Very high rent / Time to buy?

tendjose

Hi,

At the moment I'm paying 700euro for a double room (not insuite) in Dublin 4Km from the center.

Trying to solve that was thinking in buying an apartment with 2 rooms and rent the second room.

Currently my apartment has 3 rooms and the owner is living there, so probably me and the other guy are paying his mortgage.

I just keep seing the apartments prices in Dublin rising and I see many competition for buying, so I don't know if it is a good time to buy.

The other strange thing is that even house are being sold, if you rent, rents keep increasing in daft.ie.

So is this a good time to buy an apartment and rent one room, or I'm already late?

gaius c

Why don't you just rent a cheaper room?

Rathgar is approx 4km from city centre and you can get a double room for €450.
http://www.daft.ie/sharing/orwell-gardens-rathgar-dublin/818535/

If you can't afford to rent a room in Dublin, you almost certainly cannot afford to buy an apartment.

MarkAnthony

gaius c wrote: »

If you can't afford to rent a room in Dublin, you almost certainly cannot afford to buy an apartment.

Not so sure tbh, given how the average Dubliner saves you're probably right though!

Quick calculation puts loan of 110K with KBC at €477 per month based on a salary of 25K + 15K overtime/bonus - doable for most. 135K inc a 25K deposit. Not going to get you prime CC but should get you something walking distance to CC, if not a short commute.

I'm frequently shocked at the room rates in Dublin.

tendjose

gaius c wrote: »

Why don't you just rent a cheaper room?

Rathgar is approx 4km from city centre and you can get a double room for €450.
http://www.daft.ie/sharing/orwell-gardens-rathgar-dublin/818535/

If you can't afford to rent a room in Dublin, you almost certainly cannot afford to buy an apartment.

I'm male.

Looking for females only (Couples not accepted)
Available to Move In:

Immediately Available for:

Me and most people want 1 year at least.
6 months

And when you press the "Map" button you see that it is 6.3Km cycling:
https://goo.gl/maps/GZ9aj

These 3 factors make the price being low.
It looks like you don't research too much accomodation in Dublin...

The average rent for Dublin is 650euro, I read it on a study.

Another risk of moving is that I'm happy with my housemates, and I might not like the new ones and be forced to move again.

If I buy the house, I decide how stays and who leaves...

I can afford buying an apartment, the thing is that 700euro is an exageration and I like to save to apply that money on more useful things...

MarkAnthony

tendjose wrote: »

It looks like you don't research too much accomodation in Dublin...

Not read too many of GC's posts it seems :pac:

tendjose

MarkAnthony wrote: »

Not read too many of GC's posts it seems :pac:

What is GC? What do you mean?

gaius c

I picked one of the 1,309 rooms for rent in Dublin to demonstrate that there are plenty of rooms cheaper than what you are renting because that's the issue you highlighted in the title of the thread.

If you are unhappy paying such rent, then move out and investigate the 1,120 rooms to rent that are cheaper than €700 per month.

tendjose

gaius c wrote: »

I picked one of the 1,309 rooms for rent in Dublin to demonstrate that there are plenty of rooms cheaper than what you are renting because that's the issue you highlighted in the title of the thread.

If you are unhappy paying such rent, then move out and investigate the 1,120 rooms to rent that are cheaper than €700 per month.

The investigation is not so simple. Keep investigating and you'll see it's not that easy.

And if you register for alerts you get 15 guys making a queue to see the room on the same day they published the ad.

The rooms left outside the alerts, always have something wrong with it, believe me.

The point here is wether to buy and rent the rooms or not.
Point 2, if houses are selling well now, why the rents keep increasing (going for 800euro now)?

snubbleste

Just buy.

groovyg

tendjose wrote: »

Hi,

At the moment I'm paying 700euro for a double room (not insuite) in Dublin 4Km from the center.

wow thats a crazy amount of money for a double room in shared accommodation especially when you are living with the owner. jeezus even during the so called celtic tiger years when rents were high I never paid that amount for a house share.

Does that include all your bills???

tendjose

groovyg wrote: »

wow thats a crazy amount of money for a double room in shared accommodation especially when you are living with the owner. jeezus even during the so called celtic tiger years when rents were high I never paid that amount for a house share.

Does that include all your bills???

No bills included. And I'm lucky because we have gas for the shower (cheaper).

