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11-03-2019, 11:30   #31
MAJJ
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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.
I completely agree with the post above. I know it's not likely what you want to hear, but if you want security for your family then moving to a more affordable location seems to me your best option.
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11-03-2019, 11:31   #32
cgcsb
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You can buy a spacious 2 bed in Ballymun for €150,000. They rent for about €1,800 per month
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11-03-2019, 11:33   #33
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It would be madness to use your entire 170k savings to buy a property to rent out - the main one being that the return on investment would be terrible when you look at how highly rental income is taxed (with no mortgage to write mortgage interest off against tax) plus the costs of maintenance.

Why would you not take that money and buy a property for yourself and your kids to live in outright somewhere in the country that is affordable and then live rent and mortgage free.

I mean, South Dublin - thats a ridiculous place for someone to insist on staying in when they have no income?

How are you currently paying rent?
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11-03-2019, 11:35   #34
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look at laois, train straight to dublin if needed, houses in some towns going for buttons and you'd still have a good chunk left over
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11-03-2019, 11:39   #35
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As other people have suggested, you'd be better off using your money to buy a house in another part of the country. You're in a very lucky position to be able to afford to do this and not be limited by location (as so many people are for work).

The only issue will be moving your kids to a new school and a new area. Obviously this will be a bit of an upheaval for them, but it's only temporary and they'll adjust to the change.
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11-03-2019, 11:46   #36
realitykeeper
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My advise would be to buy gold, rent and wait.
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11-03-2019, 11:48   #37
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I agree with the others, why are you staying in south Dublin if you have no ties to the area. You could get a lovely house else where in the country:

https://www.daft.ie/sligo/houses-for...sligo-2052199/
https://www.daft.ie/cavan/houses-for...cavan-2030537/

Rural doesn't necessarily mean under a rock somewhere in the countryside! There's Waterford/ Limerick, not a whole lot in Cork/ Galway for your budget. Also there are loads of big towns across the country.

If you are getting rental income, it will affect your social welfare and it seems like a very hard route to go down. It's hard to get good tenants.
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11-03-2019, 12:00   #38
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I am assuming the OP has good reasons for not wanting to move from where he currently lives (maybe where he is living is reasonable, rent-wise. Maybe he has good reasons for not wanting to move the kids to another location). Bearing that in mind...

Yes, as a cash buyer it is much easier to set yourself up as a company and have the company buy the apartment/house. You can't do it if you need a mortgage, as a bank won't lend to a company with no trading history. I'm not sure on the legals, but the company will still have to pay tax on any profits (rent) earned. You will have to pay tax on any remaining profits drawn down as dividend. That makes it sound like you're paying tax twice, and indeed you are, but any maintenance to the property (and probably a portion of other costs) should be deductible before profit, so you might be better off doing it through the company. You'll need an accountant to advise you on this though. Setting up as a company is easy enough and not expensive. It'd cost a couple of hundred quid.

The other advance would be that you would keep your eligibility for the help-to-buy scheme (I think! Again, get an accountant to confirm!) as a first time buyer. That's the only advantage to being a first time buyer nowadays, there's no exemptions to stamp duty.

If you're relying on any sort of means tested social welfare payment, the profits drawn down may have an effect on how much you can get. Whether it's a viable option will all depend on how much of your day-to-day costs you can write off against the rental profits.

Good luck and I hope things work out for you.
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11-03-2019, 12:01   #39
shenanagans
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If you buy at auction then you get a closing date which is binding usually about 6 weeks post auction but if you've sitting tenants to very risky....could take very long time to get them out.

Agree with other posters....look at moving out of Dublin and buy a family home for yourself. You'll pay tax on a rental income and end up with no home for yourself...
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11-03-2019, 12:07   #40
bilbot79
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You need to get a job and then apply for a mortgage.
Erm..no. He can do whatever he sees fit with his 170k
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11-03-2019, 12:07   #41
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My advise would be to buy gold, rent and wait.
Again, putting all your investment in any one category of asset, whether gold or residential property or whatever is very risky.

OP needs to diversify his investments to reduce risk.
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11-03-2019, 12:16   #42
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Again, putting all your investment in any one category of asset, whether gold or residential property or whatever is very risky.

OP needs to diversify his investments to reduce risk.
No suggestions here... just fancy bidness talk, the chap isn't looking for investment hes looking for a place to live.

The guy clearly doesn't need to live in the capital, theres plenty of property for 150k mark around the country near other urban centres.
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11-03-2019, 12:36   #43
realitykeeper
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Again, putting all your investment in any one category of asset, whether gold or residential property or whatever is very risky.

OP needs to diversify his investments to reduce risk.
You can reduce the risk by knowing what you are doing.
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11-03-2019, 12:41   #44
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You can reduce the risk by knowing what you are doing.
How do you know that you know what you are doing as opposed to just thinking you know what you are doing?

MrWyatt - For the love of God do not invest in an investment property or Gold or anything else like that. You are trying to put a roof over your head. Doing either of those things won't help with that, are unnecessarily risky and probably will affect your welfare payments. Your best bet is to use the money you have to buy a place for cash. It will require moving though which might be tough but might be the best thing long term for you and your family.
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11-03-2019, 12:45   #45
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You can reduce the risk by knowing what you are doing.
Which clearly the OP doesnt.
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