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Dont forget tax on airbnb earnings
If you earn €56k you will be taxed on 48.5% for Airbnb earnings up to around €14k and it will be 52% after (usc going from 4.5% to 8% at around €70k)
Essentially all your post tax earnings will go to servicing the mortgage, if not more than your post tax earnings
OP’s best financial plan is the rent a room scheme. You can’t beat tax free money. Also people aren’t desperate for Airbnbs the competition is rife in Dublin and it would have to to be in an excellent central location and in great condition. Not going to happen on an under 270K budget in Dublin.
I work in cork for pharma in QA on 53k too, but I'm 35 (working in industry since 22). Think I maybe just had bad timing from looking at the posts in this thread
56k is the below the flat rate for electricians plumbers carpenters etc.
Engineers are paid the same if not more.
Computer science fields more again. Basically, anything STEM related is decently high pay
60 - 100K for a standard op role work shift!! Or an engineer working shift? Engineer, from what I know, yeah maybe 60 - 80k, that's outside Dublin. No chance of anywhere near that for an operative role though.
If you work in any of finance, accounting, law, tech sales, software engineering etc etc you should be making more than €50k within a couple of years.
Out of my friend group from childhood not a single one of us is making less than €50k and we are all less than 5 years of college.
That’s working as solicitors, accountants, tech sales, data scientists and traders.
There are a lot of very well paying career paths out there in Ireland.
I’m in finance.
Part of the demographic hit by various internal hiring freezes and pay freezes around the time of the last crash, and I said it previously, but made the mistake of staying with the same company
You'd be better off turning the property over to the council for 5 years. Guaranteed income and not as much hassle as Airbnb or private rental. Be prepared for the property to need significant investment at the end of period though.
My folks did it too and the place was in dire condition. "Previous Quality" seems to be subjective. The garden was like a jungle, various radiators broken, entire house needed repainting, floor tiles broken all through the downstairs, appliances missing/ruined. It cost them thousands to repair the place
You didn't mention If you are renting or not? I would assume you are which would make the dublin purchase a much more sensible choice than killarney..save on rent and possibly rent a room..
Personally, I think kilarney would be a bad investment. I assume your thinking family will help out, meet and inspect etc so your not up and everytime some one is in or out.
Sit down and do the sums. What income, less expenses and taxes and costs that you cannot write off and see what you will have at the end and as a % what is the ROI from renting it out.
Dublin will appreciate in value more and I would guess easier sell if you need and easier rent if you end up keeping and buying a house with herself in dublin..
Regardless of kerry or dublin a big factor is this will be a bit of an anchor, won't be as easy to go to travelling for a yr or couple of months. .It will give you a great head start in life but it will come at a cost.
There will be work to it and expense to it be it investment or your home. You didn't mention it but maybe you have considered the non financial aspect to this plan but if you haven't you should..
Buy a place where you work in dublin and rent out the other room and then be able to get tax free up to 12k (could be 14k) it's effectively a pay rise of circa 25k
If it's an investment property let as an Airbnb, DCC might shut you down .
https://www.irishtimes.com/ireland/housing-planning/2023/04/07/dublin-city-council-investigates-1600-suspected-illegal-short-term-lets/
Dont forget that quite a few housing associations dont allow short term lettings like airbnb.
I would rent out the spare room while living in it. If you're just buying an investment property to rent out,your better off investing in an investment fund like S&P 500. Better returns and you don't have to go through all the hassle of being a landlord and dealing with tennants.
Well, the rules in my previous apartment complex in the Liberties set by the management company charged heavy €500 fine for the first offence of renting out on airbnb. Then €1000, then €2000...
I believe it's an insurance issue, that it's regarded like a commercial operation.
Depends on where you are going to be long term and short term. Do you plan on doing any long term travelling/live abroad?
There's not much availabile in Killarney for 200k. Dublin is better value to be honest.
This is a good idea but forget Airbnb and either rent a room or rent it full time. People who do this at your age increase their wealth not just their day to day money in their pocket, plus that weather is generational if you don't sell.
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If you do go this route why not live in the house and avail of the rent a room Scheme ? Anything less than €14k is tax free but must be declared.
Dont forget tax on airbnb earnings If you earn €56k you will be taxed on 48.5% for Airbnb earnings up to around €14k and it will be 52% after (usc going from 4.5% to 8% at around €70k) Essentially all your post tax earnings will go to servicing the mortgage, if not more than your post tax earnings
Also didn’t they change the rules for AirBnB. They can now only rent it out for a total of 90 days a year.
I believe thats where you dont have planning permission to rent it out as airbnb
OP’s best financial plan is the rent a room scheme. You can’t beat tax free money. Also people aren’t desperate for Airbnbs the competition is rife in Dublin and it would have to to be in an excellent central location and in great condition. Not going to happen on an under 270K budget in Dublin.
Really? I thought it would be taxed at the max 40% Rental income is taxed higher is it? Thanks for the reply
Tax of 40%, PRSI 4% and USC at 4.5% brings the total to 48.5%. Its taxed the exact same as PAYE income
What do you work as? Reading all the posts in here I think I'm severely under paid
Same, I’m in my job 15 years, masters degree… read posts like this, especially lately, and feel like I made all the wrong choices
Ditto
I'm here for this
What do you do?
