Starting out on the property ladder

ThreeKings

New Member
Messages
1
Age: 32
Spouse’s/Partner's age: 31

Annual gross income from employment or profession: €80,000 + yearly bonus ( approx. €5k/€7k)
Annual gross income of spouse: €48,000

Monthly take-home pay. €4,100, partner €2,800
Type of employment: e.g. Private & Semi State

In general are you:
(a) spending more than you earn, or
(b) saving?
Saving €2,000pm & partner saves €1,000pm

Rough estimate of value of home. Renting, €800 per month (sharing house)
Amount outstanding on your mortgage: n/a

Other borrowings – car loans/personal loans etc: Neither of us have any loans
Do you pay off your full credit card balance each month? Neither have credit card

Savings and investments:
€70,000 savings account
Partner: €10,000 savings account

Do you have a pension scheme? Yes, €35,000 pot (7% contribution. Employer contributes 14%). Partner €8,000 pot ( 5% contribution, employer 5%)
Do you own any investment or other property? No

Ages of children: None
Life insurance: Yes 3 times salary for both through work


What specific question do you have or what issues are of concern to you?

  • I had planned to buy a house at home in Clare this year and commute to Dublin when required approx. 2 days a fortnight for work. But due to a large piece of work that I now need to be on site for this isn't possible for another 1.5 years.
  • I'm now considering buying an apartment in Dublin for €250k and leasing one of the rooms to a friend for €700pm who would be interest. In 1.5 years I would then rent out the apartment approx. €1,800 pm and purchase a house in Clare approx. €400k.
  • Am I putting myself under unnecessary financial pressure buying the apartment in Dublin when our rent is currently very reasonable or would this be a wise investment.
  • Or should I just concentrate on buying the home in Clare and move surplus savings to my pension.

It would be great to get any opinions on the above.
Thanks!!
 

misemoi

Registered User
Messages
251
How certain are you that the 1.5 years will be that length?

What plans do you have in place for children?

Where will your partner work?

How long term is your potential for remote work, day if you changed jobs? How likely is it that you would find work in Clare?
 

time to plan

Registered User
Messages
360
First thing I would ask myself is: How much do I want to be a landlord.

I have a friend who funnily enough lives in Clare and has kept her flat in Dublin to lease out. She is very canny financially and likes being a landlady, but it's not for everyone.

If it's what you really want to do, then I would work though the financials of your plan against a counterfactual plan (e.g. pension). What I wouldn't do is follow the plan you outline if I didn't really want to be a landlord.
 

NoRegretsCoyote

Registered User
Messages
3,486
Life insurance: Yes 3 times salary for both through work

These seem on the high side given that you have no children or property. Both of you would be financially comfortable without the other. When you buy a house you will have to take out life assurance for the mortgage anyway so I would cancel the existing polices then.

Otherwise the word "I" appears five times and the word "we" not at all. Are you planning on making these purchases on your own or together?
 

PebbleBeach2020

Registered User
Messages
316
Under no circumstances enter the world of being a landlord. Look around you. Landlords are leaving the market for very good reason. Government interfence, tenancies of indefinite duration, why oh why would you want to go down that route?!!!

If you buy the apartment and then look to buy a place in Clare for say 300k then as a second time buyer you will need a deposit of 60k (i.e. 20%).

My advice is keep renting until you can buy where u want to live. Pump you money onto the pension pot. Stay the hell away from being a landlord.
 

Coldwarrior

Registered User
Messages
379
These seem on the high side given that you have no children or property. Both of you would be financially comfortable without the other. When you buy a house you will have to take out life assurance for the mortgage anyway so I would cancel the existing polices then.
It's through work, unless I'm mistaken he/she isn't paying for it themselves.
 

Thirsty

Registered User
Messages
3,649
I'm now considering buying an apartment in Dublin for €250k and leasing one of the rooms to a friend for €700pm
Do this. The mortgage less 700 will likely be cheaper & your own space more comfortable than anything you could rent.

But sell the apartment when you are ready to buy your home in Clare.
 
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