Buy an apartment or keep saving ?

Graham

Mike3549 wrote: »

Ah come on 50%? OPs thinking about buying a 3-bed apt, i cant see anybody recommending a 6bed dormer on this thread.

Did you completely miss the quoted post I was responding to?

Mike3549

Wait if you're not in a hurry. We bought an own door 3bed duplex apt with backgarden 3 years ago. We were a bit in a hurry, landlords problems with banks, high rents everywhere etc. there was nothing available or affordable so are happy, but if we could, we would've waited another year or two.
Dont forget about other costs associated with apt living like management fees. If there are lifts involved, fees could be as high as 3k pa. It might be very hard to sell later

Mike3549

Graham wrote: »

Did you completely miss the quoted post I was responding to?

Sorry i was more reffering to the "double size" part. I mean you will need kitchen, living room, bathroom, at least one bedroom. Extra bedroom or 2 wont make up the double size. Plus there are plenty 2bed apts that are bigger in size than 3bed "forever home" semi-Ds.

Fliucharbith

I wouldn't buy anything in Dublin at the moment.

Only a few years ago they were waaay cheaper. Only a few years before that they were waaay more expensive. They will continue to go up and down and up and down.

If you were buying elsewhere in the country I'd say go for it, because when the thing collapses again (and it will eventually, could be next year or 4 years) youre looking at, for example, losing 50% of 80K versus 50% of, say, 220k.

But don't forget the difference of having to pay interest too. The more money you save, the more money you save! Every 1000 that you save in expense now is actually worth significantly more than 1000 euro borrowed.

The anxiety to move out can be overwhelming sometimes, its not fair whats happening to a lot of people, especially in Dublin. But if you can adjust your living situation a little to make it a bit more comfortable, you could be doing yourself a huge favour in the future.

I suppose just look at the basics of the current climate. Do you think there will be a drop in demand for housing? (I'd say no). Do you think enough housing will be built? (Id say no)........versus.......Do you think current levels of expenditure/cost are sustainable? (I'd say no). Do you think we are living in a stable, secure time, protected from risk? (I'd say no).

Sounds like a recipe for disaster to me, but that's only my opinion.

Others will say the exact opposite, just use your head, and not your heart!

Graham

Fliucharbith wrote: »

But don't forget the difference of having to pay interest too. The more money you save, the more money you save! Every 1000 that you save in expense now is actually worth significantly more than 1000 euro borrowed.

For many (most) potential buyers it's not quite that simple.

Every €1000 they're saving by not having a mortgage is costing them €1800 in rent.

Of course, your predictions of an impending crash could theoretically see property prices drop. In which case interest rates won't be an issue because the banks will probably stop lending again.

Fliucharbith

Graham wrote: »

For many (most) potential buyers it's not quite that simple.

Every €1000 they're saving by not having a mortgage is costing them €1800 in rent.

Of course, your predictions of an impending crash could theoretically see property prices drop. In which case interest rates won't be an issue because the banks will probably stop lending again.

I agree. But the OP is not paying rent at the moment (Tangent, when you think about it that way, a potential saving of 1500 a month (say), is like having a second, albeit low-paying job....madness. An absolutely fantastic way to "save" money, if it isn't driving you up the walls living at home!)

As for banks and their lending, with a tidy sum of 60K tucked away, and if it continues growing nicely, then bank lending becomes less and less of an issue as you have less exposure/more capital. Again, specifically referring to the OP's situation.

Zenify

Fliucharbith wrote: »

I agree. But the OP is not paying rent at the moment (Tangent, when you think about it that way, a potential saving of 1500 a month (say), is like having a second, albeit low-paying job....madness. An absolutely fantastic way to "save" money, if it isn't driving you up the walls living at home!)

As for banks and their lending, with a tidy sum of 60K tucked away, and if it continues growing nicely, then bank lending becomes less and less of an issue as you have less exposure/more capital. Again, specifically referring to the OP's situation.

The last crash dropped the value of most assets, does anyone think the next crash could drop the value of cash? then all the hard work of saving is pointless...

Idbatterim

didnt the op say he was paying E400 month in rent? secondly op, i think you are being very conservative when you say you would only rent out the other room for E400! with the 60k to throw at it, you are not going to end up in negative equity with . Look my advice might be different if it were a 550k 2 bed city centre apartment. In fact I am just trying to play devils advocate. My personal opinion is that adequate supply and any possible crash are years off. I remember think around 06/07 this **** is insane and wouldnt have touched anything...

