Can't decide - all advice welcome

adraigh

Hello!

Have found a studio apartment I love in excellent part of Dublin after looking for 2 years and saving consistently!

Have mortgage approval but am in the extremely fortunate position that my parents, having seen the property and recognising how nice it is / good an area it is in, have offered to buy the apartment in cash and I rent it off them.

Then in about 5 years time, we will reaccess - sell on or rent out with me looking after renting / tenants etc.

We've looked into the legal / tax side of things and all looks good.

However! I haven't been able to sleep the last wk thinking about it... chopping and changing my mind on it.

I'm 28, single, and have one eye firmly on the upcoming Poolbeg development which would be ideal for where I work. I am completely unsure should I wait a few years, continue to save, and look to buying a bigger place there instead of this apartment now.

Pros of the apartment I'm looking at:
Perfect area for where I work - could drive for less than 5 euro petrol a wk, or 20 min walk, or 5 min cycle.
Excellent established and lovely area of Dublin (Ranelagh)
Close to transport links
Love the flat itself - I quite like studio flats for some reason - like cosy spaces
Decent price - has held its value despite crash
My mum is considering living here in her older age (dad is lots older and will likely die first, and it's likely she'd move nearer her children in Dublin area then) she is 60 now.

Cons
No doubt I will want to upgrade in future - single and 28 now as I mentioned. Am I bringing too much hassle on myself / my lovely parents should we decide to sell / rent out property in possibly 5-8 years time?

Should I hold out , continue to save, look for my 'forever home' (as first time buyer with my own mortgage but helped also by gift from parents?)

If I'm in any doubt, should I leave it?

Appreciate any input, thanks in advance.
So many more factors but those are the basic facts.
Unfortunately my gut feeling is completely changeable and I can't decide.

P.s. I am currently paying 530 rent a month in a shared house in milltown with 4 other people and am very happy here - it's not like I'm dying for my own space or anything like that (yet)
Another slight concern is that I'd be slightly lonely living alone but because of area and where friends are living, I will easily be able to visit them the odd evening and of course, there are plenty of amenities in d6.

Thanks again.

Red Kev

What's the mortgage on the new place and can you comfortably afford it even if you need to take a pay cut in the future.

Also what are the management fees in the new building.

adraigh

Red Kev wrote: »

What's the mortgage on the new place and can you comfortably afford it even if you need to take a pay cut in the future.

Also what are the management fees in the new building.

Value of property 180k
Deposit 30k
Mortgage of 150k
Management fee 1200 a yr

Can afford mortgage and all bills and management fee but it'd be 45% of my income. over 30 yrs. Long time to pay off a studio apartment!

Have a permanent state job so unlikely pay will decrease too much but who knows what madness could lay ahead.

pc7

At 28 if you were to meet someone and want to start a family the studio wouldn't work for you at all in the coming years. If your parents buy it how much rent would you have to pay? If you were to move out how much rent could it get for them? (taking into account all tax issues).

SB_Part2

180k for a studio? Nah I don't care how good the location is I wouldn't fork that out for a studio.

Mrs OBumble

adraigh wrote: »

Hello!

Have found a studio apartment ....

Perfect area for where I work at the moment ....

My mum is considering living here in her older age (dad is lots older and will likely die first, and it's likely she'd move nearer her children in Dublin area then) she is 60 now.

....

If I'm in any doubt, should I leave it?

....

P.s. I am currently paying 530 rent a month in a shared house in milltown with 4 other people and am very happy here - it's not like I'm dying for my own space or anything like that (yet)

I've added some words that you missed - in bold above.

If in doubt, don't is a good rule for things this big.

It being a studio apartment would be a killer for me - just too small. Especially since you're happy where you're living now and the rent isn't mad.


The only thing that might make me think differently is if your mother would want to live in the apartment herself at a later stage of her life. In that case, your parents buying it and renting it to you (so you don't lose your first time buyer status) makes sense.

Idbatterim

Don't hold your breath on that poolbeg development! Bear in mind, the mortgage term is 30 years, but you could pay it back a lot quicker in a few years potentially, if you start earning more etc... E530 isn't insane, but the problem with Dublin now is, when is your next rent review etc...

bleary

I know it sounds good in theory but realistically how likely will your mum be to move to a bedsit? I don't think I would buy it yourself. For your parents hard to tell but any building close to the city is most likely to be apartments I think there will be better apartments for sale in the medium term.

Ms Doubtfire1

180k for a bedsit?? :eek:
Dublin or not, i'd never pay that.