1 Bedroom Apt - am I crazy or not?

CurlyWurly_

Hi,
I'm thinking of getting a 1 bedroom apartment (approx 60m2, quite spacious compared to some). I work in the city centre so train is ideal for me. I'm going back and forward in my head whether I should get it or not?

I owned a property before and because I purchased at the right time I was able to sell and put some money towards this apartment with a mortgage. I'm 34 this year and I would like to get back on the property ladder. Prices are going up so much every month that I feel pressurized in a way to get my own place. I'll save on rent and won't have to share with strangers.

As much as i like the apartment, I do not want it to be my 'forever home'. I've been with my boyfriend almost 2 years and one day we would like to buy a bigger place and start a family together. He's not able to get a mortgage at the moment as he has no credit history but that is something he will work on when after changing jobs.

Question is: Should I buy it now on my own and hope that one day (3-5 years) I will be able to rent it out (would like to hold on to it as an investment for as long as possible) or sell it to purchase a bigger place to have a family?

Should I keep saving and look for a 2 bedroom or house instead?

Many thanks.
CW

LirW

Probably not the most useful input but my most favorite place I've ever lived in was a 60sqm 1 bedroom apartment. It had very well sized rooms and was perfect for me and my little son, I was able to divide the huge living room to have a second bedroom. I only moved because I completely relocated.
The size is just perfect for one person that doesn't like it cramped. You can also easily live in there with 2 people and also don't have to move straight away when a child comes along.

But it really depends on your plans down the line. If you definitely want a family with more kids, it might not be the best thing to buy at the moment. If it'll just be you for a good while, go for it.
Once kids come along you put a bit of a time-stamp on a one-bedroom place. In your particular situation I'd maybe go for something with an additional room but only you really now your family timeline.

JimmyMW

CurlyWurly_ wrote: »

Hi,
I'm thinking of getting a 1 bedroom apartment (approx 60m2, quite spacious compared to some) in Portmarnock. I work in the city centre so train is ideal for me. I'm going back and forward in my head whether I should get it or not?

I owned a property before and because I purchased at the right time I was able to sell and put some money towards this apartment with a mortgage. I'm 34 this year and I would like to get back on the property ladder. Prices are going up so much every month that I feel pressurized in a way to get my own place. I'll save on rent and won't have to share with strangers.

As much as i like the apartment, I do not want it to be my 'forever home'. I've been with my boyfriend almost 2 years and one day we would like to buy a bigger place and start a family together. He's not able to get a mortgage at the moment as he has no credit history but that is something he will work on when after changing jobs.

Question is: Should I buy it now on my own and hope that one day (3-5 years) I will be able to rent it out (would like to hold on to it as an investment for as long as possible) or sell it to purchase a bigger place to have a family?

Should I keep saving and look for a 2 bedroom or house instead?

Many thanks.
CW

That sounds very like boom time talk, an attitude that has a whole generation of people in trouble today. If you do a boards search you will find countless threads of people buying 1 beds in the boom as a starter home and being stuck with them and not being able to move when family comes along. Buy something that if you get stuck with it you can make it work for future plans, ie 1 bed house with the possibility to extend if necessary.

judeboy101

JimmyMW wrote: »

That sounds very like boom time talk, an attitude that has a whole generation of people in trouble today. If you do a boards search you will find countless threads of people buying 1 beds in the boom as a starter home and being stuck with them and not being able to move when family comes along. Buy something that if you get stuck with it you can make it work for future plans, ie 1 bed house with the possibility to extend if necessary.

Remember if you buy on your own your boyfriend might gain rights to house if he shack up for long enough.

daheff

thats the million dollar question OP.


Really depends on the apartment. Does it have good resale potential or good rental potential?

Ideally save for at least a 2 bed (as they have much better rental/resale potential). If thats not an option look at the apartment as a long term property.

Could you live in it for a while and then rent it if you needed to? Do you want to be a landlord in a few years time if it was your only way of moving to a 'forever home'? You might need to be if you cant shift the apartment.


Also think about how much you are currently paying in rent vs what a mortgage would cost. The first few years of the mortgage payments are equivalent to renting...assuming value of property doesnt go up or down, after taxes/legal fees if you sold you'd be break even. Longer than that and you would be turning a profit.

Humour Me

If the OP wants to buy a property with her boyfriend in the future, will they require a 20% deposit as she is no longer a first time buyer or will the fact her boyfriend doesn't have a property change that?

messy tessy

CurlyWurly_ wrote: »

Should I keep saving and look for a 2 bedroom or house instead?

IMO yes you should keep saving for a two bed.

I completely get how frustrating it is to be fed up of a house share and want your own place, but I don't think a one bed is a good idea if you know you want to start a family or even are thinking about it.

Could you not move in with your boyfriend into rented accommodation rather than living with strangers?

Bandana boy

Humour Me wrote: »

If the OP wants to buy a property with her boyfriend in the future, will they require a 20% deposit as she is no longer a first time buyer or will the fact her boyfriend doesn't have a property change that?

She is already no longer a first time buyer.

