Buying an apartment to live in then rent out???

MarcusT89

Hi, I am considering buying an apartment in the Dublin 12 or 8 area to live in for 5 years or so and then possibly rent it out or sell it. I am 25 my fiancé is 24 and we have a 3yr old son which is why I am reluctant to live in an apartment would like a house.garden etc. we have been approved for €200,000 But, I am going to be studying to be a nurse for the next 4/5 years i will still be getting an income to sustain a mortgage but, a low mortgage, bills and general maintance would be a great so we can live comfortably. Do I just suck it up and buy a house ? or does an apartment sound like a better option ?. Any advice would be great.

mosi

If you can find a house within your budget, you should go for that...even if it needed a little bit of work.
I rented an apartment for a year and was so glad to move out of it. It was a lovely apartment and was very spacious in comparison to many that I viewed. However, the lack of outside space was an issue. We had a communal roof terrace but it still wasn't the same as having our own outside space. I acquired a dog while living there, and while he was happy there, it would have been so much nicer to have a garden to just step out into. I can imagine with a 3 year old child, the need for outside space will be even greater. As you're looking for a place for 5 years, that outside space will become even more appreciated as your little one grows.
There are other issues with apartments, such as management fees and the neighbours. My experience, through renting one and knowing friends in apartments, is that most apartments are rented, with few owner occupiers. In my block, the management fee wasn't paid by a number of owners so all services stopped. The bins were left for ages, the front door broke and wasn't fixed, same for the lift etc. I was so glad to move to a house.
I also think that a house has a better chance of holding it's value than an apartment does. We don't know what way things will go with property over the next few years, but I personally would feel much more secure with a house than an apartment.

Mrs OBumble

Why do you need to buy anything? Surely if you're on only one income, it would be a very risky thing to do???

The_Conductor

Dublin 8 and 12 have seen pretty staggering price rises over the past 18 months. Why do you imagine it makes sense to buy in this area- given the market fundamentals.

Also- you say you're training to be a nurse- where do you see yourself in 4-5 years time? Almost the whole cohort of nurses graduating this year have emigrated. Having a property in Dublin- could well be a millstone around your head.

I really don't think you've fully thought this out.

If everything else was equal- and you asked this question- I'd happily say- buy a house with a garden, and live happily ever after. Everything else is not equal.

If I were in your position- I'd rent in the areas concerned- and get a feel for living there long term- before I made the sort of commitment a mortgage would entail. If you can't see yourself living in a given area long term (aka 10-20 years)- you probably don't have any business buying there.........

groovyg

The_Conductor wrote: »

Also- you say you're training to be a nurse- where do you see yourself in 4-5 years time? Almost the whole cohort of nurses graduating this year have emigrated. Having a property in Dublin- could well be a millstone around your head.I really don't think you've fully thought this out.

+ 1 have you seen what new graduate nurses are currently earning, hence the mass exodus to countries like the UK, Canada, Australia, New Zealand and the US

The nursing programme is a full time four year degree programme so if you are planning on working to supplement your income, you are looking at working in the evenings and weekends with one of the many care agencies that offer part-time work.
Also I'm not sure how easy you will find it to buy an apartment, since the government extended the relief on capital gains tax until the end of this year, apartments are proving quiet popular among investors/civil servants who retired with nice lump sums and don't know what else to do with their money except invest it in property!

MarcusT89

Mrs OBumble wrote: »

Why do you need to buy anything? Surely if you're on only one income, it would be a very risky thing to do???

No my Fiancé also works part-time. sorry never mentioned that.

MarcusT89

The_Conductor wrote: »

Dublin 8 and 12 have seen pretty staggering price rises over the past 18 months. Why do you imagine it makes sense to buy in this area- given the market fundamentals.

Also- you say you're training to be a nurse- where do you see yourself in 4-5 years time? Almost the whole cohort of nurses graduating this year have emigrated. Having a property in Dublin- could well be a millstone around your head.

