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iguana

Stacksey wrote: »

i am only 27 at the end of the day and single

If you are single I'd really reconsider buying just yet. You have no idea who you might meet in the future. You might meet a partner from another country and be stuck with your house.

And I think most people, if they are really, really honest, would shy away from a relationship with someone who was in serious negative equity. Especially if the house was not suitable as a family home or was in a not so good area.

icescreamqueen

Senna wrote: »

Your age wont go against you from the banks point of view. As long as your job is permanent/stable, and you have been in full employment for at least a year, or more. But you're 23 and you want a mortgage on your own?? WHY??

A mortgage is nothing more than a millstone around your neck, people should really only take on a mortgage if there at that stage of life were they need the stability. Renting is the best thing for a 23 yr old, it gives you the option of moving to where better jobs are and then settling down when you know they sort of house you need.

Anyway, you're looking for 230k on an income of 40k, i cant see any bank giving you that, when interest rates go back to a normal level your repayments would be nearly 50% of your income. In a few years time you will thank that bank for not giving you a mortgage now, stay renting, keep saving, enjoy yourself and only buy when you NEED a house.

Thanks for the advice (which I've heard before). However, I feel like I shouldn't have to justify wanting to buy a home (more than a house) in an area that I work and live and have family in. Plus, there isn't a snowballs chance that I'll moving anywhere in the next 10 years. Two years ago, I would never have had the option of buying a house in the area I want to buy because they were double the price they are now. At least now, I can actually consider it. Also, not all 23 year olds like doing the same things and I'm not waiting around for someone to come along to buy a house with.

Senna

It's really not even about your age, in a stable market a house purchase doesn't come with all the pitfall that buying now does. In the past if you bought and, for what ever reason, you needed to sell you could. Purchasing now means you wont be able to back away for the foreseeable future. People who bought up-until 2006 weren't aware this would change, but the information is everywhere today, it up to you to make an informed decision.

icescreamqueen wrote: »

Two years ago, I would never have had the option of buying a house in the area I want to buy because they were double the price they are now. At least now, I can actually consider it.

How will you feel in 2 years time when the house has halved in price again? Many will say that there is no way house prices could drop by 75% (most though 50% drops would never happen), but with each passing day, i dont see how its possible for prices not to drop by that or more, but that topic is for another day.

Best of luck with whatever you decide.

Firetrap

The way I see it, house prices are continuing to fall so you've nothing to lose by waiting. It was different when they were rocketing up and up and people felt they had to buy something, anything just to get on the ladder before prices went out of their range. See where that got so many of them

niceirishfella

OP, would you live in Newbridge or the like, Appts there for 110 to 125K .

hinault

Stacksey wrote: »

Thanks lads, i realise now that i have approval i can kind of sit back and take a look around and in the mean time keep saving and living at home with the parents makes the saving a little easier,

I think you would be wise to wait and see how things pan out.

I think you will see more house prices falling in 2010 - sadly there are a lot of people in financial trouble and I would think you will see a lot of people defaulting on their mortgages.

I think the market will continue to implode which is good for prospective buyers like you.

Good to see the banks giving mortgage : hopefully a sign of better times to come.

whizzbang

If you really really want to buy I suggest you use www.IrishPropertyWatch.com to track the houses you are interested in, it even shows you how long they have been on the market and if the price has been brought down at all.

PeakOutput

icescreamqueen wrote: »

Thanks for the advice (which I've heard before). However, I feel like I shouldn't have to justify wanting to buy a home (more than a house) in an area that I work and live and have family in. Plus, there isn't a snowballs chance that I'll moving anywhere in the next 10 years. Two years ago, I would never have had the option of buying a house in the area I want to buy because they were double the price they are now. At least now, I can actually consider it. Also, not all 23 year olds like doing the same things and I'm not waiting around for someone to come along to buy a house with.

of course you dont have to justify it if its what you decide to do its what you decide to do. that dosnt mean you are not been given good advice.

if you have any friends who are economists(good ones) ask them to explain to you why renting is not always wasted money. then figure out weather or not buying in that area in the current climate is wasted money and could you rent there instead and save money.

it sounds like your going to buy no matter what and to me that sounds like a hangover from the we all need to own our homes days(or at least what should be the hangover for those days i imagine that attitude is still fairly prevelant)

Senna

PeakOutput wrote: »

if you have any friends who are economists(good ones)

The only thing more dangerous than an economist is a good economist!;)

Have a read of the www.thepropertypin.com for some good facts, figures and opinions.

icescreamqueen

PeakOutput wrote: »

of course you dont have to justify it if its what you decide to do its what you decide to do. that dosnt mean you are not been given good advice.

if you have any friends who are economists(good ones) ask them to explain to you why renting is not always wasted money. then figure out weather or not buying in that area in the current climate is wasted money and could you rent there instead and save money.

it sounds like your going to buy no matter what and to me that sounds like a hangover from the we all need to own our homes days(or at least what should be the hangover for those days i imagine that attitude is still fairly prevelant)

Well I absolutely hated renting, most rental properties are substandard in Ireland. The only areas that house prices are going to keep going down in, are the areas that have loads of houses but no one now wants to live in. It's the settled, established areas close enough to the city where house prices are going to stay the same or go down slightly, i.e, where I want to buy. I have been watching the property market in that area for the last 6 months and 8 out of the 10 properties I looked at have been sold, which shows it's still a competitive market but in the areas that people actually want to live now.

