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Good time to buy?

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  • 03-11-2009 12:30pm
    #1
    amoebaassasin
    Closed Accounts Posts: 24 ✭


    Hi We have been offered an affordable house in Athenry County Galway on a new developement - 3 bed semi's - look really nice. The Price is €140,000 with a clawback of 13% for 20 years. Would now be the time to go for it? Or would it be worth holding out for another while to see if prices drop even more?


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    #2
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    amoebaassasin wrote: »
    Hi We have been offered an affordable house in Athenry County Galway on a new developement - 3 bed semi's - look really nice. The Price is €140,000 with a clawback of 13% for 20 years. Would now be the time to go for it? Or would it be worth holding out for another while to see if prices drop even more?

    How Much are the same houses marketing for at the moment on the normal market?


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    #3
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    Prices are definitely going to drop even more. In my opinion we have another 40% - 50% to go. I am basing this on two things:

    1. Houses/apartments are still seriously overpriced if you use the ((rent * 12) * 14) rule. And with mass emigration starting, rents are only going to go down.
    2. Ireland will have nothing but bad news (job losses, tax increases, NAMA, etc.) for the foreseeable future, certainly 5 or 10 years.


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    #4
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    Oliver1985 wrote: »
    How Much are the same houses marketing for at the moment on the normal market?
    €160,000


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    #5
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    amoebaassasin wrote: »
    €160,000

    Are they selling any at that price?


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    #6
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    amoebaassasin wrote: »
    €160,000

    Well if you have your heart set on the house it would make a lot more sense th buy for the 160k!! No clawback then!!


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    #7
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    Oliver1985 wrote: »
    Well if you have your heart set on the house it would make a lot more sense th buy for the 160k!! No clawback then!!

    unfortunately i dont have 20K lying around - BOI are giving me a 97% mortgage with the afordable price - which means i contribute €4,200 as a deposit...


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    #8
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    AARRRGH wrote: »
    Are they selling any at that price?

    there is 20 sold out of 60 houses, but i dont know if they have been sold as affordable or open market.


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    #9
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    AARRRGH wrote: »
    Prices are definitely going to drop even more. In my opinion we have another 40% - 50% to go. I am basing this on two things:

    1. Houses/apartments are still seriously overpriced if you use the ((rent * 12) * 14) rule. And with mass emigration starting, rents are only going to go down.
    2. Ireland will have nothing but bad news (job losses, tax increases, NAMA, etc.) for the foreseeable future, certainly 5 or 10 years.

    yeah thats what im worrying about


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    #10
    Tech3
    Closed Accounts Posts: 3,010 ✭✭✭Tech3


    amoebaassasin wrote: »
    unfortunately i dont have 20K lying around - BOI are giving me a 97% mortgage with the afordable price - which means i contribute €4,200 as a deposit...

    Hmmm I think the price of a semi detached in Athenry is still quite expensive, the market there has still to drop to reach the average of 25% from peak.

    Offering a 97% mortgage is ridiculous, if you dont have over 4 grand in savings then I think you might struggle with mortgage repayments or your current lifestyle will have to take a hit.


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    #11
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    So there are 40 left. How long have they been advertised for sale?

    You don't give 160k, you haggle much lower as after all, they are not selling, its a buyers market.


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    #12
    LookBehindYou
    Registered Users Posts: 994 ✭✭✭LookBehindYou


    Prices are coming down, and will come down more.
    Last week there were houses in Mullagh Co Cavan sold at auction for 87k which were on the market for over 200k.


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    #13
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    tech2 wrote: »
    Hmmm I think the price of a semi detached in Athenry is still quite expensive, the market there has still to drop to reach the average of 25% from peak.

    Offering a 97% mortgage is ridiculous, if you dont have over 4 grand in savings then I think you might struggle with mortgage repayments or your current lifestyle will have to take a hit.
    I have the deposit - we are a couple and paying €800 per month in rent, mortgae repayments would be a bout 500€ per month


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    #14
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    amoebaassasin wrote: »
    I have the deposit - we are a couple and paying €800 per month in rent, mortgae repayments would be a bout 500€ per month

    Are you happy to live there for 20 or 30 years? If so, negative equity won't be too important.