Bandana boy

I would try to find a way to get the two bed
1 it is easier to rent /sell later
2 if you get stuck in it because of a market crash or the like it will be viable for a small family.
3 if you get in trouble now you can always rent the room

o1s1n

Humour Me wrote: »

If the OP wants to buy a property with her boyfriend in the future, will they require a 20% deposit as she is no longer a first time buyer or will the fact her boyfriend doesn't have a property change that?

In the above scenario first time buyer status is lost unfortunately

PhoenixParker

Absolutely not. You're in a two year relationship with a man you hope to marry and have children with and you're 34. From where you are I was engaged, married and had a child within 2 years and I can count several of my friends who have done the same. A one bed is not a good move.

CurlyWurly_

Humour Me wrote: »

If the OP wants to buy a property with her boyfriend in the future, will they require a 20% deposit as she is no longer a first time buyer or will the fact her boyfriend doesn't have a property change that?

I'm not a first time buyer anymore.

CurlyWurly_

messy tessy wrote: »

IMO yes you should keep saving for a two bed.

I completely get how frustrating it is to be fed up of a house share and want your own place, but I don't think a one bed is a good idea if you know you want to start a family or even are thinking about it.

Could you not move in with your boyfriend into rented accommodation rather than living with strangers?

We are renting at the moment at 1,150.
Mortgage, insurance, maintenance fee works out around 860 so 430 each.

CurlyWurly_

daheff wrote: »

thats the million dollar question OP.


Really depends on the apartment. Does it have good resale potential or good rental potential?

Ideally save for at least a 2 bed (as they have much better rental/resale potential). If thats not an option look at the apartment as a long term property.

Could you live in it for a while and then rent it if you needed to? Do you want to be a landlord in a few years time if it was your only way of moving to a 'forever home'? You might need to be if you cant shift the apartment.


Also think about how much you are currently paying in rent vs what a mortgage would cost. The first few years of the mortgage payments are equivalent to renting...assuming value of property doesnt go up or down, after taxes/legal fees if you sold you'd be break even. Longer than that and you would be turning a profit.

My mortgage is 168k (3.5 salary) plus my 120k savings so I have 288k to spend incl legal fees. There are some 2 bedroom apartments within this price range, however, they are not really on the train/ Luas line or if they are around 280k mark I would expect to be outbid quickly as it has happened before. I could try and save more, should save another 12k in the next year.

I was thinking of investing less to secure a 1bed, in a nice location and good commute to town.

CurlyWurly_

PhoenixParker wrote: »

Absolutely not. You're in a two year relationship with a man you hope to marry and have children with and you're 34. From where you are I was engaged, married and had a child within 2 years and I can count several of my friends who have done the same. A one bed is not a good move.

That's a very good point actually

seamus

PhoenixParker wrote: »

Absolutely not. You're in a two year relationship with a man you hope to marry and have children with and you're 34. From where you are I was engaged, married and had a child within 2 years and I can count several of my friends who have done the same. A one bed is not a good move.

This.

It's a crazy idea. Buy a property that works for you in a five years' time, not one that works for you now. You could have 2 kids by the time you're 39.

Only investors and people who will never have children should buy one-bed apartments.

jozi

Your mortgage is going to be very low, how difficult would it be to remortgage in a few years (together with your boyfriend) and buy another property while renting this one? By remortgage I mean notifying the bank of your intention to let the property, rental prices are significantly higher than 800 in any decent location.

LirW

You have 288k to spend? Then totally go for a 2bed house, maybe with a bid of garden. Have a close look at D15 or maybe East Wall.
If you definitely want to have kids, you're going to do yourself a favour with 2 bedrooms.

PhoenixParker

CurlyWurly_ wrote: »

My mortgage is 168k (3.5 salary) plus my 120k savings so I have 288k to spend incl legal fees. There are some 2 bedroom apartments within this price range, however, they are not really on the train/ Luas line or if they are around 280k mark I would expect to be outbid quickly as it has happened before. I could try and save more, should save another 12k in the next year.

I was thinking of investing less to secure a 1bed, in a nice location and good commute to town.

http://www.daft.ie/dublin/apartments-for-sale/ashtown/40-cassian-court-south-royal-canal-park-ashtown-dublin-1468363/

Three bed, opens into internal courtyard. Good for now and very workable with young kids. On budget, on a solid bus route to the city centre. Train and (soon) Luas within 15 mins walk. All amenities close by.

This is only picked because it's an area I'm familiar with, I'm sure there are dozens more options. Basically I'm saying there's no need to be looking at 1 beds.

limnam

CurlyWurly_ wrote: »

Prices are going up so much every month that I feel pressurized in a way to get my own place. I

Probably the scariest post I've read in the last 10 years.

StupidLikeAFox

CurlyWurly_ wrote: »

... he has no credit history but that is something he will work on when after changing jobs....

What do you mean by this sentence?

CurlyWurly_

limnam wrote: »

Probably the scariest post I've read in the last 10 years.

I've searched boards tonight as someone suggested, many have similar dilemmas. Keep your judgemental mouth shut, if you don't have any constructive feedback/ advice.

Mod note

Let's keep it civil please, if you have an issue with a post please use the report post feature.

