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Now a bad time for a first time buyer?

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  • 08-07-2008 2:11pm
    #1
    quarryman
    Registered Users Posts: 7,496 ✭✭✭


    From reading threads here there are a lot of strong opinions.

    I'll admit my knowledge on the property market is limited, so go easy on me.

    I'm currently looking at buying. 350k roughly (waiting on approval). West Dublin area. 3 bed semi.

    So the market is falling, no one knows for how long. Interest rates are up. Mortgage lending is down.

    Should I consider holding off on a purchase for another few months if I am in a good position to hold off (low rent where I am now).

    I would expect to move house again in 2 to 3 years so I probably don't qualify for the "buy a house to live in, sit any bubbles".

    Just looking for some general advice/opinions, I'm a bit clueless about it all.


Comments

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    #2
    punchestown
    Registered Users Posts: 660 ✭✭✭punchestown


    Are you viewing this purchase as your first step onto the ladder?


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    #3
    bugler
    Registered Users Posts: 3,436 ✭✭✭bugler


    I think many here will agree that if you think you're going to be on the move again in 2/3 years then your'e better off just waiting that 2/3 years and to keep on renting. Don't purchase.

    You obviously have no great attachment to the prospective house, there is no guarantee that in 2/3 years prices will have even hit bottom, never mind recovered, and it would be a shame for you to be anchored to such a property for many years more.


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    #4
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    What you will be paying is:

    1. Buying costs - Solicitors fees, surveys, stamp duty, various other transaction costs.
    2. Renovation costs, decoration etc.
    2. Mortgage payments for the two years to three years.
    3. Selling costs at the end of the period.

    You will gain a minimal amount of equity in that time but it will mostly be interest payments.

    vs.

    Rent for the two to three years.

    Note that the above makes no assumptions about the movement of prices. Work that out first.

    With regard to speculation about movement of prices, even those broadly bullish about the market (I stand to be corrected here) will tell you that property from an investment point of view only makes sense in the long term at present. Two to three years is not long term.


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    #5
    chump
    Closed Accounts Posts: 3,807 ✭✭✭chump


    Read up on the stamp duty benefits of first time buyer (FTB) status.


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    #6
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    My mistake. The OP needs to consider, however, stamp duty on the second purchase which would not be the case if renting for the 2 to 3 year period.


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    #7
    Wile E. Coyote
    Registered Users Posts: 1,560 ✭✭✭Wile E. Coyote


    With the way house prices are dropping all over the country I think right now is a great time for anyone looking to buy a house with a view to staying long term. It really is a buyers market at the minute and there's great savings to be had compared to prices 3 years ago. Oh how i wish i'd waited!!! :rolleyes:

    However as you are considering selling it in 2-3years and your current rent is cheap at the minute i would probably stay where i was for the time being, save the difference that you would be spending per month between the rent and a mortgage.


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    #8
    jackal
    Registered Users Posts: 794 ✭✭✭jackal


    Wile E. Coyote wrote: »
    With the way house prices are dropping all over the country I think right now is a great time for anyone looking to buy a house with a view to staying long term. It really is a buyers market at the minute and there's great savings to be had compared to prices 3 years ago. Oh how i wish i'd waited!!! :rolleyes:

    However as you are considering selling it in 2-3years and your current rent is cheap at the minute i would probably stay where i was for the time being, save the difference that you would be spending per month between the rent and a mortgage.

    Its never a bad time to buy eh? Great "value" out there in the market and sound fundamentals.


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