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Rent-to-buy Scheme Dublin

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24

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    #32
    Plastic Bari
    Closed Accounts Posts: 55 ✭✭Plastic Bari


    Some developments are offering good deals Like Adamstown where the prize is frooze when you buy it. At least you know it cant go up!


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    #33
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Nor can down, now ain't it a good bargain! :D:rolleyes:


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    #34
    Plastic Bari
    Closed Accounts Posts: 55 ✭✭Plastic Bari


    :D


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    #35
    Sabadee
    Closed Accounts Posts: 3 ✭Sabadee


    ntlbell wrote: »
    You don't have to move to get a decrease? you could always, you know...ask your current land lord, it will be a lot easier for him/her to decrease your current rent that have an idle house/apt for 2/3 months and then STILL have to give a reduction...

    I'm trying to find a way for people to do it.

    You're looking for ways you can't.

    Doesn't make sense.

    Its all very well if you are trying to help people with realistic and hardhitting advice on how to do things, but your tone is hardly encouraging!!! I live in town and recently asked my landlord to lower my rent to which he promptly said no. So this is not a sure fire way of saving money. So I guess you will tell me that rent is cheaper out of town and I should move? myself and my partner both work in city centre, so move out would have its own costs in terms of transport and well-being. Personally I am a fan of well-being; hence I would be willing to examine options which would take some of the drudgery out of buying your first home. Clearly you a proponent of the school of hard knocks, but do try to be a little kinder on us mere mortals.


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    #36
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    By all means go ahead and buy one of these rent-to-buy houses, but be warned that you are not getting a good deal and you will be annoyed in two years when you realise you have lost 50 - 100k because you bought an overpriced property at the beginning of a long recession.

    You have to think long term. If you are buying into the rent-to-buy scam it is likely you are thinking short term and it's your emotions who are doing the thinking!

    Btw, I save over 1k per month and I rent and have a fairly high standard of living. Yes, at only 1k per month it means I would not have a deposit for a few years, but I should not expect to be able to buy a house whenever I want to.


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    #37
    Sabadee
    Closed Accounts Posts: 3 ✭Sabadee


    I hear ya. But rent to buy is precisely that, you are not under any obligation to purchase the property! If you are paying rent anyway and struggling to put large sums of cash away it is option worth considering. Recession may not be too long hopefully. But you can weigh up your options and assess the market when the time comes to decide if you want to purchase the prop you have been renting. Certainly anyone doing this should not pay more rent than market value, but assertation that rental market is in freefall is a little OTT. I know a lot of renters and none of them are singing all the way to the bank with incredible savings being made. Rents in Dublin fell by 6% according to daft report of Feb 2009, this should bring them back to late 2006 levels, but only people who have moved in the last 12 months will have seen the benefits of this, and this mostly if they have moved to burbs.


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    #38
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    Sabadee wrote: »
    Its all very well if you are trying to help people with realistic and hardhitting advice on how to do things, but your tone is hardly encouraging!!!

    I'm not attempting to encourage anyone, if someone asks a question I'll try and answer it, but I don't go out of my way to put tlac on the cheeks of their arse while I'm doing so.
    Sabadee wrote: »
    I live in town and recently asked my landlord to lower my rent to which he promptly said no. So this is not a sure fire way of saving money. So I guess you will tell me that rent is cheaper out of town and I should move? myself and my partner both work in city centre, so move out would have its own costs in terms of transport and well-being. Personally I am a fan of well-being; hence I would be willing to examine options which would take some of the drudgery out of buying your first home. Clearly you a proponent of the school of hard knocks, but do try to be a little kinder on us mere mortals.

    No I would tell you to put him under a bit of pressure maybe he needs to be reminded of the current situation? maybe you were very passive in your tone and he felt you might be a bit of a walk over and tried to play hard ball, I have no idea, but I just wouldn't stand for "no" surely there is places to rent near where you're close to the city for less? if you don't think so tell us where it is and I bet we can find something cheaper.

    As I said it will be a lot more costly for the landlord to try and find a replacement than giving you a discount, so remind him of this.

    if you want more advice and want be pampered you might be better of paying one of them fluffly life coaches or something.


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    #39
    Keith C
    Registered Users Posts: 1,121 ✭✭✭Keith C


    ntlbell wrote: »
    if you want more advice and want be pampered you might be better of paying one of them fluffly life coaches or something.
    I really hope you dont work for MABS :D


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    #40
    Freddie59
    Closed Accounts Posts: 6,679 ✭✭✭Freddie59


    Plastic Bari wrote: »
    Some developments are offering good deals Like Adamstown where the prize is frooze when you buy it. At least you know it cant go up!

