160k Savings, 40k Income, Please Help Me Get a House


#1

Hi,

Im 35, I have 100k sitting in Prize Bonds, Another 40k sitting in the Post Office and another 20k in my current account which Ill probably buy more bonds with soon.

I earn 40k gross and my rent is only €400 per month with no bills so paid for with a bit of overtime every month. I have a pension of €250 a month which my company matches

Im in the Dublin area and live a very frugal lifestyle, no car, 1 cheap holiday a year, no unnecessary expenditure whatsoever really, no Starbucks/bought lunches etc.

My dream plan (I think unless someone can suggest something better) is to get a 3 bed house in Dublin inside the M50 and rent out 2 rooms for the 14k rent a room scheme and live there myself aswell.

Im not attached to any area in particular I just want to get things moving now as I feel like even though Im saving loads Im kind of wasting my life waiting for a crash both in the markets and in housing.

Im just wondering what people think I should do? Where do you even start looking in Dublin these days when 290-300k is your max budget? I dont want to live in an antisocial hellhole.


#2

Good value in Clondalkin and Tallaght - outside M50

Crumlin is inside M50 also good value


#3

Thargor, with those savings you obviously have no worries about the deposit percentage under the CB rules. 20% of mortages are allowed to be at 4.5 instead of 3.5 times income. If you can persuade a bank that you are a good bet, that could extend your buying power to 340k. That puts you around the median price of a house in Dublin … higher than Fingal, lower than Dun Laoghaire.

To a certain extent it depends on your other plans. With your frugal lifestyle (which I commend) and that 14k rent-a-room income you could put a very serious dent in your mortgage over ten years. You may countenance living somewhere for ten years that you wouldn’t want to live the rest of your life. On the other hand, if you plan to get hitched and have a family, that’s not going to work and indeed could be a major hindrance.

Some people think living frugally is a waste of a life, to others it comes naturally. I just see it as a way to focus on the things you want to prioritise, which may not include working all the hours god sends just to have a flash car.


#4

Occasionally some 3 bed apartments will pop up inside the M50 e.g. Chapelizod and Islandbridge. I know you prefer a house though, these areas will get better rent from your potential roomies. Maybe look at 5 day rent to have a bit more

I’d also look Cabra close to Navan Road for houses (needs more due diligence…)

Close to town and the Phoenix Park, that’s my experience and preference


#5

What are peoples thoughts on Finglas? I saw a 3 bed house with a convertible attic right next to IKEA for 300 the other day that would be 450 anywhere else.

MyHome is full of properties I could go for right now up there, there are 4 beds for 300, stuff like this for 250:

Its kind of crazy tbh, I keep coming back to Finglas when I go looking. 10 minutes on a bike to Phoenix Park, still only 20-25 minute cycle to O Connells street plus the airport. Also I work in a scientific discipline and there are a lot of companies out that direction.

Is it a no-go area do you think?


#6

While there are plenty of overpriced houses, forget about finding underpriced bargains. If something is two thirds the price of elsewhere, there is a reason. Your best course of action is to think hard about what the reason is and whether you can live with it, rather than ignore it or hope it makes no difference.


#7

Yeah but this is across the whole area, that duplex for 250 would be perfect for me for example, I’m wondering what the catch is tbh, rent prices are similar to the rest of Dublin that close to the M50 and you have REITS buying up whole blocks in the area.

Is it scummy around there? Are there any other areas like it inside the M50 that I’m missing?


#8

I think this is a duplex too. Similar money, better area IMHO. Don’t know the complex though


#9

Hi Thargor. Dublin prices are high because of a lack of supply (although there seems to be a good deal of construction underway at present) plus demand due to employment opportunities in Dublin and also the cost of construction in Dublin. On the flip side of the employment opportunities some areas are decidedly scummy to live in and I wouldn’t live in some areas of Dublin for free. Life is too short.

