# Redundancy & Buying an Apartment



## Hailo09 (4 Feb 2009)

I am just about to sign contracts for an apartment, but just been told I am been made redundant after 11 years service. I will have about 100K in the bank after redundancy and savings. If I go ahead with the purchase I will have to give 30K deposit to the bank and have  monthly mortgage repayments and Management fees and know that I will be unemployed from April and not sure how long I will have to wait for another job. The problem I have is that I am in my early 30’s and still live at home and I really need my independence and have to move out. If I stay at home I will have 100K in the bank and will get UB. I could use this money to up-skill and hopefully get another job. On the other hand it’s not healthy to be still living at home at this age and renting is dead money so I wouldn’t do that. I just don’t know what to do as I will be putting myself into repayments every month without a job. Any advice on what to do would be great.


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## Sherman (4 Feb 2009)

You would be utterly, totally, unnaturally mad to even contemplate buying a place when you *know* you are about to be made redundant. Seriously, are you for real? It would be so utterly foolish I'm practically speechless (I did say practically ).

Move out of home, fine, but get over the idea that renting is dead money - rent is money paid for a service received i.e. living accomodation.


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## Diziet (4 Feb 2009)

You want to move out? Then do. Move out and rent. 

You are mad to consider renting as dead money. You won't own your (prospective) apartment either, and if you cant pay the mortgage the bank will take it back. That and the fact that its value will probably drop a bit more too!


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## Vinnie_cork (4 Feb 2009)

Do not buy, your lucky you haven't signed yet!

Rent, for all you know you may need to leave Ireland to seek employment for the next couple of years. The 100k is a nice security blanket to afford you to travel. Imadgine if it took you 12 months to find work and in the mean time your apartment has dropped 15k, think how else you could have spent that 12 months and spent the 15k.

For all you know you may have to go to another city to work, then your stuck trying to sell or rent your empty apartment.

Good luck with your choice, sorry to hear about your job.


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## Curious81 (4 Feb 2009)

I think you would be crazy to buy when you know you'll be made redundant. Renting may be dead money, but so is paying interest on a loan; also realistically you would probably be more paying towards a mortgage than you would for rent. Keep your money saved for now, hopefully you get will a new job sooner and then you can still use your savings to buy.


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## z106 (4 Feb 2009)

My good God. It would be the maddest thing i ever heard for you to buy given your current situation.

This one couldn't be easier - Move out and rent !!

I think you are taking that phrase of renting being dead money too literally
It is very far from dead money when you are getting a roof over your head in return for it and you are avoiding owning an asset that will inevitaly drop in value in the medium term.

I repeat - MOVE OUT AND RENT !!


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## Kemo_Sabe (5 Feb 2009)

the interest on a mortgage is 'dead money' (what a stupid phrase) too!


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## callybags (5 Feb 2009)

I would contend that all money is "dead money" once it is spent. What you have instead is value: either a product or a service or, as in the case of paying a mortgage, a mixture of both.(the service being the provision of the purchase price by the bank)


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## Raskolnikov (5 Feb 2009)

It's insanity buying an apartment when you're about to be made redundant. I mean, what happens if your new job is hours from where you live?

Bank the cash, stay home with Mammy and Daddy and concentrate on getting a job before you buy.


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## MugsGame (5 Feb 2009)

You won't be able to get a mortgage if you are made redundant. It would be very foolish to sign a contract to buy when you won't be able to complete.



> it’s not healthy to be still living at home at this age



What doctor told you this?



> and renting is dead money



Rubbish!


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## Billo (5 Feb 2009)

Don't do it.


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