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11-03-2019, 12:50   #46
amcalester
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Erm..no. He can do whatever he sees fit with his 170k
Of course he can. He can invest in chocolate teapots for all anyone cares, but if he wants to buy a home for this kids in South Dublin then that's what he needs to do.

If the OP can't work then he needs to re-evaluate and distinguish his wants from his needs and prioritize the later over the former.
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11-03-2019, 13:17   #47
 
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Means Test isn't applied for PRSI-related Benefits. They are paid out on the basis of PRSI contributions, irrespective of means.
For 6 months. Used to be 9.
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11-03-2019, 13:52   #48
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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.
Thank you for your understanding and informative post! I need to talk to an accountant to see how I could make it profitable. To leverage my money I would also consider a property that needs work and doing most of the work myself. I have done up a house before on a very small budget with great success. I am worried about a costly court case to evict non paying tenants though.
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11-03-2019, 14:14   #49
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Thank you for your understanding and informative post! I need to talk to an accountant to see how I could make it profitable. To leverage my money I would also consider a property that needs work and doing most of the work myself. I have done up a house before on a very small budget with great success. I am worried about a costly court case to evict non paying tenants though.
The only thing I'd say about that is be careful. If 170,000 is the entirety of your savings I presume you want some sort of liquidity - i.e. if you hit harder times you'll be able to sell the property at relatively short notice. If the economy downturns, and you are left with the property that is not livable in when you need to sell it, a large chunk of your potential buyers will be prevented from buying it as banks are notoriously loathe to lend for do-er uppers in a downturn. You might be lucky and find a willing cash buyer, but they'll have you over a barrel and they'll know it. You'll lose a good chunk of your savings.

Of course if you have some kind of safety net - maybe you're living with your parents, they'd be able to help you out in an emergency or something - and you're happy to have the property for the long term. If that's the case then yeah, go for the do-er upper. Remember the property will be earning you nothing while you are doing it up, so factor that into your costs.
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11-03-2019, 14:26   #50
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Thank you for your understanding and informative post! I need to talk to an accountant to see how I could make it profitable. To leverage my money I would also consider a property that needs work and doing most of the work myself. I have done up a house before on a very small budget with great success. I am worried about a costly court case to evict non paying tenants though.
What health issues could you have that prevents you getting a job but not doing most of the work yourself on a renovation project?
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11-03-2019, 14:27   #51
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The only thing I'd say about that is be careful. If 170,000 is the entirety of your savings I presume you want some sort of liquidity - i.e. if you hit harder times you'll be able to sell the property at relatively short notice. If the economy downturns, and you are left with the property that is not livable in when you need to sell it, a large chunk of your potential buyers will be prevented from buying it as banks are notoriously loathe to lend for do-er uppers in a downturn. You might be lucky and find a willing cash buyer, but they'll have you over a barrel and they'll know it. You'll lose a good chunk of your savings.

Of course if you have some kind of safety net - maybe you're living with your parents, they'd be able to help you out in an emergency or something - and you're happy to have the property for the long term. If that's the case then yeah, go for the do-er upper. Remember the property will be earning you nothing while you are doing it up, so factor that into your costs.
Great advice, I'll make sure to be ready to sell quickly at the slightest whiff of downturn. I guess that also means getting tenants out so I can sell. I'm not so worried about it not earning me anything while it's empty as I don't have a mortgage to pay back. Also money sitting in the bank doesn't earn me anything either as interest rates are so low.

Last edited by MrWyatt; 11-03-2019 at 14:31.
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11-03-2019, 14:44   #52
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What health issues could you have that prevents you getting a job but not doing most of the work yourself on a renovation project?
You know, at no point has the guy said that he draws any kind of social welfare payment.

Also, there are a lot more health issues than just physical ones. It could be a mental health issue.
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11-03-2019, 14:45   #53
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For 6 months. Used to be 9.
Really? So my parents' State contributory old age pensions will stop after 6 months? Will you tell them or will I?
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11-03-2019, 14:50   #54
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You know, at no point has the guy said that he draws any kind of social welfare payment.

