Getting a mortgage in Donegal could save people renting a home in Dublin more than €1000 per month.
If you are thinking about moving home from Dublin to Donegal or even relocating to the National Geographic’s official ‘Coolest Place on the Planet’ then there are certainly strong financial reasons to do so.
It’s an attractive prospect for those who can avail of remote working opportunities when confronted with the potential savings let alone the absence of lengthy traffic delays and quality of outdoor life on offer.
According to 2016 Q4 figures compiled by Daft, the average cost of renting a three-bedroom semi-detached home in Dublin 10 was the lowest in the city area at €1,437 while in Dublin 2 the average monthly rental of a similar property soared to €2,282.
Meanwhile in Donegal, Bank of Ireland’s mortgage calculator reveals that monthly repayments on a fixed term rate of 3.45% for three years on a borrowing of €126,000 for 25 years for a three bed semi, priced at €140,000, would amount to €627.41.
The simple fact is that owning your very own home in stunning Donegal is a much more cost-effective move than paying a landlord in the country’s capital.
To put it in perspective we can take Dublin 9 as an example. According to Daft, renting a three bed semi in Dublin 9 – which includes Beaumont, Donnycarney, Drumcondra, Elm Mount, Griffith Avenue, parts of Glasnevin and parts of Ballymun – cost an average of €1,667 in 2016 Q4. That’s just under €1,040 more than repaying a mortgage in Donegal according the Bank of Ireland figures used above.
Over the course of 25 years, hypothetical rental repayment in Dublin can be calculated (using the figures quoted above) at €500,100 whereas mortgage repayments in Donegal will amount to €188,223.
The difference is stark and will serve as food for thought for many Donegal natives living, working and renting in the nation’s capital.
For further information on buying a home in Letterkenny or around Donegal, please get in touch today.