Advice needed on a house

The_Chopper

Hi guys,

I hope i am posting this in the correct place. Bascially my financee and I are in the market looking to buy a house. We've come across this house http://www.finnegan.ie/residential/properties/property.html?id=31112 and we're thinking about it.

It's a house built in the 50s and is a classic fixer it up. Plumbing will need to be upgraded as will the wiring. It's very old fashioned and will need a complete cosmetic makeover.

There is a house within yards up the road on the same street that is going for 800k at the moment. It is done up with an extension.

In the current climate are we mad to go for a house like the above or is it exactly what we should be looking for. Any comments/questions hugely appreciated

JuliusCaesar

The_Chopper wrote: »

or is it exactly what we should be looking for.

Only you can answer that!

What are you thinking of offering? How much do you estimate the renovations will cost? Can you do some of it yourselves? Can you live in it while work is going on? Do you have kids? Would you need to extend it now?

Could you move in, do only essential work, and gradually do it up?

Without any idea of your budget or needs, can't really fgive you any ideas.

NIce house, nice area. 450K tops?

The_Chopper

JuliusCaesar wrote: »

What are you thinking of offering?

We're thinking of offering around what you suggested below - we know it wouldn't cost anymore than 470k unless a bidding war broke out so we're using that as a benchmark and not the 500k.

JuliusCaesar wrote: »

How much do you estimate the renovations will cost?

I have no idea. The place needs a few things done straight away - but a lot of what we can do we plan on doing over time

JuliusCaesar wrote: »

Can you do some of it yourselves?

Yes the cosmetic stuff like floors, walls, tiles I can do myself

JuliusCaesar wrote: »

Can you live in it while work is going on?

Yes (I think)

JuliusCaesar wrote: »

Do you have kids?

No - but who knows in a few years

JuliusCaesar wrote: »

Would you need to extend it now?

No - it's for the future. But we would want to do something with the layout of the kitchen/second sitting room and the bathroom upstairs

JuliusCaesar wrote: »

Could you move in, do only essential work, and gradually do it up?

That's the plan and what I want to do.

A friend of mine with a valuator and actually valued this house 8 months ago at 650K. Two other mates of mine who know more than I (I am clueless) have both said they think it's a good find/house.

My financee isn't sure and thinks we should wait (in case the prices fall). Also she's only started looking this week - whereas I've been looking for about a month now. I basically went into 5 different estate agents told them budget, what we're looking for etc and this is one of the 3 houses that really attracted me.

However as I am not in the know - I was really hoping for some feedback.

JuliusCaesar

Hi, I'd never tell an EA my budget, mainly because they'll try to get you up to your max. Looking at a good few houses (20) is a good way to get a feel for the market so drag your fiancee around as many as possible, so that she gets an idea of the variability of houses for sale and a feel for prices. Set up appointments with EAs with as many as possible on a Saturday and do the viewing marathon. It really is essential.

As for prices, they may continue to go down, they may level off, nobody knows what the future may bring. You'll both have to really agree on a house that you won't be having recriminations in the future if they do go down by anouther 50%...........

If you get a house you both love at a price you can afford and can see yourselves staaying there for the foreseeable future, then you won't worry about prices going up or down because you'll have a HOME not a property.

But I'm sure you've thought of all this.
Good luck!

antiskeptic

The_Chopper wrote: »

A friend of mine with a valuator and actually valued this house 8 months ago at 650K. Two other mates of mine who know more than I (I am clueless) have both said they think it's a good find/house.

My financee isn't sure and thinks we should wait (in case the prices fall). Also she's only started looking this week - whereas I've been looking for about a month now. I basically went into 5 different estate agents told them budget, what we're looking for etc and this is one of the 3 houses that really attracted me.

However as I am not in the know - I was really hoping for some feedback.

To be honest I'd go with your girlfriend for both her reasons (prices are falling) and because you both sound like you need a bit more experience househunting for what is by any standard, a pretty sizeable outlay.

If you spent another 6 months of intensive, every-weekend trawling the market (which is about the only way to learn about diamonds vs. turds ... and came back and looked at this one through those battle-hardened eyes then you'd likely swallow hard at the thought of having nearly bought it.

