Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Should've bought a couple of months ago?

Options
2»

Comments

  • Options
    #32
    ixoy
    Moderators, Entertainment Moderators Posts: 17,993 Mod ✭✭✭✭ixoy


    Climate Expert wrote: »
    Why live with housemates? If you are still living with people because you can't afford the full rent then you won't be buying your own house anytime soon.
    Or maybe they're living with people to, y'know, save more money to buy their own place?


  • Options
    #33
    Climate Expert
    Closed Accounts Posts: 1,393 ✭✭✭Climate Expert


    ixoy wrote: »
    Or maybe they're living with people to, y'know, save more money to buy their own place?
    Stupid logic.

    How many years to you need to save an 8% deposit for?
    If you have living with people so much then why do it for 14 years (guessing here)


  • Options
    #34
    SimpleSam06
    Closed Accounts Posts: 4,048 ✭✭✭SimpleSam06


    Climate Expert wrote: »
    Stupid logic.

    How many years to you need to save an 8% deposit for?
    If you have living with people so much then why do it for 14 years (guessing here)
    To save up a 25% deposit? The more initial savings you have, the less you need to spend overall, you're saving two or three euros for every euro that you spend. Sounds pretty smart to me. Alternately if you become unemployed or otherwise lose your taste for this fine nation, you can take your large savings and start off elsewhere. Options are always good.


  • Options
    #35
    Calina
    Registered Users Posts: 8,219 ✭✭✭Calina


    Climate Expert wrote: »
    Why live with housemates? If you are still living with people because you can't afford the full rent then you won't be buying your own house anytime soon.

    Well I live with housemates in rental even though I could pay a mortgage on my own. As a lot of people talk about how rent is dead money, I find this dilutes the pain a little. Also I can tolerate sharing rent but will not share my own place.

    Quite a lot of people are desperately looking for housemates to subsidise their mortgages. Unfortunately lots of people like me won't touch owner occupied accommodation and I don't want to have to be in their position.

    It's not stupid logic to make different decisions based on different criteria at different stages of your life. Given that rent on a room in a three bed house could be 500E and a mortgage on a smaller property could be 1400E a month and rising while its resale value is falling...I'm having some difficulty seeing the stupidity of rent sharing under those circumstances even if you have the 1400E a month. Even if you don't save it, you get quite a lot more life out of it, I feel.


  • Options
    #36
    beeno67
    Registered Users Posts: 1,218 ✭✭✭beeno67


    Calina wrote: »
    .

    It's not stupid logic to make different decisions based on different criteria at different stages of your life. Given that rent on a room in a three bed house could be 500E and a mortgage on a smaller property could be 1400E a month and rising while its resale value is falling...I'm having some difficulty seeing the stupidity of rent sharing under those circumstances even if you have the 1400E a month. Even if you don't save it, you get quite a lot more life out of it, I feel.

    The point is Firetrap says he "longs for the day that he has no housemates, no sharing the fridge" If he longs for that day then why not move into a place alone.


  • Advertisement
  • Options
    #37
    Calina
    Registered Users Posts: 8,219 ✭✭✭Calina


    beeno67 wrote: »
    The point is Firetrap says he "longs for the day that he has no housemates, no sharing the fridge" If he longs for that day then why not move into a place alone.

    I long for it too but I think that the single occupancy rental market in Dublin is nothing short of a rip off. So although I'd prefer by far to live on my one, the premium demanded for it deters me as the properties are not worth the money that is commanded for them. But for what it's worth, I sure as hell wouldn't buy them either. They are by and large very poor quality properties.

    I used to live on my own in Brussels for less than I pay to house share in Dublin.

    In any case, people will make different decisions based on whether they rent or buy. I'll share rent but I will not rent a room if I am paying a mortgage. You may consider that irrational but I don't. I make it a reasoned call based on current situation.


  • Options
    #38
    Mr. Presentable
    Closed Accounts Posts: 9,496 ✭✭✭Mr. Presentable


    It is always a good time to buy a house.

    All the talk of neg equity etc is nonsense - unless you are a short term investor - homeowners usually stay in their property for 10-15 years and your property will readjust positively over time.

    Important to remember, economics are cyclical.


  • Options
    #39
    beeno67
    Registered Users Posts: 1,218 ✭✭✭beeno67


    Calina wrote: »
    I long for it too but I think that the single occupancy rental market in Dublin is nothing short of a rip off. So although I'd prefer by far to live on my one, the premium demanded for it deters me as the properties are not worth the money that is commanded for them. But for what it's worth, I sure as hell wouldn't buy them either. They are by and large very poor quality properties.

