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Learning, Sharing, and Teaching => Investor Alley => Topic started by: celine31 on August 18, 2016, 08:55:49 AM

Title: First house?
Post by: celine31 on August 18, 2016, 08:55:49 AM
Hi everyone!
I have a question that is probably dumb or naive but I'll ask it anyway.
I'm currently saving up to buy a house and was wondering if I should buy a house for myself first or one I would use as a rental property?
thank you!
Title: Re: First house?
Post by: celine31 on August 18, 2016, 10:17:22 AM
Thank you for your advice!
I'm in Ireland so I don't how the tax exemption thing you mention works but i'll look into it.
Besides, I'm alone, don't have children so I'm able to save and invest about half my salary every month so it shouldn't take me more than a 2-3 years to save up for deposit, so really I wouldn't have to wait for that long to buy a buy to rent house after I buy my own house!
thanks again!
Title: Re: First house?
Post by: Retire-Canada on August 18, 2016, 12:53:37 PM
I don't know about Ireland, but in Canada it is a reasonable proposition to buy a house and rent part of it out while living in the rest of the space.
Title: Re: First house?
Post by: Fishindude on August 18, 2016, 01:05:29 PM
Buy a duplex and kill two birds with one stone, live in one and rent the other unit.   
Your renter helps pay for your new home.
Title: Re: First house?
Post by: MustacheAndaHalf on August 18, 2016, 01:12:33 PM
I'm in Ireland so I don't how the tax exemption thing you mention works but i'll look into it.
(Other poster)
You can only expect relevant tax advice when you provide the country (and state/province).
Title: Re: First house?
Post by: GuitarStv on August 18, 2016, 01:14:34 PM
"You" will not do an oil change on their motorcycle in the living room because hey, its a rental and who cares.

"You" might however get busted in the middle of the winter by your wife while hurriedly trying to replace a spoke and true a bike wheel on a partly slush covered bicycle in the front hallway before she gets home because it's so damned cold in the garage that your fingers don't work.




. . . hypothetically speaking.
Title: Re: First house?
Post by: Drifterrider on August 19, 2016, 05:53:06 AM
Hi everyone!
I have a question that is probably dumb or naive but I'll ask it anyway.
I'm currently saving up to buy a house and was wondering if I should buy a house for myself first or one I would use as a rental property?
thank you!

In the US, owner occupied usually gets the best mortgage terms.  Consider buying a house you would like to live in, that you can also rent out.  The rent you are now paying (presuming you are paying rent) goes towards your house and then plan for your next house.
Title: Re: First house?
Post by: celine31 on August 19, 2016, 10:31:18 AM
thank you guys for all the advice!
I looked into it and home owners who rent part of their house have a 12 000 euros per year free tax credit, meaning I wouldn't pay any taxes on the rent I'd get.
I think a duplex would be a great idea that way we'd both have our own space!
I was thinking that if I take a 15 years mortgage having a roommate would be a great idea anyway!
Title: Re: First house?
Post by: larmando on August 29, 2016, 03:42:35 AM
Note the the "rent a room" scheme only applies if you rent "a room" not a unit in a duplex. Besides this Ireland has gotten rid of tax advantages for buyers, but on the other hand mortgages are better and income tax on the rent makes "renting to yourself" much better.
Title: Re: First house?
Post by: MoonLiteNite on August 29, 2016, 03:46:30 AM
I personally bought myself a family size home, and i rent out the 3 extra bedrooms and loft for extra cash.
Just 2 roommates covers the monthly payment, a 3rd covers bills + land taxes, and a 4th is all profit.