120 thousand euros in savings and not sure what to do

Damiencm

I'm afraid you have zero chance of receiving a mortgage without a permanent full time job.

On the plus side you do have €120k in the bank

You havent stated whereabouts in the country your based..obviously this will have a big influence on what property you could buy (once you have a job)

bobdillon

I would almost get a financial advisor for a sum like that - for the simple reason that it involves a few different factors, your own plans over the next few years, how much of a rainy day fund you need to keep just in a deposit, pensions plans etc etc. There are a lot of things to consider.

Be careful about living in a house and renting rooms, it's very different to being a landlord that rents out a separate house. It can be difficult to vet people based on one meeting and you are then living with them. Also bear in mind the amount of work and/or money involved just in maintaining a house regardless of whether you're living there or not...

If you were able to get a job that would allow you to rent and move out from home (which never works anyway for most people ) - that would give you a bit of time to think it over

maggiepip

Elliottsmum79 wrote: »

Becoming a landlord to a property at a distance is a v tricky game. Replace a gas boiler at a weekend/bad tenants/ registration fees/tax on income. caveat emptor...

I know all about that trust me. For me it would be all about having a mortgage free house in my pocket and the security that brings, the rental income even when taxed would just be a bonus. With no mortgage you shouldn't be relying on the rent.

blindside88

If I were in your position op I would buy a house outside of dublin. I'm living in carlow town at the minute and if I had the money I'd buy another house here to rent out. There are a couple of 2/3 bed houses for sale around the town for between 60-100k that can easily be let out for 550-750 per month. That's not a bad ROI and there are relatively few houses for rent in the town. I would stay away from buying an apartment as there are management fees that you cannot control and you are more limited with who you can let it to.

Damiencm

Damiencm wrote: »

I'm afraid you have zero chance of receiving a mortgage without a permanent full time job.

As an aside this is not fully true. In many careers the nature of the work means you are often on contracts rather than permanent and you can get a mortgage particularly if you have a hefty deposit.

The bank told me they have no issue granting mortgages to people in my area of work and very few people have anything more than 2 year contracts at most with most on year to year contracts.

blindside88

Something like these:

www.daft.ie/11097737
Most likely go for over 100 but you never know

www.daft.ie/11092008

www.daft.ie/11086263

draiochtanois

This post has been deleted.

annoyedgal

Had a lump sum not far off yours in 2011 to put towards house in dublin. Despite lump sum and a permanent job banks went through savings and rents I had paid with fine tooth comb. They world not take into account that I would be renting out a room.
Got mortgage approval from two banks but without the job and proof of regular savings /rent wouldn't have got either regardless of lump sum. May be different now though.

newacc2015

blindside88 wrote: »

If I were in your position op I would buy a house outside of dublin. I'm living in carlow town at the minute and if I had the money I'd buy another house here to rent out. There are a couple of 2/3 bed houses for sale around the town for between 60-100k that can easily be let out for 550-750 per month. That's not a bad ROI and there are relatively few houses for rent in the town. I would stay away from buying an apartment as there are management fees that you cannot control and you are more limited with who you can let it to.

Buying in the country is too risky. Small towns are too reliant on a single industry or large employer. Plus there is no real chance of strong appreciation in asset value versus Dublin

Where as you can buy a 2 bed duplex in Dublin for €95,000. Literally beside DCU and only about 20-30 mins max to the city centre on one of the several bus routes to town. You could easily let this is to students for around €1600 during the academic year and slightly less during the summer. Its still double what you would get from a property in Carlow. Plus there is no risk of not being able to let it, as there is a college beside it. Plus Dublin weathered the recession pretty well

http://www.daft.ie/sales/34-gateway-view-ballymun-dublin/1088397/#img=11

blindside88

newacc2015 wrote: »

Buying in the country is too risky. Small towns are too reliant on a single industry or large employer. Plus there is no real chance of strong appreciation in asset value versus Dublin

Where as you can buy a 2 bed duplex in Dublin for €95,000. Literally beside DCU and only about 20-30 mins max to the city centre on one of the several bus routes to town. You could easily let this is to students for around €1600 during the academic year and slightly less during the summer. Its still double what you would get from a property in Carlow. Plus there is no risk of not being able to let it, as there is a college beside it. Plus Dublin weathered the recession pretty well

http://www.daft.ie/sales/34-gateway-view-ballymun-dublin/1088397/#img=11

That would be a very good price for something in Dublin. In relation to towns like carlow, it isn't reliant on a single industry (because there is none)it is made up of people working in small local businesses and commuters. There is also a large enough college in the town so there is very little risk of the property being left empty. I personally wouldn't rent to students unless I had a lot of money spare to re decorate

desertcircus

A 31-year-old can put up to 20% of their gross salary into their pension each year without paying income tax - if you earn 50k, for example, you can put 10k a year into a pension while only losing 6k from your net salary. 120k may allow you to pump funds into your pension over time without taking a hit in your earnings.

Depending on your circumstances, this may be the most financially beneficial approach to take, rather than buying a property to live in. Alternatively, you could aim to save the money you'd have spent on rent and put it towards a pension in the manner described.

mel123

You havnt a chance of getting a mortgage without full time permanent employment and i know this from experience as i am going through the mortgage process and i have a job! The banks dont care if youve got bunk beds in every corner of the house and plan to fill it with renters, they simply wont accept this means as a way to pay your mortgage. They used to in the good aul days but things are totally different now.

pwurple

Also, with cash, consider auctions.

JohnBee

Retweet89 wrote: »

Now here's the thing, Im currently out of work and have been for nearly a year but hope to be returning soon.

This, and only this. Part of the reason for the property crisis was home buyers not being properly stress assessed and lenient lending policies.

You are planning on purchasing a property based on a number of assumptions: that you will get a job, that the salary will be sufficient, that you will get tenants.

Unless these assumptions are satisfied then you will be in trouble. People see rent as dead money, that is an Irish fallacy. It is not. Having a place to live is a living expense. Many countries around the world rent lifelong. Spending to rent for a year while finding a job is money well spent if it ensures that 1-2 years down the road you are not in a situation where you have no job, no tenants and cannot pay mortgage.

All of this is speculative of course as the bank is likely to have the same view and not offer a mortgage. Be patient. If you need your own space go rent for now. When you are financially stable then go buy your house.