I really don't think you've fully thought this out.

If everything else was equal- and you asked this question- I'd happily say- buy a house with a garden, and live happily ever after. Everything else is not equal.

If I were in your position- I'd rent in the areas concerned- and get a feel for living there long term- before I made the sort of commitment a mortgage would entail. If you can't see yourself living in a given area long term (aka 10-20 years)- you probably don't have any business buying there.........

I have lived D12 virtually all my life and I currently work in the D12 area. Also I have been renting in D8 over a year and a half now so I know both areas extremely well. Also I would be getting sponsored to study and become a nurse by my employer. The only thing is I will getting about 300-400 p/m less than what I am currently earning. I know exactly where I want to be in 5 years and I will be guaranteed a job as a nurse after my studies as signing a 5 year contract is part of the deal. Also rent around here is about €1200 per month my mortgage would only be €800/€900.

MarcusT89

I am well aware of what the nursing degree entails and as for the job I have worked along side nurses for nearly 6 years so I know the job very well. As for the salary I am in permanent employment by the HSE and will be making the same money I am making now (which is more than a newly qualified nurse). I have no intentions on leaving the country and I wont have to as I will be signing a contract to work for the hse as a nurse after I qualify (as it is part of the sponsorship scheme). So as regard for education,work, salary and job security I have no problems. I was purely seeing if an apartment property would be a good investment and cheaper to run and maintain than a house while I was studying.

groovyg

Well if you are planning on staying in Ireland indefinitely then I think a house would be the better option. The best thing would be to have a look and see whats out there. Prices in Dublin are very much increasing in certain areas with lots of stories of people getting into bidding wars. The government keeps interfering in the property market so who knows what they plan for 2015.

Mrs OBumble

MarcusT89 wrote: »

... and I will be guaranteed a job as a nurse after my studies as signing a 5 year contract is part of the deal. Also rent around here is about €1200 per month my mortgage would only be €800/€900.

Ok, so that information about your employment situation and prospects totally changes the game.

IMHO you would be mad to consider buying to rent out later - because you won't have enough money to buy somewhere else to live yourself by then.

If you're going to be living there for 5+ years, and want to buy, then buy for your own likely living needs over 5-10 years.

But don't just compare rent with mortgage payments: you also need to factor in:

Insurance
Mortgage insurance
Maintenance
Property tax
Management fees (which can be substantial in an apartment)
Furniture and fittings (I'm assuming you're currently renting somewhere furnished - if you've never purchased it, you'd be surprised just how much sh*te it takes to kit out a house for living in)

ABajaninCork

It's a no brainer if you have a child. Buy a house. Why are you thinking about messing around with buying a flat to rent out? Don't forget you'll have to pay tax on the rental income, as well as paying out to furnish the place. That's not including all the fees Mrs O mentioned, and the fact that you'll need a BTL mortgage. It's dead money. And you'll need a nice garden for the ankle biter to run about in.

If you've been mortgage approved for 200k, then look for a house in that price range. Even if you have to move out of the city a little bit, I think that would be a better option for you.

riclad

Theres plenty of houses , in dublin west for 140 -180k ,clonsilla is a nice quiet area.
A bus takes about 20 minutes to get into the city centre from clonsilla .
Look on daft.ie dublin 8 see what prices are for a house ,with a small yard, back garden.

No point in buying an apartment .
House prices are going up , now is the best time to buy a house .
AN old house that needs modernisation, redecoration tends to be cheaper.

theteal

There's loads of houses in Crumlin and Drimnagh for sub 200k, not particularly desirable areas but some of them are not bad at all. If you can really afford it after factoring in interest rate rises, that would be a better option in your situation, OP

Clips13

Hi, I came on here to find info about the hse sponsorship. Just as a matter of interest, how did you do in the written assessment with PAS in April?? I am also applying for the sponsorship in the same area and there is only 2/3 spaces available. 10 in total for the whole of Ireland. And are you nervous about the cao offers coming out?