Any advice for single female buyer?

dashdoll

Hi folks.

I'm considering buying during 2024 but would love some perspectives and advice please if people were willing to share their views and knowledge.

In summary, 36 female, 80k salary, living in Dublin houseshare, circa 700e pm rent. Salary probably won't rise dramatically in the future.

I'll probably move job mid 2025 due to a number of things in work and projects finishing etc but currently wfh 3 to 4 days a week. I work in a relatively niche area so I'm thinking my work is always likely to be based in and around Dublin direction but wfh obviously opens my options a bit.

I'd be eligible for a max of 320k mortgage hopefully and have savings of approx 70k but don't want to use all of this for a deposit. Ideally I would like a property for a max of 350k and maybe get a mortgage of 300k max.

I'm just so torn about what to do which has me thinking maybe it's not the right time for me when I'm not 100% sure or maybe I'm just delaying making a decision.

My current options are

A. do nothing for another year or so and keep saving while hoping more availability comes on stream and prices miraculously fall (unlikely I know)

B. buy somewhere on the outskirts of Dublin which would be in Dublin but far away from where I live now in D6.

C. Buy in Limerick city nearer family and rent it out as don't really want to live their now but might in 5 years perhaps depending on where life takes me.

I suppose I just feel there are additional considerations as a single buyer both financial and non financial. I dont have any family in Dublin at all and do have some good friends here although I think more will move out in coming year or two due to prices. I guess loneliness is a potential factor to think about too but I just don't know what the most sensible approach to take is at the moment in my circumstances.

Any thoughts, advice or observations would be very much appreciated!

herbalplants

Place like this would suit you?

https://www.myhome.ie/residential/brochure/145-richmond-road-drumcondra-dublin-3/4769050

dashdoll

https://www.boards.ie/discussion/comment/121665991#Comment_121665991

Thank you.

Yes, something like that would be ideal. Tbh iv no idea how the market is at the moment. 350k would be my absolute max so if everything is going well above asking price I'm wasting my time. Need to get more educated I guess.

RurtBeynolds

https://www.boards.ie/discussion/comment/121665991#Comment_121665991

That will sell for way more than 350. Wouldn't be surprised if it went for 450+.

OP if your budget is 350 then I would limit your searches to <=300. This is what I did when I was in the market about a year ago. Maybe things have changed since though.

Cinderella2000

We're sale agreed, not in dublin. I would say if absolute max is 350k look at houses up for 250/275 to give yourself an actual chance of securing it.

I would say take max mortgage u can get, itl be paid eventually. Keep as much of your savings as you can. Cash flow if no other reason.

It's not clear why you're considering buying now? Dublin vs Limerick are worlds apart in every way.

RichardAnd

https://www.boards.ie/discussion/comment/121665991#Comment_121665991

Indeed it would. However, as noted above, there is no way in hell that that will sell for 350k. It will go for at least 400k. 350 is undervalue for that area for a house like that. This is the usual dishonest behaviour of EAs trying to start a bidding war.

OP, I was largely in the same situation as you in terms of age and salary. My advice is to think of the long-term. If you think you want to live in Limerick, then look there. If you're settled in Dublin, then look there. I wouldn't get into the hassle of renting out a house whilst you live in Dublin. You need somewhere to live yourself, so make life easier and buy to live.

Realistically, based on your budget, you will struggle to find a house. There are many properties such as the one linked above that seem perfect and within budget. However, my own experience was that these always went 10-20% above the asking price. If you want to stay in Dublin, you're realistically looking at an apartment, but add 10% to the listed asking price as a rule of thumb.

However, this:

"do nothing for another year or so and keep saving while hoping more availability comes on stream and prices miraculously fall (unlikely I know)"

I strongly advise against. No one can predict what will happen, but it's a safe bet that prices are not going to fall. Keeping cash in a savings account, even a higher interest one, is leaving it to rot.