    And what happens if it drops?;)


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    #41
    Freddie59
    Closed Accounts Posts: 6,679 ✭✭✭Freddie59


    gurramok wrote: »
    So you pay rent with your initial deposit ending up paying 20k of the purchase price 200k. Then you need to get a mortgage of 180k in 2011.

    And the gaff could possibly be worth €120k by then.:rolleyes:


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    #42
    Danniboo
    Registered Users Posts: 1,416 ✭✭✭Danniboo


    NTLBELL - I really think you're very judgemental and full of solutions that aren't viable. For a start you've said "why do you live so far away from your job." Well maybe because rent would be dearer near peoples workplace, i.e I live in Kildare and work in Dublin. Also maybe people want to live near family and friends. I too have looked at my options and agree that if I could get a mortgage cheaper than what it's costing me too rent.

    I'm definitely considering the Rent to Buy scheme,you say about ppl cutting costs and saving, I don't know about other people but with the increase in taxes, daily living expenses, paying rent, other bills, car etc, it's not realistic to expect people to be able to save a fortune every month.


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    #43
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Danniboo wrote: »
    NTLBELL - I really think you're very judgemental and full of solutions that aren't viable. For a start you've said "why do you live so far away from your job." Well maybe because rent would be dearer near peoples workplace, i.e I live in Kildare and work in Dublin. Also maybe people want to live near family and friends. I too have looked at my options and agree that if I could get a mortgage cheaper than what it's costing me too rent.

    I'm definitely considering the Rent to Buy scheme,you say about ppl cutting costs and saving, I don't know about other people but with the increase in taxes, daily living expenses, paying rent, other bills, car etc, it's not realistic to expect people to be able to save a fortune every month.

    What BS!

    I'm renting a 2bed in D4 for 900quid. The same mortgage(at least 300k) on the place at the moment would be double at normal retail interest rates of 5% over a 25yr period.
    An interest rate of 1% works out at 1100 per month!

    If i can save every month by renting, why cannot you?


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    #44
    Danniboo
    Registered Users Posts: 1,416 ✭✭✭Danniboo


    Gurramokk - I've looked into it and I could get a mortgage for less than what i'm paying in rent, you going to tell me now the banks are wrong.

    "I can save every month why can't you?" .. eh maybe our circumstances are completely different maybe I pay more bills than you, I pay for my car.. plenty of reasons. How much money do you owe etc etc silly question you're going by the presumption we're in the exact same circumstances.


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    #45
    spockety
    Moderators, Education Moderators Posts: 5,471 Mod ✭✭✭✭spockety


    Danniboo wrote: »
    Gurramokk - I've looked into it and I could get a mortgage for less than what i'm paying in rent, you going to tell me now the banks are wrong.

    Do you mind me asking what mortgage term you are basing that on, and what interest rate you are basing it on?


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    #46
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    Danniboo wrote: »
    Gurramokk - I've looked into it and I could get a mortgage for less than what i'm paying in rent, you going to tell me now the banks are wrong.

    "I can save every month why can't you?" .. eh maybe our circumstances are completely different maybe I pay more bills than you, I pay for my car.. plenty of reasons. How much money do you owe etc etc silly question you're going by the presumption we're in the exact same circumstances.

    your basing it on historically low interest rates

    have a look again at 5/6%

    the banks getting it wrong? that's never happened before right? :rolleyes:


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    #47
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    Thats why banks are stess testing people to make sure they can afford the mortgage when it goes back up to 3-5%, because it will.


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    #48
    spockety
    Moderators, Education Moderators Posts: 5,471 Mod ✭✭✭✭spockety


    JoeyJJ wrote: »
    Thats why banks are stess testing people to make sure they can afford the mortgage when it goes back up to 3-5%, because it will.

    What exactly does this 'stress testing' involve?

    Assuming they are basing their calculations off using no more than 40% ( :eek: ) of 'disposable' income for mortgage repayments, do they base that on 40% at 5% interest rates, or 40% at current ~3% and allow the percentage of income used to go up as interest rates rise?!

    I find it hard to believe that they are actually saying 40% of income at 6% interest rate at the moment, otherwise surely the crash would accelerate? Mind you, they are probably still offering 35/40 year mortgages (why have these not been banned yet?) to disguise ludicrousness in a blanket of 'affordability'.


