Are you eligible for Help-to-Buy, and if so, how much?Hey thanks for response. Yes, total cost €420k includes all transaction - house cost, Solicitor, stamp duty, furniture, flooring, survey, etc.
Mortgage term = 35 years. first 48 months 3.65 %.
Mortgage repayments - €1432 + €120 (mortgage protection, life insurance, bins & any other cost) = €1552.
I'll rephrase this post and post in Money makeover for feedback.
Thank you so much for pointing me in right direction.
Hey. Thank you for response. I am an immigrant and want to go back to my country because of family responsibility. I am in Dublin from last 5 year and recently married. My plan is to stay here for 5-7 more year from 2024 and go back home to look after my family. I am thinking of buying house just to avoid high rent burden.Saving ~EUR37k over 7 years on new houe costs over renting.
Why 7 years? why not say 25 years when you're kids leave for example? Is something projected to happen in 7 years that will force a move?
You're number may come out very different & as such the decisions you make if the 7 year number turns out to be 12 or 15 or 20 years.
Yes. I am eligible to help-to-buy scheme (€30,000).Are you eligible for Help-to-Buy, and if so, how much?
What is the mortgage amount you will be borrowing?
Don't underestimate the non-mortgage costs of owning a home such as property tax, mgmt fees, wear and tear replacement, and TV licence(!). Usually still makes sense to buy all things being equal.
Lot of unknowns to think about also such as what will happen over the next 7 years to (i) house prices in your area, (ii) rent prices and (iii) Irish bank mortgage rates.
Thank you for response. commute is 45 -50 minutes city center in morning by car and 1 hour 20 minutes to office by public transport . I work 2 days from office and remaining from home. If things turn worse - I am in my late 20's and can work hard to get back things on track again with new skill sets in IT /computers. My wife is also in her late 20's so we both can work part time in tesco/lidl or anywhere to get things on track.What is your commute like? Do you know the area (seem to have done your homework)? How would you feel about living there for 15 years if things took a turn for the worse? Financially what you're proposing seems reasonable / not overly risky... but if you're commuting 1.5 hours then I'd caution against this.
Your attitude is a breath of fresh air and a contrast from what can consume the doom and gloom narrative these days about people in their 20's.Thank you for response. commute is 45 -50 minutes city center in morning by car and 1 hour 20 minutes to office by public transport . I work 2 days from office and remaining from home. If things turn worse - I am in my late 20's and can work hard to get back things on track again with new skill sets in IT /computers. My wife is also in her late 20's so we both can work part time in tesco/lidl or anywhere to get things on track.
Out of curiosity, how did you get the data pulled out from the property price register, especially the way you are able to filter by new/second-hand?Yes. I am eligible to help-to-buy scheme (€30,000).
Mortgage amount is €3,40,000. Honestly I am considering non-mortgage cost while buying a house.
About prediction of price after 5-7 years.
I did analysis on property price register dataset. I considered unit sold, average price per unit, price difference and trend, rent price.
Based on my calculation If situation is same then price for new build in this area will be €452,201.98 for same house. and old house will be €399,568.33.
To support this I also checked price difference for Kilcock & Manyooth area. I can see almost same trend. If situation is changed then I am assuming that I might be able to sale it for around €380k - €390k Turn key.
I am almost sure that after 5-7 years I'll save almost €40,000 - €45,000 on rent if i buy house.
I might be wrong in my calculations and any thoughts much appreciated. View attachment 7906
Thank you for your giving time to read my comments and responding with such lovely way. Really appreciatedYour attitude is a breath of fresh air and a contrast from what can consume the doom and gloom narrative these days about people in their 20's.
Logic seems correct, and all things being equal you would likely save €70-75k over the 7 years on account of the €30k Help-to-Buy you will have as equity in the home when you go to sell.
A further option to increase your wealth by Year 7 would be to avail of the Rent-a-Room relief, where you can earn up to €14k tax free per annum.
Best of luck with everything.
You can download all data from 2010 from property https propertypriceregister.ie Please see screenshot.Out of curiosity, how did you get the data pulled out from the property price register, especially the way you are able to filter by new/second-hand?
Thank you for responding. It make sense to go for 3 bed house for this particular duration.Forget about trying to forecast house prices.
Assume zero change in price.
Take interest cost - circa 80k over 7 years
Add non redeemable costs - legal fees for purchase, legal fees and agent fees for selling.
Add maintenance costs.
Circa €110k over 7 years. About €1300 a month.
Add any additional costs such as transport compared to where you are living. For arguments sake €200-€300
So "saving" €400-500 per month.
If you sell in 7 years for 30k less than you bought, you'll be ahead. Excluding any grants.
In addition you gain from certainty and not worrying about increase in rent, landlord selling etc.
So probably falls on the positive side when you add all the parts together.
Yes but without the flexibility of being able to move and with the risk of a fall in house prices?So "saving" €400-500 per month.
Thank you.Yes but without the flexibility of being able to move and with the risk of a fall in house prices?
Is it worth it? I would say yes in the OP’s case. But consider the risks as well as the benefits.
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