24 with good salary and deposit, should I buy an apartment or house?

Paddyg96 · 27-03-2021 8:53pm #1

I'm 24, living with my parents currently in the countryside. I am very lucky to make a high income through an online business (low to mid 6 figures) and have about 100k saved for a house deposit.

Everyone tells me to buy a house. I am not tied to anywhere, so I want to buy somewhere I'll enjoy living in in the short-term but also something that will appreciate.

I've lived in Dublin before and have friends there so it's obviously at the forefront of my mind.

Is buying a 2-bed apartment in the 300k-500k range a good idea? My thought process is it would be low maintenance, good for living in in my 20s and if I needed to move out I could sell or rent out pretty easily.

My alternatives would be to buy a house in the suburbs or maybe even a house somewhere else (Kildare, wicklow, wexford)....as I said I can literally work from anywhere so I want to get good value for my money and buy somewhere where house prices are rising.

Part of me wonders if Dublin is worth it, considering there's nothing tying me to there. I'm a bit all over the place as you can probably tell so would love any insight or thoughts!

micah537 · 27-03-2021 8:59pm

Personally I hate apartments. You hear the people above and below you as well as each side of you. It only takes one clown to make life hell.
At least with a there is a lower chance of loud people bothering you.

At 500k you'd design a nice house that suits you.

893bet · 27-03-2021 9:01pm

Well done! What’s the business out of curiosity.

With that type of income I would buy out the country side (assuming you can run the online business from the country side). That said you are young so a nice two bed flat in a trendy part of Dublin would also hit the spot.

enricoh · 27-03-2021 9:01pm

Rent up in dublin for 6 months in 6 months time and see if you are into living up there. Realistically there's not gonna be much craic no matter where u live til October imo. Save another 100k in the next year n decide then.

dublin49 · 27-03-2021 9:05pm

if you are earning at that level you can afford the best advice money can buy.

Paddyg96 · 27-03-2021 9:06pm

893bet wrote: »

Well done! What’s the business out of curiosity.

With that type of income I would buy out the country side (assuming you can run the online business from the country side). That said you are young so a nice two bed flat in a trendy part of Dublin would also hit the spot.

Revealing would probably identify me, so DM if you'd like to chat. Thanks for the advice, I'm living in the country now. Where do you think is nice? I'm just a little worried it would be quite isolating.

Sd james · 27-03-2021 9:07pm

That's serious money. Yeah I'd pay for advice if I where you

Paddyg96 · 27-03-2021 9:07pm

dublin49 wrote: »

if you are earning at that level you can afford the best advice money can buy.

How do I get that? I come from a background where I have no connections or any savviness around investing/finance so any advice over who to contact would be amazing.

jmlad2020 · 27-03-2021 9:10pm

Buy a house in Fingal.

basill · 27-03-2021 9:15pm

Paddyg96 wrote: »

How do I get that? I come from a background where I have no connections or any savviness around investing/finance so any advice over who to contact would be amazing.

Do you mind living with other people? If not get a house and some housemates. Have them pay off your mortgage. Revalue the property in a few years time and leverage the equity to buy another one. Rinse and repeat. Keep an eye on the market and be prepared to sell up and buy again when the country is in its next recession.

dublin49 · 27-03-2021 9:26pm

your earning profile is very rare if not unique ,I would guess your astounding earnings are internet based and maybe vunerable to changes in the medium term,if I am correct I would buy a lovely 4 bedroom in Raheny ,Sutton.Clontarf or drumcondra or in an equivalent South side area and your major purchase for life will be sorted.You wont go wrong with house in these type of areas where as an apartment is always vunerable to fire hazard issue etc.In all honesty it will be hard to find objective advice as most auctioneers will direct you to whats in their best interests.

Thomasirl123 · 27-03-2021 9:32pm

Like others have said you need professional advice.

I'm making assumptions but with income of 100k to 500k but only 100k in savings (maybe you've invested in other things, have other savings) you need proper advice. Perhaps a more liquid asset is needed.

DubCount · 27-03-2021 10:07pm

Maybe try renting an apartment for a year to see if you like the lifestyle. Even though you can afford to buy, there is no rule to say you have to buy immediately.

.anon. · 27-03-2021 10:15pm

Paddyg96 wrote: »

I'm 24, living with my parents currently in the countryside. I am very lucky to make a high income through an online business (low to mid 6 figures) and have about 100k saved for a house deposit.

