Moneymakeover First-Time Buyer Looking for a Financial Sense Check

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PiggyBankPirate

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Hi everyone,

Hope this is the right place to post this. I’m mainly looking for a sense check on whether I’m heading in the right direction financially and whether there is anything obvious I may be overlooking.

Age: 28
Annual gross income from employment: €70,933
Additional income: Approximately €8,000–€12,000 gross per annum from freelance work. This income is declared annually through my tax return.

Monthly take-home pay: Approximately €3,500–€3,700 plus variable freelance income.

Employment: Permanent public sector employee.

Debt: None. No loans, car finance or credit card debt.

Savings and investments:

Approximately €30,000 in cash savings

BOI MortgageSaver account with a €1,000 monthly direct debit

AVC contribution of €100 per month to the Cornmarket Public Sector AVC Scheme (Adventurous Fund)

Pensions:
Member of the Public Service Pension Scheme

AVC contributions through the Cornmarket Public Sector AVC Scheme (Adventurous Fund)

10 qualifying years of UK National Insurance contributions from previous employment in the UK. I intend to continue making voluntary Class 3 contributions towards a full UK State Pension entitlement.

Do you own any investment or other property?
No.

Property
I am considering purchasing a new-build two-bedroom apartment priced at €365,500.

My anticipated funding would be:

Help to Buy: €30,000
Own savings: approximately €30,000 currently
Gift from parents: €15,000
Mortgage: approximately €290,000–€295,000

In terms of borrowing capacity, my current salary is €70,933. I am due my next salary increment in September and will also benefit from the recent 1% public sector pay increase. Based on discussions with my mortgage broker, I expect this to increase my borrowing capacity from my current approval level and bring me into the region required for the purchase by the time of drawdown.

I currently live at home and pay no rent, which has enabled me to save aggressively over the last few years. I have no significant financial commitments.

The apartment is located in a desirable area of Cork and is the type of property I could see myself living in for many years. I genuinely prefer apartment living and, while nobody can predict future property values, I believe the location has good long-term fundamentals.

The development is not expected to complete until early 2027, so I would not anticipate drawing down a mortgage until approximately January/February 2027. I therefore expect my savings position to improve further between now and drawdown.

I have also recently opened a BOI MortgageSaver account and set up a direct debit of €1,000 per month with the intention of qualifying for the MortgageSaver bonus at drawdown.

I appreciate there are always different approaches to personal finance, but I’m mainly looking for feedback on whether there are any obvious weaknesses in this plan that I may have overlooked.

My aim is to make a financially responsible decision rather than simply justify the purchase. I’ve tried to think through affordability, cash flow, retirement planning and longer-term goals, but I know it’s easy to miss something when you’re close to a decision.

My questions are:

Does this plan seem sensible, or are there any obvious risks or blind spots I may be missing?

Assuming the purchase proceeds, what would you consider the most sensible next financial step?

Thanks in advance for any thoughts or suggestions.
 
PiggyBankPirate said:
I am considering purchasing a new-build two-bedroom apartment priced at €365,500.

My anticipated funding would be:

Help to Buy: €30,000A
Own savings: approximately €30,000 currently
Gift from parents: €15,000
Mortgage: approximately €290,000–€295,000
Click to expand...

all seems reasonable. I would stop making AVCs for the moment and accumulate cash. You will want a bit of decoration and furniture. At 28, you have plenty of time to save for a pension.

How much are you mortgage approved for? borrow as much as possible and keep some cash for unanticipated expenses.

BoI is generally an expensive lender. check out AIB and Avant to see if they offer you a better deal at the time of drawdown.
 
well done, you are in a good position & have made the most of your opportunities.

Second the rent-a-room suggestion, its a no-brainer in your position: 2 years will fly by & you'll have knocked nearly 30k off your mortgage.

Personally, I'd be throwing everything at the mortgage & get it paid down as much as possible.
 
Brendan Burgess said:
all seems reasonable. I would stop making AVCs for the moment and accumulate cash. You will want a bit of decoration and furniture. At 28, you have plenty of time to save for a pension.

How much are you mortgage approved for? borrow as much as possible and keep some cash for unanticipated expenses.

BoI is generally an expensive lender. check out AIB and Avant to see if they offer you a better deal at the time of drawdown
Click to expand...
Thanks for the feedback.

I’m currently approved for €283,000 but expect that to increase to around €295,000 when I reapply after my next salary increment. The apartment I’m looking at is an A-rated new build, so I’m planning to maximise the mortgage and keep some cash available for furniture, appliances and any unexpected costs rather than putting every euro into the purchase. I am also very fortunate that my family are willing to bridge the gap with whatever that may be.

