u/Feliznavidab

Hi everyone

Will cut to the chase - I have 45k in savings (Trade Republic, AIB Savers) today, which I had intended to put towards a deposit on a property with my girlfriend in the next 1.5-2 years once we move out of Dublin and back home (she has savings to contribute also). I am saving 2000e a month (have v cheap rent for our apartment), maxing out pension and I know I'm in a great position. However, I am getting restless about the savings I am building that up that are just 'sitting there' getting eaten by inflation and rising house prices. We are pretty much 100% guaranteed to leave Dublin in less than 2 years.

I have formulated two strategies for the next few years that I would really appreciate some advice on:

1. Property-focused

• Buy a 'starter' property myself back home, using some/all of my 45k savings as the deposit + fees.
• Rent out the property until we are ready to move home (I believe the new 6 year minimum tenancy does not apply where we would be moving into the property ourselves).
• Pros:
  • Puts the 45k savings to use building equity in a property.
  • Protects us against rising house prices as we get on the property ladder.
  • Can put any rent received towards mortgage repayments.
  • We have a place to move into immediately when we decide to move back.
  • Could keep it as an investment property/for future kids if we buy a 'forever home' in a few years.
• Cons:
  • Would have the hassle of being a landlord (even if for a finite amount of time) and the risks that come with that.
  • Would be paying mortgage as well as rent in Dublin (although it would be offset by X amount of rent).

2. Investments-focused

• Leave 30-35k in savings accounts.
• Put 10-15k into an ETF (probably VWCE).
• Going forward, keep saving 1000e per month but divert the other 1000e into the ETF.
• Pros:
  • Keeps savings liquid while also building long-term investments.
  • Can buy a nicer/bigger place with my girlfriend in 1.5-2 years.
• Cons:
  • House prices will keep increasing so my 45k + additional savings may not go as far as 45k today.
  • Financial markets are pretty crazy right now, S&P500 is at ATH and it would be just my luck to buy in at the top (although if investing for the long term does it really matter!).

If there's anything I haven't thought of, please do let me know. Thanks!