Buy now or wait longer?

Macha

TheCityManager wrote: »

I had a deposit on a house this time last year..house purchase price at 360k...withdrew from purchase.. similar houses now advertised at 270k..saving 90k +.......do wonder how much more i will save by waiting another year?

Well, that's the million dollar question, isn't it? Opinions may vary but I believe house prices have a long way to go. And before you think it can't happen here, just consider the following diagram:
http://en.wikipedia.org/wiki/File:EconomistHomePrices20050615.jpg

You can also have a look at the latest report from irishpropertywatch.com:

This report is over the period, from the 20th of April to the 7th of June 2009.

The drops per day was 116 up from 103 last report.

There were 5,473 drops and the average drop was €44,394.
Over the same period there were 211 increases and the average increase was €40,785

The 5,473 properties reduced the price by just over €242.9 million in total.

The 211 properties raised their price by just under €8.6 million in total.

Time on the Market

more than 3 months 81%
more than 6 months 70%
more than 9 months 58%
more than 12 months 45%
more than 15 months 22%
more than 18 months 8%

The average number of days properties have been listed is 337 days (11 months) up from 325 days since the last report
You can See the Report by clicking here

Can I ask what area you're looking in?

TheCityManager

Out of interest..I never mentioned..

We currently have my elderly mum's house up for sale as she is in a nuring home and we need the money to pay the home...

Received an offer this morning (we probably wont accept as its too low..)...wondering why others are buying in this declining market ???

ntlbell

TheCityManager wrote: »

Out of interest..I never mentioned..

We currently have my elderly mum's house up for sale as she is in a nuring home and we need the money to pay the home...

Received an offer this morning (we probably wont accept as its too low..)...wondering why others are buying in this declining market ???

people buy all the time in good and bad.

the decline doesn't really matter that much if the house is affordable and your not planning on moving for x amount of years

it's like asking why are people buying 09 cars

Macha

TheCityManager wrote: »

wondering why others are buying in this declining market ???

A very small number buy because they have to, eg need more space, divorce/separation (I'm guessing...)

Also, some people can only see renting as "dead money" and don't understand that in a declining market, you're:
a) straight into negative equity
b) actually saving money by waiting for prices to go down
c) saving even more money by taking out a smaller mortgage (and as a result paying less interest overall.
d) think it won't matter because they won't be selling (but unexpected things can happen in life)

As D3PO pointed out, many people are acutely aware of their lack of rights as renters. I'm happy renting now but I imagine when I have children, I would have to consider the fact that renters have very few rights in Ireland.

Then again, some people just see the house of their dreams and go for it.

belmulletman

taconnol wrote: »

A very small number buy because they have to, eg need more space, divorce/separation (I'm guessing...)

Also, some people can only see renting as "dead money" and don't understand that in a declining market, you're:
a) straight into negative equity
b) actually saving money by waiting for prices to go down
c) saving even more money by taking out a smaller mortgage (and as a result paying less interest overall.
d) think it won't matter because they won't be selling (but unexpected things can happen in life)

As D3PO pointed out, many people are acutely aware of their lack of rights as renters. I'm happy renting now but I imagine when I have children, I would have to consider the fact that renters have very few rights in Ireland.

Then again, some people just see the house of their dreams and go for it.

I bought recently because I thought it was right.
And i'm glad i did, when i did. Can't wait to move in.
I know i'm not going to be in negative equity straight away, or for a long time, if ever!!
The place I got, I got CHEAP (much cheaper that any where else in the area). I bought in the Dublin city center, top floor, 2 bed, 800ish sq foot. For something NOW, in this market for similar spec, you're looking fairly far out of the city! There is nothing where I am for the money i paid (225k).

I had been renting for almost 10 years (A studio), and realized that my mortgage repayments (for a 2 bed apartment) would be the same as what my rent is / has been, so it just make since to me.
Also, I feel a bit more secure. I've got repayment protection etc... and always the option to stop repayments temporarily (if needs be and worst came to worse), but I would always have to pay rent regardless! (correct me if i'm wrong there!)

So, that just me. Maybe i lucked out...

Macha

Well done you - seriously! Especially on getting an apartment of 75sq ft - they are very hard to find in Dublin.

I would just be wary of thinking that you'll never be in negative equity...Anyway, that depends on you LTV ratio and that you can keep up payments.

warrenaldo

Thanos wrote: »

So you think we will just stick with stamp duty and property tax will not come in or do you mean that stamp duty will stay AND property tax will come in?

The report of the Commission on Taxation seems to be in favour of reducing stamp duty AND bringing in a property tax.
http://www.irishtimes.com/newspaper/breaking/2009/0727/breaking7.htm