Buying a house now but not moving in for a few years

I live abroad currently and am likely to do so for another 4-6 years, but one never knows.

I have identified a house I like in a town I like. It's a new build and I can buy it for cash.

I am wondering what are the headaches associated with buying a new house and leaving it vacant for a few years, in terms of deterioration of the house or other considerations.

Yes, I could wait, but there's a lot of peace of mind associated with having a house bought and paid for.

I could also fill it with tenants but the hassle of that is a little offputting.

Opinions?

Rows Grower

Tomalak wrote: »

I live abroad currently and am likely to do so for another 4-6 years, but one never knows.

I have identified a house I like in a town I like. It's a new build and I can buy it for cash.

I am wondering what are the headaches associated with buying a new house and leaving it vacant for a few years, in terms of deterioration of the house or other considerations.

Yes, I could wait, but there's a lot of peace of mind associated with having a house bought and paid for.

I could also fill it with tenants but the hassle of that is a little offputting.

Opinions?

Crazy to leave a house idle for a few years, there will be no air flow through it and no heating turned on.

Google is your friend.

Experience_day

Tomalak wrote: »

I live abroad currently and am likely to do so for another 4-6 years, but one never knows.

I have identified a house I like in a town I like. It's a new build and I can buy it for cash.

I am wondering what are the headaches associated with buying a new house and leaving it vacant for a few years, in terms of deterioration of the house or other considerations.

Yes, I could wait, but there's a lot of peace of mind associated with having a house bought and paid for.

I could also fill it with tenants but the hassle of that is a little offputting.

Opinions?

I'm sure there must be an arrangement with a letting company to let it out for 6 months at a time? If central there are probably tech people that are moving across on short contracts so you don't get tied into the usual pitfalls?

Water John

Once its dried out properly, not a great problem. Any chance of you using it for a break or two in the year?

carq

bad idea .
House prices will likely fall in a few years.
Why not wait?

How far will you be from the house ?

Thoie

A lot of house insurance policies have lines about "house must not be unoccupied for more than 30 days" or things like that, so you might need to try find special insurance.

It would make sense to me to turn off the mains water to the house, but then that probably means you couldn't have the central heating ticking over, so there's a toss up there. Things like traps under sinks would dry out if water isn't run down them regularly, which could lead to sewerage smells coming back up into the house.

If it's obvious the house is empty, it may become a target for anti-social behaviour - the local teenagers might fancy a "private" garden to hang out in, even if they don't try to access the house itself.

If there's a built in dishwasher, the seal could dry out and perish if it's not used from time to time, meaning you'd need to replace it when you move in.

If you're going to leave it completely empty, you'd really want to arrange to have someone visit it every few weeks and do a walk around. For example, if there was roof damage, and water was getting in, you don't want to find out about it 6 months later.

While letting it out might be a bit of hassle, it might be better for the house in the long run. 6 month lets as suggested below might work for you, but you'd need someone on the ground to manage that.

GooglePlus

Thoie wrote: »

A lot of house insurance policies have lines about "house must not be unoccupied for more than 30 days" or things like that, so you might need to try find special insurance.

It would make sense to me to turn off the mains water to the house, but then that probably means you couldn't have the central heating ticking over, so there's a toss up there. Things like traps under sinks would dry out if water isn't run down them regularly, which could lead to sewerage smells coming back up into the house.

If it's obvious the house is empty, it may become a target for anti-social behaviour - the local teenagers might fancy a "private" garden to hang out in, even if they don't try to access the house itself.

If there's a built in dishwasher, the seal could dry out and perish if it's not used from time to time, meaning you'd need to replace it when you move in.

If you're going to leave it completely empty, you'd really want to arrange to have someone visit it every few weeks and do a walk around. For example, if there was roof damage, and water was getting in, you don't want to find out about it 6 months later.

While letting it out might be a bit of hassle, it might be better for the house in the long run. 6 month lets as suggested below might work for you, but you'd need someone on the ground to manage that.

Definitely do this, you don't know what way temperatures could go during the winter, which could lead to frozen and burst pipes.

Some insurance companies have specific policies for unoccupied homes, which work out more expensive.

Why not leave it in the hands of a letting agent, with an agreement that the house needs to be vacant by a certain time?

