To buy or not to buy?

movin_2d_sticks

Well seems I have a dilemma on my hands

this is one of these tough life decisions


might make for an interesting thread


Basically i spotted a bungalow + 1 acre land on top of hill, within 21km of galway (airport road) and close to new motorway being completed

price 130k

the building is not complete, 200sq m downstairs with another 80sq m possible in large attic which already has velux windows, by not complete im talking foundation, walls and roof are in place

builder quoted another 70k to finish it (insulation, windows, doors, plumbing, floors, plastering, electrics etc etc) currently getting quotes from other builders (i reckon plenty are looking for work nowadays?)

were trying to lower the price or do more work on it (at least insulation and windows so its airtight) for the price, theres plenty of properties for sale in are, absolute flood of them

anyways heres the decision bit

i could afford the site + building today for cash, and very jittery about keeping money in irish banks, after saving for years and never having a hope of affording a house the way things were going

and could possibly pay of the ~70k to finish it over a course of year


some personal info: i work from home, own business, provided theres electricity and internet no need to commute, im in my 20s, company director/main employee


so what do people think of this situation?

Ddad

movin_2d_sticks wrote: »

Well seems I have a dilemma on my hands

this is one of these tough life decisions


might make for an interesting thread


Basically i spotted a bungalow + 1 acre land on top of hill, within 21km of galway (airport road) and close to new motorway being completed

price 130k

the building is not complete, 200sq m downstairs with another 80sq m possible in large attic which already has velux windows, by not complete im talking foundation, walls and roof are in place

builder quoted another 70k to finish it (insulation, windows, doors, plumbing, floors, plastering, electrics etc etc) currently getting quotes from other builders (i reckon plenty are looking for work nowadays?)

were trying to lower the price or do more work on it (at least insulation and windows so its airtight) for the price, theres plenty of properties for sale in are, absolute flood of them

anyways heres the decision bit

i could afford the site + building today for cash, and very jittery about keeping money in irish banks, after saving for years and never having a hope of affording a house the way things were going

and could possibly pay of the ~70k to finish it over a course of year


some personal info: i work from home, own business, provided theres electricity and internet no need to commute, im in my 20s, company director/main employee


so what do people think of this situation?

Your in your twenties with the potential of having a 30 year mortgage of 100K or maybe a little more if you splash out. That makes for very low repayments. You'd barely have the rent on half a house for the mortgage you'd have I'd say go for it, I'm in a similar boat myself and I've found sitting on the fence in life never moves you forward. i'm hoping to have an offer accepted on a bungalow in Cork today down 33% on the original asking price.

I'd make sure I get my quotes first though before going gung ho. Out of curiousity, how much are similar finished houses in the area making?

movin_2d_sticks

Ddad wrote: »

Your in your twenties with the potential of having a 30 year mortgage of 100K or maybe a little more if you splash out. That makes for very low repayments. You'd barely have the rent on half a house for the mortgage you'd have I'd say go for it, I'm in a similar boat myself and I've found sitting on the fence in life never moves you forward. i'm hoping to have an offer accepted on a bungalow in Cork today down 33% on the original asking price.
.

ive no intention of getting a mortgage, and i hear they are hard to get

parents have a 250k mortgage on a place 3 times smaller, and i know their feelings about that

i should be able to stretch assuming the house is insulated and airtight over a period of a year to complete it with cash, might mean digging into company reserves and working a bit more

im in no dire need of housing at the moment but cant help to think its an opportunity (that i wouldnt have imagined only 2 years back) and very very worried about banks if they do go under theres no way the government can honor its guarantees me thinks

Ddad wrote: »

Out of curiousity, how much are similar finished houses in the area making?

the completed (smaller) house next door being on sale for 450k still doesnt help either, a similar designed bungalow (prob same builder) is complete and for sale at 440K 3km down road, i think both prices are absolutely ridiculous! have they gold plated the rooms or something?!



