Converting attic or buying a new investment property

H

hakouna

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Converting attic might cost me around 30K , to add a good living space at home which I am not desperate for , but will help when I get visitors .
Or better buy a 2 bed apartment to rent out and might cost me around 80K deposit .
Clearly they are 2 different games and huge cost difference , few things to consider:
- I can afford the deposit of the investment property
- Not planning to sell my house in the future
- I was looking into the option of holiday home in the sun but though getting an investment property in Ireland would give me more flexibility with holidays options
- I was a landlord for 10 years up to last year and sold it at cost.

I am looking for the best investment option on the long term and best use of cash , knowing that converting attic will have no investment gain

Thanking you in advance for your advice
hak
 
I converted my attic a 3 years ago and have it rented out since under rent a room. It might be worth adding into your list of options.
It depends on your location but might be an option. I was hesitant initially as we weren't mad about having strangers in the house.
But now, I'll keep on doing it forever (or until the government do something to shag it up).
And just doing the sums here now, it's paid for itself (very back of the envelope calculations)
 
hakouna said:
I am looking for the best investment option on the long term and best use of cash , knowing that converting attic will have no investment gain
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If the attic conversion doesn't have any investment gain (other than maybe boosting the potential resale value of your home) then surely you're comparing apples with oranges here? I'm not really sure what sort of advice/opinions you're looking for...
 
Your question is like - "What will I have for dinner tonight and where should I go on holiday?"

They are pretty much unrelated.

If you want to invest in a property, go right ahead. Most landlords are leaving the market. And you left it last year but now want to get back in again.

Sounds as if you are not really thinking about these issues.

Brendan
 
Thanks for your feedback .

Apologies if I didn't make my request clear enough. As part of my OP , I was looking for best use of cash , qwerty5 kindly advised with renting out the attic , which is great idea but not so sure about having a stranger at home , unless I make a dedicated entrance to attic
I did quite the renting market as interest on mortgage was decreasing and I was not able to claim enough expenses , but with new mortgage that will be possible
 
hakouna said:
but not so sure about having a stranger at home , unless I make a dedicated entrance to attic
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Could be complicated if the current home is a 2-story. Living space on a 3rd floor, including converted attics means extra fire insulation protections are required on the stairwells along with more stringent escape requirements. Without these you're risking a refusal of insurance cover in the event of a claim.
 
Brendan Burgess said:
Your question is like - "What will I have for dinner tonight and where should I go on holiday?"

They are pretty much unrelated.

If you want to invest in a property, go right ahead. Most landlords are leaving the market. And you left it last year but now want to get back in again.

Sounds as if you are not really thinking about these issues.

Brendan
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This is an unhelpful remark. To my mind the OP was pretty clear.

Given two options, whats best use of my cash.

To the OP, I would simply say that they are two very different options that you are considering and there is a lot to weigh up regarding each. In particular, imo, one of the biggedt things to consider is are you ok with prospect of being a landlord again?

Other big consideration, how much do you want or need attic conversion. As i said though, theyre two very diff options.
 
jim said:
This is an unhelpful remark. To my mind the OP was pretty clear.

Given two options, whats best use of my cash.

To the OP, I would simply say that they are two very different options that you are considering and there is a lot to weigh up regarding each. In particular, imo, one of the biggedt things to consider is are you ok with prospect of being a landlord again?

Other big consideration, how much do you want or need attic conversion. As i said though, theyre two very diff options.
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They are indeed 2 different options , and each comes with its own cost . Being a landlord nowadays is becoming more difficult with very aggressive market but on the other hand money sitting in the bank with almost no interest. I am not into stock market and shares investment .
Having some experience being a previous landlord might help with avoiding basic mistakes
 
hakouna said:
I did quite the renting market as interest on mortgage was decreasing and I was not able to claim enough expenses , but with new mortgage that will be possible
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This was a fairly basic mistake but you don't seem to have learned from it. Decreasing interest and expenses mean increased profit, not a very good reason to quit. Especially now that you are thinking of going back, with all the expenses of exiting and re-entering.
 
llgon said:
This was a fairly basic mistake but you don't seem to have learned from it. Decreasing interest and expenses mean increased profit, not a very good reason to quit. Especially now that you are thinking of going back, with all the expenses of exiting and re-entering.
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There were multiple reasons for quitting last year and that was one of them.
 
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