Buy a Property

PHG · 10-12-2019 4:18pm #1

Hi,

I know there is a similar thread a few posts down but worth a shot. Here is my info:

- Early 30's, single and no dependents
- 26k in savings currently, with bonus should be close to 40k by end of Feb
- I have a pension that I put in 900 p/m into (nothing supplied by employer) and can save between 2/2.2k per month. If I was frugal that could easy be 3000 but I work a lot so go on a few holidays a year, clothes and eat out a lot.
- I have no major outgoings or debt but I have some medical bills and help out at home which probably comes to 700 per month.
- Looking to buy an apartment (not interested in houses) in Limerick city near parents (170k) but don't plan on moving home permanently for another 5+ years and would likely buy in Dublin after. So would rent out other room. I am home about 5 days a month. I pay my taxes in Ireland to be clear. I reckon I could save a new deposit in that time also. I have booked in to talk to my financial advisor too.
- Other option is to wait a few years, don't delve into property and have about 200k saved by the time I am 37ish but feels like I am falling behind.

Any advice welcome.

Thanks,

PHG

Jim2007 · 10-12-2019 5:23pm

PHG wrote: »

Hi,

I know there is a similar thread a few posts down but worth a shot. Here is my info:

- Early 30's, single and no dependents
- 26k in savings currently, with bonus should be close to 40k by end of Feb
- I have a pension that I put in 900 p/m into (nothing supplied by employer) and can save between 2/2.2k per month. If I was frugal that could easy be 3000 but I work a lot so go on a few holidays a year, clothes and eat out a lot.
- I have no major outgoings or debt but I have some medical bills and help out at home which probably comes to 700 per month.
- Looking to buy an apartment (not interested in houses) in Limerick city near parents (170k) but don't plan on moving home permanently for another 5+ years and would likely buy in Dublin after. So would rent out other room. I am home about 5 days a month. I pay my taxes in Ireland to be clear. I reckon I could save a new deposit in that time also. I have booked in to talk to my financial advisor too.
- Other option is to wait a few years, don't delve into property and have about 200k saved by the time I am 37ish but feels like I am falling behind.

Any advice welcome.

Thanks,

PHG

You're falling behind what exactly? Building your wealth is not a competition nor get emotional about. Start be clearly defining your financial objectives and spend some time understanding investing an risk. And in particular the risks of investing in property.

FFVII · 10-12-2019 5:49pm

900 into pension pm??

Typo surly?

0gac3yjefb5sv7 · 10-12-2019 6:19pm

PHG wrote: »

Hi,

I know there is a similar thread a few posts down but worth a shot. Here is my info:

- Early 30's, single and no dependents
- 26k in savings currently, with bonus should be close to 40k by end of Feb
- I have a pension that I put in 900 p/m into (nothing supplied by employer) and can save between 2/2.2k per month. If I was frugal that could easy be 3000 but I work a lot so go on a few holidays a year, clothes and eat out a lot.
- I have no major outgoings or debt but I have some medical bills and help out at home which probably comes to 700 per month.
- Looking to buy an apartment (not interested in houses) in Limerick city near parents (170k) but don't plan on moving home permanently for another 5+ years and would likely buy in Dublin after. So would rent out other room. I am home about 5 days a month. I pay my taxes in Ireland to be clear. I reckon I could save a new deposit in that time also. I have booked in to talk to my financial advisor too.
- Other option is to wait a few years, don't delve into property and have about 200k saved by the time I am 37ish but feels like I am falling behind.

Any advice welcome.

Thanks,

PHG

200k saved in 2/3 years!?,

Thoie · 10-12-2019 6:26pm

PHG wrote: »

Hi,

I know there is a similar thread a few posts down but worth a shot. Here is my info:

- Early 30's, single and no dependents
- Looking to buy an apartment (not interested in houses) in Limerick city near parents (170k) but don't plan on moving home permanently for another 5+ years and would likely buy in Dublin after. So would rent out other room. I am home about 5 days a month. I pay my taxes in Ireland to be clear. I reckon I could save a new deposit in that time also. I have booked in to talk to my financial advisor too.
- Other option is to wait a few years, don't delve into property and have about 200k saved by the time I am 37ish but feels like I am falling behind.

Any advice welcome.

Thanks,

PHG

The first two things that come to mind are that you have no idea what your circumstances will be in 5 years - the "single, no dependents" could change.
Having lived in an apartment for a long time, Irish apartments are often short on storage, so give careful consideration to which apartment you buy if you're going down that route.
Don't forget you'll be paying management fees on the apartment during those 5 years.