I have to pay electricity, gas, Internet and TV Licence, around 50€ per month

...well The TV licence we had to pay in advance for the whole year, and we don't have paid TV channels (we only have the antenna old ones)....

Imagine If we would have Skysports HD

dearg lady

Sounds like you're being ripped off. There definitely are cheaper rooms out there. I would first look for one of them before I jump into a house purchase

tendjose

dearg lady wrote: »

Sounds like you're being ripped off. There definitely are cheaper rooms out there. I would first look for one of them before I jump into a house purchase

If you register for daft alerts, they're going already in 800€...

dearg lady

It's like talking to a brick wall... I just searched on daft for D1,2,3,4,6,7,8,9, under €500 double room, and there's 125 available. You need to look harder if you can't find anything under €800

tendjose

dearg lady wrote: »

It's like talking to a brick wall... I just searched on daft for D1,2,3,4,6,7,8,9, under €500 double room, and there's 125 available. You need to look harder if you can't find anything under €800

So the brick wall will say that this room was advertised has 550€, a queue of people bidding, when I visited on the same day as the others the bid was already in 700€ and that was what I had to bid if I wanted a chance to be choosen...

Wanderer78

be very careful with buying. you have to look at the long game. do you plan to live in dublin for a long period? do you have any plans to leave ireland and live somewhere else? will you be happy living with others in your own place for a long period? all complicated questions and hard to answer. being a landlord can be stressful. i know a landlord that was recently beaten due to taking in a bad tenant and unfortunately the gardai could do little or nothing about it. im amazed how people recommend others to just take the leap and get themselves into large amounts of debt. this can cause lots of stress and complications in ones life. its great not to have these debts as you can walk away any time you want. taking on a mortgage is one of the biggest debts you will ever take on. dont make a rash decision. theres more to life. best of luck with your decision.

gaius c

tendjose wrote: »

So the brick wall will say that this room was advertised has 550€, a queue of people bidding, when I visited on the same day as the others the bid was already in 700€ and that was what I had to bid if I wanted a chance to be choosen...

With a defeatist attitude like that, you won't save much on your rent.

ShaShaBear

gaius c wrote: »

With a defeatist attitude like that, you won't save much on your rent.

Its hardly a defeatist attitude if he arrived there and the rent was already up to what he is paying now. Should he have bid €50 p/m more than what he is already paying and then revel in the fact that he now lives in a more expensive room?

grey_area

Although I agree the OP seems a bit defeated, he is right that the rents are shockingly high for any decent place in an area reasonably close to the city centre.

I am trawling through Daft at the moment as well, seeking a house share to start sometime soon. A double bed anywhere along the green Luas line is gonna be 650 anyways. Plus bills then.

I've considered looking for a full 2 bed apartment to rent, and sublet the second room but prices for those are even more expensive per person, perhaps because it is the start of a new lease. Actually, is it possible to negotiate rent with estate agents/landlords when starting a new lease?

tendjose

Considering the market flow at the moment is it a good business to buy an apartment in Dublin city centre and sell it in a few years?

Or maybe the apartment prices won't increase that much in the next years, because last year they already increased a lot...

I would be living there, I plan to stay here for a long time.

mrcheez

Prices probably won't go down, but regardless of what happens price-wise property ownership is a hell of a lot better than renting.

If you can afford a place, go for it.

MarkAnthony

Honestly apartment prices vary wildly over the city.

Are you taking a 1000 Sq ft Clontarf pad at 600K, a D1 top apartment at 400K or a relatively modern but not particularly attractive place in D7 or 8?

There are some gems to be had if you look carefully but really who knows what will happen with upper end apartments. If you're looking at the sub 200K area I don't think you'll do much wrong buying now, you can always rent it out.

Atlantic Dawn

Time to sell, time to buy is 5 years time.

MarkAnthony

Atlantic Dawn wrote: »

Time to sell, time to buy is 5 years time.

Take an apartment at 200K, 15% deposit - 170K mortgage.

Looking at roughly €800 per month and fairly predictable interest rates.

The same place is going to cost around €1200 - we can knock €100 a month off that for management fees you'll not need to pay. Thats €300 per month over 60 months - 18K. Inflation and a small payment off the equity of the mortgage means you'll need a 9% drop to break even.