Caranica

Don't buy to rent in Limerick (or anywhere). For a start you lose your first time buyer status when buying something to live in later, you also will need a 20% deposit. And that's before you get anywhere close to the nightmare stories of being a landlord, taxes, bad tenants etc.

dashdoll

Thanks for all the replies so far, much appreciated.

I guess I was considering Limerick as its close to family at least and while I don't want to live there right now I feel it might be my only option as I'm priced out of a lot of Dublin.

I don't know what to do really. The asking prices online seem to be well below what properties are going for in most instances so it blurs the lines especially for a single buyer as when you are at max it really is max.

Part of me still thinks just keep saving and see then because at least I'll have a larger deposit but the risk is that price rises will surpass any increase in savings.

It's good to hear perspectives from single buyers in particular so the more feedback the better.

Alkers

Are you set on a house or would you consider an apartment.

I don't know if you're in a relationship of what your thoughts on a lodger are but if you get a decent two bed place and rent out the other room, you can claim rent a room relief and claim up to €14,000 rent each year without any additional tax liability.

That goes a long way to repaying the mortgage!

Woah

In a very similar position and have decided try buy in Dublin. House in Dublin even if it drops a bit in price will still likely buy you a bigger house in Limerick if you decided to sell and move. Check the PPR there are houses and apartments that go within 350K not all end up 50/100K over asking. I get the logic of continuing to save but inflation will eat into any additional savings you make along with house inflation. If we see interest rate cuts house price inflation will get even worse and I don't think there is any hope over government sorting things in the next 5 years so now is as good a time as any to buy if you can. Thats just my thinking could be completely wrong though!

pc7

Donnycarney is much more settled and not a bad area, very close to town, you could do a lot with this https://www.myhome.ie/residential/brochure/62-hazel-road-donnycarney-dublin-9/4765081

Of as others have said go for an apartment just be careful for fire issues (eg that its properly certified and blocked incase of fire etc) and the yearly fees, some can be quite eye watering. https://www.myhome.ie/residential/brochure/21-church-view-church-avenue-drumcondra-dublin-9/4766171

https://www.myhome.ie/residential/brochure/104-river-gardens-glasnevin-dublin-9-county-dublin/4766690

Setting up a meeting with a broker and starting to pick areas you think you'd live in and whats the going rate and for sale are a good starting point. Best of luck OP not easy!

toggie

Hi OP,

Please do not purchase a property in a place you don't wish to live/ reside. The hassle of rent, taxes, repairs, upkeep etc is not worth it. (I have fallen into this trap)

There is also the emotional turmoil of being a landlord one property and still living as a tenant in another. You get the worst of both worlds in my opinion. You are paying for things and you don't get or feel the benefit of them.

Another factor that does not get often mentioned is the time factor to pay off the mortgage. Banks expect it to be paid off before your potential retirement date, not buying now leaving it an additional year , shortens your potential mortgage term. I don't think the housing market will fall in the next few years, it's simple supply and demand that is causing the rise in property prices.

On another tangential note, I would also advise getting as long as a mortgage as you can get. It always easier to shorten a mortgage term than lengthen one. I am also not a fan of paying off the mortgage early. As a single buyer (like myself) I feel it's better to put away a few hundred euro a month in savings, as a just in case for any issues that may crop up. Mortgage's are traditionally the cheapest finance one can get. Single buyers have to pay for everything that goes with owning a property on one income. When you overpay or make extra payments to your mortgage company / bank, you can't get it back if needed. I have deliberately keep my mortgage term as long as possible to keep the payment low. If I feel I am in a position to pay off a lump sum down the line, I can do so.

If you need to build up a cash flow, you can always rent a room in your own property under the rent a room scheme. Just do not become a landlord in the traditional sense. Your mental health will thank you in the long term.

Best of luck with your home ownership purchase.

herbalplants

https://www.boards.ie/discussion/comment/121671571#Comment_121671571

Good advice here 👍

nachouser

Dublin 12 might be worth looking at.

