I find myself here with big savings but no place to live. I am currently living with parent and have benefit of paying very little rent. I am considering buying in Dublin or Wicklow.

Anyway, I can fairly comfortably afford a property of up to 1 million, depending on how much of my savings I use. But, having looked around and reviewing the current economic situation it feels foolish to pump my savings into a property. I would have no issues doing it if everything I view wasnt so miserable and seemingly way overpriced. I have quite a few investments in stocks and what not, but also have a large chunk of cash which is scary in current environment.

I guess I have a few questions.....

-Should I avoid buying at all for now?

-Should I max out the amount of my saving I use if I do buy?

-Should I try and avoid using a mortgage?

-If I am buying alone, should I buy a small property or just get something big?. Stupid question maybe but smaller places seem really bad value.

If I do get a mortgage, what is consensus on length to fix?

I just cant help thinking we are on the verge of a big draw down in property, but I value my sanity too.

Naked Lepper

i don't mean to come across as a smartarse but if you have a million quid in your bank then i would suggest getting some financial advice from a professional

Xterminator

begrudgery is alive and well.

OP - the unanswered question is why do you want to buy?

Will you value your house as a home? Enjoy the benefits like privacy, being able to put your own stamp on it, security of being a homeowner vs a guest on your parents house, it can be an important rite of passage from being a child to an adult - getting your own place.

if so buy now. a home can go down in value if there's a crash but it will always be your home regardless of market value. over time it will appreciate in value.

if your treating it strictly as an investment for your savings then professional advice is a good idea. usually they say dont stick all your eggs in one basket and buying a house might counts as concentrating a lot of your available funds in one basket. In addition if your not going to rent out the property then as an investment it would not be getting the maximum return, and it will also be a massive expense running a household.

so really you would need to explain what your plans are, what your motivation is etc.

DownByTheGarden

You should have some of your money in property.

Might as well live in it if that suits.

fliball123

I would be holding off property prices are dropping.

o1s1n

If I had a million quid I'd be buying myself a million quid house around Dublin outright and living in a beautiful big house mortgage free.

All joking aside, don't aim to spend X on a house. Start looking at houses and see what you like. You might like something well under budget, you might like something close to the million, might like something over - all depends really. The great thing is with that amount of money in savings, you've lots of options.

Have had large lump sums in savings in the past and it's fairly scary not seeing any interest on them really with it just sitting there, and then couple that with inflation at the moment...

Definitely worth talking to a financial advisor.

herbalplants

I agree not great value at the 1 million level houses, many are not worth that price at all.

DubCount

OP. It sounds like you have a budget you are trying to spend. I think that is putting the cart before the horse. Firstly decide what you want/need. Do you want a 2/3/4 bed, apartment or house, northside/southside, big garden, close to DART/Luas, nice pubs/restaurants nearby.....its your choice of what is important to you. Then decide what you are prepared to compromise on. Look to see what is available that ticks your boxes and see what budget you need and can you afford it.

If I could, I'd pick mortgage free if you can. Is that extra bedroom or sea view really worth having a mortgage for?

I would buy now. Picking the top/bottom of the market is impossible. 20 years from now, whatever you buy will have increased in value. Life is short and having a pad of your own is great.

RichardAnd

If I had a million, I'd buy a house near my mother in Dublin 5 (Artane). You'd get one for about 500-600k, and with an extra bit spend on renovations, you'd have a great house. It would also leave plenty left over to invest elsewhere.

One thing is for sure. If you're sitting on a million in cash, get it out of a bank and into assets!

d mc

https://www.boards.ie/discussion/2058297812/buy-or-wait-big-savings-low-rent

Well done on earning a million.

My questions are:

• how old are you?
• What do you work at?

Murph3000

https://www.boards.ie/discussion/comment/120638247#Comment_120638247

Just to clarify, I dont have a million in bank. That number is amount I could afford if I maxed out mortgage and used savings.

I have spoken to "professionals", dont worry. Advice not far off what Im reading in here. People give professionals too much credit.

Murph3000

https://www.boards.ie/discussion/comment/120638380#Comment_120638380

House would be a home, really nothing to do with investment.

Murph3000

The more I look at whats available in Ireland, the more I am considering buying some kind of nice holiday home somewhere cheap in Europe.

Probably crazy talk, but currently I can work from home 100 percent of the time. That can change though, so I am opening myself up to trouble in the future.

There is just some really great value and lovely places in other Countries. This may be a crazy idea.

herbalplants

https://www.boards.ie/discussion/comment/120639961#Comment_120639961

Yes!! Very true, you get so much better value on a house in other countries. I toyed with that idea myself.

I wouldn't take a mortgage if I was you, if you can help it.

I do agree about some people giving too much credit to the professionals, most of the time.

Naked Lepper

https://www.boards.ie/discussion/comment/120638380#Comment_120638380

lol, will u gway out of that... no begrudgery from me, idiot. all i said was to check with a professional financial advisor when dealing with so many complex variables and a decision that will have a huge impact on OP future.

Claw Hammer

Certain sectors of the property market are safer than others. Council purchase properties tend to hold their value better than apartments, or mews in a recession. Some property types are relatively good value at the moment. Mid 20th century semis with good gardens in good areas needing work can be bought relatively cheaply. If there is a recession refurbishmemt costs will fall. If not the value will hold up. You could get such a house in Foxrock for example at about €650k.

Murph3000

https://www.boards.ie/discussion/comment/120653144#Comment_120653144

Honestly I am seeing very little value to be had at the minute.

Im thinking Id rather just buy somewhere else.

Former Former Former

https://www.boards.ie/discussion/comment/120655166#Comment_120655166

Then why on earth did you start this thread?

I would question why anyone would stay living with their parents and buy a holiday home abroad.

You're obviously single with no kids. You don't need to spend a million euro to get somewhere very nice to live.

o1s1n

OP if you can afford a house up to a million quid with a mortgage then you should be able to buy something nice that's not miserable.

Where in Dublin have you been looking? Do you've a few examples on daft of the kind of thing you've been looking at?

With the money you have you should be able to buy something lovely.

riclad

Buy a 2 or 3 bed house ,think where do I want to live ,close to luas shops ,city centre or suburbs .no need to get a mortgage ,you can buy a nice house for 300k.as above older houses that need modernisation are good value

A house is a place to live don't think of it as an investment drive around the area is it quiet at 9pm on weekends

I have seen house prices go up and down since 2007

Go to daft ie search Dublin 200k to 350k

It's always nice to have one or 2 spare bedrooms

Look for a garden at least 14 x12 sq ft

Re buying house abroad maybe talk to a financial adviser

I see no point in buying a house if you are only going to be there a few weeks a year

Claw Hammer

https://www.boards.ie/discussion/comment/120655166#Comment_120655166

It seems you had already nade up your mind when you posted and are just looking for confirmation.

Murph3000

https://www.boards.ie/discussion/comment/120657197#Comment_120657197

Maybe.

herbalplants

If you could stretch more, I would buy this if I was you. A lovely spot in the world.

https://www.myhome.ie/residential/brochure/43-strand-road-sutton-dublin-13/4708094

Murph3000

https://www.boards.ie/discussion/comment/120659433#Comment_120659433

If I win the lotto.