how much can i expect to get and how much are monthly payments?

fret_wimp

Im a potentail first time buyer, looking to buy along the green luas line in south dublin. From what i can see from daft.ie, anywhere half decent will cost me 340K min and potentially 380K ( based on apartment, 1bedroom, 1 bathroom).

the combined earnings between myself and girlfriend are roughly 70K per annum.

On a 340K mortgage, what would our repayments be, and what duration would we be best at taking? We would like to pay no more than 1200 per month, but we really arnt sure of what we are doing, so this is our first post looking for first time buyer info.

thanks guys.

Noelie

well, my fiancee and I have a combined wage of about 80K
We've a 355k mortgage over 35 years and it's costing about 1600 a month.

So I'd guess since our earnings are close as is the size of the mortgage that's what you'd be paying.

Also you might find it tough to get 340K approval now, banks have gotten tighter with how much they are willing to lend.

Have you much of a deposit saved up?

Also, you'd be much better going to the bank rather than asking here, as the banks will be the ones' who decide. so anything we say if just our experience or what we think.

miju

have look at these two tools over on mortgages.ie , obviously its only an indicator but useful none the less.

How much can you borrow calculator + Monthly Repayment Calculator going by these you can borrow 323k providing you've no outstanding loans but give or take you could prob get it up to about 350k

can i also just say 380k for a 1 bed apt, are you MAD?????? best of luck though

fret_wimp

Thanks guys.

Yea, Im aware its at the bank's descression, but I just wanted a rough idea before I persued anything. The problem is my landlord is putting up the rent, and although its a nice house with nice people, its not worth the money he's asking for the room.

i know 380K is absolutely rediclious, but its that high for a few reasons:

1. I really want to live close to work and to the luas line, and as work is in sandyford, its the first place i looked along with dundru, stillorgan and that general area. Il be long dead in a cold grave before i spend over an hour travelling to and from work. its no way to live your life, travelling, IMO.

2. my girlfriend needs parking so we are factoring for that.

We have no outstanding debts, and no significant savings either.
Im just sick of paying rent, which I class as dead money, whereas if i got a mortgtge at least theres a chance of making my money back on the sale if i ever sell the property.

I really hate this country, and the government for letting the housing suituation get so bad.

gurramok

miju wrote:

have look at these two tools over on mortgages.ie , obviously its only an indicator but useful none the less.

How much can you borrow calculator + Monthly Repayment Calculator going by these you can borrow 323k providing you've no outstanding loans but give or take you could prob get it up to about 350k

can i also just say 380k for a 1 bed apt, are you MAD?????? best of luck though

That mortgages.ie calculator is mad!

I put in figure of a single income and they give 6 times income for a single buyer alone with 40%+ net income over 35 yrs, insane i say.

To OP, if landlord puts rent up, move to a cheaper property if you can.

Mortgage interest is dead money also especially on that 1bed apt you seek.

If you rent somewhere else if needs be and wait in a falling market, you will save a fortune on your mortgage when compared to rent.

Your a victim like every young person of the longest boom ever the world has seen, wait a little bit longer and you will gain alotttt in the falling house/apt price market.

miju

gurramok wrote:

That mortgages.ie calculator is mad!

I put in figure of a single income and they give 6 times income for a single buyer alone with 40%+ net income over 35 yrs, insane i say.

might be insane but there has been plenty of anecdotal evidence that banks have been lending out higher mutiples than that up to 10 times salary...makes you sick to even think about that IMO

fret_wimp

question: is it inevitable that the boom will eventually fall? i mean its already shown its exceptional in the length its survived so far, is there a chance it wont stop, but just slow a little bit?

testicle

fret_wimp wrote:

question: is it inevitable that the boom will eventually fall? i mean its already shown its exceptional in the length its survived so far, is there a chance it wont stop, but just slow a little bit?

Where have you been? The boom has, and is continuing to fall!

fret_wimp

not from where i am sitting! 340+ K for a 1 bedroom apartment. I would quite happily pay 150K for it, but 340k!!! and i dont think im undervaluing, perhaps im wrong though. regardless, i cant see any 1 bedroom apartments in stillorgan/sandyford area comming down to 150K price range.