See what your financial advisor says, but personally I wouldn't take on the hassle of being a landlord if I didn't need to. I'm not 100% sure why you're buying an apartment in Limerick if the plan is to live in Dublin in the future - it sounds like this would be purely an investment property? If that's the case, why not buy something in Dublin now, that you think you'd be willing to live in later?

PHG · 11-12-2019 10:43am

Thanks for the replies

I guess feel a bit falling behind as my friends are starting to buy houses (with partners) and I am not. My financial objective is to buy a property on my own back of about 450k in next 5 years with a 15% deposit and 20 year mortgage.

My stock market risk is ok. I used to trade my own account and do arbitrage. Made enough for 1 cheap holiday (after losing for a few years) but do not have the time for it now as profit:effort is not worth it. I know very little to nothing about property except being a tenant.

- 900 was not a typo. I do a PRSA to get the tax benefit.
- Just turned 32 last month so 200k by 37 seems reasonable (all things remaining equal, that's approx 26k per year saved + bonus net is 5kish, multiply * 5 is 151,000 plus the 26k I currently have and I would assume a wage increase or being more frugal in that time too to get me there), I get there may/will be big changes in those few years and I would like to find a partner and settle down some bit which would be a big change, so a lot is probably speculation on my part but have to plan somehow.

@Thoie, yes pure investment, parents would live a few mins away and said they would look after it. Will take on board your other points. Having lived at home and a few other countries, you are definitely right. We are so poor at storage. Was in Scandinavia for a stent a few years back and they do way better with a lot less space.

badboyblast · 12-12-2019 12:20am

Research PPR and examine your tax liability as you currently do not know it

PHG · 13-12-2019 12:07am

badboyblast wrote: »

Research PPR and examine your tax liability as you currently do not know it

Thanks will do!

Tomripley · 14-12-2019 6:57pm

Jim2007 wrote: »

You're falling behind what exactly? Building your wealth is not a competition nor get emotional about. Start be clearly defining your financial objectives and spend some time understanding investing an risk. And in particular the risks of investing in property.

Well look at it this way... If you buy now your paying a lot of front loaded interest on mortgage. You're not paying anything on your savings.

Thing is not to rush... I was 27 when I felt jesus better jump on this bandwagon or I'll fall behind. That was around June 2007 when I walked out after signing contract I lost it all in negative equity. Still not even out of that. Learned a very valuable lesson don't rush.

Youre earning a lot by sounds of it so sit pretty. Unless of course what you're paying in rent is very high

cute geoge · 14-12-2019 9:45pm

The reality is house prices have only one way to go ,there will always be peaks and troughs but the last correction is basically over .If a person in op circumstances can not buy decently priced house now then what hope have the majority!!!!

PHG · 16-12-2019 6:23pm

Hi @TomRipley,

I currently have no rent but do contribute a good bit to home. I will move around every 6/12 months for the next few years (circumstances depending) so the company provides a corporate apartment in each location. Basically, I get an idea of how long I will be on a site, pack 2 big suitcases, depending on the season, and leave the rest at my parents. Sounds great but it can get quite lonely at times. Thankfully there is an Irish community everywhere

!

I was made aware of an unexpected emergency cost at home last week when home for a few days and that is about to set me back about 3k so I do need to be quite liquid and it got to me a bit. I did talk to my financial advisor last week and he has told me to get more cash together before considering buying and to wait until May/June and review my circumstances then. He has put me in touch with a mortgage broker for a chat in the mean time so will see what happens.

@cute_george from what I gather apartments are less flexible in price deviations than houses. I think decent price is relative to the area too. I am looking in Limerick (apartment only), but if I was to say look at something in Dublin it is twice the price and even Ennis is a lot cheaper than Limerick. I have 1 friend who bought in house in Cork with a partner for 220kish and they gross about 80k, another who bought in Ennis on their own earning 60k and another who can't get on the property ladder in Galway as anything decent is around 400k+ and they bring in about 90/100k (All gross). They have the deposit but say they just can't find anything of value. All have lived in Dublin and could never afford to buy there so have moved back West.

I am purely looking at building assets but definitely need to take into account the additional costs needed for this. Plus, though my parents are happy to look after the property it is still a big ask and I don't know if that would be fair on them, so additional management costs may come into play.

ballyharpat · 17-12-2019 12:10am

would you not consider educating yourself on investing in the stock market? you can set up a virtual portfolio, and even after that, you can use just 5k, it will stand to you forever, whatever you learn is money in the bank. You will learn your own strategy and what works for you, you will always be liquid and can diversify your risk accordingly. I've been doing it for about 15 years now, every few years I pull out enough to buy a property and rent that out, to minimise risk, and keep an income. I think property can be volatile, but it will always provide income, the stock market is always volatile as well, but when it's down, I try not to withdraw and instead , I knuckle down and deposit.

