FTB - Buy new or secondhand?

weallpartied

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So I am a first time buyer, I'm mid 40s and single with no children and no plans for that to change. I work in IT, mostly remote working with some onsite travel around the country and has been that way well before covid

The debate I have been having with myself and friends is as follows

I have a budget of around 280k (mortgage approval 240k, savings 40k) and I qualify for the help to buy scheme. Some say I should avail of the free money and get a house outside of Dublin and then sell after 5 years if I wanted to move back into the city, for example I could buy a 3 bed semi detached outside Dublin comfortably.
Another school of thought is to buy an apartment in Dublin and stay there long term.

I am a city guy having lived in cities most of my life so I am not sure buying a place in tullamore or navan would really suit me, but then its hard to walk away from 25k in the form of the help to buy scheme, when I could sell up and move back to Dublin at a later stage.

I would appreciate the wisdom of the crowd for this :)
 
I was in a similar situation to you in the mid-2000s. In terms of financial matters, FTB incentives, Stamp Duty, I knew it all back then. Alas, I don’t know anything about these matters now.

What type of accommodation do you live in at present? House-share or on your tod? Apartment or house?

Apartment living wasn’t for me, so I ruled that out. As I had a reasonable active social life, and I worked in the suburbs, it made more sense for me to “buy inside the M50”, than outside. Obviously that limited options but I found an OK ex-council house.

Pre-pandemic, what was your social life like, and where was it. Where are your friends and family?

Personally I was always sceptical about the concept of the “starter home”, where you’d “trade up” in a few years because you’d the money to do so.
I was intent on getting the best house I could, to suit my current life, with the intention of staying there long term.
Moving to somewhere you don’t actually want to live, with the intention of staring there for five years, just doesn’t sit well with me.
A colleague of mine lived “outside the M50”. There was no such thing as a glass of wine with a meal, or a pint, after work.
He was either “on the dry” or “hitting the tiles”. There was no sociable drink or two as the hassle and expense of a taxi home, etc.
Weight it up well, and try to buy something that suits your lifestyle.
But just to reiterate, my situation was 15 years ago. We’ve had the Great Recession and the Covid Pandemic since then.

As for the €25,000, don’t forget you’re buying a house, typically a 25 year purchase.
Not a pint of milk, a one day purchase.

That €25,000 really isn’t, how shall I say, 500 €50 notes. It’s about €1,000 per annum. About €2.73 per day. A bit more than a pint of milk, maybe a 3L jug of it.
How does Tullamore sound now?
 
I think this is a situation where what 'you' should do and what YOU should do are different. Lots of people value space over location. Personally, I love cities, and even with a small child have chosen a smaller house and smaller garden in the city where we can walk everywhere rather than the standard big semi-d and garden in the suburbs people assumed we should buy since we could afford it. Lockdown made me glad I had some outdoor space, but it didn't make me regret any of those choices: being able to walk to shops and parks and central Dublin was a plus for me, but I know some people felt v differently.

Given the volatile situation we're in currently, I would not be buying anywhere on the assumption that I could cash it in and it would be worth a certain amount in the future, especially not that X property in Y place would be the equivalent of A property in B place. In the last recession, semi-ds in commuter towns dropped like a stone, but then so did 1-bed apartments. Second-guessing what other people want and what will be worth what in five years time isn't worth it, plus its 5 years of your life. In your situation, I would buy a nice two-bed cottage or an older apartment either close to town or in a 'nice' central suburb and enjoy my life and not worry about a hypothetical alternative world where I'd saved some money by sacrificing by daily enjoyment for five years. But only you know what you value the most.
 
Given the volatile situation we're in currently, I would not be buying anywhere on the assumption that I could cash it in and it would be worth a certain amount in the future,

If you buy a standard property like a semi-D in an estate full of similar semi-Ds you'll always be able to sell it quickly once you are realistic on price.

Transactions costs are a thing though, and buying and selling frequently is pretty costly in EA fees, removals costs, stamp duty etc.

It looks like you've waited a long time to buy and you should probably buy something you want to be in long term.
 
So I am a first time buyer, I'm mid 40s and single with no children and no plans for that to change. I work in IT, mostly remote working with some onsite travel around the country and has been that way well before covid

The debate I have been having with myself and friends is as follows

I have a budget of around 280k (mortgage approval 240k, savings 40k) and I qualify for the help to buy scheme. Some say I should avail of the free money and get a house outside of Dublin and then sell after 5 years if I wanted to move back into the city, for example I could buy a 3 bed semi detached outside Dublin comfortably.
Another school of thought is to buy an apartment in Dublin and stay there long term.

I am a city guy having lived in cities most of my life so I am not sure buying a place in tullamore or navan would really suit me, but then its hard to walk away from 25k in the form of the help to buy scheme, when I could sell up and move back to Dublin at a later stage.

I would appreciate the wisdom of the crowd for this :)
Have you tried renting outside of Dublin first?

Also, if you want to stay in a city maybe try Cork. You'd get more for your money there.
 
That €25,000 really isn’t, how shall I say, 500 €50 notes. It’s about €1,000 per annum. About €2.73 per day. A bit more than a pint of milk, maybe a 3L jug of it.
How does Tullamore sound now?

Tullawhere?? :)
Free milk for 25 years though!

Thank you all for your input I really appreciate it
 
Flipping a property after 5 years usually makes a lot of sense in a rising market. People looking at the numbers and comparing renting to purchasing don't often factor in all the costs associated with ownership, and it's hard once living in a property you own not to spend money on decoration / maintenance that you will never see a return on.
 
So I am a first time buyer, I'm mid 40s and single with no children and no plans for that to change. I work in IT, mostly remote working with some onsite travel around the country and has been that way well before covid

The debate I have been having with myself and friends is as follows

I have a budget of around 280k (mortgage approval 240k, savings 40k) and I qualify for the help to buy scheme. Some say I should avail of the free money and get a house outside of Dublin and then sell after 5 years if I wanted to move back into the city, for example I could buy a 3 bed semi detached outside Dublin comfortably.
Another school of thought is to buy an apartment in Dublin and stay there long term.

I am a city guy having lived in cities most of my life so I am not sure buying a place in tullamore or navan would really suit me, but then its hard to walk away from 25k in the form of the help to buy scheme, when I could sell up and move back to Dublin at a later stage.

I would appreciate the wisdom of the crowd for this :)

So one option is to buy somewhere you don't want to live and move in 5 years. The other is to buy somewhere you do want to live and stay there long term. Why is there even a debate? To get €25k to move somewhere you don't want to live?!!
 
As a first time buyer, and assuming you do not intend to live in your first house forever, the first and most important question you should ask yourself is "Who will buy this property when I want to sell it?". If you cannot see a future buyer, is it prudent to buy it?
 
After solicitors fees, stamp duty estate agent fees etc, if you clear 50 euro a week profit but a new house down the country you would be doing well.

That's assuming house prices hold steady in these regional towns. You are taking a big gamble on that all going your way for 50 euro a week. Buy where u want to live. There's easier ways to make a few Schilling.
 
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