Thank you I can tell we are clueless reading your reply ….we are 49yrs & 50yrs. Looking at apartments for around the €230 mark so we could meet the deposit requirements. Lot of info to take in thank you.What level of saving do you have?
What ages are you and your husband?
You will need a significant deposit, and the ability to pay back the full loan before 66 to even be considered for a loan.
The interest would probably be btl so higher than a ppp mortgage, boi say 5.8% on their website.
So a mortgage of €350K say with a deposit of €70K (20%), over a 17 year term, guessing age of 49, will give you repayments of €2K per month.
As well as the €70K, you will need to fees, etc on purchase, then furnish and fit it out, then cover utilities etc. and if you rent out other rooms you can only take in €14K per annum.
So can you decide if you can afford it first.
Then if child 1 and 2 go to Galway, will child 3 & 4? Or will you have 2 in Galway, 1 in Sligo and 1 in Dublin?
So will you end up with added costs? And if you decide to sell in 6 or 8 years, will you loose money (house prices can go down too). Is it an investment at the end of the day or something nice to have - a family home for your children to live together during college?
Tried to find in search bar but only found a few old threads.There are many previous AAM threads on this subject here.
Perhaps a Money Makeover would be a good idea to take the whole financial situation into account.
A back of the envelope calculation:But should we buy apartment in Galway- rather than rent.
Rent
Let’s say 10 years of paying €500 a month rent nine months a year for various kids:
Thanks. I’m not in the market and won’t be for a while.There is no university-convenient nine-month accommodation available anywhere in this country for €500 a month.
The going rate in Galway seems to start at over €700 and goes up to €1,000. Meanwhile apartments that would suit a student are rare as hen's teeth.Thanks. I’m not in the market and won’t be for a while.
Grateful if you could share an estimate so I can update calculations.
Thank you very informative & helpfulA back of the envelope calculation:
Buy
Mortgage interest of 6% on a €200k mortgage for ten years: €120k. Add maintenance costs and management fees to this. There is a risk that property prices might fall too. You could make extra money from renting it during the summer or when you have only have one kid in college in Galway. House prices might rise to hand you could make a profit which would be taxable.
Rent
Let’s say 10 years of paying €850 a month rent nine months a year for various kids: €76,500. The price is the price and there is little risk involved.
In your shoes I would buy the apartment if I had €200k sitting in the bank on deposit. If I had to borrow the same amount at 6% I probably wouldn’t take on the risk.
Only entitled to the €500 off feesHi, My youngest son went through college in Cork. He stayed in purpose built student accommodation. It was €238 for a room ensuite. Shared kitchen and living room. 24 hour heating and hot water. The academic year is 32 weeks approximately. Of all who started his course about one third did not complete or changed courses. If your combined income is €100,000 your son may be eligible for the SUSI grant.
Different kettle of fish to the OP.Many of the most wealthy Irish people I know purchase houses/apartments for their college going children. If the figures add up it can make sense.
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