    Regarding the €500 mortgage, remember interest rates are at an all time low. They will triple or quadruple over the next few years.


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    #15
    Jaden
    Registered Users Posts: 2,393 ✭✭✭Jaden


    You would need to be very much in love with this house, or completely out of your mind to buy in Galway at the moment. Prices have a long, long way to go yet, and Galway is being deserted in droves, further adding to the dropping prices.


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    #16
    EL_Loco
    Registered Users Posts: 901 ✭✭✭EL_Loco


    property as an investment is in the toilet, as is reverting to it's actual function of keeping rain off your head.

    the affordable housing option allows you to buy it now as you've stated. So it's more a case of:

    "are you happy to live there"
    "can you afford the repayments"
    "can you live with 13% clawback if you do sell up" (doesn't this drop on a sliding scale though)

    and/or

    "are you happy to wait for prices to drop further"
    "are you going to walk away from the affordable housing scheme"
    "how long will your loan offer last and what happens if you've to reapply for a mortgage"


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    #17
    Heisenberg1
    Closed Accounts Posts: 2,511 ✭✭✭Heisenberg1


    amoebaassasin wrote: »
    Hi We have been offered an affordable house in Athenry County Galway on a new developement - 3 bed semi's - look really nice. The Price is €140,000 with a clawback of 13% for 20 years. Would now be the time to go for it? Or would it be worth holding out for another while to see if prices drop even more?

    Totally of the point dig your user name PILEDRIVER what a tune!!


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    #18
    ArraMusha
    Registered Users Posts: 589 ✭✭✭ArraMusha


    I'll second that. Galway prices have a long long way to go yet. They have to go at least 50% below the top (2007) prices and then some more.

    Banks or Nama need to go after the developer/builderes hard, that'll force them to drop! More pressure... come on Nama get them to pay up.

    If you are looking at buying, you should be demanding NAMA to go after the money.


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    #19
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    amoebaassasin wrote: »
    Hi We have been offered an affordable house in Athenry County Galway on a new developement - 3 bed semi's - look really nice. The Price is €140,000 with a clawback of 13% for 20 years. Would now be the time to go for it? Or would it be worth holding out for another while to see if prices drop even more?

    I'd be looking for the removal of the clawback and at least 20% off the asking price. If others are offering the full price walk away. You have to take a cold approach.


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    #20
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    whatever about whether to buy or not (I'm personally of the opinion houses are still way over valued but I'm just one person/opinion)

    If the open market price is 160k then its very possible you could make an offer of 140k or even less and have the same house with no clawback


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    #21
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Colonel Sanders wrote: »
    whatever about whether to buy or not (I'm personally of the opinion houses are still way over valued but I'm just one person/opinion)

    If the open market price is 160k then its very possible you could make an offer of 140k or even less and have the same house with no clawback

    As far as I'm concerned the open market value is as follows ... Yearly rent - 10% expenses /6 x 100


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    #22
    soccfc
    Registered Users Posts: 22 ✭soccfc


    People I know have had success in dealing with the Council (Cork Co. Co. specifically) and getting better deals on the clawback.


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    #23
    Tech3
    Closed Accounts Posts: 3,010 ✭✭✭Tech3


    ArraMusha wrote: »
    More pressure... come on Nama get them to pay up.

    I'm thinking more towards the taxpayer rather than the developer. We shall see.


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    #24
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    luzon wrote: »
    Totally of the point dig your user name PILEDRIVER what a tune!!

    well spotted - Great tune indeed!!!!


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    #25
    amoebaassasin
    Closed Accounts Posts: 24 ✭amoebaassasin


    Thanks everyone for the feedback - It will certainly make me think very carefully - before going through with this - judging from the responses so far - I would be making a mistake to go ahead with this. I may just hang tough and rent for another while. I have a feeling that the Co Co wont budge on the clawback but ill give it a shot.


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