CandyButcher

Idbatterim wrote: »

didnt the op say he was paying E400 month in rent? secondly op, i think you are being very conservative when you say you would only rent out the other room for E400! with the 60k to throw at it, you are not going to end up in negative equity with . Look my advice might be different if it were a 550k 2 bed city centre apartment. In fact I am just trying to play devils advocate. My personal opinion is that adequate supply and any possible crash are years off. I remember think around 06/07 this **** is insane and wouldnt have touched anything...

Hi, yes I am currently only forking up €400 rent so I can stay put for another couple years and save more of a deposit 40k in 2 years if I hold down my job. The only thing making me ponder the idea of buying an apartment is more space which id love and getting out of a crappy area where I am now, im not unhappy where I am now but yeah more space and my own would be nice. I could immediately rent out a room too to knock off the mortgage to a family member who I lived with before and get on well with. I have learned to listen to my elders and people with more experience and the majority of this vote is saying play it safe keep saving for the big one for life, as an apartment would suit for 5 years but eventually ill want a house for kids etc, by that time id hope to be able to rent out the Apartment until its paid off then maybe sell.

I don’t like the idea of buying while its peak prices.. a medium priced period yeah. So if people are telling me its a peak time then ill probably hold out a couple more years to see if they drop. So the benefits of saving another couple years would be larger deposit, less interest on the mortgage and possibly of prices dropped on property.

Thanks for all reply’s people I really appreciate you taking the time.

Idbatterim

CandyButcher wrote: »

Hi, yes I am currently only forking up €400 rent so I can stay put for another couple years and save more of a deposit 40k in 2 years if I hold down my job. The only thing making me ponder the idea of buying an apartment is more space which id love and getting out of a crappy area where I am now, im not unhappy where I am now but yeah more space and my own would be nice. I could immediately rent out a room too to knock off the mortgage to a family member who I lived with before and get on well with. I have learned to listen to my elders and people with more experience and the majority of this vote is saying play it safe keep saving for the big one for life, as an apartment would suit for 5 years but eventually ill want a house for kids etc, by that time id hope to be able to rent out the Apartment until its paid off then maybe sell.

Thanks for all reply’s people I really appreciate you taking the time.

you have done right to seek advice and opinions. the thing I would say is this. You will get many now saying, dont buy , dont buy ever! wait for the sky to fall in :rolleyes: with your level of savings, I wonder could you buy a 2 or 3 bed house? you could then rent out the other room and you are pretty future proofed...

I don’t like the idea of buying while its peak prices.. a medium priced period yeah. So if people are telling me its a peak time then ill probably hold out a couple more years to see if they drop

very very very few people got lucky enough to get absolute floor prices. Everyone wishes they had the crystal ball or simply bought at the trough, which is only obvious months after the trough has been reached... I am with you, I am the last person who would want to be "done" I personally think we are in the mid stage of the rises, i.e. property isnt going for the relative pittance it was in 2011-12 etc, but it will go up more for another few years in my opinion... So lets say you wait, prices go up 10% year for the next 4 years, you wait and prices drop 40%, you are only back to where you were now, except that you wont have paid rent for four years and you are assuming there will be a drop in the near ish future and its a relatively steep one...

Hollister11

CandyButcher wrote: »

Hi, yes I am currently only forking up €400 rent so I can stay put for another couple years and save more of a deposit 40k in 2 years if I hold down my job. The only thing making me ponder the idea of buying an apartment is more space which id love and getting out of a crappy area where I am now, im not unhappy where I am now but yeah more space and my own would be nice. I could immediately rent out a room too to knock off the mortgage to a family member who I lived with before and get on well with. I have learned to listen to my elders and people with more experience and the majority of this vote is saying play it safe keep saving for the big one for life, as an apartment would suit for 5 years but eventually ill want a house for kids etc, by that time id hope to be able to rent out the Apartment until its paid off then maybe sell.

I don’t like the idea of buying while its peak prices.. a medium priced period yeah. So if people are telling me its a peak time then ill probably hold out a couple more years to see if they drop

Thanks for all reply’s people I really appreciate you taking the time.

