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House Deposit On Hold

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  • 21-12-2007 11:13am
    #1
    ballooba
    Registered Users Posts: 6,315 ✭✭✭


    Hi,

    I've got a deposit together for a house. I am thinking of heading to Australia in the next few months and would think of buying when I come back. I expect house prices to fall in the mean time. It's a large wad of money so I want to put it somewhere safe but I don't want to lose out on inflation. At the moment it looks like it will be a high interest account with AIB. They haven't told me what rate yet. Any ideas?

    B.


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    #2
    Hitchhiker's Guide to...
    Registered Users Posts: 3,322 ✭✭✭Hitchhiker's Guide to...


    is this any use? http://boards.ie/vbulletin/showthread.php?t=2055204270


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    #3
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Roundtower2 wrote: »
    is this any use? http://boards.ie/vbulletin/showthread.php?t=2055204270

    I think Anglo do 4.9?


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    #4
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Afraid it doesn't really work the way you are hoping.

    You will have great difficulties getting a mortgage for a few years after you come back as your bank will naturally examine how long you have been in your job to determine your job security.

    Perhaps if you are going away on an official career break and will return to your current employer, it might be fine, but otherwise, you will probably have to be a minimum of 18 months in a job when you come back before the banks will even look at you.

    Given this, even if house prices fall much further, they may have started to rise by the time you are actually ready to buy.

    Don't mean to be negative, just a bit of cautious advice :)

    As regards your deposit, you don't say how much you have, but if a large amount, I would consider the ISEQ (It is heavily discounted on this time last year and, although may fall further in the new year, is very likely to have rebound by the time you actually need the money - several years).


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    #5
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    I doubt I will have any problems getting a mortgage. I will be working in Aus in my own profession. I will be permanent when I come back or I won't be coming back.

    I am confident house prices have a long way to go down. Up to 35% in the area I would like to buy. I can buy from Aus or I can nip home to buy if necessary.

    I have looked at AIB and I believe the shares are depressed with good reason. I wouldn't risk a lump this size on equities. I don't know much about the other equities and I definitely wouldn't touch anything dependent on property or retail.

    The CPI is showing inflation at 5% so I would lie to be matching or beating that. I see today that EBS are offering 4.94% for a three month deposit. It would probably suit me if I could put my funds on deposit for three months and repeat every quarter until I am ready to buy. I presume the only worry hear is that rates may go down. I can't see that happening any time soon to be honest.


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