C3PO

I understand where you are coming from but there is little doubt that house prices will fall at some stage over the next 4-5 years and you will be able to buy a similar house for less money and without the worries of leaving it unoccupied!

ELM327

Rent it out?

Xterminator

D you not have a family member that could rent it from you at way below market rates, in return for managing upkeep? You could pop that few bon into a savings account and use for any upkeep issues etc and hopefully have a surplus when your ready to move in.

buying now VS later is a gamble. But with interest rates as low as they are and return on savings almost zero, its a small gamble. If you left your savings in the bank the euro could easily fall 5-10% and inflation could take a % of your savings, while house prices are by no means certain to fall. if you do buy the house in the worst case scenario your house is worth what 5-10 % less? BuIts still the same house in the same location

The key seems to be if you can make a plan for the house and with a limited rental income you will be just fine. If you rent to a family member it should reduce the risk of overholding and defaulting etc, or any need to evict!

Eric Cartman

carq wrote: »

bad idea .
House prices will likely fall in a few years.
Why not wait?

How far will you be from the house ?

+1 , with the way the business cycle always works, there are always dips and as a cash buyer OP is immune to mortgage approval. You could get a lot more house for your money by holding off for a wobble in prices.

Water John

The OP has identified a house he likes, in a town that he likes and he has the cash. Go for it.
Prices up or down really don't come into it for him. He has ticked all the boxes for himself. What he does to maintain the house is a minor concern that can be overcome. Thoie, has a very good post on that.
Letting through a management agency is one option. Other options have been suggested above.
Some will see this as daft but, a voluntary org or charity might have need of a house or premises. They maintain/occupy it for the time.

C3PO

Water John wrote: »

The OP has identified a house he likes, in a town that he likes and he has the cash. Go for it.
Prices up or down really don't come into it for him. He has ticked all the boxes for himself. What he does to maintain the house is a minor concern that can be overcome. Thoie, has a very good post on that.
Letting through a management agency is one option. Other options have been suggested above.
Some will see this as daft but, a voluntary org or charity might have need of a house or premises. They maintain/occupy it for the time.

If recent experience has taught us anything it’s that prices will fall as sure they will rise! It’s make no sense for the OP to buy right at the top of the market given that he doesn’t intend to live in the house for a number of years and renting it is a potential nightmare! When the market softens there will be plenty of similar houses available in the town of his choice ... guaranteed!

Water John

Except for the 2018 crash, when have house prices dropped?
Really don't think it applies to the OP, his priority boxes are ticked.

C3PO

Water John wrote: »

Except for the 2018 crash, when have house prices dropped?
Really don't think it applies to the OP, his priority boxes are ticked.

We’ll just have to agree to disagree! To me it makes no sense for the OP to buy given the current uncertainty and the likelihood of an imminent recession. If he was planning on moving in and living there I would say go ahead but to buy and possibly leave it sitting empty or try to manage a long distance rental for 4-5 years ... no thanks!

Water John

Well I conclude that you cannot provide the evidence that house prices are cyclical and have dropped anytime prior to 2018.

sbsquarepants

In these days of all time high rents, why would you conceivably leave it empty for 4 years? That's 62k at the average rent!

cruizer101

C3PO wrote: »

When the market softens there will be plenty of similar houses available in the town of his choice ... guaranteed!

Not necessarily, there probably will but without knowing the town or the type of house it is impossible to say. If the house is exactly what the OP wants I don't see why they shouldn't buy.

I do think leaving it empty is the wrong thing to do mind, far better to rent it in some way.

Thoie

sbsquarepants wrote: »

In these days of all time high rents, why would you conceivably leave it empty for 4 years? That's 62k at the average rent!

Some people (like me, and apparently the OP) just don't want the hassle of being a landlord. That €62k a year quickly dwindles down with taxes, upkeep and potential hassle. I sold a place in Dublin a few years ago at a time when everyone was suggesting I rent it out instead. Being a landlord requires a non-zero amount of time and energy. With an agent, that time may approach zero, but it's never zero.

C3PO

Water John wrote: »

Well I conclude that you cannot provide the evidence that house prices are cyclical and have dropped anytime prior to 2018.