    I used to live on my own in Brussels for less than I pay to house share in Dublin.

    In any case, people will make different decisions based on whether they rent or buy. I'll share rent but I will not rent a room if I am paying a mortgage. You may consider that irrational but I don't. I make it a reasoned call based on current situation.

    But Callina no one was talking about you or your situation. The point was made re Firetraps situation not yours. He said he was considering buying as he wanted to end having to share a property. Renting a house alone is cheaper than buying alone, so why doesn't he move to a property alone. That was more or less Climate Experts point which I agree with


  • Options
    #40
    Calina
    Registered Users Posts: 8,219 ✭✭✭Calina


    beeno67 wrote: »
    But Callina no one was talking about you or your situation. The point was made re Firetraps situation not yours. He said he was considering buying as he wanted to end having to share a property. Renting a house alone is cheaper than buying alone, so why doesn't he move to a property alone. That was more or less Climate Experts point which I agree with

    Yes but you fail to look at the type of property concerned. If Firetrap were to say that he wouldn't because single occupancy properties in this city are scary bad - which for the most part they are - I wouldn't crib.

    My situation is not that different. I don't know what your problem is. Yes living in a one bedroomed apartment costs less than buying it but that doesn't mean said apartments are desirable places to live in.


  • Options
    #41
    Calina
    Registered Users Posts: 8,219 ✭✭✭Calina


    nipplenuts wrote: »
    It is always a good time to buy a house.

    This is naive. It is a better time to buy when the property will cost you 100K less. As property is currently on a downward trajectory, now is a bad time to buy, particularly if you will need to trade up at all within a few years.

    This unfortunately is the case in Dublin. Starter homes are not designed to be lived in,they are designed to be traded up out of.


  • Advertisement
  • Options
    #42
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    beeno67 wrote: »
    But Callina no one was talking about you or your situation. The point was made re Firetraps situation not yours. He said he was considering buying as he wanted to end having to share a property. Renting a house alone is cheaper than buying alone, so why doesn't he move to a property alone. That was more or less Climate Experts point which I agree with

    The point Calina made was that renting alone is also prohibitively expensive as buying.
    Renting a house by yourself will set one back at least 1,200 in the not so fashionable areas or maybe 1000 for a 1bed apt in a suburban location. A mortgage for a singleton is mostly unobtainable as prices are too high plus a big deposit is needed. (rent a room to help pay a mortgage goes against the grain of 'getting your own place')

    Point being, renting and buying on your own in this country is way out of whack. I suspect the floor for rent allowance levels has something to do with the high rents.


  • Options
    #43
    Climate Expert
    Closed Accounts Posts: 1,393 ✭✭✭Climate Expert


    gurramok wrote: »
    The point Calina made was that renting alone is also prohibitively expensive as buying.
    Renting a house by yourself will set one back at least 1,200 in the not so fashionable areas or maybe 1000 for a 1bed apt in a suburban location. A mortgage for a singleton is mostly unobtainable as prices are too high plus a big deposit is needed. (rent a room to help pay a mortgage goes against the grain of 'getting your own place')

    Point being, renting and buying on your own in this country is way out of whack. I suspect the floor for rent allowance levels has something to do with the high rents.
    No renting alone for the same property is cheaper than buying. If he can afford to pay a mortgage to live alone then he can afford to rent alone.

    A place with 1200pm rent will probably cost 1800pm in mortgage. We're not talking about one bed apts here unless thats what the OP is thinking of buying.


  • Options
    #44
    Mr. Presentable
    Closed Accounts Posts: 9,496 ✭✭✭Mr. Presentable


    Calina wrote: »
    It is a better time to buy when the property will cost you 100K less.

    Of course, but it is not the same as saying it's not a good time. In the long term any loss will still be recovered - the only ones who'd really be disadvantaged are short term buyers. But I said this already.


  • Options
    #45
    Calina
    Registered Users Posts: 8,219 ✭✭✭Calina


    Climate Expert wrote: »
    No renting alone for the same property is cheaper than buying. If he can afford to pay a mortgage to live alone then he can afford to rent alone.

    A place with 1200pm rent will probably cost 1800pm in mortgage. We're not talking about one bed apts here unless thats what the OP is thinking of buying.

    Well without knowing his exact circumstances, I can't comment on what he is thinking of buying.

    However, I see a financial benefit if you aspire to buying in reducing your rent out going in the short term by sharing and upping the amount of money you can use as a deposit whilst simultaneously watching prices slowly slide downwards.