Compared to what you'd have found in the meantime, I mean.

The_Chopper

antiskeptic wrote: »

To be honest I'd go with your girlfriend for both her reasons (prices are falling) and because you both sound like you need a bit more experience househunting for what is by any standard, a pretty sizeable outlay.

If you spent another 6 months of intensive, every-weekend trawling the market (which is about the only way to learn about diamonds vs. turds ... and came back and looked at this one through those battle-hardened eyes then you'd likely swallow hard at the thought of having nearly bought it.

Compared to what you'd have found in the meantime, I mean.

Is it that bad a house?

Just to mention that the same house done up 5 doors up is selling for 800k at the moment

ntlbell

The_Chopper wrote: »

Is it that bad a house?

Just to mention that the same house done up 5 doors up is selling for 800k at the moment

what do you mean "selling"

did someone buy it for it 800k?

asking prices mean nothing.

RentDayBlues

I would have to say that a month of looking is really not enough, are you going to make one of the biggest decisions of your life in a month? We have been "looking" for 2 1/2 year, we have viewed quite a few properties but in hind sight are delighted we never made an offer on some we thought we liked! Granted, its probably too long to be looking but we are saving money in the mean time.

Unless you absolutely HAVE to buy now then you need to take your time. And you should never buy a house because one up the road is asking 300K more! It makes no difference to the price of the place you want, prices are falling and this house is very unlikely to achieve anywhere near the asking price of 800K.

Finally, asking your friend (even if they know something) or people here should just be used as a guide, even if anyone said it was the best value property in Dublin you should still think this through very carefully. Houses should be bought when you need a home or find a property in the location you want and at a price you can afford, not just because it seems good value.

Best of luck if you do decide to proceed with this property

The_Chopper

ntlbell wrote: »

what do you mean "selling"

did someone buy it for it 800k?

asking prices mean nothing.

Yes it's asking price - but you're right it probably means very little.

RentDayBlues wrote: »

I would have to say that a month of looking is really not enough, are you going to make one of the biggest decisions of your life in a month? We have been "looking" for 2 1/2 year, we have viewed quite a few properties but in hind sight are delighted we never made an offer on some we thought we liked! Granted, its probably too long to be looking but we are saving money in the mean time.

Unless you absolutely HAVE to buy now then you need to take your time. And you should never buy a house because one up the road is asking 300K more! It makes no difference to the price of the place you want, prices are falling and this house is very unlikely to achieve anywhere near the asking price of 800K.

Finally, asking your friend (even if they know something) or people here should just be used as a guide, even if anyone said it was the best value property in Dublin you should still think this through very carefully. Houses should be bought when you need a home or find a property in the location you want and at a price you can afford, not just because it seems good value.

Best of luck if you do decide to proceed with this property

Well there is a couple of reasons we're thinking of buying now
1. The mortgage is less than the rent
2. Interest rates are low
3. For the future
4. It's getting increasingly harder to get mortgages from banks with only 1 in 5 applicants been accepted. In the last week banks have changed the way they calculate mortgages again. Instead of basing it on your disposable income at the current variable rate they are now calculating it with the assumption of an interest rate of 5% which reduced the amount of the mortgage by 14%.
5. We want a home, not an investment.

I am comfortable with the value of the house for sure.

After thinking about it I am really interested in whether people recommend buying a more "complete" house rather than a fixer it upper.

I know people have been talking about great variety etc in the markets - but in the last month I really haven't seen in. When I investigated further I was told that people who can afford to are taking their properties off the market, renting, and waiting for the market to stabilise.

gurramok

The_Chopper wrote: »

Yes it's asking price - but you're right it probably means very little.



Well there is a couple of reasons we're thinking of buying now
1. The mortgage is less than the rent
2. Interest rates are low
3. For the future
4. It's getting increasingly harder to get mortgages from banks with only 1 in 5 applicants been accepted. In the last week banks have changed the way they calculate mortgages again. Instead of basing it on your disposable income at the current variable rate they are now calculating it with the assumption of an interest rate of 5% which reduced the amount of the mortgage by 14%.
5. We want a home, not an investment.

I am comfortable with the value of the house for sure.

After thinking about it I am really interested in whether people recommend buying a more "complete" house rather than a fixer it upper.