Firetrap

fret_wimp wrote:

We have no outstanding debts, and no significant savings either.
I'm just sick of paying rent, which I class as dead money, whereas if i got a mortgage at least there's a chance of making my money back on the sale if i ever sell the property..

I feel your pain and know where you're coming from on being sick of renting. I'd be a bit cautious about spending that sort of money on a 1 bedroom apartment though. What happens if you and your girlfriend end up bringing a fret_wimp or two into the world?

With the current instability in the market, there are people who think the apartment market is going to take a hit. There's no guarantee that if you did try to sell your apartment over the next few years, that you'll get your money back.

fret_wimp

Yea Firetrap, Ive saw that, most people in the know say the appartments will be the first to loose serious value. thats why i havnt purchased anything yet.

On the other question, we're a little young and career motivated just yet to bring a few sprogs into the world, so bar some serious mistake, we should be ok. I would never bring a kid up in an apartment anyway. i myself was brought up in the countryside with acres and acres of land to roam in. at the very least i think a kid deserves a back garden, but if i could get a job back in the country all the better. but thats all 10 years down the track.

Theboinkmaster

fret_wimp in my honest opinion you'd be absolutely mad to buy a 1 bed apartment now for €340k or so. I suggest you do some serious homework starting with this thread:

http://www.boards.ie/vbulletin/showthread.php?t=2055033806&page=161

If the 1 bed apartments are asking for €340k at the moment I'd say they're only going for €300-€320k and I believe these will fall quite a bit over the next year or two, by maybe €50k-70k.

And with no savings I think you're crazy to buy - you'll get a near 100% martgage and I can guarantee you'll be in negative equity within a year.

Wait another year and save, then see how the market is...

fret_wimp

Cool BoinkMaster. TBH I couldnt afford to purchase at the moment, and It makes me physically nautious to think about a shoebox for 340 K so i dont think im capiable of purchasing. guess il just rent for another few years and save a few quid towards a deposit. its just a depressing state of affairs.

patrickolee

Would you be able to go for affordable housing?

How Strange

OP, I agree with Patrickolee. Look at affordable housing because Dunlaoghaire Rathdown CC should still have apt blocks coming up considering all the development up there. Also, look at 2 or 3 bed apts preferably in small developments. Stay away from the really big ones; IMO the smaller ones will hold their value better.Stay away from 1bed apts. They have peaked and Dublin is full of overpriced 1 bed apts and developers shouldn't be allowed build so many and should be forced to build 3 or 4 bed apts instead so families can live in them.

I think Sandyford and up around there (esp the properties on the back roads with little or no public transport) will plunge in value if bad times hit the market. There are rumours that the market up around Stepaside is on the verge of collapse due to overdevelopment. The marketing gurus try to sell the dream of living beside the city when in reality you might as well be living in Bray because you are miles from anywhere and there are hardly any bus services. Again, thats IMO. I'm sure the southside posters will tear me apart for saying that.

eirmail

This 2 bedroom place in stepaside is asking for 360K . The seller seems desperate . Would it be worth offering 340K?
http://www.myhome.ie/search/property.asp?id=325728

How Strange

I'd offer €330k and see what happens. Hell if they are that desperate I can't see them turning down any reasonable offer.

You really shouldn't put on the ad that it was reduced by so much. It makes you look very desperate to sell.

Hmm, worrying times ahead for property owners it seems.

Theboinkmaster

Stepaside is a complete shambles at the moment - I've seen quite a few apartments advertising "reduced to sell" amounts by as much as €40k.

The whole area is very overdeveloped and I think in the past year alone standard 2 bed apartments have come down from around €450k to €350k - quite a drop and if you look at belarmine for example there are loads for sale.

IMHO you'd be crazy to buy out there, even for €330k as that will still go down. I think personally that type of place would come down to maybe €250k over the next 2/3 years.

I could buy myself in Jan 08 and could afford a 2 bed for about €350k however my plan is to save for a bigger deposit over 2008 and then see how the market is in 2009 and 2010. I don't think ill buy for a few years.

fret_wimp imagine this scenerio. You get a 100% mortage now for a 2 bed at €330k and it goes down to €250k in 3 years...you'd be in a spot of bother with that negative equity when it comes to trading up and after the decrease in value it will only rise in line with inflation so will take many years to come back to €330k.

