Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Buying a apartment vs house for short-term accomodation

Options
  • 17-04-2019 8:09pm
    #1
    mohm.kamal
    Registered Users Posts: 66 ✭✭


    Hello


    This is not a question per se, I just think loudly and need some advises from people who already went through this before, or might give me some hints.


    I'm living in a rented apartment and paying 2k monthly which is absolutely crazy, so I talked to couple of banks and got a principal approval for a joint mortgage upto 400k. The problem now is confusion.


    I'm not Irish, and I've not decided yet whether I will stay here in Ireland for a long-term or not, but what I'm sure about, is that I will stay for the next 3~5 years due to some commitments.


    I figured out that if I bought a home/apartment, this will give me opportunity to save a good deal of money monthly and enjoy it, however, I also want to plan that I can sell it (apartment or house) when I want to.


    So what do you think? a 2-bed apartment with a short commute to the LUAS in the Dublin south or a 3-bed house?


    I've had a viewing here http://www.glenside.ie/hawthorn/ and it was good so far. I guess it's a good value for money but I'm not sure if it would be easy to sell or rent in the near future or not.


    So what do you think?


Comments

  • Options
    #2
    Brego888
    Registered Users Posts: 1,314 ✭✭✭Brego888


    Buy the place you would be most comfortable staying in for 20 years if the **** hit the fan. Buying property in the short term is a risky game you don't know what might happen to the market.


  • Options
    #3
    JJJackal
    Registered Users Posts: 1,016 ✭✭✭JJJackal


    Your situation is different to most posters in that you want somewhere for 5 years - but then want to return home.

    If you ended up selling your house or apartment in 5 years (when you move home) with 0 profit or a small loss how would you feel? Ideally you would sell at 20,000 more than you paid to cover the stamp duty, EA, and solicitor fees then any capital you paid down would be savings for your next home rather than given to a LL


  • Options
    #4
    fash
    Registered Users Posts: 2,271 ✭✭✭fash


    I disagree with JJJackal: you have effectively Eur 2k (plus 4% per annum but let’s forget that) * 12 * 5 = Eur 120k to lose on mortgage interest, legal fees, insurance, property tax etc. before you are losing money on purchasing the property.

    Do you know what the rental market in the area you intend to buy is? Worst case scenario, would that rent cover your mortgage / your mortgage interest (and of note long term interest rates remain very low - i.e. the markets do not expect these to rise much) ? If so, you have even more room to purchase.


Advertisement