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Should I get a mortgage or just wait?

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  • 05-07-2015 7:31pm
    #1
    E_BRAH
    Registered Users Posts: 3 ✭


    I'm 23 and work full time in a Government Agency in Dublin and on a good salary. I'm currently living at home but have recently been looking into buying a one bed apartment, I'd be looking at getting about a 110k loan.

    I'd be looking to upgrade to a house in about 5 years time and moving the outstanding loan to the house and was wondering what people's experience was of selling to upgrade was?

    Or should I just suck it up and continue to save until a time comes that I'd want a house?


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    #2
    SSLguru
    Registered Users Posts: 106 ✭✭SSLguru


    The last thing I would do is buy now as a quick search in myhome to check for price changes indicates that alot of property is going down at the moment.

    I was in a similar boat myself a few years ago ( 27 now ) I just kept at the saving, I've stuck at it and now have over 80k put away , just waiting on the prices to drop. . ( have mortgage approval for 85k )

    I only realistically want to borrow 40k but we'll just have to wait and see..


    I'd say wait as if you buy a 1 bed now chances are it will go down in price and never go above a certain threshold

    I only want to realistically borrow


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    #3
    Wanderer78
    Registered Users Posts: 29,514 ✭✭✭✭Wanderer78


    sit back relax and enjoy your life. do some traveling if you get the chance and enjoy life. worry about mortgages and kids etc later in life.


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    #4
    pablo128
    Closed Accounts Posts: 6,219 ✭✭✭pablo128


    Wanderer78 wrote: »
    sit back relax and enjoy your life. do some traveling if you get the chance and enjoy life. worry about mortgages and kids etc later in life.
    Yeah I was told that at a young age and stuck with it. Unfortunately when the time came to buy a house, they were roughly x12 times my wages then.:mad:


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    #5
    delahuntv
    Closed Accounts Posts: 1,532 ✭✭✭delahuntv


    "The day you buy is also the day you sell" - stick to that line and you won't go wrong.

    Basically if you are buying then think how easy it would be to sell if you had to do so quickly.

    A two bed apartment will sell a lot easier and quicker than a one bed.

    As to whether to buy or not - interest rates are low, prices have stabilised, and you are in a secure job.

    If you find a place you really like, and can see yourself living there for a few years, then it may make sense especially if your rent cost is 20% or more over the cost of a mortgage.

    Plusses - own property, security of address, possible capital value increase.

    Negative - not easy to move, not easy to reduce costs, values may drop.


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    #6
    Wanderer78
    Registered Users Posts: 29,514 ✭✭✭✭Wanderer78


    pablo128 wrote: »
    Yeah I was told that at a young age and stuck with it. Unfortunately when the time came to buy a house, they were roughly x12 times my wages then.:mad:

    thats very unfortunate. did you do much traveling? almost 40 here and not a bean of debt. irish people are mad when it comes to buying things particularly property. i do realise my situation is highly unusual but we really gotta stop convincing people particularly young people, that debt is the solution to our problems. feck sake the op is 23! i was traveling the planet at that stage and loving it


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    #7
    pablo128
    Closed Accounts Posts: 6,219 ✭✭✭pablo128


    Wanderer78 wrote: »
    thats very unfortunate. did you do much traveling? almost 40 here and not a bean of debt. irish people are mad when it comes to buying things particularly property. i do realise my situation is highly unusual but we really gotta stop convincing people particularly young people, that debt is the solution to our problems. feck sake the op is 23! i was traveling the planet at that stage and loving it

    I was working abroad at 19. Trust me I lived my life and have no regrets, apart from not buying a 30k house when I was younger! I'm nearly 40 too by the way.


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    #8
    Wanderer78
    Registered Users Posts: 29,514 ✭✭✭✭Wanderer78


    pablo128 wrote: »
    I was working abroad at 19. Trust me I lived my life and have no regrets, apart from not buying a 30k house when I was younger! I'm nearly 40 too by the way.

    nice. didnt bother working abroad but should have but then again i financially didnt have to. would have been good experience. ah sure we re all still alive. all relative. at least you have enjoyed your life thus far


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    #9
    pablo128
    Closed Accounts Posts: 6,219 ✭✭✭pablo128


    To the OP, I think the only place to buy a 1 bed apartment would be in the City Centre. I can't see there being any demand outside of at least a big town centre when selling on.


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    #10
    E_BRAH
    Registered Users Posts: 3 ✭E_BRAH


    Thanks for the comments. To give some extra info, the apartments in the areas I'm looking to rent would be roughly €4-500 per month more than the mortgage repayments. I think the 2 bedroom vs 1 bedroom point is a good one, I hadn't considered that so I'll have to have a look at the prices in my area for 2 bedrooms.
    Can anyone tell me if it's difficult to "upgrade" to a house and what that process is like? Would I need to have 10/20% saved of the new property value?
    Thanks


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    #11
    Eric Cartman
    Registered Users Posts: 26,280 ✭✭✭✭Eric Cartman


    E_BRAH wrote: »
    I'm 23 and work full time in a Government Agency in Dublin and on a good salary. I'm currently living at home but have recently been looking into buying a one bed apartment, I'd be looking at getting about a 110k loan.

    I'd be looking to upgrade to a house in about 5 years time and moving the outstanding loan to the house and was wondering what people's experience was of selling to upgrade was?

    Or should I just suck it up and continue to save until a time comes that I'd want a house?

    if your a secure civil servant I would say banks would lend you the extra 40-50k it would require to jump up to a 2 bed apartment, id wait till prices fall a bit before jumping on it but a 2 bed is easier to sell or to rent, and there will always be rental demand in dublin city centre even if you wanted to pack up and go travelling.


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    #12
    dori_dormer
    Registered Users Posts: 1,919 ✭✭✭dori_dormer


    There's isn't any 'upgrading' or moving mortgages. When people trade up, you sell your one bed apt, and pay any outstanding debt there and then. That mortgage closes and you then apply for a new mortgage based on the new accomodation you want to buy.

    There is a little bit of wiggle room for people currently in negative equity but they are very special circumstances and not the norm for banks to let you add extra debt to a new mortgage


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    #13
    alias no.9
    Registered Users Posts: 6,311 ✭✭✭alias no.9


    Buying something you expect to have outgrown in 5 years is a bit of a gamble, particularly if you're borrowing over 30 years (assume it'll be that kind of term)


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    #14
    delahuntv
    Closed Accounts Posts: 1,532 ✭✭✭delahuntv


    No "upgrading" hence the day you buy is the day you sell.

    Have a look at all costs -

    Insurance
    Service charges
    Property tax
    Legal fees
    Decoration

    Most of these are included in rent.

    But then, if you can comfortably afford a 2 bed and intend staying in the job you are in, it's something to consider.

    A 2 bed may also allow a longer plan before moving.


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