What would you do?

John_Rambo

This was going so well. Sound advice, reasons, reasons to not etc… Now we have “cheerleaders”.

listermint

John_Rambo wrote: »

This was going so well. Sound advice, reasons, reasons to not etc… Now we have “cheerleaders”.

Says the lad telling someone to max out their mortgage offers to buy an apartment....


Is this the indo? Couldn't make this up

2006 is back baby woot Woot swigs champagne bottle

Cyrus

listermint wrote: »

Says the lad telling someone to max out their mortgage offers to buy an apartment....


Is this the indo? Couldn't make this up

2006 is back baby woot Woot swigs champagne bottle

and you are one of the sages that has foreseen the carnage and sold up and moved to the costa del south of ireland waiting to tell everyone that you told them so :P

listermint

Cyrus wrote: »

and you are one of the sages that has foreseen the carnage and sold up and moved to the costa del south of ireland waiting to tell everyone that you told them so :P

No just bought actually. And I wouldn't change it for the world. Be putting in solar next. Space is great.

I wouldn't go around though trying to change someone's mind that is made up.

John_Rambo

listermint wrote: »

Says the lad telling someone to max out their mortgage offers to buy an apartment....

The man asked us "what would you do".

That's the thread title.

I didn't advice him to buy an apartment, read again.

I gave him advice, that's what he asked for, I told hims what I would do and what I have done in the past.

listermint

listermint wrote: »

No just bought actually. ...........

Well done.
Iirc you were thinking you'd never be able to buy and were getting terribly aggrieved about the situation. Great to see things worked out well for you.

The South can be lovely.

madethisup2017

Augeo wrote: »

+1 to this.

Ye are spending lots on rent and have €70k sitting there doing nothing for ye.

The only worry I'd have is that ye really missed the boat valuewise compared to 2/3 years ago.

We definitely missed the boat for value but we didn't have the deposit or financial independence to purchase somewhere back then so we were never in the position to do it.

It is annoying though, but it could have been worse, we could have been in the potion to buy in 2006-2007 and had a much worse outcome

madethisup2017

can we not turn this into an argument of who is right and who is wrong?

Everyone has opinions and it's good to read them, it doesn't matter if they aren't what you / I would do. it's nice to be able to see what others are doing and see if parts of it would help me.

Skyrimaddict

madethisup2017 wrote: »

We definitely missed the boat for value but we didn't have the deposit or financial independence to purchase somewhere back then so we were never in the position to do it.

It is annoying though, but it could have been worse, we could have been in the potion to buy in 2006-2007 and had a much worse outcome

Again, I am unsure why you asking what others would do, you have in a small nutshell answered your own questions from the outset.

For some reason, as you said, you WILL be living in Dublin for 5-7 years. personally I dont see why you would, I dont think any job in the world would make me stay somewhere if I didnt want to be there.
But, if you know you are staying for 5-7 years, as you have said, your mortgage will 250 (ish) at repayments of 1250 per month.
Your rent is currently 19K per year, 1600 a month. Right away you have a saving, it also means that unless we do get another crash, but being someone from the industry I would say we expect a slowdown in 5 years, not a crash, you still will have paid off a significant portion of your Mortgage.

Looking at your post, you say in reasonably short time (assumption of maybe 5 years) you have also saved 70K. That on top of rent is significant, it means you are currently using rent and savings for maybe 65% of your net wages. fair play.

if you do want to move down to your GF (possibly wife at that stage ) land ownership, you would have rebuilt your savings in that time (assumption again) and also have paid off somewhere around 20% of an 70-80% mortgage. so as you said, unless the apartment goes down by 100K you are still coming out with a net gain.

The only posting i would take sever notice is of your career goals. I imagine you are staying in Dublin for this for a few years, do be aware unless you are in a accounting/solicitor/ other "old reliable" type job that wages will not match what you earn now. the expected 30% haircut is idealistic outside of an old reliable. I know some family members who live and work in Dublin, massive wages in Tech, but CAN NOT move out as they chosen work is not available elsewhere.
Do look at your own commute, I know from experience that an extra 30K a year is not worth 1-2 hours each way of a commute, after tax!


