Buying vs Building Question

Piranha510

Registered User
Messages
6
Hello,

Some info first:
I am 32 years old
Permanent job on €49 000
Savings of €43 000
Renting a shared house now at €300 a month.

Long term I would like to buy a site and build a house. I simply cannot afford that now, on my own. A site here is €50 000. Build costs of €200 000. I do not like the idea of that level of debt on my own.

I can buy a three bed semi detached for €130 000 here in town. I would like to buy my own house in the next couple of months.


Should I:

1. Keep renting.

2. Buy the three bed semi detached house. Put a large amount of my saving into it, keeping the LTV below 80% and get a lower mortgage rate.

3. Buy the three bed semi detached house.Put the least amount on money into it and keep as much of my savings as possible. Keep saving so I have enough money to buy a suitable site if one comes up in the next year or two.

4. Any other ideas people have??


Also, when it comes to mortgages which bank would people reccomend? The view on here seems to be to go for a variable rate mortage. From researching around the internet:

KBC - seem to have really good rates (3.75% APR on LTV of below 80%). I do not know much about them as a bank though. Are they decent?

Ulster Bank - Ok rates and €1500 towards legal fees

AIB - OK rates, and seem to be promising to cut rates in future

BOI - High rates, seem to be treating their customers pretty badly

Any help would be great. I'm new to all this finance stuff but this website is a great resource to learn things from.

Thanks
Conor
 
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