What to do with €40k?

charliesheens

title says it all really Im 22 in full time study at the moment have 40k in a 40 day notice savings account in tsb rates arent the best but same with most places...

question is should i keep it there or try invest

I was thinking if i get a job in the next year ill try get a house while there cheap you think they will drop much more?? it would 100% be in Dublin

Your thoughts on what i should do would be much appreciated

djimi

Leave it where it is and keep saving. You wont be getting a mortgage while youre in full time education and most likely until you are in a steady job for a period of time, so keep doing as you are doing and you will have a decent deposit when the time comes to buy.

Also why anyone in their early 20s would want to be tied to a mortgage is beyond me. Go travel, leave your options open; dont be tied to a property in Ireland when you have no idea what you might want to do in the next few years!

charliesheens

djimi wrote: »

Leave it where it is and keep saving. You wont be getting a mortgage while youre in full time education and most likely until you are in a steady job for a period of time, so keep doing as you are doing and you will have a decent deposit when the time comes to buy.

Also why anyone in their early 20s would want to be tied to a mortgage is beyond me. Go travel, leave your options open; dont be tied to a property in Ireland when you have no idea what you might want to do in the next few years!

cheers good advice only problem is i cant save at the moment im on 200 a week ill start the saving again once(hopefully)i get a job..

I was already in oz for a year not to mad on the whole traveling scene i prefer a good aul holiday tbh..

not looking for a house right now say in the next 4 years when im 25,26 just worried that they might go up by then although highly unlikely...

cant really see the prices dropping that much more in the decent areas of Dublin to be honest

not planning to much who knows what could happen but rather get one when there cheaper you know yourself

djimi

House prices are not going to suddenly rocket back up to mid 2000s prices; I wouldnt be in any hurry if I were you. I would strongly advise against thinking about buying as some kind of investment or whatever; its just not worth it. Save what you can and buy when you are ready. Until then dont put too much thought into it!

ABajaninCork

I bought my first property when I was 22. Big mistake! Financially, I've never really recovered from it...

You're very young. Plenty of time to study, get your degree and enjoy yourself before you have to think about getting into property. I'd keep saving.

charliesheens

sound lads great advice i dont want one at the moment was thinking at least 4 years down the line but prob even more see what happens your right get more qualified move savings and keep the party going ha

GreeBo

ABajaninCork wrote: »

I bought my first property when I was 22. Big mistake! Financially, I've never really recovered from it...

You're very young. Plenty of time to study, get your degree and enjoy yourself before you have to think about getting into property. I'd keep saving.

Is that just because you bought at the wrong time though?
I know people who bought at that age and made huge money from it, its all down to the timing of when you sell.

riclad

keep saving ,even in dublin prices are still going down,every year.

ABajaninCork

GreeBo wrote: »

Is that just because you bought at the wrong time though?
I know people who bought at that age and made huge money from it, its all down to the timing of when you sell.

No. I bought in London before the prices got really silly. The principle still holds. 22 is WAY too young to be thinking about property. Enjoy life first.

xper

OP,
If you are unlikely to need the 40k for a house purchase or other significant purpose for a few years, and at 22 you probably shouldn't be in a hurry to be, then consider sticking the money somewhere where it will earn a bit more interest than a bank deposit account. I believe (though check yourself) that the State Savings products run by An Post are some of the best earners available at the moment. Maybe the 4 year National Solidarity Bond or the 3 year Savings Bond would suit you?
You don't have to invest the whole sum but, even if you do, you can still get at it if you need to withdraw early and even have earned a little bit of interest (check the terms of each product).

Dan133269

ABajaninCork wrote: »

No. I bought in London before the prices got really silly. The principle still holds. 22 is WAY too young to be thinking about property. Enjoy life first.

You bought property in London before prices took off, presumably making a nice amount of money for yourself, and you haven't recovered from that yet?

ABajaninCork

Dan133269 wrote: »

You bought property in London before prices took off, presumably making a nice amount of money for yourself, and you haven't recovered from that yet?

I have made money. (Not that it's anyone's business). But having a mortgage at that age held me back in a lot of ways. That was the point I was trying to make.

TheDriver

ABajaninCork wrote: »

(Not that it's anyone's business). .

I would have to say IMLTHO that it is our business based on the statement you gave which one would initially assume you are saddled with debt from it. However I do agree with your point that the responsibility of a mortgage is a headache and not something a 22 year old should be dealing with

ABajaninCork

TheDriver wrote: »

I would have to say IMLTHO that it is our business based on the statement you gave which one would initially assume you are saddled with debt from it.

Um NO!! The ins and outs of it aren't. I gave my opinion based on my life experience. That's it.

quietsailor

Just to give you an opposite view to the lads above OP I bought a house in Cork city near the university when I was 24, back around the 2000's just before prices really rocketed upwards.

I was working at sea at the time in the Merchant Navy so I would have had 3.5 - 4 months full wages sitting in my bank a/c each time I came home and I should have bought more houses back then. (I realise not eveyone works in a job like that)

The reason I say I should have bought more houses are;
1. I handle most of the maintenance for my brothers rental house as well as my own and the more houses your maintaining the less the effort is. ie maintaining 2 houses is about 1.5 times the effort of maintaining one house.
2. If I had started buying earlier I would have had a lot more assets when I went back to college so I could have sold a few, paid of the others and had a regular income for the time I was in college.

it is a HUGE step to take, a step that requires a lot of your time more so than your money. You will need to view it as a second job because there will always be problems with a rental property. Re-painting, broken fridges/washing machines, exterior of the house to be kept neat and tidy. You need to budget 2-3 days a month for this work and expect calls at any time of the day or night with the tenants expecting you to drop everything and come and help them.

If your in your early twenties and want to have a life where you can just drop everything and go somewhere on a whim buying a house will not be a good fit with that lifestyle, not unless you have very understanding family&friends who are willing to fix the rental property problems while you are away.

On the other hand if you accept the workload, buy carefully in good locations, ie near a LUAS, hospital, university, places where there will always be a demand for accomodation it'ss be a damn good pension plan

Dan133269

ABajaninCork wrote: »

I have made money. (Not that it's anyone's business). But having a mortgage at that age held me back in a lot of ways. That was the point I was trying to make.

Not that it's anybody's business? So why did you bring it up then?
And how did it hold you back in ways that you didn't expect?