Continue renting or buy a home

[patrick 1]

Hi all,
Looking at this question so long can't see the wood from the trees.
Current position:
Single male 61yrs Dublin.
Income :Salary 2000.00 per month net after deductions.
Rent: 450 per month (House sharing)
Savings: 120k on deposit.

Question: Should I maintain current position or look to buy a one bed apt/hse near Dublin.
Thanks

 

[cremeegg]

This more a matter of what matters to you personally, rather than which option is better financially..

Do you like house sharing.

Does renting seem insecure to you.

Would the responsibilities of being a homeowner feel a burden to you.

No one can tell the future. You know your current situation. I suggest that you do some research into what would be available to you within your budget in a suitable area. Consider if you would take in someone to share with you if you bought.

When you have had a good look at what your situation would be if you made a purchase then you can compare it with your present situation. Until you do that you are comparing the known with a vague idea.

If you could purchase a suitable place for cash you would obviously save €450 a month.

A home is not included in a means test for social welfare benefits, if you should need nursing home care in the future. Any cash amount over €36,000 is.

 

[Slim]

A home is not included in a means test for social welfare benefits, if you should need nursing home care in the future. Any cash amount over €36,000 is.

I would ask you what your working/retirement plans are over next 5-7 years? Are you thinking of retiring? Moving away?

By the way, your home will be valued if you apply to Fair Deal for nursing home assistance and assessed at 7.5% for 3 years only. Cash on deposit over €36k will be assessed at 7% indefinitely. If your home is rented out when you go into a nursing home, FD will take 80% of that towards your nursing home costs.

 

[Bronte]

If you are buying it should be a two bed, one beds are terrible in Ireland. But your age us against you fir getting a mortgage.

What price apartments have you looked at? If you like house sharing a two bed would be ideal as you can earn a tax free 12 k from the rent a room scheme. Not bad that especially as you are near retirement and likely to suffer a drop in income.

 

[patrick 1]

Thanks for comments and information.

The advantages for buying as I see it are:

The adverse effect on my savings: Fair Deal, Jobseekers Allowance means test, current low interest rates.
Current lack of security of tenure. (Have moved twice in last 18 months, not good for my health)
Savings of 450 per month less annual costs. Mgt fees, etc.
Rental costs will increase but my income will decrease.

My commute time is 1hr across the city. Will put that time as a radius from my job.
Hopefully I can find a suitable property in the Wicklow,Kildare or Meath region.

Will update when I make progress.

Again thanks for the external voice.