Is this a silly idea?

copeyhagen

dont buy a one bed on a 30 year mortgage, you WILL meet someone eventually and everything wil lchange. and good luck getting a new mortgage when you have 25 years elft on a 1 bed place.

Slacky000

drunkmonkey wrote: »

If you had some way to get the cash together before getting the mortgage this could be worth looking at https://www.daft.ie/dublin/apartments-for-sale/dublin-8/15a-emmet-court-dublin-8-dublin-2031042
Looks like a bit of value size wise. Easy enough rent I'd assume.

Looks decent alright. The cash only thing is bizarre.

4ensic15

Rackstar wrote: »

You'd want to know why it's cash only. Will a bank not give a mortgage as there's problems with the apartment block?

There is title trouble with that complex. One of the blocks sold on Bidx1 a few months ago.

douglashyde

I was literally in your situation 8 years ago.

Working a well paid job and in early 20s and looking but unable to afford a 2-bed in an area I liked.

I ended up purchasing a one-bed apartment in the centre of Rathmines (prices were about 30% lower then).

I'm personally glad I got the one-bed in a central/fun/nice area instead of going for the economical option of a 2-bed.

Living alone was a lot of fun and it's likely the only time you'll ever get to do it, enjoy it.

You've done the math, it's affordable, you get one go around so buy somewhere you'll enjoy living and won't leave you spending half your day commuting.

Fast forward 8 years, I've recently sold apartment and bought a house. I personally don't think directly owning investment property is a good investment v.s. other options (REITs). Point is, assuming there isn't a massive crash in prices, you can sell the 1-bed and upgrade in 5,10,15 years.

ArtyC

Slacky000 wrote: »

Looks decent alright. The cash only thing is bizarre.

This would be a nightmare to sell and you upgrade later
Most wil need a mortgage to buy

The_Conductor

gar32 wrote: »

I done what you suggesting 12 years ago. Got a small 1 bed near the city which at the time was crazy money.

Fast forward 5 years later lost job and use redundancy to cut mortgage to €50k

2 years later married and moved to Germany.

Now renting out Dublin apartment to a couple paying 20% tax as I am a non resident.

Just finished mortgage and the rent I get covers my rent here in Germany.

I suggest going for it if you can..

If you are 'ordinarily resident' in Germany, you are subject to unlimited tax liability and must pay tax on your worldwide income, including rental income there.

Ireland has a reciprochal tax agreement with Germany- whereby you can offset the tax due on your Irish rental income in Germany- by the amount of withholding tax paid on your Irish rental income- in Ireland.

You can't just use your Irish rental income to pay your rent in Germany- though it would be nice if you could.

If you have not approached a tax specialist in Germany yet- you really need to do so- as you have an undeclared liability.

Lux23

I wouldn't do this. Find a nice place to rent in the city centre and keep your savings for when you're ready to buy a house.

Slacky000

douglashyde wrote: »

I was literally in your situation 8 years ago.

Working a well paid job and in early 20s and looking but unable to afford a 2-bed in an area I liked.

I ended up purchasing a one-bed apartment in the centre of Rathmines (prices were about 30% lower then).

I'm personally glad I got the one-bed in a central/fun/nice area instead of going for the economical option of a 2-bed.

Living alone was a lot of fun and it's likely the only time you'll ever get to do it, enjoy it.

You've done the math, it's affordable, you get one go around so buy somewhere you'll enjoy living and won't leave you spending half your day commuting.

Fast forward 8 years, I've recently sold apartment and bought a house. I personally don't think directly owning investment property is a good investment v.s. other options (REITs). Point is, assuming there isn't a massive crash in prices, you can sell the 1-bed and upgrade in 5,10,15 years.

Interesting. Glad it worked out for you, your position is similar to mine alright. I agree about it being a poor enough investment but eventually I'll need a place. Have all my money in shares at the moment. Some people think that's too risky but it has done me very well over the years.

douglashyde

I honestly wouldn't worry to much about the growth potential of your residential property, if you can afford it (within a stress tested situation) then enjoy it.

However, if you were to consider this from a different angle (investment opps) - it's difficult to find high growth / low risk assets.

Why? We're in the longest bull run (equity market) in history and likely approaching an end, personally I am bearish about markets in short term and have moved my investments (not pension funds) into gold, bonds and crypto (crypto purely because of it's risk/reward ratio pay off, not because it's safe/prudent)