IRLConor

If you're buying, it's also well worth thinking about where you're going to be working. The ongoing cost of commuting needs to be considered in money and (more importantly) quality of life terms.

Myself and my girlfriend have recently bought an apartment for similar money to what the OP was looking for. We settled at 85% of the asking price. Many places we saw were substandard but there are well built apartments in well managed buildings if you dig hard enough.

I'd steer well clear of borrowing anywhere near what they're willing to lend you. AIB said they'd be willing to lend us up to 500k and I know a) we wouldn't have a hope in hell of repaying that and b) they wouldn't lend it anyway when push came to shove.

oceanclub

icescreamqueen wrote: »

The only areas that house prices are going to keep going down in, are the areas that have loads of houses but no one now wants to live in..

That's not true. Prices have actually gone down more in the established - places like Dublin 4 - precisely because prices went up the most there initially.

Anyone thinking there are safe areas not effected by macro-economics will get a rude awakening.

P.

iguana

icescreamqueen wrote: »

The only areas that house prices are going to keep going down in, are the areas that have loads of houses but no one now wants to live in. It's the settled, established areas close enough to the city where house prices are going to stay the same or go down slightly, i.e, where I want to buy.

That's nonsense. Some of the biggest falls of all have happened in D4 and D6. The whole market is linked, when bot the top and the bottom are falling the middle must too. If someone who had the cash to buy a nice house in Dundrum can now afford to buy a great house in Donnybrook the house in Dundrum will drop in price or it won't sell.

If someone in an apartment in Sandyford wants to trade up to a house in Dundrum and their apartment has dropped in price the house in Dundrum needs to fall too or nobody will by able to buy it.

Wait. You are single and unless you are sure you want to live in this house forever, possibly by yourself reconsider buying. This property will be an albatross.

icescreamqueen

Houses prices have already come down a huge amount but my point is they won't come down much more in certain areas. For example, I'm looking at buying a house in Dublin 12 that I know was valued at 500k during the peak, now similiar houses to it are being sold around the 250k mark in that area. Plus, houses are not sitting, they are selling. If I took out a mortgage of 230k on my own, it would be manageable and I know that I wouldn't get much more off the asking price.

ssornareik

Hi,

I'm just looking for some opinionated advice here and i think this is the best forum to ask.

I really REALLY want to buy a house, there's a lot of benefits owning a house and i just really want a place that I can call home. After talking to my girlfriend about my thoughts she agrees with me that buying a house would be a great idea however, i half feel that she agrees with me because she can see how much I want a house and how happy i'd be.

When i talk to everyone else about it, everyone says I'm mad and that renting is the way to go. (I've been renting for nearly 4 years now)

I do agree that renting is great as it's very flexible (just pack up and go) but if I had a house, I'd be paying the exact same amount of money to my mortgage instead of someone else's and I'd have a house at the end of it all.

By the way, I'm only 24 years old. To which you are probably thinking "you're mad to be thinking of getting onto the unstable property ladder at your age" to which i'd respond "like paying into a pension, the sooner the better"

Now, I've already done a lot of travel and have seen half the world so it appeals less to me than it does to others.

With all that aside, Can someone please form an unbiased opinion and tell me if I am in fact truly mad and that I should park my intentions for a few years or does anyone out there have the same goal of owning a house?

--
Kieran

Dr_Phil

ssornareik wrote: »

I'm just looking for some opinionated advice here

Bad idea, all you get here is whinging about how screwed the country is, and that you have to wait another 18 months as it's certainlly gonna be a point at which the houses will cost 50 euro/each.

ssornareik wrote: »

I really REALLY want to buy a house

If you really want it - go for it. Calculate, consider risks and benefits and if you still think you want to buy a house that's gonna be a home for you and your family in future - do it.

niceirishfella

icescreamqueen wrote: »

Plus, houses are not sitting, they are selling.

wow - so theres no recession?!?!?!:P
It's all been dreamt up by the meja............:pac:

icescreamqueen

niceirishfella wrote: »

wow - so theres no recession?!?!?!:P
It's all been dreamt up by the meja............:pac:

Do you have selective vision?!

icescreamqueen

ssornareik wrote: »

Hi,

I'm just looking for some opinionated advice here and i think this is the best forum to ask.

