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Cash spent on rent could easily pay a mortgage


New figures show it is now cheaper to buy than rent for many

New figures show it is now cheaper to buy than rent for many

New figures show it is now cheaper to buy than rent for many

Economic commentators are sometimes scathing of Ireland's home ownership culture - but the spiralling rental crisis has led to a situation where it can be cheaper to buy than to rent.

If a first-time buyer in Dublin city can muster up a 10pc deposit, they could find themselves pocketing the keys of their own property for the same amount they are handing over to a landlord.

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A case in point is a one-bedroom flat with a kitchenette and access to a communal garden on Dublin's North Circular Road, available for the princely sum of €600 a month.

Karl Deeter of Irish Mortgage Brokers says that €600 per month equates to a mortgage of €133,000, assuming the deposit is in place, and the sum is borrowed over 30 years at an interest rate of 4.3pc.

Myhome.ie property listings turn up a two-bed cottage, also on North Circular Road, for €120,000 - meaning the buyer would not be overly stressed to the limit and could perhaps stump up the cost of some small upgrades that may be required - such as the replacement of aluminium windows and storage heaters.

"For first-time buyers and indeed investors would be an ideal purchase. Good rental yield," the description cannily notes.

In Limerick city, the same sum will get you a much bigger bang for your buck, with a modern three-bed house in a secure development with electronic gates, a car space and an attractive kitchen on offer for €130,000.

For those seeking a rural idyll, the same €600 a month can secure a mortgage for a three-bedroom house on a large, landscaped, site with stunning views onto the Shannon Estuary at Tarbert, Co Kerry.

Moving up the scale, in Galway city, €1,000 a month in rent will get you a generous amount of space, with a detached four-bed home on offer in Knocknacarra for €220,000. Alternatively, you could go for a glorious five- bedroom house on two acres of land with spectacular sea views at Kerrykeel, Co Donegal.

The same amount, Mr Deeter said, can secure a loan of €200,000, equating to a purchase price of €222,000 - taking into account the 10pc deposit.

Meanwhile, a rent of €1,500 in Dublin city will allow you to spread your wings somewhat, with a tastefully decorated two-bed, two-bathroom apartment in Dundrum. However, this equates to a mortgage of approximately €300,000 - and therefore a purchase price of €333,000.

The same money translates to even more style in Cork city, with a contemporary two- bedroom townhouse on Mary Street on offer at €325,000. Or push the boat out in Schull, with a three-bed stone period cottage available with views of the Fastnet lighthouse, and a comforting range in the kitchen.

Irish Independent