its about 30min drive from galway on ****ty enough road but the motorway is nearing completion and athenry train station is with short 10min drive

and of course it would mean taking on the project of designing and completing the house

im software engineer, so construction is a bit out of my water, but i have learned quite a bit in last week

i suppose im posting here to see if anyone has advice and i like to ask around, cant help to fell like ive gone mad since im the savings kind of person and dont splash out usually, but ive been working flat out for years now with not much physical to show other than few digits in bank account

Ddad wrote: »

I'd make sure I get my quotes first though before going gung ho.

yes next step is to get a surveyor/engineer/valuer in

this would cost money but something i hear is a good idea to be done before buying

/

bunkbedman

Hey,
Movin_2d_sticks

I am going to give you a bit of free advice and if I ever need advice on software I will seek a return favour.....

Ok where to start.... firstly do not buy a property or piece of land without a fully bonded engineer to do a full structural report including costing of works necessary, and also get him to do a site identification. This is with or without a mortgage.......
Next your money I think you stated circa €170k needs to do something either put i into a capital guaranteed bond or something else letting it lie in a bank account will cost money inflation will come back and gobble it up
Getting a mortgage is difficult but just taking your profile, young professional highly skiled strong savings and low mortgage I coould bet my life that you would get a mortgage..

I worry when I hear things like 'make it airtight' this is acommon misnomer in the current ECO build world... yes it is good to insulate and seal a house but then you need to reintroduce fresh air (heat recovery ventiltion)or you will breach building regs and make yourself ill or die...

I think you really need advice and good avice costs money, if you are genuinely interested in buying get a good engineer to supervise YOU at purchase and the construction.

As to wheteher in theory you should... if the research you are doing indictaes that it is a good project go ahead you are young and in order to create wealth you must own assets fact...
Borrow half say €100k by way of a 20 year motrgage keep some of your savings to hand in case work deteriorates or for that rainy day, get a professional to do the work then enjoy in two yeras if things are on the up pay down more of you mortgage... Always try keep 6 months mortgage payment to hand get good quality insurance and enjoy and prosper!!!

movin_2d_sticks wrote: »

ive no intention of getting a mortgage, and i hear they are hard to get

parents have a 250k mortgage on a place 3 times smaller, and i know their feelings about that

i should be able to stretch assuming the house is insulated and airtight over a period of a year to complete it with cash, might mean digging into company reserves and working a bit more

im in no dire need of housing at the moment but cant help to think its an opportunity (that i wouldnt have imagined only 2 years back) and very very worried about banks if they do go under theres no way the government can honor its guarantees me thinks




the completed (smaller) house next door being on sale for 450k still doesnt help either, a similar designed bungalow (prob same builder) is complete and for sale at 440K 3km down road, i think both prices are absolutely ridiculous! have they gold plated the rooms or something?!



its about 30min drive from galway on ****ty enough road but the motorway is nearing completion and athenry train station is with short 10min drive

and of course it would mean taking on the project of designing and completing the house

im software engineer, so construction is a bit out of my water, but i have learned quite a bit in last week

i suppose im posting here to see if anyone has advice and i like to ask around, cant help to fell like ive gone mad since im the savings kind of person and dont splash out usually, but ive been working flat out for years now with not much physical to show other than few digits in bank account




yes next step is to get a surveyor/engineer/valuer in

this would cost money but something i hear is a good idea to be done before buying

/

movin_2d_sticks

@bunkbedman

thanks for the info

firstly I am not getting a mortgage (or want one), i can afford 130 by raiding the piggybank, its the money to complete that would require working harder and scratching the barrel but can be done over a year


by airtight i mean have in doors and windows, the place had wind blowing thru it for a year, im afraid of damp building up over this winter, tho some say its a good thing as it gets moisture out


the builder who build the house quoted another 70k to finish it

it would cost 500euro to get an engineer + valuer in to do structural report and cost to complete report

right now im shopping around to see who else can do quotes, and try to get the original builder to either lower the price or do more work for same price


im in no rush to buy but on balance it seems like a good house that i can see myself living in

im not buying because i need an investment or to rent out, but am very jittery about the banks here in ireland, they can disappear overnight and our useless government would be stuck sucking the lolipop then


thanks again anyways alot to think about and alot more research to do