Wishing to trade up. What are the options?

[Dinarius]

A friend has a mortgage on a one bedroom apartment, without a parking space, in Inchicore, Dublin.

Apartment value: About €250k.

Equity in apartment (assuming the above price): €110k

Mortgage: €650 per month.

Achievable rent: About €850 per month.

Salary: €40,000. Single. No kids. Very secure job.

He would like something bigger and more central.

He would sell the apartment if necessary, or rent it and use the equity to borrow.

He is not averse to a longer term mortgage initially in the belief that, in the future, he would be able to increase repayments and reduce the term.

What is the best way to improve his lot?

Rent the apartment and buy/rent elsewhere?

Sell it and buy elsewhere?

Sell it, deposit the money and rent until the inevitable (yes, I know, I know!) correction comes?

Many thanks.

D.

 

[WizardDr]

He would do well if a lender will give him enough to buy another place and keep the one bed.

The advice on apartments might be that a 2 bed is better for renting and selling in the event of any correction. (Correction will only come because of interest rate rises... who knows?).

What would help: what facilities will pal get with the equity?

 

[Dinarius]

What would help: what facilities will pal get with the equity?

Indeed. In combination with his salary of €40k, what will €110k in equity get him?


D.