You can easily work that out for yourself.I know that interest payments would be larger on the larger home, but would it be THAT much more?
If it's your forever home then you won't be selling it. There will be no return.If this house is your forever home then the return will be greater again in 10-20-30 years...
The only way to realise that tax free gain is to trade down. In those 3 years, you will have paid ~17k in interest (300k x 3yr x 2%, on reducing balance). You will also pay associated costs to sell and buy (~10k). And finally, the property you trade down to has also increased by 10% so really you are selling at €660k, buying at €330k and you have costs of at least €27k. Optional extras of moving costs, furniture, decor etc will push that up even higher. So yes, you will have benefitted from living in a nicer house for 3 years but the tax free growth is a bit of distraction because ultimately you are not gaining from it.If house prices rise by say 10% over the next 3 years (which is conservative imo) then a 10% rise of a house of 300k is a capital gain of 30k, but a 10% rise of a house worth 600k is a capital gain of 60k which being its ones primary residence is a tax-free capital gain
Very sound advice.You don't need to stretch yourself financially and you will benefit for a more comfortable standard of living.
You should not borrow as much as possible just because they are willing to give it to you. Housing is only one part of your financial needs.
There will be for whoever inherits it. And its value could be helpful for later life care (Fair Deal etc.).If it's your forever home then you won't be selling it. There will be no return.
I totally disagree. One should always consider the investment aspect of one's house. But not exclusively.Stop thinking if it as an investment.
I wouldn't disagree with this though.Get the smallest house that meets your needs and that you'll be happy with. Less cost. Less cleaning. Less maintenance. Live with little to no debt and focus on the priorities in life.
id argue get the best house in the best location you can afford, you will spend more time there than anywhere else, and as long as its financially comfortable for you you are unlikely to regret it.If it's your forever home then you won't be selling it. There will be no return.
Stop thinking if it as an investment. Get the smallest house that meets your needs and that you'll be happy with. Less cost. Less cleaning. Less maintenance. Live with little to no debt and focus on the priorities in life.
So you are not sure if you a €300k house, a €600k house, or anything in between.I have a fairly sizeable deposit. Approx 275k, should be near 300k when I am going to actually drawn a mortgage
Now I could buy a nice 3-bed semi in Cork for about 300-350k and have a tiny mortgage and own my house in say, 3-5 years easily.
Or I could apply to the bank and spend all the amount they are willing to lend.
Say I get 400k off the bank, then in theory I could spend 600k (if not more) on a house if I put all my savings into it.
You're assuming both houses rise by the same amount in % terms.....My thinking is this...
If house prices rise by say 10% over the next 3 years (which is conservative imo) then a 10% rise of a house of 300k is a capital gain of 30k, but a 10% rise of a house worth 600k is a capital gain of 60k...
Thoroughly agree. At the very least, future proof your purchase by making sure you have space to extend. Especially with kids, and grandkids in good time, you can't have too much space.......
Having said that, in my view homes are like mattresses…don’t scrimp on one and get the best one you can afford.
Agreed. It's the biggest investment most will ever make and it should be considered. But it's rarely an investment to make more money. It's an investment in a home.I totally disagree. One should always consider the investment aspect of one's house. But not exclusively.
Before you decide anything, you need to review this statement for reasons that have already happened multiple times, globally.If house prices rise by say 10% over the next 3 years (which is conservative imo)
There comes a point where you don't need the best house and location you can afford.id argue get the best house in the best location you can afford, you will spend more time there than anywhere else, and as long as its financially comfortable for you you are unlikely to regret it.
Of course you can. What about the old people with large houses they are unable to maintain? Or just don't need.you can't have too much space.
Looking at the financials of your options is only one lens to view this in. What type of house do you need to suit yours and your families wants and needs? Size, rural, in an estate, close to schools, close to water, amenities etc. Then align that against your financials and what you can afford.
It does seem like you are in a position to buy your long term house, trader up strategies are more for people that can't afford to buy their long term house now.
Interest rates at historic low rates, but likely won't be this low forever, but carrying debt at these levels shouldn't be as much of a concern compared to rates of 7% plus.
My advice work out the house you want (not just the most expensive) and then align with the financials.
If it's your forever home then you won't be selling it. There will be no return.
Stop thinking if it as an investment. Get the smallest house that meets your needs and that you'll be happy with. Less cost. Less cleaning. Less maintenance. Live with little to no debt and focus on the priorities in life.
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