I really REALLY want to buy a house, there's a lot of benefits owning a house and i just really want a place that I can call home. After talking to my girlfriend about my thoughts she agrees with me that buying a house would be a great idea however, i half feel that she agrees with me because she can see how much I want a house and how happy i'd be.

When i talk to everyone else about it, everyone says I'm mad and that renting is the way to go. (I've been renting for nearly 4 years now)

I do agree that renting is great as it's very flexible (just pack up and go) but if I had a house, I'd be paying the exact same amount of money to my mortgage instead of someone else's and I'd have a house at the end of it all.

By the way, I'm only 24 years old. To which you are probably thinking "you're mad to be thinking of getting onto the unstable property ladder at your age" to which i'd respond "like paying into a pension, the sooner the better"

Now, I've already done a lot of travel and have seen half the world so it appeals less to me than it does to others.

With all that aside, Can someone please form an unbiased opinion and tell me if I am in fact truly mad and that I should park my intentions for a few years or does anyone out there have the same goal of owning a house?

--
Kieran

I'm in the exact same position as you. I want to buy my own home, am sick of renting and I have done the whole travelling thing. The way people go on here is like if you take out a mortgage, your life is over! However, of course you need to ask some serious questions like- am I in a secure job, will I buy on my own, do I have enough of a deposit saved up, do I have a good savings capacity and are prices in the area I want to live going to reduce anymore. However, I think if you want a home and are committed to it, don't let anyone put off too much but think of the serious aspects of it also.

bangersandmash

icescreamqueen wrote: »

Houses prices have already come down a huge amount but my point is they won't come down much more in certain areas.

That's a matter of opinion. People have been saying the same thing about mature established areas for the last 18 months.

Also I'd argue that estate agents & co are overestimating price drops in the same way that last year they were underestimating them. For instance the Irish Times advertorial recently implied that prices are back to 2001 levels. However from the latest ESRI study and my own observations, we're closer to late 2003 / early 2004 levels. Prices would have to drop considerably more to reach 2001 levels.

niceirishfella

icescreamqueen wrote: »

Do you have selective vision?!

no, but your post was erronious and misleading.

Diarmuid

icescreamqueen wrote: »

Houses prices have already come down a huge amount but my point is they won't come down much more in certain areas.

yes. The booming economy, falling tax rates, increasing wages and no property bubble in the rear-view mirror will guarantee that. :rolleyes:

oceanclub

At the end of the day, I don't give a hoot if people buy or not. Just as long as they don't return - like people who bought in 2006 did - to ask (a) why did no-one warn them they would be in negative equity and unable to sell now that they _have_ to move or (b) everyone else is getting their bailout, where's mine? (That muppet Marc Coleman wants his stamp duty paid back to him, would you believe).

P.

Senna

Just one last point, if you are doing you maths on any purchase, you need to consider interest rates of 6% and budget for a 15% drop in earning.

But as always, blind optimism will win out for most of the people wanting to buy now, yes owning a house is nicer than renting, thats a given. But if that fact alone is enough for people to brush common sense under the carpet, then run on.
When interest rates are back to normal, when your paying out 50%+ of your wages on a mortgage for a house thats worth less than you bought it for, when we've had 3/4 budgets of increasing taxation, when TRS is stopped, when Property Tax comes in, i hope none of you will be posting on here complaining about the raw deal you got or looking for the government to bail you out.
edit; same point as oceansclub made above

oceanclub

Senna wrote: »

Just one last point, if you are doing you maths on any purchase, you need to consider interest rates of 6% and budget for a 15% drop in earning.

Just to confirm this, the ECB rate is currently rock bottom:



It has to be assumed that interest rates will go back up another 2% at some point. The worst problem is for Ireland, the big EU states will probably recover before us and therefore need to put the rates back up even when it doesn't suit us.

P.

Duckjob

oceanclub wrote: »

Just to confirm this, the ECB rate is currently rock bottom:



It has to be assumed that interest rates will go back up another 2% at some point. The worst problem is for Ireland, the big EU states will probably recover before us and therefore need to put the rates back up even when it doesn't suit us.

P.

Indeed. I shudder to think what this will mean for thousands of families who are just hanging on by their fingertips right now.

gurramok

Dr_Phil wrote: »

Bad idea, all you get here is whinging about how screwed the country is, and that you have to wait another 18 months as it's certainlly gonna be a point at which the houses will cost 50 euro/each.

And this is from the guy who sought advice here on whether to buy or not. http://www.boards.ie/vbulletin/showthread.php?t=2055740640

Did you end up splashing out 350k on that gaff in D3 yet?

oceanclub

Can I suggest that people who come to internet forums seeking reassurance rather than honest opinions go ask for a hug from mammy instead?

kthxbye.

P.

niceirishfella

oceanclub wrote: »

Can I suggest that people who come to internet forums seeking reassurance rather than honest opinions go ask for a hug from mammy instead?

kthxbye.

P.

+1 , and live in the REAL world too.:)

denhamd2

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