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    #49
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Danniboo wrote: »
    Gurramokk - I've looked into it and I could get a mortgage for less than what i'm paying in rent, you going to tell me now the banks are wrong.

    You have not answered the question posed by posters, what interest rate and term are you basing your premise on?

    Danniboo wrote: »
    "I can save every month why can't you?" .. eh maybe our circumstances are completely different maybe I pay more bills than you, I pay for my car.. plenty of reasons. How much money do you owe etc etc silly question you're going by the presumption we're in the exact same circumstances.

    I have zero debt, i can well able to save a good bit per month after rent/bills been paid and i earn about the avg industrial wage.

    The idea is to have zero debt before you go for a mortgage anyway to make it more affordable which is a good thing so if you have a car loan outstanding, pay it off.


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    #50
    mrgaa1
    Closed Accounts Posts: 759 ✭✭✭mrgaa1


    came across this scheme over the weekend http://tinyurl.com/qyworm
    - seems reasonable but then only if you want to live there i suppose:rolleyes:


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    #51
    spockety
    Moderators, Education Moderators Posts: 5,471 Mod ✭✭✭✭spockety


    mrgaa1 wrote: »
    came across this scheme over the weekend http://tinyurl.com/qyworm
    - seems reasonable but then only if you want to live there i suppose:rolleyes:

    What the hell has this got to do with Rent To Buy in Dublin?!

    Are you the developer of this place?


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    #52
    mrgaa1
    Closed Accounts Posts: 759 ✭✭✭mrgaa1


    spockety wrote: »
    What the hell has this got to do with Rent To Buy in Dublin?!

    Are you the developer of this place?

    When I came across it said Rent to buy - as this discussion thread was discussing rent to buy - all be it in Dublin - I thought a look at another rent to buy scheme would be useful. there are many other such schemes www.saltown.ie , http://renttobuy.ebookireland.com/ , http://www.clonattinvillage.ie/ etc.... And no I am not the developer of any of these and for the record I am not a developer. If you like remove the entry that I made that has prompted such a reaction.


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    #53
    TootsMcToot
    Registered Users Posts: 19 ✭TootsMcToot


    It would appear that a few of the posters are assuming that people interested in Rent To Buy are merely doing it for investment? The majority of first time buyers look to buy a house assessible to work, family, local amenities, so when taking that bold step surely they are thinking that they are going to be in the house for the forseeable future, if circumstances change whereby they have to move on elsewhere, is it not a case of cut your losses and accept the gamble you made. How often would that happen to people, if you knew you weren't safe financially for a number of years, why would you take on the stress of a mortgage up to 40 yrs.. seems ludicrous :eek:

    Nobody is contracted to buy the house after the time set out for the initial rent, so perhaps you could use it to pay cheaper rents for a nice home, save your deposit and get the hell out of there, or you could simply choose to live there.

    Myself and my partner are looking into the RTB scheme, albeit we have not pursued it to a great deal just yet, we do believe that the scheme does have a chance to get some people onto the first rung of the ladder, including us.

    Alot of builders/developers out there have their money caught up in the bank with the houses that are not sold, the bank want their money... so eventually there will be more and more schemes put out there. There is a place giving 100% rent refund.. http://www.purplepig.ie

    There are alot of people in negative equity out there, but some of those people are not too worried about it because they have no intention of selling the house that they are in, they bought the house to live in, as a home, so perhaps in 20 or 30 years they are still in that house and choose to sell, they end up making a fortune, yes they paid their mortgage at a high rate/repayment but at the end of the day, whats wrong with keeping the economy spinning by spending money in the banks, knowing that you are paying toward your own home, than lining the landlord's pockets.


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    #54
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    TootsMcToot wrote: »
    we do believe that the scheme does have a chance to get some people onto the first rung of the ladder, including us.

    Someone stole my ladder last week, but i had to get up to the top window, so i used a pyramid instead. At the time it seem like a good idea, but i just spend the rest of my life the day on the first step.
    TootsMcToot wrote: »
    whats wrong with keeping the economy spinning by spending money in the banks,

    My head hurts:confused:
    Would it not be better to be paying less and put the extra money you have into the economy by such methods as spending in shops, bars, restaurants?? At least you can choose who gets your money, and who knows, you might even enjoy the things you buy??




    Its a good few months ago since i looked at these RTB scams schemes, but are the conditions still:

    -You choose a price now for purchase in 2 years time?

