CloudyExcel
New Member
- Messages
- 4
hello all,
We are a working couple who wants to move back to another country in a few years, say 5 years. Could you please let us know if the below calculations are correct based on a few assumptions? Breakeven seems to be around 4 years, after which it seems more sense to buy the house. Also, another question is should I invest more money in the deposit or the minimum amount in this scenario?
Joint Salary: 150K Euro, Mortgage Approved is 500K, Savings 120K,
Case 1: Rent - 2000 Euro with an increase of 4% every year ( Vantage, Sandyford)
Total Rent Paid for 5 years: 130000 Rent
Deposit Saved: 85000 Euro
We booked a 3 bedroom newbuild house in Adamstown, Dublin which is available to move in July
Case 2: Home price 450000,
Deposit 45000
Buying Cost: 40000 ( stamp duty, furniture etc)
HTB: - 30000
Effective Cost 45000
Mortgage 405,000, Interest rate 2.0% for 5 years
Scenario 1: Sell the house for 500K
This calculation is based on if we can sell the house at 500000 Euro after 5 years, The buying price is already inflated for this area and it might reduce once the market stabilizes in a few years.
if we assume the selling price to be <450000, then renting makes sense.
Scenario 2: Put the house on rental after moving to a different country -
We are a working couple who wants to move back to another country in a few years, say 5 years. Could you please let us know if the below calculations are correct based on a few assumptions? Breakeven seems to be around 4 years, after which it seems more sense to buy the house. Also, another question is should I invest more money in the deposit or the minimum amount in this scenario?
Joint Salary: 150K Euro, Mortgage Approved is 500K, Savings 120K,
Case 1: Rent - 2000 Euro with an increase of 4% every year ( Vantage, Sandyford)
Total Rent Paid for 5 years: 130000 Rent
Deposit Saved: 85000 Euro
We booked a 3 bedroom newbuild house in Adamstown, Dublin which is available to move in July
Case 2: Home price 450000,
Deposit 45000
Buying Cost: 40000 ( stamp duty, furniture etc)
HTB: - 30000
Effective Cost 45000
Mortgage 405,000, Interest rate 2.0% for 5 years
Scenario 1: Sell the house for 500K
This calculation is based on if we can sell the house at 500000 Euro after 5 years, The buying price is already inflated for this area and it might reduce once the market stabilizes in a few years.
if we assume the selling price to be <450000, then renting makes sense.
Scenario 2: Put the house on rental after moving to a different country -
Rent | Buy | |
Rent - monthly | 2000 | |
Rent for 5 years | 130000 | |
Deposit Saved | 85000 | |
Interest Saved | 38000 | |
Net | -7000 | |
Home Price | 450000 | |
Mortgage | 405000 | |
Interest Fixed for 5 years | 2% | |
Buying Cost | ||
Deposit | 45000 | |
Furniture, etc | 30000 | |
Stamp duty etc | 10000 | |
HTB | -30000 | |
Total | 55000 | |
Selling price after 5 years | 500000 | |
Balance Mortage Remaining | 354000 | |
Profit | 146000 | |
Initial Buying Cost | 55000 | |
Interest Paid | 38000 | |
Net Profit for Buying | 53000 |
Last edited: