My wife and I need to move to a larger property before the end of the year. The choice is either to rent or buy.

My question is: should we use our savings to buy an apartment and rent it out to fund a move to a larger rental property, or do we go for a mortgage and buy a home?

Mr R.C., Dublin

My guess from your question is that you think you will qualify for a mortgage but will not be able to afford a property of the size you want, at least in an area that appeals to you both.

I think you both need to sit down and focus on what is really important to you. Is it the security of owning your own place; the location you want to live in, or the size of property you need?

The answers to these sorts of questions effectively deliver the answer you need.

Inevitably, it will be a combination of factors but if, for instance, size is the primary driver for your planned move (and that seems to be the case from your letter), then the issue is what you can afford. If you can manage a mortgage on a property of the size you’re looking at, it probably makes sense to consider that option strongly.

But what about location? If you can only afford a home of sufficient size in area that is not convenient for work, or where you have no support network (for childcare, for instance), or where you are simply not comfortable living, then you are probably tending towards the option of renting something larger than you have currently.

Where I am a little cautious is on the issue of buying an apartment as an investment property to fund any increased rent you will have to pay.

There certainly seems to be a shortage of rental property out there and rents have been rising strongly but, as a whole generation has discovered, being a landlord can be a stressful and costly experience.

In my experience, people invariably underestimate the costs involved in maintaining a rental property and overestimate both the amount they will be able to charge and the certainty that they will be able to find or replace tenants immediately without any gaps.

Then there is the hassle of dealing with the little things that always go wrong. If you’re a handyman, it means being on call close to 24/7; if you’re not, you need to factor in the cost of bringing in people to fix leaky taps, misbehaving electrics etc.

And while repairs, management and maintenance are deductible against rental income, they are costs you will have to face upfront before claiming them back in an annual tax return.

Some people are comfortable with juggling all of this; others are not, or are simply too busy with work to afford the time. In which case, you also have to contend with management fees. Again, these are deductible against your tax bill on rental income but they all eat away at the net amount you will have available to fund your own higher rental bill.

The security of owning your own home is deeply embedded in the Irish but, if you are not completely happy when you first buy your home, you are unlikely to feel better about it down the line. It is a major investment, and as a lot of bubble-era buyers have fund, property can be a trap as much as a security.

If you are first-time buyers, there is the prospect of a rebate of up to €20,000 from income tax you have already paid over the past four years on a property worth up to €500,000 following last week’s amendment of the Finance Bill. That might help sway you, but you would not get your hands on this until sometime early next year so you are still facing the cost of money up front to be repaid later.

Fundamentally it is down to two things: what can you afford and your “comfort zone”, and when I say “your” I mean you both.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or by email to dcoyle@irishtimes.com. This column is a reader service and is not intended to replace professional advice.