Everyone tells me to buy a house. I am not tied to anywhere, so I want to buy somewhere I'll enjoy living in in the short-term but also something that will appreciate.

I've lived in Dublin before and have friends there so it's obviously at the forefront of my mind.

Is buying a 2-bed apartment in the 300k-500k range a good idea? My thought process is it would be low maintenance, good for living in in my 20s and if I needed to move out I could sell or rent out pretty easily.

My alternatives would be to buy a house in the suburbs or maybe even a house somewhere else (Kildare, wicklow, wexford)....as I said I can literally work from anywhere so I want to get good value for my money and buy somewhere where house prices are rising.

Part of me wonders if Dublin is worth it, considering there's nothing tying me to there. I'm a bit all over the place as you can probably tell so would love any insight or thoughts!

If I was 24 and earning that type of money, I'd keep saving for another few years until I could afford to buy without any mortgage. A big sacrifice for the next few years, but it would mean that you're set up for life, regardless of what happens in the future with your online business.

dublin49 · 27-03-2021 10:21pm

.anon. wrote: »

If I was 24 and earning that type of money, I'd keep saving for another few years until I could afford to buy without any mortgage. A big sacrifice for the next few years, but it would mean that you're set up for life, regardless of what happens in the future with your online business.

No point saving if he can buy now,its always easier to hold onto a house if your circumstances change than acquire one.

.anon. · 27-03-2021 10:27pm

dublin49 wrote: »

No point saving if he can buy now,its always easier to hold onto a house if your circumstances change than acquire one.

I still think there's a lot to be said for avoiding borrowing wherever possible. He's tantalisingly close to being in that position. But that's just my innate conservatism.

Smiley11 · 27-03-2021 10:37pm

.anon. wrote: »

I still think there's a lot to be said for avoiding borrowing wherever possible. He's tantalisingly close to being in that position. But that's just my innate conservatism.

Absolutely. You are in a great financial & personal position at a young age. If I was in your position, & was happy enough/not under any pressure to move from the folks place, I'd keep saving that handsome income & aim towards a cash purchase in the next few years. IMO, the luxury of being mortgage free in your mid to late 20's is worth a couple of more years saving. Its really impressive that you're in that position. Well done!

Eire Go Brach · 27-03-2021 11:07pm

Don’t buy an apartment. Specially in the current market.
I bought a 2 bed in 2006. Heard all the Celtic tiger waffles. Flip it in 2 years and buy a house etc.
Well guess what I’m still here. Girlfriend and 2 kids later. Only out of negative equity in the last year and in a position to buy a house.

As someone else also pointed out. It can only take one scumbag to ruin the place. I have seen that over the years to.

riclad · 27-03-2021 11:34pm

you can afford a house buy a house,
a house has more privacy,
apartment= people living above you ,to the right ,left, behind you.
no service charges on a house.
buy semi d or detached house.
Many apartments have issues with low levels of sound proofing.
eg you hear noise from apartments all around you.
buy house with parking space and a small garden.
A house in an area like cabra, phibsboro is a very good investment.
get a survey done before you buy .
there seems to be no standard re basic levels of sound proofing in apartments .
every building is different.
At least in a house you may have a neighbour on the right ,left, thats
it.
buy a 2 or a 3 bed unit .
Always nice to have a spare room, as a home office.
no point in buying a 1 bed apartment for someone on a high salary

Wesser · 27-03-2021 11:38pm

HOUSE!!

tianna · 28-03-2021 12:49am

Hi Op, I'm 24 too and just bought an apartment in Dublin. Thought about buying a house instead but it would have meant buying further out and I decided I want to live closer to the centre while I'm young. Also, I don't need more space or a garden and don't want the maintenance that comes with a house at the moment. I was concerned about noise/neighbours but bought in a mature development that has good sound proofing and no fire safety issues.

Moonbeam · 28-03-2021 2:28pm

In Ireland I would always say buy a house not an apt but there are exceptions to that rule.
I was 23 when I bought ,I did not have nearly as high an income as you or as much savings but choose a 2 bed house. I could always rent out the spare room, had a little garden, maintenance fees were alot lower and my chances or selling were higher.
I grew up in a beautiful apt in Dublin beside the sea and if I could I would definitely buy it but that is the exception. If i were you I would see if I could stretch to a 3 bed in a nice established area of Dublin.