Shannonsurfer101

Evening OP,

If you break it all down, a future home is important but if we reflect on it all the importance of enjoyment of hobbies/pastimes, friends and family is what matters. Where will that place you is the question. Friends will always make time for one another no mater distance. So don’t let that put you off Dublin.

From my own experience especially with a baby, having family nearby makes a big difference with what life throws at us.

Just thinking outside the box to explore options. Two questions, have you a good relationship with your parents and have you siblings?. You said they live in Limk city, ye could combine your mortgage and there assists.

Below is just an idea of what’s out there. You could live in the downstairs section, looks like a mini apt, and parents upstairs. If you do start a family or whatever direction life takes you, ye can swap up and down.

A bit off topic but family’s should always discuss their plans when disposing of their assists. In the above situation, I’f you are going to be the sole benefactor of the family home best get tax advice well in advance and avoid the fair deal scheme.

https://www.daft.ie/for-sale/end-of-terrace-house-weston-house-limerick-city-co-limerick/5443743

whatever76

I was in similar situation to you 8 years ago - getting to the stage where needed to plan for future regarding property - was renting in Dublin for 15+ years , from cork , 40 fast approaching ( mortgage term pressure ) , no partner etc ... where do I want to be long term? My friends in Dublin had moved on and I had more friends and family in cork so really at that stage of my life - only thing keeping me in Dublin was job ! If I was to buy in Dublin it would not be where I wanted in City ( affordability- similar budget as you ) and buy in outskirts like Kildare maybe ( cork road :)) and I was like what point in that when you single buyer & for family reasons Id have to go home at least twice a month anyway ! So decision made really ..Family/Friends in Cork and rest will follow, get house and then look for new job ! I stopped renting in Dublin and moved into Sisters house in Cork and commuted weekly ( not ideal and stressful enoguh at times but having an end goal helps in getting through it !) - helped me save more and build on deposit ... started looking in 2017 and no joke it was late 2019 before I got house ... went through all the scenarios regarding house buying but so glad in long term as got house/location that just suits me perfect now ... I like previous poster said advise don't buy a house rent it out .. I know lots of people who are "accidental" landlords - and just not worth the hassle with todays regulations & tax payments etc . So In a nutshell I be saying - think long term of where you see yourself living/settled and start plan around that . Best part for me was when I made decision , things will fall into place ... it could take a good year or 2 to get the house for you ... I was naive back in 2017 thinking first house I bid it be mine LOL ... I learned lessons fast !! its a tough market !!! Best of luck with your decision !! hope that helps.

handlemaster

https://www.boards.ie/discussion/2058333034/any-advice-for-single-female-buyer

I would based on your post buy in Dublin. Pick the ideal areas you would mike to live in also areas near. Get the max mortgage you can get rent out a room or two. Your earning 80k I would assume your not an idiot so trust yourself and go for it.

o1s1n

Is there a reason you don't want to go all in with your savings?

Lots of people do this. I know I was left with nothing much after after a few property purchases. It's scary for a few months but you build the savings back up.

If you're bidding on a place you really want in Dublin and it's getting to your limit, I'd say you'd be willing to dip into the savings a bit more. You'd be surprised how your priorities change when you're close to getting a house you really want! Particularly given how long the viewing/bidding process can be.

Leg End Reject

Don't buy a house to rent out in the hope that you will eventually live it in. If you ever sell it you will be liable for CGT for the period it was rented out.

Add that to letting agent fees, upkeep, possible non-payment of rent or a tenant wrecking it, and it can become a financial headache. You'll also still be paying rent.

A 2 bed apartment in Dublin might be your best option. You can rent out a room as previously suggested if you want and they can be easier to sell when and if the time comes than a one bed.

I'd also use savings rather than pay interest on a mortgage, just keep 6 months living expenses.