I know people have been talking about great variety etc in the markets - but in the last month I really haven't seen in. When I investigated further I was told that people who can afford to are taking their properties off the market, renting, and waiting for the market to stabilise.

1 - Historically low interest rate(it ain't cheaper to buy on the gaff i live in in D4)
2 - Historically low interest rate(temporary, less than a year)
3 - only if you can afford it and not care about immediate negative equity
4 - everyone is in the same boat and prices will continue to drop to reflect that. Stress-testing is good to avoid future heartache when IR's go back to normal.
5 - Very good, so does alot of people and emotion should not get in the way of the biggest financial decision of your life

Would you prefer to pay a higher interest rate on a low sum or a lower interest rate on a much higher sum?

bangersandmash

The_Chopper wrote: »

Well there is a couple of reasons we're thinking of buying now

Even taking into account the reasons you posted, there is a big difference between buying now (i.e. in the near future, say the next 6-9 months) and now (i.e. immediately).

For the kind of amount you are talking about I would definitely spend more than a month (or a week in the case of your partner) looking at what is on offer. That would include looking at properties in other areas and price brackets.

Edit: Just saw the link. From what I've seen there has been an over-supply of fixer-upper semi-ds available around Churchtown for the last few years. Do some research online and you'll clearly see this. For whatever reason many of these have been around Landscape Park. Given the age demographic of the area and the abundance of 1950s properties there, I don't think this will be the last one of these house to come to market.

iguana

The_Chopper wrote: »

2. Interest rates are low
3. For the future
4. It's getting increasingly harder to get mortgages from banks with only 1 in 5 applicants been accepted. In the last week banks have changed the way they calculate mortgages again. Instead of basing it on your disposable income at the current variable rate they are now calculating it with the assumption of an interest rate of 5% which reduced the amount of the mortgage by 14%.
5. We want a home, not an investment.

2. This is a terrible reason to buy, interest rates are so low they can only go one way. It may take a while for them to start rising but they will. How long will your mortgage be? Longer than 5 years? Then expect your payment to go up, a LOT.

3. This point doesn't make a lot of sense. Waiting for prices to fall further and buying a better/cheaper house would also be a good move for the future.

4. As mortgages become harder to get and banks offer customers smaller mortgages, prices HAVE to come down. So it doesn't matter if you get a smaller mortgage in the future, you will be paying less for the house.

5. It's a home not an investment, but which is better? A 30 year mortgage or a 20 year one? Wait.

I think the property you are looking at is a fine house and could be a very lovely home. But personally I'd question paying half of what they are looking for.

House discussed here; http://www.thepropertypin.com/viewtopic.php?f=23&t=21670&p=259053

Freddie59

The_Chopper wrote: »

Hi guys,

I hope i am posting this in the correct place. Bascially my financee and I are in the market looking to buy a house. We've come across this house http://www.finnegan.ie/residential/properties/property.html?id=31112 and we're thinking about it.

It's a house built in the 50s and is a classic fixer it up. Plumbing will need to be upgraded as will the wiring. It's very old fashioned and will need a complete cosmetic makeover.

There is a house within yards up the road on the same street that is going for 800k at the moment. It is done up with an extension.

In the current climate are we mad to go for a house like the above or is it exactly what we should be looking for. Any comments/questions hugely appreciated

My advice to you. Visit these sites. Now!

www.thepropertypin.com

www.treesdontgrowtothesky.com

www.irishpropertywatch.com

www.irishhometruths.com

Then decide for yourself.:)

JuliusCaesar

The_Chopper wrote: »

After thinking about it I am really interested in whether people recommend buying a more "complete" house rather than a fixer it upper.

HI Chopper, this is a very personal thing. I prefer a fixer-upper (within reason! I've seen some totally derelict properties - roof fallen in etc - described as 'ripe for renovation' in the blurb) myself. I prefer it because I can rip things out without a qualm, and design it for myself.

If I walked into a ready-to-go house, I couldn't justify to myself ripping out a perfectly good eg kitchen just because I didn't like it....

In any case, I think it's better to live in a house for a while before making major changes. Till you find out how you use the house and which bits you find really annoying. A design that looks good on paper doesn't always translate to real use.