Buying house before emigrating

DullSpark

I'm a tradesman in my early 30s.

I'm not on the property ladder and do not have any ties here in Ireland so am planning on emigrating at some stage later in the year.

The only thing I'm worried about is moving abroad for say 4 or 5 years and getting my first mortgage that bit older.

It doesn't look like house prices are going to ease any time soon so I'm wondering if would make sense to buy something before I leave and rent it our until I move home.

I do not plan on paying mad money for a house as I don't want to be under major pressure should the house become vacant for a few months while away.

Would any one be able to give me their advice/opinions on this?

Donald Trump

If you have no ties here, why would you deliberately give yourself a big financial one?

Maybe you will go somewhere and stay there. You might prefer to buy where you go to.

You will have additional complications related to managing the property from abroad as well as the FX risk too

DownByTheGarden

Have you not seen the stories about people renting and coming home and not being able to get thier house back to live in. Dont rent out your house in Ireland. Its just bad news at this point.

Donald Trump

https://www.boards.ie/discussion/comment/120103888#Comment_120103888

No need for the hysterics. The owner will get their house back if they follow the procedures. Ignorance of the rules are not a justification for looking for exceptions.

The more pertinent question is the one raised above which is why they would want the hassle of buying a house in a country where they may never return to if no ties

DullSpark

Have heard some stories but would hope a small background check on tenants and it wouldn't be much hassle. That said I don't how I would cope if someone decided to just stop paying rent.

I'm not sure if I could see myself moving back to Ireland for a long time if ever having lived abroad before but if it paid back the mortgage for the few years I'd be gone. Property seems to be the only real "safe" profitable long term investment I can think of at that the minute

TheWonderLlama

what makes you think a bank will give you a mortgage if you are intending to emigrate?

NSAman

Couple of things:

if you intend to move back to Ireland then it maintains that ability to move back quickly with less issues.

renting it is a NO NO!

maintenance will always be a cost as well as a mortgage if you have to.

i bought with a sibling before I left. I have also bought a renovation project. Neither have or ever will be rented. The Irish rental market is a f**king joke.

who,is to say that property will not crash again? Who is to say that there will not be a global recession? It’s a balancing act based on looking at everything worldwide. Who is to say that you might meet Ms./Mr. Right and settle abroad completely?

you have to make decisions for you, based on your choices and don’t let anyone else sway you.

yourdeadwright

https://www.boards.ie/discussion/comment/120104039#Comment_120104039

He's hardly going to tell them before he gets approved ,

dxhound2005

Just looking at the AIB mortgage application form, I think it would be unwise to conceal the information. Also to conceal it from their solicitor. And they would have to make clear that it is a Buy to Let mortgage. That would preclude them from being able to live in the house themselves if they decided to return.

https://aib.ie/content/dam/aib/personal/docs/our-products/mortgages/first-time-buyers/AIB_mortgages_application_form.pdf

I'm wondering about their claim to have no ties in Ireland, when they are living and working here.

Del2005

https://www.boards.ie/discussion/comment/120103928#Comment_120103928

It can take 2 years to evict a tenant and then there is the risk of them destroying the property for which there is no current redress.

The party most likely to win the next election is taking a very pro tenant position and lifetime tenancies are being discussed.

With the current laws you will get your property back after 2 years, with no rent paid and potential massive repairs, with the proposed laws you won't get your property back.

kippy

You might meet a significant other while abroad and never move back (as has happened to a lot I know who left after 2008)

You would probably have a less stressful life without the tie of a property here tbh and generally be in a better financial position to buy elsewhere.

Doesn't make much sense to me.

Roadtoad

Your best tenant would be a long lease to your local authority.

Turnkey from your pov.

Otherwise, have you a trustworthy and capable and local buddy/sibling to be your agent? That person should get a worthwhile of the pie.

Homer

40% of residential property sales last year was landlords rightly exiting the market. Do not under any circumstances do what you’re planning! System is fundamentally broken. Put the equivalent amount into a decent pension or investment portfolio and you’ll be fine if you decide to come back in the future.

Furze99

https://www.boards.ie/discussion/comment/120103965#Comment_120103965

The idea that buy to let property is to be a pension circulates around. But it's full of pitfalls and you could lose as well as gain. Buy to let is best viewed as a business.

Donald Trump

https://www.boards.ie/discussion/comment/120104181#Comment_120104181

As I said, no need for the hysterics.

daheff

if you are interested in buying property (or at least having exposure to the property market) there are a number of ways you can do it without buying in Ireland.

you could buy a property in the country you are moving to. You'll have to live somewhere, so why not own where you will live? Saves on rent.

you could buy shares in a REIT to the value of what you were looking to buy as a property. Not quite the same, but would give you a dividend (like rent) and possibility of capital gains.