First Time Buyer Thinking Out Loud! I need some perspective…

[veve]

So I’m a 37YO solo first time buyer. Have been on the island for over a decade and built my life from scratch with no generational wealth or support on my back.

I’ve now got two approvals so far, one from BoI for

Mortgage amount: €383,500
Cashback:
Monthly repayment: €1,822.86
Property price: €442,000
Interest rate: 3.95%
Repayment term: 32 Years
APRC: 4.2%
LTV: 87%

And another one from EBS for €441,563.0 which means I can have a purchase power of €510,000 or more including my savings. I don’t have the details of the EBS offer in hand right now.

I live/rent in South Dublin and I love where I live. But I understand I can’t have everything when it comes to buying. I keep thinking about this and seems like my mind is trapped now, so I’d like you guys to shed some light on this for me:

1. The location is very important for me. I prefer to spend more on rent/property than on commute money+time.
2. What I can buy in this area for this price, is a 2b2b apartment, whereas I can buy a full house at the same price if I go north or farther out, which brings us back to #1. I hate having to take an expensive taxi or a loooong bus ride when I’m out in town a late evening.
3. I’m live in a ground floor apartment which is great in terms of having some outside/garden space and not having stairs, but is awful for everything else, i.e. no privacy, stomping noise, ashtray/trash can for the upstairs tenants, etc.

I love the former and hate the latter which leaves me with the dilemma of not being sure what floor I should look for if I went for an apartment.

1. Ignoring the location, the thought of having the freedom of owning a whole house is very pleasant. But what about the maintenance? Would there be too much to do if it’s say a 3 bedroom or bigger? I know my circumstances might change in the future but I’m not planning on having a big family.
2. All this aside, being in debt till last years of life in the hopes of owning a piece of land is daunting. Shall I go for a smaller mortgage which basically won’t afford anything around the big smoke and going farther means that I’d be suffering from loneliness and remoteness and potentially rot there?!

What are your words of wisdom?

Please be nice! Thank you.

 

[mrluther]

@veve Tough choices but are you not locking yourself in to one place, one setup, one type of living arragments? Give yourself the freedom to take on property but not to lock yourself into it for life

for instance, you buy a small apartment close to work and suit your needs for the next 5 years, In that time it be perfect for starting a family, learning to drive or getting a car and saving up the funds again to move on.

5 years later, you purchase a house with more space, it can grow with your family, driving to work is not a chore

It is tempting with the offers from the bank, but they do not care about you, only the deal is worth alot of money in the end to generate money. Take a step back and get out looking at houses and get a feel for what is on offer. This is not to start to take it seriously but if you got the time, it is well worth it. This will hopefully open you up to what is possible