Just some options.

Mad_maxx · 17-12-2019 11:26am

PHG wrote: »

Hi,

I know there is a similar thread a few posts down but worth a shot. Here is my info:

- Early 30's, single and no dependents
- 26k in savings currently, with bonus should be close to 40k by end of Feb
- I have a pension that I put in 900 p/m into (nothing supplied by employer) and can save between 2/2.2k per month. If I was frugal that could easy be 3000 but I work a lot so go on a few holidays a year, clothes and eat out a lot.
- I have no major outgoings or debt but I have some medical bills and help out at home which probably comes to 700 per month.
- Looking to buy an apartment (not interested in houses) in Limerick city near parents (170k) but don't plan on moving home permanently for another 5+ years and would likely buy in Dublin after. So would rent out other room. I am home about 5 days a month. I pay my taxes in Ireland to be clear. I reckon I could save a new deposit in that time also. I have booked in to talk to my financial advisor too.
- Other option is to wait a few years, don't delve into property and have about 200k saved by the time I am 37ish but feels like I am falling behind.

Any advice welcome.

Thanks,

PHG

If you want to track property price gains, buy a REIT, you can then sell in five years when you need to be in Limerick

Otherwise buy and leave empty.

Empty_Space · 01-01-2020 6:08pm

ballyharpat wrote: »

would you not consider educating yourself on investing in the stock market? you can set up a virtual portfolio, and even after that, you can use just 5k, it will stand to you forever, whatever you learn is money in the bank. You will learn your own strategy and what works for you, you will always be liquid and can diversify your risk accordingly. I've been doing it for about 15 years now, every few years I pull out enough to buy a property and rent that out, to minimise risk, and keep an income. I think property can be volatile, but it will always provide income, the stock market is always volatile as well, but when it's down, I try not to withdraw and instead , I knuckle down and deposit.

Just some options.

Any recommendations on best training materials or platforms to get started on.
Interested in starting with small sums.

Carl D · 11-04-2020 2:42pm

Hi not sure if this is the right thread if not please move thanks

So I'm 28 and living at home . Working full time my salary is 30k after tax I'm not in a job where my salary would be 80k at some point .

So I put a granny flat at the end of my parents house which I rent out and get 1,200 a month , I pay my mother a percentage of it each month . Its pretty much payed off now . This will pay off my mortgage when my self and parnter get our own place we are saving at the moment.
We will be buying new or building on her familys land just outside Dublin.

Im looking into buying a property in dublin for 150k more than likely will be a 1 or 2 bed apartment as an investment for the future and let it pay itself off over the next few years.

OR

I could open a creche on the side of my parents house. My partner would like to run her own creche and my parents think it's a great idea and have no problem with it once it's done right. I'm very Interested in owning my own creche, I know there is insurance and everything involved but I would do a part time course so know how to run it and have all the certificates I need to be able to own and work In it .

If you have and similar story's or own a creche I would appreciate it if you give me any tips . Thanks in advance

RedRochey · 11-04-2020 2:49pm

Good luck finding a decent apartment for 150k in Dublin, no chance you'll get a 2 bed for that amount

Carl D · 11-04-2020 3:26pm

StockTwat29 wrote: »

Good luck finding a decent apartment for 150k in Dublin, no chance you'll get a 2 bed for that amount

Your right wont be dublin maybe Drogheda or kildare just outside dublin. I seen an apartment go for 100k in Drogheda last year

Carl D · 11-04-2020 3:34pm

Carl D wrote: »

Your right wont be dublin maybe Drogheda or kildare just outside dublin. I seen an apartment go for 100k in Drogheda last year

I don't mind going a little bit more for an apartment as I see it as a long term investment. I'm In a good position were i can take a risk.