No one knows when it's the peak until it crashes

pilly

CandyButcher wrote: »

Hi, yes I am currently only forking up €400 rent so I can stay put for another couple years and save more of a deposit 40k in 2 years if I hold down my job. The only thing making me ponder the idea of buying an apartment is more space which id love and getting out of a crappy area where I am now, im not unhappy where I am now but yeah more space and my own would be nice. I could immediately rent out a room too to knock off the mortgage to a family member who I lived with before and get on well with. I have learned to listen to my elders and people with more experience and the majority of this vote is saying play it safe keep saving for the big one for life, as an apartment would suit for 5 years but eventually ill want a house for kids etc, by that time id hope to be able to rent out the Apartment until its paid off then maybe sell.

I don’t like the idea of buying while its peak prices.. a medium priced period yeah. So if people are telling me its a peak time then ill probably hold out a couple more years to see if they drop

Thanks for all reply’s people I really appreciate you taking the time.

My advice would be not to go down the route of renting out the apartment and buying a house, it's a nightmare scenario, far too stressful to keep up. I know from experience.

Idbatterim

No one knows when it's the peak until it crashes

exactly what I have just said and nobody knows its the trough until months after at least...

Ill tell you know what I do know, the snakes in government the banks, the lot of them, have no interest in solving the situation. sorry, sorry, actually they will talk about doing something about it, talking indefinitely, to make it look like they actually give a sh*t, but I judge on action, not words!! Id be taking action into my own hands if I were you op... I wish I was in your position...

Wait if you're not in a hurry. We bought an own door 3bed duplex apt with backgarden 3 years ago. We were a bit in a hurry, landlords problems with banks, high rents everywhere etc. there was nothing available or affordable so are happy, but if we could, we would've waited another year or two.
Dont forget about other costs associated with apt living like management fees. If there are lifts involved, fees could be as high as 3k pa. It might be very hard to sell later

lets take your example, I am assuming the same property that you are in, would cost how much more now? you probably have a good idea... the extra interest on this two year increase also needs to be factored in...

CandyButcher

Idbatterim wrote: »

Id be taking action into my own hands if I were you op... I wish I was in your position..

Is this directed to me ? If so what do you mean take action into my own hands ?

Having just had a quick browse on daft.ie I noticed average apts north Dublin are 200k + while a standard 3 bed house is going for 280k

Do houses generally have better resale value than apartments ?

Idbatterim

CandyButcher wrote: »

Is this directed to me ? If so what do you mean take action into my own hands ?

Having just had a quick browse on daft.ie I noticed average apts north Dublin are 200k + while a standard 3 bed house is going for 280k

Do houses generally have better resale value than apartments ?

as in, if the right property came up at the right price, I would probably just buy. what is your budget op? sharing in a house would probably a lot easier than sharing in an apartment, particularly if there is an ensuite and you have a separate living room down stairs...

one thing if you are looking at north dublin, if you believe it, is that they are looking at routing options for the "new metro north" now, if you bought there, and it turns out it runs within walking distance to the house, I reckon that would boost the house price quite considerably...

CandyButcher

Idbatterim wrote: »

as in, if the right property came up at the right price, I would probably just buy. what is your budget op? sharing in a house would probably a lot easier than sharing in an apartment, particularly if there is an ensuite and you have a separate living room down stairs...

one thing if you are looking at north dublin, if you believe it, is that they are looking at routing options for the "new metro north" now, if you bought there, and it turns out it runs within walking distance to the house, I reckon that would boost the house price quite considerably...

Thats very true about sharing a house rather than an apartment with an ensuit. My mother rents rooms and the tenants dont even have access to the living room so I could definitely live with that.

My budget atm is a 175,000 mortgage loan + my 60 would bring me up to a 235,000 budget. Seems id need another 60k on top to get a decent place which if all goes well in my job another 3 years of savings just to bring up my budget house wise.

LirW

Have you looked at Silverbanks in Baldoyle? Might be of interest because the 2bed units seem to be very spacious.

__..__

Idbatterim wrote: »

as in, if the right property came up at the right price, I would probably just buy. what is your budget op? sharing in a house would probably a lot easier than sharing in an apartment, particularly if there is an ensuite and you have a separate living room down stairs...

one thing if you are looking at north dublin, if you believe it, is that they are looking at routing options for the "new metro north" now, if you bought there, and it turns out it runs within walking distance to the house, I reckon that would boost the house price quite considerably...

I agree. If you buy within walking distance of the metro North route, then if it ever appears I think you can see a doubling of the value of your property. But metro North has been coming for a long time.