Am I right to buy a second house

shaneo

Registered User
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29
Hi All

I have just returned to Ireland to work, my current salary is 45,000. I already have a property in rural Clare worth 300,000 and have been paying a 190,000 mortgage on that for the last 2 years. I am making 400 per month on rental income for this house and live in this house during the weekends. I am 30 yrs old and wondering if I am making a wise move by buying an apartment now in rural Wexford near Ferns where I work. I will live in this apartment during the week and rent out the other room. I am single now but will probably be married, have kids in the next 4-5 yrs.

Apartment cost is 175,000 - I have savings of 35000-40000 so will need 145000 when expenses like stamp duty etc are taken into account. This will cost 422 per month on an interest-only mortgage. I can probably expect to make only 250-300 per month on rental income for the apartment.

My savings are mainly in the form of unit-linked funds. Am I better off cashing them in and buying the apartment, or should I use them now to pay a chunk of the mortgage on my house in Clare and save in the long term. Or should I buy the apartment in Wexford and save having to pay rent myself, and if so should I get a top-up on my current mortgage or get a separate interest-only mortgage.

Any idea would be good - I`m not too sure what is the best move
 
property-> risky investment now,especially in rural areas which would be most hit in any correction.also consider low low rental yields.consider foreign property where theres more value to be had.

diversify your investments,if you bought a 2nd property all your eggs will be in one basket.
equities are a great investment in the long term so consider leaving your savings there especially if you aint got a pension.
interest rates are going up so also consider reducing your mortgage thus reducing repayments and/or length of mortgage.
 
Thanks bb

you might be right - its just I hate paying rent - its seems like such a waste of money. i need to do a bit more number-crunching
 
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