21 Year Old Student Looking to Invest in Real Estate

7 Replies

Hello all.

My names Fergus Killarney. From Galway, Ireland.

Currently in final year studying engineering. Hoping to get a job in property when I graduate, or engineering as it could pay more. Been reading lots of articles, books and listening to BP podcasts. 

Just looking for advice on getting started when I graduate. My main concern is financing. And raising the money for an initial down payment on a property. I will have no debts when I leave college so that will help.

Just wondering if I should save up for a couple of years to have enough for a down payment or what do ye recommend? 

Welcome!  Great that you're take steps to ensure your financial future at this early stage in your life.  Are you planning to invest in Ireland?

Having cash for a down payment definitely makes things simpler.  Depending on the lending rules in Ireland you may want to consider house hacking.  Basically you purchase a duplex, tri or quad, live in one unit and rent out the others.  This should cover your note/mortgage and give you some extra cash.  You can then save that cash along with what you would be paying for rent, since you tenants are paying it for you and save up for another property.  At east in the States, banks require lower down payments if you are planning on living at the property rather than just renting it out.  A quick stop by one of your local banks should help answer that question for you.

You may also be able to try owner financing, again, depending on how lending works there, you can ask the seller to finance to you the down payment.  The bank would provide, say, 80% of the cash for the deal and you pay the seller back the other 20% (or less if you put some up yourself) over a period of time 3, 5 or 7 years.

Best of luck.

Jesse

Thanks for all the advice people.

Few quick things I've noticed about property in my area. These values are very rough. 

An average 2 bedroom apartment in Galway city or the close commuter towns is roughly €100,000. Monthly rent on similar properties is approximately €800. Have not seen any duplex for sale. However there are individual apartments for sale within complexes.

So using the 50% rule would mean €400 after expenses before a mortgage. With a 30 year mortgage of monthly repayments of roughly €350. Doesn't leave much for profits. But these are the average prices. Of course I would have to look around for the best deal. But just letting ye know the market in Galway. Also properties prices increased slightly last year so signs look good for property in Ireland in the future. No better time to get into property investing really!

Ideally I would build my first home as there is a possibility of gifted land from my parents. 

So just working out what my first move would be is difficult. I still have about 7 months before I graduate so there is a lot of time to work things out. As in buy house first then save to invest in buy to let. Or rent very cheap and save up for a buy to let while having a low rental somewhere else. So much to work out but loads of time to do so.

Planning on reading up on as much as I can and engaging in the bigger pockets forums as much as I can.

All advice is greatly welcomed. Also don't hold back with and constructive criticism you may have.

Thanks again for the advice.

Originally posted by @Hattie Dizmond:

Welcome!  Great that you're take steps to ensure your financial future at this early stage in your life.  Are you planning to invest in Ireland?

 Yes. My plan is to invest only in Ireland initially. Its the only place I know is the honest answer. But things can change. Potential to branch into the U.K maybe at some period.

Originally posted by @James Wise:

@Fergus Killarney 

welcome to the site. 

 Thanks James.

Originally posted by @Jesse Waters:

Having cash for a down payment definitely makes things simpler.  Depending on the lending rules in Ireland you may want to consider house hacking.  Basically you purchase a duplex, tri or quad, live in one unit and rent out the others.  This should cover your note/mortgage and give you some extra cash.  You can then save that cash along with what you would be paying for rent, since you tenants are paying it for you and save up for another property.  At east in the States, banks require lower down payments if you are planning on living at the property rather than just renting it out.  A quick stop by one of your local banks should help answer that question for you.

You may also be able to try owner financing, again, depending on how lending works there, you can ask the seller to finance to you the down payment.  The bank would provide, say, 80% of the cash for the deal and you pay the seller back the other 20% (or less if you put some up yourself) over a period of time 3, 5 or 7 years.

Best of luck.

Jesse

Thanks for the advice Jesse.

Definitely something ill look in to. 

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