Purchase a home/apartment upon return to Ireland in 2 years time rather than returning to rent

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user32

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Hi, I am currently awaiting appointment to a role abroad that will last up to 2 years, this means giving up the room I'm renting in a great location in Dublin (It is not an option for me to sublet the room, otherwise I would). Financially and personally it makes perfect sense for me to take this role abroad however that is in the knowledge that I will be returning to an accomodation search approximately two years from now, after which I'm very unlikely to find as favorable a rent position as the one I'm in. I'm not originally from Dublin and hadn't ever envisioned buying property there, but it looks like it would be a better option (personally and professionally) to live there for the next 10 years or so and that makes me think I'd be better just getting on the property ladder ASAP. After these 2 years of working abroad (rent free and with additional income) I'll be turning 30 years old and hopefully in a position to get a mortgage of over 300k with approx. 50k on deposit. Based on my search through recently sold properties on Daft that doesn't open a whole amount of viable purchase options in a location I'd like to live in Dublin.

My question essentially boils down to 2 options, for now:
1. After (or during) my time abroad buy a property in the best location possible with my budget in and around Dublin, ideally with 2 rooms and coming back to live in that while offering the second out on the rent a room scheme.
2. Persevere with renting for another few years, saving my FTB privileges for when I am in a better position and preferably moving back to my home county in a different province.
 
I wouldn't get too hung up on the FTB thing. Buy when you're ready & you know where you want to live.

Rent-a-room is a no brainer, every new buyer should do it for 2 years in my view & chuck all of the rental income against the mortgage.
 
Thanks DannyBoyD, when you say know where I want to live, is there any specific timeframe to keep in mind for how long I'd like to live there? Lets say I do want to live in Dublin but its only for another 5 years, does that warrant purchasing a property in your opinion?
 
You've no way of knowing what life is going to throw at you.

By the sounds of your post, you are still pretty young yet.

Do your stint abroad; try not to get too sucked into the lifestyle thing and save as much as you can.

Then when you return home, see how things stand.
 
user32 said:
Lets say I do want to live in Dublin but its only for another 5 years, does that warrant purchasing a property in your opinion?
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5 years * 12 months * €2000 per month = €120,000 in rent over 5 years. Mortgage payments would likely be less than rent from day 1, and that's before you even factor in the rent-a-room income, which could cover a majority of your mortgage. So I'd say it does warrant purchasing.
 
user32 said:
I'd be better just getting on the property ladder ASAP. After these 2 years of working abroad (rent free and with additional income) I'll be turning 30 years old and hopefully in a position to get a mortgage of over 300k with approx. 50k on deposit.
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When you say ASAP, do you mean as soon as you return to Dublin?

You should definitely wait until you return to Dublin and not buy now, although I don't think that is what you mean.

Assuming you are going to wait two years, then don't worry about it for two years. Wait until you know what your exact plans are. After two years abroad being paid will and having no accommodation costs, you might well want to extend your stay. Or you might want to return to somewhere other than Dublin.

So forget about it until a few months before you are due to return. And you probably won't be able to get a mortgage until you are back here and working in a permanent job for 12 months.

Brendan
 
As you will be living rent free abroad it is an ideal time for you to save for a down payment for your own home. You will be back with money to purchase and from then on you will be gaining equity in your home so when you move back to your home county you will have more spending power to purchase your home.
 
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