Also, there are a lot more health issues than just physical ones. It could be a mental health issue.
Nor did the poster say that he had said that.

I am interested too - what health issues prevent you from working but not from working on a renovation project?

I noticed somewhere that you said you couldnt work as you had 2 kids and no help, but this is the case for thousands of working parents in the country. Its not a reason not to work.

If you are unemployed, how are you currently putting a roof over yourself and your kids heads and feeding them?
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11-03-2019, 15:09   #55
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Nor did the poster say that he had said that.

I am interested too - what health issues prevent you from working but not from working on a renovation project?

I noticed somewhere that you said you couldnt work as you had 2 kids and no help, but this is the case for thousands of working parents in the country. Its not a reason not to work.

If you are unemployed, how are you currently putting a roof over yourself and your kids heads and feeding them?
I know they didn't, but there is a tinge of "are taxpayers subsidizing you while you're choosing not to work" to the replies to the initial post.

There isn't that many single parents working with two young kids and no grandparents or family members to do the childminding. Full time after school care for two kids would mean that you would need to earn around €30k before tax just to cover the childminding costs, never mind what you would need to earn on top of that to live. You can see why it might not be a viable option.

There's a big difference between working 9-5 in an office or a shop, and setting your own hours working on your own project. For someone with say, acute social anxiety, the former may be impossible but the latter possible. I'm not saying that's what the OP has (and I don't think he should be under any obligation to tell us), but you have to open your mind as to what health issues might mean.

But here, I'm just surmising. I've no idea what the OPs deal is.
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11-03-2019, 15:10   #56
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You know, at no point has the guy said that he draws any kind of social welfare payment.

Also, there are a lot more health issues than just physical ones. It could be a mental health issue.
I am aware of what has been posted, I never mentioned anything about social welfare payments, you raised that. As you have raised it, it would be good for the OP to clarify their situation in this regard as it has been already asked on several occasions by other posters in many different ways, however the OP has yet to respond.

Whilst both physical and mental health issues may prevent someone from working, I am curious what health issue (physical or mental) prevents someone from working but does not prevent them from doing most of the work on a renovation project. The OP stated that getting a job was not an option for health reasons.
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11-03-2019, 15:17   #57
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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.
Unless you have a crystal ball that can see into the future, you really don't know what you're doing. Suggesting gold as an appropriate investment for this scenario would suggest that you don't know what you're doing.
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11-03-2019, 15:17   #58
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I am not on social welfare. I also don't feel the need to justify why I am making the choices that I am making. I am merely asking for practical advice on how to best invest my money to afford a home in the right location for my family. It took a lot of sacrifice to save this money and I'm willing to work hard within my current situation to get us a home, there is really no need to take this personally. And as far as there being lots of parents in Dublin who make things work, well, that's not really true is it. Single parents in Ireland hardly have it easy. There wouldn't be thousands of homeless families if that wasn't the case. Not that I am comparing myself to homeless families - I am well aware that I am lucky to have this money- and that is exactly why I want to make the best decision and why I am looking for opinions on how to best leverage this money. Still in not enough to buy a house outright in any location that we could live in and I have been refused a mortgage.
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11-03-2019, 15:18   #59
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There isn't that many single parents working with two young kids and no grandparents or family members to do the childminding. Full time after school care for two kids would mean that you would need to earn around €30k before tax just to cover the childminding costs, never mind what you would need to earn on top of that to live. You can see why it might not be a viable option.
I cant agree with this - plenty of single parents work.

Based on what has been posted its impossible to tell what is a viable option and what isnt but the OP seems to just want responses telling him he should spend all his savings on a house so more info might not be forthcoming.

I am curious how someone could have saved 170k and have 2 young kids etc... I (perhaps mistakenly) assumed that he must have been a decent earner to have that level of savings at a young age.
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11-03-2019, 15:19   #60
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...in any location that we could live in.
Why cant you live in other locations?
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