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  • 04-04-2008 11:34am
    #1
    stevoman
    Registered Users Posts: 3,041 ✭✭✭


    Im looking a bit of property at the moment. its a new 3 bed semi detached so it is and its in a new estate just being built in the midlands. the houses at the moment are at 220000 for a three bed semi detached which isnt bad. is this the right time to buy or not with the market at the moment, or am i going to be one of the last people to buy before the whole ass goes out of it?
    also i think this estate is completly private, which is a good thing so it is. Im not a snob by any means but i see one of my best friends who paid 235,000 for a house and the council just gave away the one nest door to him to a family "who cannot find work". needless to say he's a little peeved that he has to slug away to pay his mortgage whilst the state pays the one next door even though all occupants in each house are of the same age.

    need advice please???


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    #2
    jmcwobbles
    Registered Users Posts: 287 ✭✭jmcwobbles


    Read the last few pages of the "Housing Bubble Bursting" thread - I think a lot of posters there would tell you that prices are going to continue to drop - I'm starting to look at the housing market myself so am in a similar boat as yourself - to buy or to wait?? Argh!


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    #3
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    i know it a real killer. iv a baby due in three weeks too so i dont really want to keep putting things off. plus if you really like the place........ damn this state!


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    #4
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,505 Mod ✭✭✭✭johnnyskeleton


    stevoman wrote: »
    also i think this estate is completly private, which is a good thing so it is. Im not a snob by any means but i see one of my best friends who paid 235,000 for a house and the council just gave away the one nest door to him to a family "who cannot find work". needless to say he's a little peeved that he has to slug away to pay his mortgage whilst the state pays the one next door even though all occupants in each house are of the same age.

    need advice please???

    Quit your job and get a council house.


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    #5
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    why would i, iv a great career?


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    #6
    bakerbhoy
    Registered Users Posts: 586 ✭✭✭bakerbhoy


    stevoman wrote: »
    Im looking a bit of property at the moment. its a new 3 bed semi detached so it is and its in a new estate just being built in the midlands. the houses at the moment are at 220000 for a three bed semi detached which isnt bad. is this the right time to buy or not with the market at the moment, or am i going to be one of the last people to buy before the whole ass goes out of it?
    also i think this estate is completly private, which is a good thing so it is. Im not a snob by any means but i see one of my best friends who paid 235,000 for a house and the council just gave away the one nest door to him to a family "who cannot find work". needless to say he's a little peeved that he has to slug away to pay his mortgage whilst the state pays the one next door even though all occupants in each house are of the same age.

    need advice please???

    Does it have a garage , room to extend, location to amenities,schools ,shopping,public transport etc.If it can tick most of the boxs it's good value,no real danger of taking a loss.
    Apartments ,duplexs, management company complexs , avoid like the plague and the futher away from dublin the better.


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    #7
    Do-more
    Registered Users Posts: 4,748 ✭✭✭Do-more


    Have you already got mortgage approval? I'd say that's your first hurdle and it may well decide whether you can or can't buy.

    Assuming that you have a large enough deposit to get mortgage approval, then be very careful about what type of mortgage you actually go for. The reason being that if you did find yourself in negative equity then you will effectively be locked-in to the lender you are with and are completely at their mercy regarding rates, so you need to discuss with your lender what will happen in that situation. They are legally obliged to fully explain their terms and conditions. If they give you any assurances get them in writing.

    If after all that you are set on buying a place then the best of luck with it and more importantly the best of luck with your new arrival.

    invest4deepvalue.com



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    #8
    orbital83
    Registered Users Posts: 208 ✭✭orbital83


    stevoman wrote: »
    its a new 3 bed semi detached so it is and its in a new estate just being built in the midlands.

    I note the location. Some things to look out for...

    Is it a "Section 23" housing estate?
    How many of the houses in the estate are occupied?
    Of those occupied, how many are rented and how many are owner-occupied?

    The vast majority of houses in the more established Section 23 estates in the midlands are buy-to-let investment properties.
    This often lends itself to the place becoming shabby and neglected, and if anything needs to be done around the estate, you'll find yourself pretty much on your own as an owner-occupier.
    This is a particular issue if social problems such as noisy neighbours arise.
    Many of the tenants in these places are construction workers - the slump in construction is leading to these houses becoming vacant and if replacement tenants are not found they may go up for sale thus increasing supply and lowering prices.
    In any case, the Section 23 tax incentives expire after ten years so expect a flood of properties to hit the market at that stage.

    The newer estates in certain parts of the midlands are selling poorly. In fact up the road from me, there's an estate of 50 odd houses that's been on the market for a year... not one house is occupied, so much so that they turn off the streetlights at night to save on electric bills.
    The developer is either going to have to hold onto these properties long-term or drop their prices massively. It's important you take note of what percentage of the estate is occupied.


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    #9
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    bakerbhoy wrote: »
    Does it have a garage , room to extend, location to amenities,schools ,shopping,public transport etc.If it can tick most of the boxs it's good value,no real danger of taking a loss.
    Apartments ,duplexs, management company complexs , avoid like the plague and the futher away from dublin the better.