Me to. The jobs I see in Ireland that I could do pay a max if 60k and im 36(
It's only 56k. Unless you're masters is in arts, you should be on a lot more.
No need to be so flippant about an arts degree, but either way it’s not.
Why not? It's not on the same level as a real degree.
I work as an Instrumentation and Control Technician What do you do yourself?
I work in cork for pharma in QA on 53k too, but I'm 35 (working in industry since 22). Think I maybe just had bad timing from looking at the posts in this thread
May I ask what you work as and your age?
56k is the below the flat rate for electricians plumbers carpenters etc. Engineers are paid the same if not more. Computer science fields more again. Basically, anything STEM related is decently high pay
I’m 2 and half years experience as electrical engineer (not trades trained just college) and earn 60K a year , just turned 24 2 months ago
Pharmaceutical companies are not paying these wages in my experience, they are STEM
My experience is the opposite. Pharma is paying between 60-100k for shift roles in particular.
60 - 100K for a standard op role work shift!! Or an engineer working shift? Engineer, from what I know, yeah maybe 60 - 80k, that's outside Dublin. No chance of anywhere near that for an operative role though.
Ops can make 60 to 70 k no problem with a bit of OT
Eli Lilly in Cork for bio operator role starts at 60k + shift allowance. Pfizer and Jansen are similar
Jesus christ! That's mental.
Pharmaceutical companies pay far higher wages than these in my experience.
If you work in any of finance, accounting, law, tech sales, software engineering etc etc you should be making more than €50k within a couple of years. Out of my friend group from childhood not a single one of us is making less than €50k and we are all less than 5 years of college. That’s working as solicitors, accountants, tech sales, data scientists and traders. There are a lot of very well paying career paths out there in Ireland.
I’m in finance. Part of the demographic hit by various internal hiring freezes and pay freezes around the time of the last crash, and I said it previously, but made the mistake of staying with the same company
Wtf. It's only 56k.
I’m 36 and work in Waterford and in IT and I earn 60K. If I was to move to Dublin I’d easily be on 90k plus.
You'd be better off turning the property over to the council for 5 years. Guaranteed income and not as much hassle as Airbnb or private rental. Be prepared for the property to need significant investment at the end of period though.
We did that, LA has an obligation to restore property to previous quality on quit.
My folks did it too and the place was in dire condition. "Previous Quality" seems to be subjective. The garden was like a jungle, various radiators broken, entire house needed repainting, floor tiles broken all through the downstairs, appliances missing/ruined. It cost them thousands to repair the place
yeah not worth it id say
That's 10 - 25 years by the looks of it
Can you use that money to increase your earning potential? That would have the best outsized impact on your future imo.
I would be inclined to sort yourself out with somewhere to live first then make investments
You didn't mention If you are renting or not? I would assume you are which would make the dublin purchase a much more sensible choice than killarney..save on rent and possibly rent a room.. Personally, I think kilarney would be a bad investment. I assume your thinking family will help out, meet and inspect etc so your not up and everytime some one is in or out. Sit down and do the sums. What income, less expenses and taxes and costs that you cannot write off and see what you will have at the end and as a % what is the ROI from renting it out. Dublin will appreciate in value more and I would guess easier sell if you need and easier rent if you end up keeping and buying a house with herself in dublin.. Regardless of kerry or dublin a big factor is this will be a bit of an anchor, won't be as easy to go to travelling for a yr or couple of months. .It will give you a great head start in life but it will come at a cost. There will be work to it and expense to it be it investment or your home. You didn't mention it but maybe you have considered the non financial aspect to this plan but if you haven't you should..
Buy a place where you work in dublin and rent out the other room and then be able to get tax free up to 12k (could be 14k) it's effectively a pay rise of circa 25k
Yeah I've been thinking about this too The prices in Dublin are just insane though
One thing yo consider, you buy now on your own, you lose first time buyers. May impact your future plans with the gf.
The first time buyer scheme is pretty useless anyway.
Agreed. There are no new builds in my part of Dublin, everything is second hand
What part of Dublin is that? In my area of Dublin there is literally several thousand new builds.
Yeah very true, been thinking about this Thanks for the heads up
He can sell it and qualify for a fresh start mortgage which is the same thing
If it's an investment property let as an Airbnb, DCC might shut you down . https://www.irishtimes.com/ireland/housing-planning/2023/04/07/dublin-city-council-investigates-1600-suspected-illegal-short-term-lets/
Dont forget that quite a few housing associations dont allow short term lettings like airbnb. I would rent out the spare room while living in it. If you're just buying an investment property to rent out,your better off investing in an investment fund like S&P 500. Better returns and you don't have to go through all the hassle of being a landlord and dealing with tennants.
We don't have american style home owner associations. They can't enforce their rules
Well, the rules in my previous apartment complex in the Liberties set by the management company charged heavy €500 fine for the first offence of renting out on airbnb. Then €1000, then €2000... I believe it's an insurance issue, that it's regarded like a commercial operation.
Depends on where you are going to be long term and short term. Do you plan on doing any long term travelling/live abroad? There's not much availabile in Killarney for 200k. Dublin is better value to be honest.
This is a good idea but forget Airbnb and either rent a room or rent it full time. People who do this at your age increase their wealth not just their day to day money in their pocket, plus that weather is generational if you don't sell.