    -During the two years the rent you pay is dearer than if you rented privately in the area? (You can negotiate privately)

    The problems i seen was the price you agree now wont be realistic in 2 years time, a 18% drop in price would be realistic by 2011. So even if you want to continue with the purchase, the bank wont agree to a 2009 valuation in 2011, i'd bet my left arm on that.

    During the two years of living in the house, you are paying premium rent with no chance of a reduction, rents are dropping month on month, by the middle of year 2 you could be paying a hell of alot more.
    So your paying more rent and wont be able to save as much, when the 2 years are up your left with no house (as above), no/less deposit and probably in a worse situation than now.

    If you cant afford a mortgage by walking into a bank, then you cant afford the house. Ask your parents was it easy to get a mortgage, cause i'm dam sure it wasn't, thats the way it should be. It'll take years for this country to get over the "cheap credit" drug.


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    #55
    denot08
    Closed Accounts Posts: 3 ✭denot08


    Well you're just a joy aren't you ntlbell. Just a tad judgmental. No it shoudln't be easy to buy a property but it shouldn't be impossible either, Surely the average joe on an average wage should at some point be able to buy a property.


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    #56
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    denot08 wrote: »
    Well you're just a joy aren't you ntlbell. Just a tad judgmental. No it shoudln't be easy to buy a property but it shouldn't be impossible either, Surely the average joe on an average wage should at some point be able to buy a property.

    I haven't judge anyone or anything.

    the average joe on the avg wage should be able to purchase a home.

    I don't think I or anyone else disagreed?


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    #57
    oisin lally
    Closed Accounts Posts: 1 ✭oisin lally


    I recently visited a rent to buy property in Drumcondra. A 2 bedroomed apt was selling direct for 270 k. The other was much smaller apt selling at a rent to buy price of 295 k. By my reckoning you would be down 30-40 k on the sale saving only about 12-15 in rent. Only Bank of Ireland seem to support the scheme so far so i would not be so hasty just yet. Banks have no cash to lend. you will get a mortgage only if you are a gold star student at your bank. Good credit, good regular savings. My wife and I have abandoned the idea for now because we bank with AIB and they dont support the scheme yet. The 100% mortgage is arguably what screwed up the property market in the first place. The golden rule for buying a property is :

    You may have a mortgage if you can save the deposit otherwise you rent.

    Who said we all deserve to own a property anyway? you can be born into money you can make it or win it but you cant make it materialise out of thin air!


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    #58
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    I see they are doing this scheme at Northern cross ! 255,000 for a 2 bed!! Doubt they will get many for that!!! 50-60k should come off that price in the next year half the development is empty


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    #59
    TootsMcToot
    Registered Users Posts: 19 ✭TootsMcToot


    oisin lally wrote: »
    I recently visited a rent to buy property in Drumcondra. A 2 bedroomed apt was selling direct for 270 k. The other was much smaller apt selling at a rent to buy price of 295 k. By my reckoning you would be down 30-40 k on the sale saving only about 12-15 in rent. Only Bank of Ireland seem to support the scheme so far so i would not be so hasty just yet. Banks have no cash to lend. you will get a mortgage only if you are a gold star student at your bank. Good credit, good regular savings. My wife and I have abandoned the idea for now because we bank with AIB and they dont support the scheme yet. The 100% mortgage is arguably what screwed up the property market in the first place. The golden rule for buying a property is :

    You may have a mortgage if you can save the deposit otherwise you rent.

    Who said we all deserve to own a property anyway? you can be born into money you can make it or win it but you cant make it materialise out of thin air!

    We are with you on that one... if in the right area and the right price RTB could be a way to go, but nothing suited for us .. we are on the long road to finding the 10% to put toward a new home.. lots of ppl managed it.. so why can we.. compromise has a lot to answer for!!!


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    #60
    HollyCat
    Closed Accounts Posts: 5 ✭HollyCat


    I saw a house in the weir view in Kilkenny that I'm realy interested. Does anyone have any comments about the Rent To Buy scheme run by a company called purplepig (?)?


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    #61
    ParkRunner
    Registered Users Posts: 3,032 ✭✭✭ParkRunner


    Plastic Bari wrote: »
    Its the thing i dont have 17,000 of a deposit to buy a 235,000 home!!! I saw the ones in Balgriggan not sure if there is any left!!!

    Just for your info I bought a 3 bed house near those for 95,000 less than that 2 weeks ago. You would be crazy to buy into this scheme


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