    Its actually the only estate in a small village about 5 kilometres from the town im from. Nice place and all the towns amenitys are closeby


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    #10
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    Do-more wrote: »
    Have you already got mortgage approval? I'd say that's your first hurdle and it may well decide whether you can or can't buy.

    Assuming that you have a large enough deposit to get mortgage approval, then be very careful about what type of mortgage you actually go for. The reason being that if you did find yourself in negative equity then you will effectively be locked-in to the lender you are with and are completely at their mercy regarding rates, so you need to discuss with your lender what will happen in that situation. They are legally obliged to fully explain their terms and conditions. If they give you any assurances get them in writing.

    If after all that you are set on buying a place then the best of luck with it and more importantly the best of luck with your new arrival.


    TBH i havnt actally got the approval yet but i do have the. deposit so i dont think there is going to be too much of a problem. I really dont have a clue about mortgages and TBH im quite hesitant because evrybody does nothing only talk about how crippling they are. I dont really want to rent though because i then feel as though all im doing is paying another mans mortgage


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    #11
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    John J wrote: »
    I note the location. Some things to look out for...

    Is it a "Section 23" housing estate?
    How many of the houses in the estate are occupied?
    Of those occupied, how many are rented and how many are owner-occupied?

    The vast majority of houses in the more established Section 23 estates in the midlands are buy-to-let investment properties.
    This often lends itself to the place becoming shabby and neglected, and if anything needs to be done around the estate, you'll find yourself pretty much on your own as an owner-occupier.
    This is a particular issue if social problems such as noisy neighbours arise.
    Many of the tenants in these places are construction workers - the slump in construction is leading to these houses becoming vacant and if replacement tenants are not found they may go up for sale thus increasing supply and lowering prices.
    In any case, the Section 23 tax incentives expire after ten years so expect a flood of properties to hit the market at that stage.

    The newer estates in certain parts of the midlands are selling poorly. In fact up the road from me, there's an estate of 50 odd houses that's been on the market for a year... not one house is occupied, so much so that they turn off the streetlights at night to save on electric bills.
    The developer is either going to have to hold onto these properties long-term or drop their prices massively. It's important you take note of what percentage of the estate is occupied.

    very interesting. i was not aware of a section 23. the estate is only beginning construction and only 4-5 house have been built, none yet even roofed. this gives me time so to find out everything about the estate so.


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    #12
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,505 Mod ✭✭✭✭johnnyskeleton


    stevoman wrote: »
    why would i, iv a great career?

    Exactly. You look after yourself and let people getting government assistance look after themselves


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    #13
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    johnnyskeleton wrote: »
    Exactly. You look after yourself and let people getting government assistance look after themselves

    Can you offer any advice that i actually need? If not please dont post. Cheers Mr Skeleton, watch out for those closets! :)


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    #14
    El Stuntman
    Closed Accounts Posts: 4,720 ✭✭✭El Stuntman


    offer 25% below asking as your starting point


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    #15
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    El Stuntman wrote: »
    offer 25% below asking as your starting point

    really? so it really is a buyers market at the moment!


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    #16
    El Stuntman
    Closed Accounts Posts: 4,720 ✭✭✭El Stuntman


    stevoman wrote: »
    really? so it really is a buyers market at the moment!

    it has been for at least 18 months

    personally I would hold off for at least another two years


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    #17
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    El Stuntman wrote: »
    it has been for at least 18 months

    personally I would hold off for at least another two years

    mmmm. wish i could, just dont want to rent because its dead money


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    #18
    El Stuntman
    Closed Accounts Posts: 4,720 ✭✭✭El Stuntman


    stevoman wrote: »
    mmmm. wish i could, just dont want to rent because its dead money

    that's a stupid fallacy, there have been a million threads in this forum explaining why this is not the case

    do a search, educate yourself and save tens of thousands


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    #19
    jobless
    Registered Users Posts: 2,183 ✭✭✭jobless


    stevoman wrote: »
    mmmm. wish i could, just dont want to rent because its dead money

    so is the 20 - 25 k you'll lose when the price drops this year!


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    #20
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    jobless wrote: »
    so is the 20 - 25 k you'll lose when the price drops this year!

    Christ yeah its such a bloody gamble isnt it. i hate this market at the moment beacuse your damned if you do and your damned if you dont!


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    #21
    jobless
    Registered Users Posts: 2,183 ✭✭✭jobless


    stevoman wrote: »
    Christ yeah its such a bloody gamble isnt it. i hate this market at the moment beacuse your damned if you do and your damned if you dont!

    I agree with El Stuntman, i would wait at least two years....
    If bought now with 10% deposit you would be roughly paying 1100 a month... the majority of this is interest (maybe only 300 off the principle).... so you can see for the first few years not much goes off the principle
    how much would a simliar house cost to rent?...

    heres a handy link to work these figures out

    http://www.jeacle.ie/mortgage/


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    #22
    OTK
    Closed Accounts Posts: 556 ✭✭✭OTK


    Rent a house in the estate for a year and see if you like it.


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