Even if the financials stack up don’t buy a property unless the time is right for you.
Young people should first feel very comfortable emotionally before buying and not because their peers, parents, media or estate agents tell them they should.
Borrowing €200,000 at the moment will cost from €855 per month based on a first time buyer borrowing over 30 years at current variable rates.
In Clonakilty at the moment a very good 3 bed semi is making almost €250,000.
So if a couple have a 10% deposit for the purchase of this 3 bed semi their monthly mortgage repayments will be from around €950. The typical rent for this same house at the moment is almost €1000 per month.
On the downside interest rates may rise and the owner of the house has to pay the property tax, insurance and maintenance. However they are in charge of their own security of tenure. This is of huge importance in today’s tight rental market.
Tenants of the other hand have more freedom to move around, no property taxes or maintenance charges.
Over time however there are few better ways to build wealth throughout someone’s lifetime than owning ones own property.
Even though most people get great satisfaction from owning their own patch it is also accompanied by the pressures of paying for this most prized asset.
Only buy a property when the time is really right for you. There is more to life than owning a property.
Martin Kelleher MIPAV REV MCEI is an Auctioneer & one of Ireland’s first recognized European Valuers, based in Clonakilty, West Cork.