  • Options
    #46
    Calina
    Registered Users Posts: 8,219 ✭✭✭Calina


    nipplenuts wrote: »
    Of course, but it is not the same as saying it's not a good time. In the long term any loss will still be recovered - the only ones who'd really be disadvantaged are short term buyers. But I said this already.

    The problem in Dublin - in particular - is that many, many FTBs were relying on the short term gain to be able to trade up. That was the whole property ladder thing. There's no point in saying "only...will be affected" when, in a particular market, that only represents a lot of buyers. The property market has ground to a halt because there are no investors and no FTBs.


  • Options
    #47
    SimpleSam06
    Closed Accounts Posts: 4,048 ✭✭✭SimpleSam06


    nipplenuts wrote: »
    In the long term any loss will still be recovered
    The long term we're talking about is people's lives. The only thing buying now does is enrich bankers.


  • Options
    #48
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Climate Expert wrote: »
    No renting alone for the same property is cheaper than buying. If he can afford to pay a mortgage to live alone then he can afford to rent alone.

    A place with 1200pm rent will probably cost 1800pm in mortgage. We're not talking about one bed apts here unless thats what the OP is thinking of buying.

    Yes i agree about mortgage been more expensive than renting in most cases. What i was getting at is that its also expensive to rent on one's own.

    Most people i know who rent have to share as they say rent is too expensive, they cannot afford mortgages on their own either (which we know already are too high for the same property)
    For example on daft, in alot of cases there is only a difference of 100 euro in renting a 1bed from a 2bed and maybe another 200-300 euro for a 3bed.
    Why is there a small difference in rent but yet a wider gap in proportion for a mortgage on the same properties? (mortgage a 1bed, 2bed, 3bed..bigger difference in repayments between the 3 as to smaller difference in rents on same gaffs)

    The cheapest for renting are 1bed's, there's no justification for charging 1000 pm on them as they are mostly only suitable for singletons and most are in unfashionable areas at that price, the yield is not justifiable.(a singleton earning avg ind wage of 33k(2362pm) would fork out nearly 50% of take home pay after deducting pension etc for a 1bed at 1000pm, outrageous!)

    Which sums up, rents for 1beds and 2beds need to come down as the rents too high to justify.(but Rent allowance is probably helping them there)


  • Options
    #49
    jackal
    Registered Users Posts: 794 ✭✭✭jackal


    nipplenuts wrote: »
    Of course, but it is not the same as saying it's not a good time. In the long term any loss will still be recovered - the only ones who'd really be disadvantaged are short term buyers. But I said this already.

    Eh, most first time buyers I know are planning on staying in the house for 5 years max. This time is to calculated to accumulate enough equity to buy a better house.

    Why do you say any loss will be recovered in the long term? This is simplistic in the extreme. House prices track inflation over the long term. Have a look at this graph. House prices adjusted for inflation

    Looking at that graph, average people have only made real (inflation beating) profit from property since the mid 90's. What way do you think that graph would be going in the last two years?

    In addition, first time buyers have to take the stamp duty exemption into account. You only get to use it once, so use it wisely. So its not always a good time to buy, when they could blow their exemption on an unsuitable 2 bed apartment now, or wait and get a 3 bed semi for the same money.

    The person who waits will enjoy a better quality of life for the term of their reduced mortgage, in addition to getting more house for less money.

    Basing your advice on what happened in Ireland in the last 10 years is all very well, but it does not take a genius to look at any graph, chart, or set of statistics and see that property prices here are just coming down off the peak of a hugely inflated bubble (versus traditional prices) and are likely to plummet. It could be a long long time before they come close to recovering a loss.

    So in conclusion, no its not always a good time to buy, and it could be argued that bar anyone that bought since 2006, now is the worst time in Irish history to buy property.


  • Options
    #50
    oceanclub
    Registered Users Posts: 3,411 ✭✭✭oceanclub


    jackal wrote: »
    Eh, most first time buyers I know are planning on staying in the house for 5 years max. This time is to calculated to accumulate enough equity to buy a better house.

    Yes, even by Mr. Nut's logic, it means that most apartment owners are in trouble. What proportion of people who buy an apartment plan to live in it 20 years? Very few people buy for life these days, and indeed most of the rationale for buying a house in the last few years was to get on the mythical property ladder - that is, buy something, ANYTHING, no matter how crap, small, or out-of-the-way it was, as long as you buy something.

    Well, thousands - hundreds of thousands - did. And now Mr. Nuts is saying that all these people are actually perfectly happy where they are, so no problem?

    P.


Advertisement