Property Risk

I

istabraq

Guest
Hi

Im 24, single, in a job that pays 30k per year, live at home paying €50 week rent and will have €11500 coming to me from SSIA in Jan 07. I have a car loan taking €240 off me a month for another 3yrs. I won't get a mortgage on my own for property in Ireland so ive been considering property abroad. I dont have much other savings (mabe €2000) Basically can i get on the ladder here or elsewhere. And im willing to take a risk. Within reason of course mind!!! any help? Thanks.
 
Istabraq,

I wouldn't be so quick to get on any housing ladder in the current climate. Irish property is way over-priced and will be corrected in the near future, as Ireland is no different in terms of economics and is experiencing the same affects as every other boom-bust cycle in history.
Don't be pressured by what your mates/colleagues are doing - stay at home or rent for as long as you want, it is cheaper and has no risk attached.
As regards foreign properties, I would stay well clear unless you fully understand who you are buying from, what the tax situation is, who you will rent to, and the number one thing that most people have not considered - who you will sell to to realise any capital appreciation.

Simply wait and watch what happens in Ireland - then buy for considerably less than present prices.

Regards
Kane
 
Actually, just re-reading your post - depending on the interest rate of that car loan you will probably be better off paying it off with your SSIA and saving the €240 a month for the next 3 years. (you will save €8640 plus interest which I will bet is more than the outstanding loan for the car?) You will then be debt free and have some cash when the time comes.
 
Hi istabraq,

It rarely makes economic sense in my experience to buy abroad before buying a home to live in. First time buyer status in Ireland has many financial benefits (lower stamp duty, higher mortgage interest relief, etc.) and you would lose them if you invest abroad.

Best of luck,
Budapest
 
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