Mortgage - Yes/No

Jugs82

Hi,

Putting it bluntly - Would I be crazy to get a mortgage right now?

Then, for a property at €260k - €300k what kind of deposit should i be aiming for?

Combined income - me & GF - €63k - savings of 10k, no debt

Opinions would be greatly appreciated

Thanks

Supercell

Roughly speaking, a mortgage of 300k will cost you 600k usually by the time its paid back.

Your deposit will pay for itself double over the lifetime of the mortgage.

In my opinion houses currently going for 350 -380k will probably be around the 280-300k mark in a couple of years.

Double the difference and thats how much you'll be saving..its a no brainer really.

Now is not the time to buy..keep saving, you are effectively making money by not buying right now

junior_apollo

Rough guide would be to multiple your mortgage by 2.26 or there abouts.. so a €300k property, with a 95% mortgage for €285K, would need a 5% deposit... so thats the €15K, and would see you pay back around €644,100

I would disagree about the dont buy now statement... now is a good time to buy... Buyers can bargain really strongly now with the sellers throwing in extras.. especially with new homes...

Buying now would be a good investment... regardless of everyone saying prices are dropping... they wont drop much further to be honest, and when they level out which is around now they will only rise again...

punchestown

I would tend to listen to what supercell has to say. The bottom is some way off

markpb

Supercell wrote: »

Now is not the time to buy..keep saving, you are effectively making money by not buying right now

junior_apollo wrote: »

now is a good time to buy... Buyers can bargain really strongly now with the sellers throwing in extras.. especially with new homes...

And now you see why you'll never get more than opinions about the house market No-one really knows whether now is good time or not until it's passed.

adam.number2

markpb wrote: »

And now you see why you'll never get more than opinions about the house market No-one really knows whether now is good time or not until it's passed.

qft,

But there will be plenty of people who in a year or so's time will say "see i told you so", regardless of what way it goes.

You pays your money, you takes your chances.... either way, its nice to have a home.

Supercell

Lots of newbies posting about how its a great time to buy.....

OP, it is easy to predict where prices are going, its down down down, anyone else that tells you otherwise is in cloud cuckoo land or has a vested interest.
Housing crashes dont just end after one year..they usually last about 5 or more.

Theres a bajillion posts about this.

Have a look at http://www.thepropertypin.com and make your own mind up.

I'm putting my money where my mouth is - I have a decent deposit saved but sure as heck I'm not going to blow it on a gaff thats worth less tomorrow than today.

SkepticOne

Jugs82 wrote: »

Putting it bluntly - Would I be crazy to get a mortgage right now?

Remember that you are buying a home first and foremost. Its purpose is to provide shelter, and eventually security. Therefore you need to be happy with what you have bought regardless of whichever way the market is likely to go.

If you can't think in these terms but find yourself worrying about the direction of the market then, in my opinion, you probably should not buy now.

My own opinion is that there's still significant downward risk in the market however, as others have pointed out, no one knows with total certainty. So it is worth reading up on negative equity. This may become an issue if prices fall sufficiently and you lose your job or split up.

Jugs82

Thanks for the advice guys, greatly appreciated

Now is not the time to buy..keep saving,

I think the argument for saving for a while longer may be the way to go, thanks for that. I never really thought about how a larger deposit would save you in the long term - will definetly aim to have a bigger deposit

I'm putting my money where my mouth is - I have a decent deposit saved but sure as heck I'm not going to blow it on a gaff thats worth less tomorrow than today.

Think ill do the same. Cheers

niceirishfella

Save, save and save your cash now -

and wait in the long grass

adam.number2

But get out before the lawnmower comes...

Victor

junior_apollo wrote: »

Buyers can bargain really strongly now with the sellers throwing in extras..

Be very careful of the extras thrown in. If its a fitted kitchen that you are going to use, then fair enough. If its a new car and you don't need it, then don't take it.

The bank's valuer will deduct the value of the car anyway and you will only get a mortgage for that lower amount.

niceirishfella

+1

These "free Car" deals are a load of olde rubbish. Haggle, Haggle, and Haggle some more till you get the BARE Price deal that you would pay for a house.........