RedRochey · 11-04-2020 4:11pm

Well I'm kinda in a similar position to you, interested in buying an apartment next year in Dublin, but I'm just focusing on Dublin 6, few 2 beds under €350k

0gac3yjefb5sv7 · 11-04-2020 5:27pm

StockTwat29 wrote: »

Well I'm kinda in a similar position to you, interested in buying an apartment next year in Dublin, but I'm just focusing on Dublin 6, few 2 beds under €350k

Same here. As most hate apartments on here it's nice to have some others that enjoy it. Can I ask what age bracket you are in? I'm in between buying a cheap 3 bed house or nicer 2 bed apartment...

pearcider · 11-04-2020 5:35pm

StockTwat29 wrote: »

Good luck finding a decent apartment for 150k in Dublin, no chance you'll get a 2 bed for that amount

Once this correction is over you will get a 2 bed in Dublin for 150k. Easy. There were 2 beds with parking going for 100k on Parnell street in 2011.

handlemaster · 11-04-2020 5:40pm

Carl D wrote: »

Hi not sure if this is the right thread if not please move thanks

So I'm 28 and living at home . Working full time my salary is 30k after tax I'm not in a job where my salary would be 80k at some point .

So I put a granny flat at the end of my parents house which I rent out and get 1,200 a month , I pay my mother a percentage of it each month . Its pretty much payed off now . This will pay off my mortgage when my self and parnter get our own place we are saving at the moment.
We will be buying new or building on her familys land just outside Dublin.

Im looking into buying a property in dublin for 150k more than likely will be a 1 or 2 bed apartment as an investment for the future and let it pay itself off over the next few years.

OR

I could open a creche on the side of my parents house. My partner would like to run her own creche and my parents think it's a great idea and have no problem with it once it's done right. I'm very Interested in owning my own creche, I know there is insurance and everything involved but I would do a part time course so know how to run it and have all the certificates I need to be able to own and work In it .

If you have and similar story's or own a creche I would appreciate it if you give me any tips . Thanks in advance

I assume you have no brothers or sisters ?

Tax tax tax... who does that roll into the situation ?

antix80 · 11-04-2020 5:44pm

PHG wrote: »

.
- Other option is to wait a few years, don't delve into property and have about 200k saved by the time I am 37ish but feels like I am falling behind.

Don't do this.

Figure out what you want, then see how much money you need.

Don't set artificial deadlines, like retire by 50 unless you already know the answer to : "then what?"

It looks like there's a property crash on the way (some would say it's already here). If you have a deposit and a secure job, and you have a property in mind, try to exploit that.

Edit: ffs Carl D, make your own thread

RedRochey · 11-04-2020 6:10pm

pearcider wrote: »

Once this correction is over you will get a 2 bed in Dublin for 150k. Easy. There were 2 beds with parking going for 100k on Parnell street in 2011.

Don't think we'll get a property crash because of this recession, plus there'll still be plenty of demand after this is over

Carl D · 11-04-2020 6:16pm

handlemaster wrote: »

I assume you have no brothers or sisters ?

Tax tax tax... who does that roll into the situation ?

Cant do much about tax just have to pay it simple as that . I have one sibling why?

RedRochey · 11-04-2020 6:18pm

Kira Gifted Courthouse wrote: »

Same here. As most hate apartments on here it's nice to have some others that enjoy it. Can I ask what age bracket you are in? I'm in between buying a cheap 3 bed house or nicer 2 bed apartment...

Late 20s, plan is to travel for a year, then save a year for a deposit, live there for 5+ years and then build a house in the country

Carl D · 11-04-2020 6:19pm

StockTwat29 wrote: »

Well I'm kinda in a similar position to you, interested in buying an apartment next year in Dublin, but I'm just focusing on Dublin 6, few 2 beds under €350k

Are you buying or going to be renting it out ? Crazy amount for a 2 bed apartment isn't. Would you not consider a house for that price . Best of luck with it

pearcider · 11-04-2020 6:40pm

StockTwat29 wrote: »

Don't think we'll get a property crash because of this recession, plus there'll still be plenty of demand after this is over

Won’t be much demand with unemployment at 25%. A property crash is almost certain since property prices have doubled in 8 years.

RedRochey · 11-04-2020 7:14pm

pearcider wrote: »

Won’t be much demand with unemployment at 25%. A property crash is almost certain since property prices have doubled in 8 years.

majority of that unemployment is temporary, once this is over most of those people will be back in a job, yes prices will fall but that doesn't mean they'll crash

Taylor365 · 12-04-2020 11:55am

pearcider wrote: »

Once this correction is over you will get a 2 bed in Dublin for 150k. Easy. There were 2 beds with parking going for 100k on Parnell street in 2011.

Yea, in Finglas! :pac:

Hoffmans · 12-04-2020 12:17pm

Imf predicting recession along lines of the great depression, the main driver of rents here and prices Is the funds when the vultures fly all will crash wait 6 months see how it plays out

Buy a Property

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