Hotel living beats a regular mortgage
With hotel room rates falling as fast as house prices, house hunters might consider the option of living in a luxury hotel rather than tying themselves to a house mortgage for years. For example two apartments are currently for sale at the Beacon Court Hotel in Sandyford, Dublin 18.
One of them is a two-bedroom penthouse asking €695,000 and the other is a sixth-floor, two-bedroom apartment asking €395,000.
In contrast, the Beacon Hotel is currently quoting rates of only €120 per night off season for a deluxe penthouse suite -- including bed and breakfast.
For the €695,000 penthouse apartment, this works out at the equivalent of about 5,800 nights or almost 16 years of B&Bs while staying in the hotel suite.
The two-bedroom apartment priced at €395,000 would pay for 3,291 nights or a little over nine years in the penthouse suite with breakfasts.
Of course, there's no guarantee that the Fitzpatrick brothers, who own the hotel, will peg their nightly rates at those levels for all those years, after all, this is an off-season rate. Then again, mortgage rates are also on the increase.
On the other hand, both the penthouse and the two-bedroom apartment are much more spacious than the hotel suite. Consequently, the units that are for sale offer much more spacious accommodation -- not alone an extra bedroom but also living, dining, kitchen and en suite bathrooms as well as storage for the bric-a-brac that can accumulate over the years.
But if one were to get a 92pc mortgage to buy the €395,000 apartment then it would take 25 years to pay it off, thus adding a further €110,508 in interest costs -- not to mention the repair, maintenance and management charges. But at least at the end of those 25 years one would own the apartment.
At the Beacon both guests and owner occupiers can also enjoy dining in its My Thai restaurant. The location is also easily accessible from the M50 which is just a couple of hundred yards away and the LUAS green line station at Kilmacud is a stroll away.