Even stevens in my book but of course who really knows.

chris85

MarkAnthony wrote: »

Take an apartment at 200K, 15% deposit - 170K mortgage.

Looking at roughly €800 per month and fairly predictable interest rates.

The same place is going to cost around €1200 - we can knock €100 a month off that for management fees you'll not need to pay. Thats €300 per month over 60 months - 18K. Inflation and a small payment off the equity of the mortgage means you'll need a 9% drop to break even.

Even stevens in my book but of course who really knows.

I am buying at moment and even them calaculation are ultra simplistic. Buying incurs stamp duty, solicitors, life insurance, mortgage protection insurance, house insurance, property tax. As well as you have to cover stuff that breaks (such as showers, washing machines, etc) which not all is your responsibility when renting.

However I want to buy as I want some security for myself for my future and not put up with the rental market which I have been in and full of properties in poor condition and cowboy landlords at every corner. Also rental costs at moment are ridiculous for poor properties.

MarkAnthony

chris85 wrote: »

I am buying at moment and even them calaculation are ultra simplistic. Buying incurs stamp duty, solicitors, life insurance, mortgage protection insurance, house insurance, property tax. As well as you have to cover stuff that breaks (such as showers, washing machines, etc) which not all is your responsibility when renting.

Mortgage protection = life insurance (or there abouts MP decreases over the loan) it shouldn't be more than a couple of hundred a year if that but worth factoring in I grant you.

Block insurance is included in your management fee, contents insurance should be taken out even when renting.

Legal fees and stamp duty - shop around you should get some relief off of these with the right mortgage deal, let's factor 2K for these though to be fair.

Stuff breaking - meh, not as expensive as people think. At least you have decent stuff rather than the ****e thats in most rental places.

chris85 wrote: »

However I want to buy as I want some security for myself for my future and not put up with the rental market which I have been in and full of properties in poor condition and cowboy landlords at every corner. Also rental costs at moment are ridiculous for poor properties.

This is difficult to overstate tbh.

riclad

You can buy a small house for 100-130k,
house has no service charges ,no one lives on top, or beneath you.
Look at mortage cost vs 500 plus in rent ,
rents in dublin seem to always go up.
IN 10 Years time you,ll get your money back,if you wanna live somewhere else.
I think stamp duty is very small if house is under 500k.
house insurance is around 350 euro per month.
Not A bad time to buy if you can get a loan.

mrcheez

My rent was more than my mortgage is now. Not to mention I get all that money back when I sell it (plus extra if value goes up).

Additionally I can upgrade infrastructure in the house and "pimp" it up to create the ideal home without worrying about a landlord throwing me out at a moment's notice so they can sell the place with all my upgrades included.

As I said before, buying is best if you can afford it. Rent is just wasted money as you're just paying someone else's mortgage when you could use the same (or less money in my case) to pay for your own.

When I bought this place it had a D3 BER. It now has a B3 BER and is a hell of a lot toastier. Had I been renting I'd still be in a damp D3 abode with cheap appliances.

chris85

MarkAnthony wrote: »

Mortgage protection = life insurance (or there abouts MP decreases over the loan) it shouldn't be more than a couple of hundred a year if that but worth factoring in I grant you.

Block insurance is included in your management fee, contents insurance should be taken out even when renting.

Legal fees and stamp duty - shop around you should get some relief off of these with the right mortgage deal, let's factor 2K for these though to be fair.

Stuff breaking - meh, not as expensive as people think. At least you have decent stuff rather than the ****e thats in most rental places.

well the block insurance being included in management fees is fair enough if in managed estate, which I am not looking at really. Need building + contents.

Also 2k for legal fees is about right, another 1% of house price for stamp duty. They are once off fees but expensive enough.

Agree happy enough if my stuff which is decent breaks rather than crappy stuff there already and hassle to get it replaced.

cardinal tetra

Last good time to buy was October 2013.

Wait until the 20 rate comes in and demand falls to meet supply. Prices have stagnated over the last 6 months. A 15 to 20k drop will happen by December. Pent up demand is waining.



Also. Buy a house.wtf do u want to be paying 1500 quid a year on a management fee that doses nothing for you.

CollyFlower

Riclad, "You can buy a small house for 100-130k,"

Don't think you'd find a house in Dublin city centre for that price!