Long story, if it was me ( and I did) buy a smaller short term option that suits now, then have your end goal in mind. Plans and situations may change, but you seem to have your head on right for a 33 year old.
In fact, I think you might be my cousin, VERY similar problems!!

Good luck!

madethisup2017

Skyrimaddict wrote: »

Again, I am unsure why you asking what others would do, you have in a small nutshell answered your own questions from the outset.

For some reason, as you said, you WILL be living in Dublin for 5-7 years. personally I dont see why you would, I dont think any job in the world would make me stay somewhere if I didnt want to be there.
But, if you know you are staying for 5-7 years, as you have said, your mortgage will 250 (ish) at repayments of 1250 per month.
Your rent is currently 19K per year, 1600 a month. Right away you have a saving, it also means that unless we do get another crash, but being someone from the industry I would say we expect a slowdown in 5 years, not a crash, you still will have paid off a significant portion of your Mortgage.

Looking at your post, you say in reasonably short time (assumption of maybe 5 years) you have also saved 70K. That on top of rent is significant, it means you are currently using rent and savings for maybe 65% of your net wages. fair play.

if you do want to move down to your GF (possibly wife at that stage ) land ownership, you would have rebuilt your savings in that time (assumption again) and also have paid off somewhere around 20% of an 70-80% mortgage. so as you said, unless the apartment goes down by 100K you are still coming out with a net gain.

The only posting i would take sever notice is of your career goals. I imagine you are staying in Dublin for this for a few years, do be aware unless you are in a accounting/solicitor/ other "old reliable" type job that wages will not match what you earn now. the expected 30% haircut is idealistic outside of an old reliable. I know some family members who live and work in Dublin, massive wages in Tech, but CAN NOT move out as they chosen work is not available elsewhere.
Do look at your own commute, I know from experience that an extra 30K a year is not worth 1-2 hours each way of a commute, after tax!


Long story, if it was me ( and I did) buy a smaller short term option that suits now, then have your end goal in mind. Plans and situations may change, but you seem to have your head on right for a 33 year old.
In fact, I think you might be my cousin, VERY similar problems!!

Good luck!

Cheers for the advice, I was mostly asking the question as I had no idea if I was being too simplistic in my approach and what I thought I was planning.

I'm not staying n Dublin for the next 5-7 years solely because of a job. I want to be in Dublin for the next while and it also happens that I may, if I make the decision to do so, have to stay in Dublin for that length of time to reap the rewards of that decision.

I currently save/spend on rent 60-65% of my net salary each month. My girlfriend does too. This might drop down to 40-50% on months we go on holidays, but for the most part, those figures are about right.

My girlfriend's career fits into the bracket of careers you mentioned, mine doesn't but is a career that can move into most industries. I don't see myself earning less than I am earning now when I move down there but I would, most likely, not earn down there what I will be earning here in 5 years either.

As for commute, I do the M50 each day at the minute, my commute when school is back on will be about an hour each way as long as there are no crashes, so I'll be happy enough to avoid that.

I doubt I'm related to you, most of my cousins can't read and i haven't spoke to any of them, or anyone else outside of my gf, about these plans, which might help explain why I'm consulting the internet.

Cyrus

Skyrimaddict wrote: »

The only posting i would take sever notice is of your career goals. I imagine you are staying in Dublin for this for a few years, do be aware unless you are in a accounting/solicitor/ other "old reliable" type job that wages will not match what you earn now. the expected 30% haircut is idealistic outside of an old reliable. I know some family members who live and work in Dublin, massive wages in Tech, but CAN NOT move out as they chosen work is not available elsewhere.

if anything it will be worse as an accountant or solicitor, its possible to make some pretty decent money in Dublin as either, but the opportunities arent the same down the country. when i looked id have been taking a 50% pay cut :eek:

Cyrus

listermint wrote: »

No just bought actually. And I wouldn't change it for the world. Be putting in solar next. Space is great.

I wouldn't go around though trying to change someone's mind that is made up.

good man, fair play to you.