So instead of paying a mortgage of €1,600 pm no why not rent for say 3 years for €1,000 pm (just a guess) and save the €600 extra pm towards a deposit. Then in 3 years you'll have savings of €22k so can get say a €230k mortgage on that property. Your loan will then be €100k less by waiting the 3 years - much better in my opinion.

People who say rent is dead money these days are IMO very wrong. You can afford to live in a home which you'd never be able to afford to buy, in your perfect location. And you can move homes if your job moves and simply move to wherever your job is therefore reducing a long commute each day. I'm very happy to rent over the next few years...Even paying €700pm rent in Donnybrook is better than paying a mortgage of €1,600 out in Stepaside and taking the risks of the current property market - just my 2c

fret_wimp

No, I dont qualify for afordable housing as my salary is above the threshold ( which by the government's reckoning obviously means im rich and can totally afford a house!!!). With regards to living in stepaside, I dont think id like that. Stillorgan/Kilmacud/Sandyford is as far out from the city as I want to go. thgose locations are beside work in sandyford industrial estate, and also beside the luas green line which is very importatnt ( i dont like bus'es or long commutes).il just have to give it a few years

starky

fret_wimp wrote:

No, I dont qualify for afordable housing as my salary is above the threshold ( which by the government's reckoning obviously means im rich and can totally afford a house!!!). With regards to living in stepaside, I dont think id like that. Stillorgan/Kilmacud/Sandyford is as far out from the city as I want to go. thgose locations are beside work in sandyford industrial estate, and also beside the luas green line which is very importatnt ( i dont like bus'es or long commutes).il just have to give it a few years

Are you totally sure about your entitlement for affordable housing? You mentioned that your combined income was about 70k and on the affordable housing website:

http://www.affordablehomespartnership.ie/home/index.aspx?id=110

it states:

“As a guide, earn between €25,000 and €58,000 if you are applying on your own and up to €75,000 between both of you if you are applying with someone else. These are the approximate income limits only - lower income limits may apply. “

Although I am only really applying for DCC affordable housing so maybe the area you are looking at has lower limits. You should ring up the area you are interested in and find out what the current income limits are to be 100% sure.

loyatemu

eirmail wrote:

This 2 bedroom place in stepaside is asking for 360K . The seller seems desperate . Would it be worth offering 340K?
http://www.myhome.ie/search/property.asp?id=325728

wtf are estate agents on when they write their blurbs!?

"This is one of the finest 2 bedroomed apartments to come to the market in recent times"

I'm sure its very nice, but ease up on the hyperbole there, Mr. 1%.

jackal

Affordable housing is not the answer to everyone's problems. I looked into it and its a huge compromise for a person who earns a decent bit of money and *should* be well able to buy a reasonable abode in an area they grew up in or desire to live in - excluding millionaires row type areas. I decided not to put in my application as I didnt want to be tied to an apartment and I really was not impressed with any of the developments available.. Tallaght etc.

• Seems to be only apartments these days
• Often in rough/undesirable spots
• Clawback means you must be prepared to stay in the place for at least.. x years
• valuation is often too high.
• Affordable housing only looks affordable relative to the market price - which is out of kilter. Looking at what you get - and where you get it it doesent seem like the council are really doing you a huge favour.
• Expect much more choice and realistic prices in the next year or two as builders offload non-selling apartments to the council.

gurramok

starky wrote:

Are you totally sure about your entitlement for affordable housing? You mentioned that your combined income was about 70k and on the affordable housing website:

http://www.affordablehomespartnership.ie/home/index.aspx?id=110

it states:

“As a guide, earn between €25,000 and €58,000 if you are applying on your own and up to €75,000 between both of you if you are applying with someone else. These are the approximate income limits only - lower income limits may apply. “

I think the OP was probably looking at the Affordable Scheme with its lower limits rather than the Affordable Initiative as stated above with its higher income limits and lower clawback.
Advantage i suppose is that they are built sometimes in decent areas in a social mix.

DubDani

BTW... if you have no singnificant savings, the you will have to change your plans. I don't know of any bank who will provide a 100% mortgage for 1 BR properties. It's in the small print of all these 100% mortgage ads.

Banks know that they are almost impossbible to shift, and therefore worthless to them.

For example from the Permanent TSB site: "The new 100% mortgage will not be available to purchasers of 1 bedroom or studio apartments, for site purchase or self builds."