I take your point on AVCs. I’ve only recently started them and may pause them until after the purchase to build up a larger cash buffer.

Interesting comment on BOI. I recently opened a MortgageSaver account with them and was surprised to see their current EcoSaver rates looking quite competitive for A-rated properties, but I’ll definitely compare BOI, AIB, Avant and any other options closer to drawdown rather than committing to one lender now.
 
@PiggyBankPirate , well done, you are doing pretty much everything right financially. Now it is a case of "more of the same".

Some general comments:
- there are a lot more costs involved in buying. Soliciors, furnishing, flooring, curtains/blinds and white goods depending on the spec for the apartment.
- You are young, take the full 35 year term and overpay as you see fit. Don't lock yourself into a shorter term for no reason
- With your figures, you should be getting a rate of 3.1-3.3%
- With an apartment, you'll have management fees. Make sure you know what these are before purchasing

PiggyBankPirate said:
The development is not expected to complete until early 2027, so I would not anticipate drawing down a mortgage until approximately January/February 2027
Click to expand...
Are they still available? It's not uncommon for new builds to be sold out 12-18 months before completion. Your finances are in good shape so if you haven't already done so then now is the time to reach out to the estate agent and get a holding deposit on an apartment
 
Would you not consider buying into an older development where issues have been discovered/ established and remedied?

Sound transference between apartments is a critical one. Nothing worse than hearing your next door neighbours conversations or hearing them plug in their chargers.

What % is to be given over to social housing?

If you do go down a well established complex. Understand if there are issues with
Fire certs
Roof
Sinking funds
Anti social behaviour.

Whats the % of owner occupier v renters. Much better if higher % of owner occupier.
 
You should stop the AVC for now and build a bigger cash pile.

Is there a lift in the building? Does the builder have a good reputation. How many bathrooms? You should definitely do Rent a Room, and for that 2 bathrooms would be ideal. For the money you’ve mentioned I’d recommend a house over an apartment.
 
Lots of talk here about rent a room. Could you get a three bed apartment? That'll give you a second room (for guests or WFH) while still renting out a room.

What are the public transport links like in the area? Could be a pain living there if it awkward for getting to work.
 
Thanks everyone for the replies and the different perspectives.

A few people mentioned that there is no guarantee I’ll actually secure the apartment, which is completely fair. I’m registered with the developer, have been in regular contact regarding the sales launch and am trying to be as prepared as possible, but obviously nothing is guaranteed until contracts are signed.

The development is a new-build apartment scheme in Blackrock, Cork, with completion expected in early 2027, which is why I’m targeting a drawdown around January/February.

A number of posters raised apartment-specific concerns such as sound insulation, management fees, owner-occupier ratios, social housing and the overall quality of the development. These are all valid points and things I will be investigating carefully before making any commitment.

In relation to a couple of those points, the developer has advised that the apartment block is intended to be owner-occupied and that there is no social housing within the development.

One of the main reasons I am focused on this particular development is the location. Blackrock is generally regarded as one of the most desirable areas of Cork. The development is close to the Marina, Blackrock Village and Mahon Point, within walking distance of the Marina Promenade and only a short drive from the city centre. As someone who works in Cork, the location is a major attraction.

I did consider houses as well and will continue to keep an eye on the market. However, many of the houses that come up for sale in the areas I would ideally like to live in are often significantly more expensive, regularly selling well above asking price and, in many cases, are older properties requiring substantial renovation or modernisation. The appeal of this development for me is that it is a modern, low-maintenance new build in an area I would genuinely like to live in long term.

The plan would be to avail of the Rent-a-Room scheme initially. The apartment is a 2-bed, 2-bath unit and I think having a lodger for the first few years would make a lot of sense from both a financial and practical perspective.

One point I hadn’t really considered before posting was the possibility of a 3-bed property. I don’t work from home, so I hadn’t seen a major need for the additional room, but a few posters have made a good point regarding long-term flexibility. Even having a dedicated guest room or spare room while still availing of the Rent-a-Room scheme could be beneficial, so it’s certainly something I’ll keep in mind when looking at options.

Thanks again for all the advice. It’s given me a number of additional points to investigate before making any final decision.
 
If doing rent a room, look for an apartment style that has the two bedrooms well separated. If its the development I think it is, Wagtail & Lark are the two that the layouts have the 2 bedrooms apart. Almost all of the others have them side by side.

Gives better privacy and less annoying if one is a snorer.

3 bed is likely out of the price bracket.

The social housing element is in a different block within the larger development
 
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