Why the requirement of space for solar, it seems every where i look in Dublin people have solar panels?

anyway you are confusing trying to change someones mind for offering opinion and advice when face with a similar situation but if you dont see the distinction there isnt much i can do to change that.

Skyrimaddict

madethisup2017 wrote: »

Cheers for the advice, I was mostly asking the question as I had no idea if I was being too simplistic in my approach and what I thought I was planning.

I'm not staying n Dublin for the next 5-7 years solely because of a job. I want to be in Dublin for the next while and it also happens that I may, if I make the decision to do so, have to stay in Dublin for that length of time to reap the rewards of that decision.

I currently save/spend on rent 60-65% of my net salary each month. My girlfriend does too. This might drop down to 40-50% on months we go on holidays, but for the most part, those figures are about right.

My girlfriend's career fits into the bracket of careers you mentioned, mine doesn't but is a career that can move into most industries. I don't see myself earning less than I am earning now when I move down there but I would, most likely, not earn down there what I will be earning here in 5 years either.

As for commute, I do the M50 each day at the minute, my commute when school is back on will be about an hour each way as long as there are no crashes, so I'll be happy enough to avoid that.

I doubt I'm related to you, most of my cousins can't read and i haven't spoke to any of them, or anyone else outside of my gf, about these plans, which might help explain why I'm consulting the internet.

In many cases the simple solution is the best, I always find going with your gut as your brain processes information so fast and gives you the correct answer, its just the rest of the brain catches up and starts to find flaws.

Fair enough on the vague answer, I am not concerned if your setting up a business or what ever, professional sports etc, more power to you. My point on the five years is just that, you have an end date in mind, so you know you will need to be here that time and ideally no more.

In regards earnings etc, do look at career sites and salary survey sites, unless you plan to drive back to Dublin you will face a lower wage, and the increase in same will not be as high. Its not really my opinion, its just the trend as I have seen it over the last 10 years. The big thing as mentioned before is affordability after bills etc are paid, if you are happy an comfortable then again, more power to you.

I wasn't being crase when i said I am not sure why your asking, you seem from your posts to have your head screwed on, your a bit older than I but i have made the same moves you had a few years back. I now live in a nice big house with a very manageable mortgage and have the life style I want, which was always going to be outside the pale.
I wouldnt want to live in Dublin long term, but that is me, I would be similar to you in the not a massive party animal and I come from the mid-west initially so didnt have ties to Dublin.

Long story of it, but the apartment you can for your 200-250K, unless it loses 100K in the next five years, you will still have an assets which can be rented out if needs be, and have your house down the country. At the rate you save/spend you cant really lose too much.

PhoenixParker

One thing I'd be wary of is the assumption you're making that the cheapest apartment leaves you the least exposed in the event of a crash.

You need to run the numbers on that carefully.

Outside the mortgage the costs of ownership (management fees and maintenance) are roughly the same for a €300k apartment as for a €200k. Often an apartment will be cheap because of high maintenance fees or a problem with the management company.

Rent wise, the more expensive apartment will tend to rent for more pcm and have fewer vacant periods.

In a crashed market the bottom barrel properties often become completely unlettable and unsellable whereas something that's a notch or two higher quality wise is at least rentable/sellable albeit with a haircut on the price.

madethisup2017

Cyrus wrote: »

if anything it will be worse as an accountant or solicitor, its possible to make some pretty decent money in Dublin as either, but the opportunities arent the same down the country. when i looked id have been taking a 50% pay cut :eek:

She's not on the higher end of earnings at the moment, in a few years she might be earning much more which would see us drop down to about what she earns now. Considering how comfortable we live now, while saving / spendings on rent 60-65% of our net income, I would like to think we would be okay with dropping back down to thus level of earnings but saving a bit less.


I'll most likely need her to give up her love of €2k handbags though

madethisup2017

Skyrimaddict wrote: »

In many cases the simple solution is the best, I always find going with your gut as your brain processes information so fast and gives you the correct answer, its just the rest of the brain catches up and starts to find flaws.

