Paying low rent but want my own property. Should i buy now (170k deposit)?

M

matrix

Registered User
Messages
16
Age: 33
Children: 1 (4 yo)
Income: 86k (76k base, 10k bonus)
Monthly take-home pay: 3780e (After pension and employer stock purchase program)
Debt: None
Do you own any investment or other property? No


Savings; Cash of €170k
Pension: 78k
Shares: €95k
Crypto: €45k
Stocks: €15k
Precious metals: €5k


What specific question do you have or what issues are of concern to you?

I realize i am not getting any younger and very exposed with my cash position in this inflationary environment so i am looking to purchase a property to live in. This property would ideally be a house i would be happy with for at least the next 10 - 15 years but property is so overvalued i am concerned i may be purchasing just before the crash and second thinking myself on if i should wait or buy now.

I plan to purchase a 3 bed in Dublin with the cash and borrow 240k over 30 years so my max budget is 410k and rent out 2 rooms out for a couple of years to help with the repayments . I am in a unique position as a family member is in Canada and i am living in their property for low rent (500e pm) so i am not getting fleeced with rent, thus can afford to wait to see where prices go but i get the impression i may regret waiting given all this inflation at the moment.

I've ran the calculations and the rooms rented out should cover the mortgage and some change but i get the feeling this could all change if we hit a recession and rent drops. Am i over thinking this and being too risk averse?
 
We do not allow speculation about house prices on askaboutmoney.

If house prices rise, you will be sorry you didn't buy.
If house prices fall, you will be glad you didn't buy.

Savings; Cash of €170k
Shares: €95k
Crypto: €45k
Stocks: €15k
Precious metals: €5k
Total assets: €330k

You can easily service a loan of €200k

So you should sell all your assets and buy a house for €530k or thereabouts.

You should absolutely get rid of all your non-cash assets, so that you will be in a position to buy.
 
Brendan Burgess said:
Click to expand...
That made me laugh. Thanks for your advice, decided to take profit and sell some of the crypto and put it to the deposit:

Property is 425k, putting down 185k and the mortgage will be 875e. I think i was worrying too much about the repayment and the possibility of another crash, after looking at some of the data the repayment doesn't seem too bad compared to the mean. Fingers crossed
 
I would buy the house too.

Why not put all your assets against the deposit. You have €330K. What are you planning to do with the other €145K? Can you not sell the shares? I guess keep some for upgrades and renovations, but you could get a very small mortgage otherwise, and then probably not share your house with 2 strangers.
 
Valid point, however, the plan is to keep those assets for potential buying opportunities if there is a recession soon. Also, some of the shares cannot be sold just yet. The plan is to have lodgers for 5 years and work to pay off mortgage as much as possible in those 5 years to get lower payment after fixed term expires.
 
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