KilOit · 28-03-2021 6:56pm

Don't buy anything, if no pressure to move then stay in parents house.
Buy in a year or 2 and keep saving till then, if that money you earn is constant you'll have an amazing place when things settle down

dublin49 · 28-03-2021 8:11pm

i dont think property is over priced in Dublin,its still below the 2008 peak 13 years later.Property values in Ireland regularly doubles over 8 to 10 years so I think there is decent value out there.For example we bought our first house in 1990 and sold in 2001 for a 300% gain.2008 crash I think was an anomaly and might not ever happen again

atilladehun · 28-03-2021 8:20pm

Buy a house in Dublin, rent out the other rooms.

Don't tell the bank you're going to rent, let them judge your ability to repay on your income.

Have fun living in Dublin while you're young, have other people pay your mortgage.

The value of the property will rise in line with the value of property all over.

Dublin is vastly under supplied and will be for the next decade. Ireland has one of the youngest populations in Europe and has for a few decades as well as net immigration. Demand will remain high. This is good for selling in the future but also means your 100k is less valuable in the future if it remains cash.

If you know you want to live in the countryside then fine do that but if you hope to sell it's a bit more of a risk, depends where you are. Some spots don't sell very well even if you love that particular area.

dublin49 · 28-03-2021 8:24pm

The beauty of buying in well established estates in Dublin Suburbs is they are more or less built and you are protected from an unexpected or unwelcome planning decision

Michael_Res1 · 28-03-2021 9:09pm

I think you need to have 3 years set of audited accounts if you are working for yourself, not sure if you have looked into that or its relevant.

Given current inflation rates at 2 per cent, I think its a good idea to get the 100k invested. If in property ensure its a fixed rate mortgage for the longest term possible at 70% ltv max. Interests rates likely to rise rapidly over the coming months.

As whether apartment or house, well, its the same old adage for dublin, area, area, area. Swanky apartment easier to maintain in my view given your age and not married. dont forget you'll need secure underground parking for the lambo also

Mad_maxx · 29-03-2021 11:49am

nothing wrong with buying an apartment , one beds offer good value in Dublin at the moment , might be about the one area where value exists

just because irish people will always go for a house is not something to worry about , europeans ( of whom there are many in Dublin ) will more often than not , prefer an apartment , you will find a buyer if you choose to sell down the line

a one bed apartment in a decent Dublin location will both hold its value and sell quicker than a house in an undesirable location in the countryside

antimatterx · 29-03-2021 12:34pm

Mad_maxx wrote: »

nothing wrong with buying an apartment , one beds offer good value in Dublin at the moment , might be about the one area where value exists

just because irish people will always go for a house is not something to worry about , europeans ( of whom there are many in Dublin ) will more often than not , prefer an apartment , you will find a buyer if you choose to sell down the line

a one bed apartment in a decent Dublin location will both hold its value and sell quicker than a house in an undesirable location in the countryside

How much wouid you value a 1 bed 60 sqm apartment 10 minutes from a Dart line in North Dublin

Mad_maxx · 29-03-2021 12:40pm

antimatterx wrote: »

How much wouid you value a 1 bed 60 sqm apartment 10 minutes from a Dart line in North Dublin

doesnt matter what i value it at , il look up Daft.ie , presume its at least 300 k though ? , thats a very large one bed

i see one in stoneybatter for 260 K but that is surely more than ten minutes walk from the Dart line ?

Xterminator · 29-03-2021 1:35pm

In your shoes i would buy a nice apartment now, in a mature development, where you neighbours are also settled. Get somewhere that is comfortable for you now! Remember location is key - a nice area in high demand.

i would not be too worried about capital gain on apartment, you can purchase apt easily, and with a short enough mortgage and overpay on that if the fluid income keeps at the same level in for you. by the time you are thinking about changing life circumstances and getting a 3 bed semi d etc, you will own a very large chunk of the apt (with discipline you could probably own it outright) and will have the ideal position of either selling it to fund a large chunk of your house - or keeping it for other purposes, and borrowing with the apt as security.

if you make a nice profit on the apartment great. your not likely to lose out 5-10 years down the line - its unlikely you wont break even, at worst. in the meantime you will live in a pleasant private environment, be handing your parents their privacy back.

You gain an independance you wouldn't otherwise have if you stay home & a lifestyle and access to amenities you might not get if you go down the house route.

24 with good salary and deposit, should I buy an apartment or house?

Comments