Fair enough on the vague answer, I am not concerned if your setting up a business or what ever, professional sports etc, more power to you. My point on the five years is just that, you have an end date in mind, so you know you will need to be here that time and ideally no more.

In regards earnings etc, do look at career sites and salary survey sites, unless you plan to drive back to Dublin you will face a lower wage, and the increase in same will not be as high. Its not really my opinion, its just the trend as I have seen it over the last 10 years. The big thing as mentioned before is affordability after bills etc are paid, if you are happy an comfortable then again, more power to you.

I wasn't being crase when i said I am not sure why your asking, you seem from your posts to have your head screwed on, your a bit older than I but i have made the same moves you had a few years back. I now live in a nice big house with a very manageable mortgage and have the life style I want, which was always going to be outside the pale.
I wouldnt want to live in Dublin long term, but that is me, I would be similar to you in the not a massive party animal and I come from the mid-west initially so didnt have ties to Dublin.

Long story of it, but the apartment you can for your 200-250K, unless it loses 100K in the next five years, you will still have an assets which can be rented out if needs be, and have your house down the country. At the rate you save/spend you cant really lose too much.

I'm hopeful that we would have a small enough mortgage that the offset of earnings won't be an issue.



Hopeful

Skyrimaddict

madethisup2017 wrote: »

I'm hopeful that we would have a small enough mortgage that the offset of earnings won't be an issue.



Hopeful

From what you have said here I would imagine that this offset coupled with the better lifestyle the country offers ( unless you really love Dublin) will more than compensate
I remember working in Dublin and spending 40 euro a week or more on COFFEE !!
Now that i work less and enjoy my time more I dont need to go to a coffee shop twice a day to escape, first off-set

madethisup2017

A little follow up on this for anyone interested or anyone who happens to stumble upon this thread.

Quick review -

I wanted to buy a sensibly (if that's possible) priced apartment in Dublin and pay less on my mortgage than I do on rent. This would allow me to save further to build 'down the country' in the future.

Most people on here told me I was mad and to buy a house - max out my mortgage potential - don't buy an apartment etc.

I stuck to my guns telling them I didn't want to spend €400k on a semi detached house in Dublin Due to the crazy price in comparison to houses at home / I wouldn't like the house / won't like the area / etc etc

Not everyone wants to live in Dublin and people here, while being supportive, were also very Dublin biased and told me to just buy in Dublin. It's hard to get people to believe that an apartment is fine for you and that you don't want to spend such a large chunk of money despite having the finances to support it.


Latest news:

Well, I bought a property and we've just moved in. As I said I refused to spend €400k on a house in Dublin and I stuck to my guns on that, so screw you guys. Strangers of the Internet are not always right*.

I'm delighted with my decision too, we both love where we bought and it's so nice to have our own place.


*I may have bought a semi detached in Dublin that cost a good bit more than €400k

Cyrus

madethisup2017 wrote: »

A little follow up on this for anyone interested or anyone who happens to stumble upon this thread.

Quick review -

I wanted to buy a sensibly (if that's possible) priced apartment in Dublin and pay less on my mortgage than I do on rent. This would allow me to save further to build 'down the country' in the future.

Most people on here told me I was mad and to buy a house - max out my mortgage potential - don't buy an apartment etc.

I stuck to my guns telling them I didn't want to spend €400k on a semi detached house in Dublin Due to the crazy price in comparison to houses at home / I wouldn't like the house / won't like the area / etc etc

Not everyone wants to live in Dublin and people here, while being supportive, were also very Dublin biased and told me to just buy in Dublin. It's hard to get people to believe that an apartment is fine for you and that you don't want to spend such a large chunk of money despite having the finances to support it.


Latest news:

Well, I bought a property and we've just moved in. As I said I refused to spend €400k on a house in Dublin and I stuck to my guns on that, so screw you guys. Strangers of the Internet are not always right*.

I'm delighted with my decision too, we both love where we bought and it's so nice to have our own place.


*I may have bought a semi detached in Dublin that cost a good bit more than €400k

Congratulations:)