Do I buy?

L1985

Hi guys so another do I buy thread!To give a bit of info. In currently living at home which I need to do for the next while as its a farm and my parents need me me around. Ideally I would like to build in 5years plus time . Here's my thought process. I could buy a house or an apartment (debating between the 2) in Waterford. My base salary is 30k but with commission I make prob around 40k. My thoughts are to buy a house and rent it out. It would be good to have the security of my own place if I need it. I can afford the repayments easily not taking rent into account and it means if I need it I'll have somewhere to live. I think I can get a mortgage for around 100k and I do have 14k in savings as well. I'm just not sure if I should keep saving but at the end of the day I don't want to build for a few years as my life's still too unsettled.i don't know what type of house I'll need so want to hold off! Just wondering what people's thoughts would be?

athtrasna

Waterford isn't the best location for rental property. Property is cheap but there is a fairly decent supply and not a lot of job creation. Added to the tax burden and hassle of being a landlord, I wouldn't invest there unless it was for your home. My instinct would be to save save save for as long as you're at home and minimise the amount you will need to borrow when you're actually looking to buy a home.

Rackstar

By buying a house you may disqualify yourself from qualifying for planning permission to build a house. The LA will deem your housing need to have been met.

L1985

Thanks for the replies.there is a lot of job creation at the moment in Waterford and things are deff picking up there.looking at the rental market there is def properties in demand for a certain type. Because I'm not relying on the rent to pay the mortgage i think it would be OK as if I had problems I can easily cover it myself. I'm thinking the market has to start picking up there at some point. However I didn't know that I may be disqualified from building so that's something I'd really need to consider. Was thinking I could sell this one on when I'm ready to build... Would that make a difference?

jlm29

If you buy a property, you may not be able to sell it when it suits you. a bank may also be unwilling to lend you further money to build down the line.
Also, if it's a buy to let, don't you need a higher deposit?
And you would lose your first time buyer status.
There would seem to be more reasons not to do it than to do it.

Edited to add- I just looked at the BOI website. Maximum loan for btl is 70%. Your 14k deposit will mean you'll be looking at properties less than 50k.

MarkAnthony

If you're buying for a home now is as good a time as many. It's a particularly poor time to buy investment property. Other than that investment property should never be bought with a view to living there yourself, you start cutting into your ROI (return) on getting that place that you'd like to live in not where is going to give you the best return.

All that aside you're asking in the wrong place, do a firm business plan - get it looked over by an accountant and pay a local LL a consulting fee and get their advice.

L1985

Hi everyone thanks for all of the input. I fully intend on getting proper advice from an accountant I just wanted to get some general feedback and see if there were things I hadn't considered.all of it would be new to me and I'd be going in on my own.

_Kaiser_

Few things I can think of may be a problem:

- Your base is 30k. Commission is variable and not guaranteed. Will a bank include it on a mortgage assessment?
- BTL is a higher deposit isn't it? Will this also mess with your First Time Buyer status? (or what jim said above )
- Acting as a landlord is not a matter of "buy house, rent out, profit". There's work and tax liabilities to consider. If you're going to be helping at home on the farm have you the time for this?

Michael D Not Higgins

_Kaiser_ wrote: »

Few things I can think of may be a problem:

- Your base is 30k. Commission is variable and not guaranteed. Will a bank include it on a mortgage assessment?
- BTL is a higher deposit isn't it? Will this also mess with your First Time Buyer status? (or what jim said above )
- Acting as a landlord is not a matter of "buy house, rent out, profit". There's work and tax liabilities to consider. If you're going to be helping at home on the farm have you the time for this?

Indeed, 30% for BTL.

L1985

Thanks for the responses.
For other reasons I'm not worried about using up my first time buyer status as may be losing that in a few years anyway before I'm ready to build.ye have given me food for thought-I am aware of the work involved in looking after a rental property unfortunately so that is something I was considering as well. My first port of call is a serious chat with my accountant. I didn't know about the 30% higher deposit although I was thinking there would be something.
I'll see how I go!