Just wondering about buying a house

I think townhouses cost about 220k to 250k in our town and I would say reasonable rent would be 50 per person so 200 a week maybe 250.

Are these prices based on reality though? How much would a mortgage be a month then on that. I know prices may drop but probably not in a satelite town in the west of ireland. What do you think? I'm just weighing up things here. I know houses won't go up anymore but if I could make a small profit every month it would be worth it wouldn't it?

Cheers.

Moved from Mortgages and Buying and Selling Homes.

oh my goodness youve it all figured out there. Anyone who thought the speculator/investor market has gone away please take note, the amateur investor is alive and well.

Seriously, not to be mean but spend an entire saturday trolling through the posts in property investment for some crucial facts about tax from rental revenue, costs associated with renting etc.

Your assumption about price of houses NOT dropping in satellite towns flies in the face of most opinion. You may be right that it doesnt fall in current market/soft landing but be sure if there is a crash that big expensive houses and satellite/commuter towns will fall first.

as far as rental market in west of ireland - i would do your first research there as i didnt think that market actually existed all year round.

Interest on the mortgage over , say 35 years, ???????? Your small profit will be eaten up very quickly by this.

I don't see a profit at all in fact.

Lets say you get €1,000 a month i.e. €12k a year.

Lets say you have a property worth €250k with an investor interest-only 80% mortgage of €200k at day,5.5% interest rate.

That's €11k a year in interest.
Add in other misc. cost such as insurance,management fees etc. and you'll do well to break even on an interest-only mortgage.

Add in what you would have to pay in stamp duty and transaction fees and it will take a few years before u get that back in appreciation these days.

I wouldn't go near it - I'd invest a lump sum in other things.

junii said:

prices may drop but not in a satelite town

Click to expand...

So - looking for a house in a satellite town...
Go for the astronomical units (the helluv the big ones)!
There is just one thing I can promise you about your outer-space program: your investment will go farther.
But think about it: living in the West of Ireland may be expensive, but it includes an annual free trip around the sun

Hi
I wouldn't rule it out altogether. Many of the responses (not just here) may be tainted by the area in which people are used to dealing. Depending on where in the west of ireland there can still be value for money and reasonable appreciation over the short term. The area I am most familiar with is Limerick and its environs and while things have slowed in the prime residential market, the bracket you are dealing with is healthy and vibrant (rentals also up 13%).
Like most others here i would suggest looking a property with a long term focus, and carry out as much research as possible, not merely anecdotes ,to help you avoid the many pitfalls.

It does sound like you have only given this a cursory glance, but if you do your homework you may get your rewards!