Option 1 (Rent) | Option 2 (Buy) | |
Initial Time Period | 2 Years | 2 Years |
Opening Savings | €120,000 | €120,000 |
less deposit | €0 | -€60,000 |
plus additional Savings | €60,000 | €60,000 |
Closing Savings | €180,000 | €120,000 |
Rent Paid | €26,400 | €0 |
First Home Price | €300,000 | |
less deposit | -€60,000 | |
Borrowing over 30 years | €240,000 | |
Interest Accrued | €11,625 | |
Payments made (€949 p/m) | -€22,781 | |
Loan Balance after 2 years | €228,844 | |
Forever Home Price | €600,000 | €600,000 |
less deposit | -€180,000 | -€120,000 |
Borrowing over 30 years | €420,000 | €480,000 |
Interest Paid over 30 years | €164,584 | €188,096 |
Your bank may request proof that your employer will let you work remotely from Cork for a reasonable amount of the working week for you to be able to purchase as a PPR.
And possibly getting rid of the tenant when you need to move in ...
Thanks!Also add furnishing costs, rtb registration, agency fees, hassle - even with good tenants.
Then add the interest rate difference between having a sub 70% LTV versus a 80%+ LTV on your mortgage
You're in a great position now that you could go for mortgage approval, get a rate of 2.15% fixed for 7 years and keep an eye out for the property that suits you.
It might come up in the summer, or you might have to wait, but when it comes you will be in a strong position.
Should your anger and dissatisfaction be directed at the government and not people actually supplying houses? It seems the government are getting off scott free and the landlords being scapegoated as per usual.On another note......and speaking as someone who rented in another country for over 12 years, it seems distasteful to encourage someone to enter the buy-to-let space for 2 or so years and then "get rid of" the tenant. So much for stability of tenure. Tenants with lives, hopes, and dreams should not become the collateral damage of amateur landlords. In an age when investors are more and more concerned with ESG , I'm not sure we should be encouraging such behaviour. Even if it makes some financial sense, just because you can, doesn't mean you should.
If the OP buys a house and lets it to a tenant saying that they will be moving into themselves after two years, what is the issue?So much for stability of tenure. Tenants with lives, hopes, and dreams should not become the collateral damage of amateur landlords.
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