If I had a 100k and no debts then I actually would consider buying property.
The following is based on my own personal portfolio...
Reasonable two-bedroomed apts in Dublin city-centre (don't get a onebedroomed) are available for ca. 100k. they rent at ca. 12/13k p.a.
After insurance,maintenance and some fees they get ca. 10k p.a. pre-tax.
this is ten percent - over twice more than the best bank interest.
Now, whether they'll continue to fall in value is another matter. But decent apts in city-centre locations have stablised in sales price in the last several months.
My 4 bedroom house in top condition D.20 is worth ca. 250k -but my rental income, after costs and before tax, is,again, 10k - a return of only 4%.
But one has to consider whether well located 3/4 bed houses will gain value .A speculative matter we can't discuss.
Having said all that - I am talking about 2011 returns.
The above mentioned properties in 2006 were worth over twice today's prices -so ,in truth for me, my actual percentage returns are half what I'm quoting. But for you Happy Girlthey hold true if you buy now.
I'm very jealous of those who have ready cash to snap up real bargains that can yield a return.
I repeat -city centre, two bedroom. And I mean Dublin. I've got a 2 bed in a small rural town I can't get rid of for a third of what i paid -like Slim's post it's a pain and a money drain.
..but maybe you should wait till the Budget.Everything may change.