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11-03-2019, 09:26   #16
amcalester
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How do you afford to live day to day?

If you're receiving benefits then will the means test not wipe out any payment you get? €170,000 gives you a weekly means of €550.

Surely you should be looking to move out of Dublin and live somewhere cheaper with a house fully paid off as this is exempt from the means test.
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11-03-2019, 09:32   #17
cruizer101
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I don't see the point in buying an investment property to get rent to help pay your own rent.
Buying your own property to live in is the best investment. If it means moving school for the kids so be it, if they are young moves like that are easier.
With your own home and no rent/mortgage even a modest income is makes it easy enough enough to get by.
You can always look to upgrade down the line.
First time buyer status isn't worth that much these days especially if buying with cash.
Have a safe secure roof over your heads would be my advice.
You may be able to get a credit union loan for say 10-20k to help furnish and that so most of saving can go towards the property itself.
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11-03-2019, 09:34   #18
afkasurfjunkie
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Stop looking in the most expensive part of the entire country for a home. You have no job or family to help so no tie to the area. Get out of Dublin and look for a job elsewhere.
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11-03-2019, 09:37   #19
 
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Buying a personal house exempts you from the means test. The means test is ludicrous anyway for people who have paid in.
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11-03-2019, 10:24   #20
AndrewJRenko
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You would be crazy to invest your entire lump sum in residential property. That is a very risky investment strategy.
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11-03-2019, 10:36   #21
Squatter
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Quote:
Originally Posted by Franz Von Peppercorn View Post
Buying a personal house exempts you from the means test. The means test is ludicrous anyway for people who have paid in.
Means Test isn't applied for PRSI-related Benefits. They are paid out on the basis of PRSI contributions, irrespective of means.
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11-03-2019, 10:36   #22
kcdiom
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is there a particular reason why you wouldnt just buy a home for yourself in a place where you can afford? You are in quite a privileged position where you could buy a house outright, if its outside a major city. Not working also gives you flexibility a lot of people dont have. I wouldnt be buying a property as an investment, as a landlord you will have to retain a buffer for repairs etc (as you wont have it from income), and you might struggle to get vacant possession if you want to sell or move into the property.

Also, if you are currently in a position where your rent is being paid for you, the money you have should absolutely be treated as means and reduce whatever benefits are available to you
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11-03-2019, 10:43   #23
the_syco
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Originally Posted by MrWyatt View Post
I am a single dad with no family to help and I have health issues
For this reason, why not buy the house and live in it, rather than rent from it, and be possibly left homeless whilst having to maintain the house or get fined by the tenants via the RTB for failure to keep the house?

Also, if buying at an auction, it's because it probably because it couldn't be bought by someone with a mortgage, either because it's in a very bad area, or it may need expensive things fixed.
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11-03-2019, 11:02   #24
Mrs OBumble
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Your kids need to change schools. Find a town you can afford and buy there for about 150k including legal and moving costs The other 20k is your buffer for fixing the boiler etc amd it won't disqualify you from welfare or medical card.

If you use the cash to buy a property you don't live in, the welfare and medical card means testing will assign value to it of a lot more than you get in rent less expenses. So you won't get any state help. Even if the tenant stops paying rent, because the means test is based on market value not actual income.
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11-03-2019, 11:07   #25
Sleepy
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Lots of houses in Louth you could buy outright at that level OP.
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11-03-2019, 11:09   #26
MrWyatt
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Quote:
Originally Posted by AndrewJRenko View Post
You would be crazy to invest your entire lump sum in residential property. That is a very risky investment strategy.
Please tell me more about a good alternative investment strategy. Also why would it be such a risky investment?
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11-03-2019, 11:16   #27
the_syco
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Originally Posted by MrWyatt View Post
Please tell me more about a good alternative investment strategy. Also why would it be such a risky investment?
You'll get taxed on the amount you rent it out for, and be liable to fix anything that goes wrong in the house. Should they stop paying rent, you'll need to go through RTB to evict them, and this can cost thousands. For 170k, I doubt you'll be buying in a nice area.
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11-03-2019, 11:21   #28
gerrybbadd
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Quote:
Originally Posted by afkasurfjunkie View Post
Stop looking in the most expensive part of the entire country for a home. You have no job or family to help so no tie to the area. Get out of Dublin and look for a job elsewhere.
This.

You could buy many lovely houses outright anywhere in the country and have plenty left over. If you aren't tied to South Side Dublin, what's keeping you there?
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11-03-2019, 11:27   #29
Ush1
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Originally Posted by MrWyatt View Post
Please tell me more about a good alternative investment strategy. Also why would it be such a risky investment?
The good alternative would be to invest in a home for yourself and kids, mortgage free.

You could possibly avail of the rent a room scheme if you felt comfortable with that and get an income tax free.

But the obvious answer is you need to look outside of South Dublin (maybe Dublin altogether). You might get a townhouse or apartment somewhere in commuting distance of Dublin but if you aren't going to be working, why bother?

Fella I know sent me a link for a house for 65k in Edgeworthstown. You could buy two!
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11-03-2019, 11:29   #30
tatranska
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Lots of reasonable houses in Tralee for under 170k.
Are you prepared to move?
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