I know that you are focused on Dublin but if I was in your shoes I would be looking to see if I could move to employment in a town elsewhere. If you can get work in your field outside Dublin there are lots of good towns to live in where you can enjoy a very good quality of life including affording a very nice house with good neighbours and a short commute. Rural town living has improved a lot for many towns. You would need a car though but overall you would have a much better quality of life.


#10

You will see ex-corpo three beds for low 300s within walking distance of the Dart in the likes of Edenmore, Harmonstown (usually advertised as Artane) and Kilbarrack. You would have to do some serious detective work to ascertain you were buying in a ‘quiet’ area but you could get a very decent house a sopposed to a property with annual service charges, no possibility to extend etc…


#11

How do you quote posts on this new forum?

Onioneater it has to be Dublin, I want the money, if I had 2-3 decent tenants and was claiming the 14k rent a room then with my lifestyle I’d basically be rich. Psychologically it really appeals to me getting a home sorted/putting my savings to work etc, plus I’d really like to live within walking distance of town compared to my current shitbox in Enniskerry.

TommyT thanks for that, that’s what I’m looking for.


#12

Then think Dart or Luas Line 340 would get you a two bed apartment in Balinteer, with 140 down you would have a mortgage of less than 1000 and could easily rent a room for 600 + bills then you would be able to live, from what you are saying you are saving so hard you aren’t living.


#13

2 bed no good to me though, this is about maximum financial gain, also not sure what living or not living has to do with anything, my life wouldn’t change much if I won the Euromillions.


#14

Then you’ve entered into the realm of property speculation. Just so you know.

I can’t remember who bought the apartment in a shithole and deeply regretted it. That’s the risk you’re running.

You choose the area you want to live and you buy the best property you can afford there - otherwise you’re a Canny or a fool.

Also you own prize bonds FFS, that’s hardly the temperament of someone interested in “maximum gain”


#15

You sound angry. Did you read any of my posts or did you just pick out a few keywords to have a dig at?

The whole point of the thread is avoiding buying a shithole, Im looking for a house to live in for myself instead of paying someone elses mortgage, thats not property speculation. The Prize Bonds are my house deposit and cannot be risked in any way. If I wasnt house hunting Id leave it sitting in ETFs like everyone else and that will be where all my surplus cash goes after I find my house.

Couldn’t be bothered explaining everything line by line, have a reread of my posts, thanks for the suggestions to the other posters.


#16

No. The whole point is you want to run a HMO in which you want to rent one of the rooms. And you want other people to pay your mortgage, instead of “paying others mortgage”. And you want no risk in your deposit money, but once it’s converted into property collateral you want “maximum gain”, and as far as I recall gain is always a trade off to risk.

And I’m not saying running a HMO isn’t bad idea in the current environment. But call it what it is. It’s Rigsby. Get some medical students and a Spinster.


#17

Why are you so angry? I said I want to stop paying rent and own my own home somewhere close to town, I specifically stated in the first post and several subsequent ones that I want to avoid buying in an antisocial area so I asked advice on suitable areas based on my current savings and income level.

One of the key features of my future house in which I will be living for decades is that I be able to rent out rooms as a return on my investment, if Id said one of the key features to be a place to grow tomatoes would it have triggered you? “Call it what it is. It’s Rigsby.” FFS… Why hang around a property focused forum if these kind of questions get you so upset? What point are you trying to make?

Do you have anything to offer based on the situation I outlined in the OP or are you just looking for a pointless argument?


#18

Ok I will take it for what it is. I’d say a 3 bed around Tyrconnell Road. It’s close enough to town it’s close to the new Children’s hospital. You’ll have a steady supply of tenants no matter the economic conditions. It’s an old area. Is there any scope for appreciation in value ? No idea.


#19

Select some or all of the text in the post. A floating “quote” button pops up. Sometimes you can’t select text, such as when the post is a picture or news article cite. So alternatively, hit the Reply button below the post. While the reply is initially blank, the speech bubble icon above the edit box is “Quote whole post”. You can edit the quote down to just the piece you want.