Blackrock1
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you need to temper your expectations a little, if you want a house in a prime area for your budget there will be a compromise somewhere, normally its plot size, proximity of neighbours etc
you need to temper your expectations a little, if you want a house in a prime area for your budget there will be a compromise somewhere, normally its plot size, proximity of neighbours etcIt's truly been a bit of an eye opener since we started looking, to be honest. For example, we recently went to view a 4-bed place 1600 or so sqm priced at 1.075, which on paper looked decent enough, needed windows, kitchen and bathrooms replaced but on a tiny plot and a garden with barely space for a shed, very tight to neighbours and overlooked on all sides etc. Last I heard, bidding on it was up to 1.375..
**Apologies, I understand discussion of property prices is not allowed, and above is for illustrative purposes only.**
i think thats a little optimistic price wise, this is what i imagine is the kind of the thing the OP is referring to,
12 Grove Lawn, Blackrock, County Dublin - Mason Estates Dundrum - 4637125 - MyHome.ie Residential
12 Grove Lawn, Blackrock, County Dublin, 5 Bed, asking price €975,000, brought to market by Mason Estates Dundrum, Residential - 4637125 (rated C3)www.myhome.ie
needs plenty of work, not sure you would have this refurbished for 1.2m
Both of the houses mentioned are 5 beds and more than 170m2. I know they are only being used as examples but what about something like this:That house is 900k though which was not my point. I was indicating that the majority of houses that are 1.2m in a standard estate will have had work done, and not a complete reno required in my experience. I would be very surprised to find a standard house on a small plot in an estate (4bed 150-175m) for 1.2m in a poor state. At least in Blackrock anyway, although there are probably a few exceptions.
I wasn't commenting on the cost to renovate, and I agree that with present costs renovation can cost more than the market value of the home post renovation.
My point of reference is a house beside Blackrock rugby club (5bed 200sqm) renovated a few years ago, sold in the last few months for 1.2m.
hanks to some carefully considered and cost-effective home improvements (plus heat in the market obvs) have managed to add a lot of value to our current PPR, though sadly not enough to close the price differential gap between the two locations.
You shouldn't think primarily of your PPR as an asset but as a place to live. In any case a house is a depreciating asset that requires constant maintenance and spend just to stand still. It's nice to have a comfortable house, but there is a big opportunity cost to having a house bigger than you need. That wealth could be sitting quietly growing in a pension fund.given its obvious desirability, seems like a 'safe' place as any to put our savings and to be during a recessionary period,
That's because it's more Monkstown than BlackrockThat house is 900k though which was not my point. I was indicating that the majority of houses that are 1.2m in a standard estate will have had work done, and not a complete reno required in my experience. I would be very surprised to find a standard house on a small plot in an estate (4bed 150-175m) for 1.2m in a poor state. At least in Blackrock anyway, although there are probably a few exceptions.
I wasn't commenting on the cost to renovate, and I agree that with present costs renovation can cost more than the market value of the home post renovation.
My point of reference is a house beside Blackrock rugby club (5bed 200sqm) renovated a few years ago, sold in the last few months for 1.2m.
I very much doubt this. Home renovations rarely add more market value than what you put in as you are doing things to your own taste and needs, not to those of a potential purchaser!
That's a 102% increase on your €395k which is great.Now valued in excess of 800k so happy enough with that in any case.
Ah and here's me thinking I did great! Well with luck it'll have increased saleability if nothing else - agent certainly seems to think so, but who knows...That's a 102% increase on your €395k which is great.
But CSO suggests houses outside Dublin are on average up 104% since the start of 2015.
The market has done the heavy lifting here
I'm fairly sure that this sort of thing has been the subject of a post or two here on Askaboutmoney, maybe even a key post, in the past?Sorry, just remembered something else in this regard. Our accountant has it set up that we can wind down the company in our fifties and take large tax-free lump sum payment (500k or so?) from it, which was another reason we de-priortised the pension.
Bought 7 years ago for 275k, added extra sqm via attic conversion and extension; open plan living area & additional bedrooms/study/ensuites and upgraded to a B3 energy rating at a cost of just over 120k. Now valued in excess of 800k so happy enough with that in any case.
Income and expenditure
Annual gross income from employment or profession: 90k
Annual gross income of spouse: 35k
Monthly take-home pay We pay ourselves expenses as required as opposed to a monthly salary, and save the remainder.
Type of employment: Both self-employed directors of limited company. 50k of my yearly income is tax exempt (this goes straight into savings)
Our accountant has it set up that we can wind down the company in our fifties and take large tax-free lump sum payment (500k or so?)
Family home worth approx €800k with a €250k mortgage
Savings of €800k cash
Defined Contribution pension fund: €100k x 2
Shares : 15k approx invested in stock market
not at all what you'd hope for on a 1.2mish budget.
Our accountant has it set up that we can wind down the company in our fifties and take large tax-free lump sum payment (500k or so?)
This is why this forum is so great, a completely different and thought provoking take to what others are offering.So you have €1.36m cash after you sell your house.
You also seem to have a lump of cash in the company.
You are starting off with the wrong question: "mortgage-free?"
Why do you want to be mortgage-free?
We don't know your true income, but it's probably about €250k a year.
You can comfortably borrow € 500k.
You can well afford the type of house you want in the location you want. But you can't buy your current house on an acre in the sticks in a seaside commuter belt for €1.2m.
Make some compromises but buy a house you like for about €1.7m.
Then, start maxing your pension contributions from the company.
You can be too clever with tax planning. This might work but you are forgoing the use of this money for another 10 years or so when you could use it now. Probably not as tax-efficient to take it out now, but you will get 10 years use of this money.
And there is a huge risk, that the tax rules will change and this brilliant tax plan may no longer be effective.
I would say that if you are planning to definitely wind up a company in about 3 years, maybe even up to 5, you could leave profits in it to avail of tax planning. But more than 5 seems to risky to me.
Brendan
A lot of people get confused when they have a limited company. They say something like "I earn €80k a year" when the company is generating profits before directors fees of €120k or €40k.
Brendan
You can well afford the type of house you want in the location you want. But you can't buy your current house on an acre in the sticks in a seaside commuter belt for €1.2m.
Make some compromises but buy a house you like for about €1.7m.
Then, start maxing your pension contributions from the company.
Brendan
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