Apart from 07, 08, 09, 10, 11 and 12 prices also dropped in 1987 according to Money Guide Ireland.
We have never had an event like Brexit in recent history and I would argue that it could lead to significant property price drops - we simply don’t know! It would make no sense for the OP to purchase a house in Ireland when he has no immediate requirement to live in it!

yaboya1

C3PO wrote: »

IIt’s make no sense for the OP to buy right at the top of the market given that he doesn’t intend to live in the house for a number of years and renting it is a potential nightmare!

How do you know it's the top of the market?

listermint

Thoie wrote: »

Some people (like me, and apparently the OP) just don't want the hassle of being a landlord. That €62k a year quickly dwindles down with taxes, upkeep and potential hassle. I sold a place in Dublin a few years ago at a time when everyone was suggesting I rent it out instead. Being a landlord requires a non-zero amount of time and energy. With an agent, that time may approach zero, but it's never zero.

Even with all of that it wouldnt be negative. Net positive.

The negative would be no insurer would provide the house with cover and the place will 100% fall into disrepair without occupation. - These are facts.

sbsquarepants

I'm not sure what the agent would charge, 10%?? Take out the taxes and you're still sitting on approx 30k for doing as close to zero as makes no damn odds whatsoever - plus your house is not going mouldy in the mean time.
That 30k would surely be a help when it comes time to buy some crap to put in the house upon your return to Ireland.

JoeyJJ

I wouldn't leave it unattended it will only cause issues as discussed above either socially or maintenance later on.

Prices may fall however they are not going to climb significantly above inflation. How about keeping money separate in some fixed time savings environment with modest returns and buy closer to your return, and who's to say some life changing fact where you may no want to return or you may need cash for.

the_syco

Tomalak wrote: »

but one never knows.

You may need the cash quickly some day, only to find that you can't sell the house, or that it's worth a lot less when you goto sell it.

Tomalak wrote: »

I am wondering what are the headaches associated with buying a new house and leaving it vacant for a few years, in terms of deterioration of the house or other considerations.

There are friendly people who will take any unneeded copper that you have in your house, if it's left long enough.

GooglePlus wrote: »

Why not leave it in the hands of a letting agent, with an agreement that the house needs to be vacant by a certain time?

Worse case scenario; the letting agent can walk away from the agreement if the people don't move out, leaving the OP with a house that they can't move into, as well as a legal bill to evict the tenants, and possibly further bills to fix the house should there be any damages.

joombo

I'm in the same boat. I bought an apartment in Bulgaria for sale some time ago and now I just lease it for short time visitors. I found reliable real estate service on Suprimmo.net with affordable prices. They helped me to find a perfect apartment. Anyway I think investing in property could be very profitable for the future.

pwurple

listermint wrote: »

Even with all of that it wouldnt be negative. Net positive.

The negative would be no insurer would provide the house with cover and the place will 100% fall into disrepair without occupation. - These are facts.

Or, a tenant could trash the place, and leave him with a kitchen with a chip pan damage to it, floors and paintwork destroyed, holes in walls etc etc etc.

He could also be left with a tenant that decides to squat, even if he wants it back, leaving tens of thousands of legal fees and years of hassle to get them out.

It is not without significant risk.

Getting a friend or family member to stay for a week or two a few times a year would negate the disrepair. A new build shouldn’t have too much growing up it doing damage.

beejee

yaboya1 wrote: »

How do you know it's the top of the market?

Can the average person afford further increases in housing costs?

That will tell you how near "the top" the market is. You can't get blood from a stone, and once you've reached the top there's only one direction to go, and it ain't horizontal

beejee

As for the op, my opinion is that you'd need to be stark raving mad to buy anything now. You'd be doubly mad to buy now when you don't even have a reason beyond "feeling nice"

Madness

handlemaster

Rows Grower wrote: »

Tomalak wrote: »

I live abroad currently and am likely to do so for another 4-6 years, but one never knows.

I have identified a house I like in a town I like. It's a new build and I can buy it for cash.

I am wondering what are the headaches associated with buying a new house and leaving it vacant for a few years, in terms of deterioration of the house or other considerations.

Yes, I could wait, but there's a lot of peace of mind associated with having a house bought and paid for.

I could also fill it with tenants but the hassle of that is a little offputting.

Opinions?

Crazy to leave a house idle for a few years, there will be no air flow through it and no heating turned on.

Google is your friend.

It wnt be empty for long