CurlyWurly_

StupidLikeAFox wrote: »

What do you mean by this sentence?

You need to show to the bank that you save on a regural basis. He can't do it at the moment.

messy tessy

CurlyWurly_ wrote: »

I've searched boards tonight as someone suggested, many have similar dilemmas. Keep your judgemental mouth shut, if you don't have any constructive feedback/ advice.

To be fair I think it's a reaction on how the market is currently, rather than a dig at you.

Graham

limnam wrote: »

Probably the scariest post I've read in the last 10 years.

Comments like that have been made regularly for quite a while now. Buyers who'd listened 2 or 3 years ago would be fairly miffed at this stage.

limnam

Graham wrote: »

Comments like that have been made regularly for quite a while now. Buyers who'd listened 2 or 3 years ago would be fairly miffed at this stage.

It's more my own disbelief that we're here again. I'm not suggesting they're wrong for buying now.

Then again, It's been over 10 years. We're due the next one. Feels like yesterday. Might be an age thing.

CurlyWurly_

messy tessy wrote: »

To be fair I think it's a reaction on how the market is currently, rather than a dig at you.

Yes, but it can be phrased differently.

CurlyWurly_

limnam wrote: »

It's more my own disbelief that we're here again. I'm not suggesting they're wrong for buying now.

Then again, It's been over 10 years. We're due the next one. Feels like yesterday. Might be an age thing.

It's like cancer to this country, keeps coming back. One of the most dysfunctional property markets in EU.

amtc

Buy where you like and know. That's what I did. Could have afforded more, but I'm near where I know and like. Had a pretty rotten car accident last year and couldn't drive for a while so bus route suited me.

I don't think you're mad buying a one bed. However if you can stretch to a two bed do. I use mine primarily as a dressing room, but when I was off work due to car accident I did think about renting. The reason I didn't is I didn't want to live with someone. In a one bed you would (obviously) have to rent out the entire place and you may get a corporate tenant with that - I work with consultants who are screaming out for M-F in Dublin for this.

My friend has a two bed and very unexpectedly met someone and now has three children under 2 1/2. Yet loves the centre of town, even though it is disorganised chaos. Other half has inherited property but is miles away from transport (although in Dublin) and one doesn't drive and trying to fit three kids into a car is impossible.

The_Conductor

CurlyWurly_ wrote: »

It's like cancer to this country, keeps coming back. One of the most dysfunctional property markets in EU.

Bad as it is here- its pretty much an identical picture in several other EU markets- Denmark, The Netherlands and Belgium come to immediate mind as poster boys for housing bubbles..........

The Economist magazine do an annual house price bubble issue with commentary on the various markets- its very scary reading.......

In short- the improbably low interest rate regime we've been in for some time- is wholly out of sync with fundamentals- and reading between the lines- the ECB are predicting significant price falls once rates begin to normalise again (they are still saying an ECB overnight rate of 4.5% is rate 'normalisation'- which would blow pretty much any stress test any Irish lending institution conducts out of the water).

One way or another- if you cannot see yourself living in a 1 bed apartment long term- unless its in a seriously high demand area where you'll have a queue of prospective tenants whenever it comes available- I don't think you should buy.

I can see where people are coming from with their suggestions of getting a 2 bed semi in D15 or elsewhere- as you're future proofing your purchase- I'm not entirely sure I agree with that assessment either though.

You have shown a proven track record of saving- I'd suggest continue renting- and build your savings further.

The Dublin market is already doing funny things- despite its obvious and glaring shortages. The lions share of national price rises last year- occurred outside of the greater Dublin area (Dublin did grow- but it was an entirely different kettle of fish to the rest of the country).

I'd also as an aside- seriously advise against buying a property (anywhere) with the express intention of becoming a landlord. The regulatory environment, not to mention the tax regime, is onerous, time consuming- and damn expensive. If a tenant overholds or decides to stop paying their rent- you will be months with no income, but continued outgoings. All the time- the regulatory regime is becoming more and more onerous on landlords- while landlords are pilloried in the media- and proverbially tarred and feathered.

Being a landlord- is not for the faint hearted- you might get lucky- or you might have a world of hurt- you simply don't know from day to day.

sbsquarepants

For my two cents - I wouldn't personally buy the 1 bed, you'll outgrow it way too rapidly, 2 beds are much easier to sell on or rent out and even now there are plenty of nice 2 beds available for 288K. Move out to the suburbs and you'd likely get a nice 3 bed for that.
As for another housing bubble - this one is very different to the last one IMO - this is basically a supply and demand thing. It's not fuelled by easy credit and just waiting to implode, (quite the opposite in fact) The only thing that's going to stop this as far as I can see is massive emigration or massive house building, neither are very likely to happen in the immediate future.
At the moment the average house price in Dublin is increasing at roughly 2k a month - unless you can save in excess of this, you're actually going backwards!

Edit - I see you're renting at the moment.

You're paying out 1100 a month anyway - the mortgage would probably be under a grand all things considered!

Nobody really knows what's going to happen (economists talk utter bollox for a living!) If you need somewhere to live and you can afford to buy that place for yourself rather than for someone else - it's an absolute no brainer for me.