Hello All
We are an Irish family of four based in Dubai for the past six years. Kids are both <3 years old.
We plan on staying in Dubai for another 6-9 years.
We are debt-free and have a liquid net worth of 400k, and are adding around 6.5k to this per month. This net worth is constituted entirely as investments in stock and bond ETFs, which can be sold at any time tax free -- and yes, I have verified this. My illiquid net worth is 30k employment gratuity, guaranteed to be paid out at the termination of my employment contract, and this increases by 500 euro every month.
My job is secure, and our cash flow is strong.
I have been looking from afar at house prices in Ireland march unrelentingly upwards. I am worried that despite my ability to save and build wealth, I will have to pay a fortune for a house in 6-9 years time when relocating to Ireland. My wife and I are thinking that now might be a good time to buy our future home, for cash.
We have found a very well built 4-bedroom detached house in a gated community about 30 minutes outside Dublin. The price is 400k -- which equals our entire liquid net worth currently.
We are thinking to cash-buy it now as a hedge against annual house price growth over the next decade. The idea would be to fill it with tenants in the interim, not to make an income necessarily, but rather to avoid it lying idle, so that when we do eventually move back to Ireland, we have our family home.
I am aware of the annoyances of being a landlord of a property that's 6500 miles away. I am aware that it's not optimal. But is it more optimal than paying 800k for the same house if we wait for 6+ years to buy?
- I would have to get an agency to handle the letting.
- I would have to pay tax on the house and on the rental income.
It would hurt me to put all my liquid net worth into one house, but with my savings rate I can build up a new 100k in liquid net worth after ca. 14 months.
I am looking for a sanity check here -- the pros, the cons, the perspectives I have not considered.
Thanks!
We are an Irish family of four based in Dubai for the past six years. Kids are both <3 years old.
We plan on staying in Dubai for another 6-9 years.
We are debt-free and have a liquid net worth of 400k, and are adding around 6.5k to this per month. This net worth is constituted entirely as investments in stock and bond ETFs, which can be sold at any time tax free -- and yes, I have verified this. My illiquid net worth is 30k employment gratuity, guaranteed to be paid out at the termination of my employment contract, and this increases by 500 euro every month.
My job is secure, and our cash flow is strong.
I have been looking from afar at house prices in Ireland march unrelentingly upwards. I am worried that despite my ability to save and build wealth, I will have to pay a fortune for a house in 6-9 years time when relocating to Ireland. My wife and I are thinking that now might be a good time to buy our future home, for cash.
We have found a very well built 4-bedroom detached house in a gated community about 30 minutes outside Dublin. The price is 400k -- which equals our entire liquid net worth currently.
We are thinking to cash-buy it now as a hedge against annual house price growth over the next decade. The idea would be to fill it with tenants in the interim, not to make an income necessarily, but rather to avoid it lying idle, so that when we do eventually move back to Ireland, we have our family home.
I am aware of the annoyances of being a landlord of a property that's 6500 miles away. I am aware that it's not optimal. But is it more optimal than paying 800k for the same house if we wait for 6+ years to buy?
- I would have to get an agency to handle the letting.
- I would have to pay tax on the house and on the rental income.
It would hurt me to put all my liquid net worth into one house, but with my savings rate I can build up a new 100k in liquid net worth after ca. 14 months.
I am looking for a sanity check here -- the pros, the cons, the perspectives I have not considered.
Thanks!