Buying now more mad than during the boom?

jobless

magentas... that 50 quid extra ur paying over rent will be a lot more when property tax and water rates come in.
If your happy with your purchase then dont have any regrets.... will it bother you though if next year you are in negative equity?. what happens if you and your boyfriend break up and you are negative equity?.

house prices are going to fall for the foreseeable future but if you can live with that then fire away... you should read up on previous housing busts to see just how far they may fall.. it may shock you!

tara73

magenta, most of the posters here give many good and valuable information/opinions and examples but you just get defensive and take it all pesonally.
why don't you try to take other statements on board and don't get so agitated if people say what they think (and don't forget, you asked...) even if it is an opposite direction:)

DeVore

ricman wrote: »

if you are on a good wage,and are paying 1000 euro rent per month,its ok to buy a house now,if you want to live in area x ,and the price is reasonable.IF you are happy to live there for 15 years.Theres good 3bed houses in dublin going for 180k or less,in private estates.

WTF?

Where are these 3 bed for 180K in nice estates? Do you mean Galway? (If so, ok, I can understand that but in Dublin there is still nothing I would live in for less then 250K... not in the 3 bed line anywhere <6 miles to Dublin CC.

If anyone can find me a nice 3bed in a nice suburb for <250K I will be impressed.

DeV.

Theboinkmaster

DeVore wrote: »

If anyone can find me a nice 3bed in a nice suburb for <250K I will be impressed.

DeV.

IMO in 2-3 years time there will be plenty

Gaz

DeVore wrote: »

If anyone can find me a nice 3bed in a nice suburb for <250K I will be impressed.

DeV.

How about this >> http://www.myhome.ie/residential/brochure/97-maryfield-crescent-artane-dublin-5/127716

Okay its 260, but I reckon you can take a bit off considering its been on the market for awhile.

Nice area too.

Idbatterim

I dont know much about areas in the northside, but around my area i.e Dublin 14, the asking price would be atleast double. Does it have its own drive in garage? if you look to the side of the house you see a Lane and then a garage, that seems to cut into the garden a little...

TheCityManager

noclue1 wrote: »

Spot on, the oldest bull crap that falls out of the typical Irish persons mouth. It's a waste paying someone else's mortgage

It's unfortunate that the person above who outlined that is now no doubt in negative equity and has reduced his/her mobility to find alternative employment if the need ever arises.

What would make you think buying a house now would be a good investment. Look at the situation the country/world economy is in. Also why does everyone qoute the 2007 bubble price and the price something is now, forget 2007 this is where we are now.

Property prices are still falling!!!!
Double dip recession in the global economy looking more likely each day
Unemployment @ nearly 14% and rising
Not to mention all those kept off the live register doing Mickey mouse FAS courses bringing unemployment to c.500,000
Falling public/private sector wages
Mass emigration in the 20-35 age category (these are the FTBs folks)
C.300,000 empty property nationwide
Previous migrant workers returning home, these previously made up a significant proportion of tenants available to support rental prices
New capital requirements for banks meaning less credit availability
Rising interest rates on new and existing mortgages
Numbers in mortgage arrears growing alarmingly each month
Property taxes in the short to medium term
Water charges on the way also
Rent supplement has effectively put a floor in rents the exchequer cannot continue to pay at this level a reduction in the RS will lead to further rent falls and consequently house prices
Inevitable increases in other taxes to pay for our ballooning deficit(reducing net income)
1 In 4 or 25% chance of Ireland defaulting on it's debt(as priced by the markets) along with a possible exit from the eurozone into a new eurotrash zone made up of us and the other pigs


Why would you buy a house in such an uncertain environment

who_ru wrote: »

i think in pure economic terms house prices can only continue to fall.

the minister for finance has already indicated that a further 3 billion euro will be taken out of the economy by way of budgets cuts in december's budget.

it's taken as given that interest rates will continue to rise in the medium to long term. irish financial instituitons, as we know only too well, are increasing interest rates independently of the ECB.

unfortunately Anglo is bringing us perilously close to being totally bankrupt and effectively being run by brussels. The Govt has decided that it is the citizens of this country and not the bondholders who will pay the debts of Anglo. More money will have to be raised via tax increases to pay this debt. property taxes and water charges are on the horizon, further reducing people's incomes. Energy costs are increasing 5% from October 1.

Unemployment is offically 14.4% or thereabouts, when you add in the number of self employed people out of work but who cannot sign on, and all those doing fas courses etc, i reckon real unemployment is close to 20%. is there any reason to suggest unemployment will not continue to grow in the long term?

there are approx 300,000 vacant housing units in the country.

an entire generation of young people, first time buyers if you like, are effectively being forced to leave the country to find work. unemployment amongst young people- under 24yrs old- is probably around 50%.

irish banks are basically broke - they depend on the irish people via Govt cash injections to stay open. credit will never be available again like it was in the bubble years, mainly because we now have a regulator who actually does his job.

so against this background is it reasonable to suggest that house prices in ireland will continue to fall for many years ahead?

i'll let you decide.

Two excellent posts !!

These really say it all...........

Folks we are FCUKED as a nation.............keep your money where it is and rent...............

Fighting Irish

magentas wrote: »

It is down to each individual case. Personally myself and bf were in perfect place to buy our home this year. The timing was right FOR US.

We had been renting for years paying someone elses mortgage and the drop in house prices really worked to our advantage. we had deposit and borrowed LESS than we could have 'cos we wanted to live within our means and not be consumed by the loan.

Our home was €365k few years ago, we got it for €240k
Mortgage + life assurance +house insurance combined is working out €50 each extra per month than place we were renting.

Do ye think I'm mad???

Buying while house prices are falling is mad compared to buying when houses are at they're peak

cgarrad

The reason were in a crisis is because of debt. Too much of it.

Anyone voluntarily getting into debt in the next 3-4 years is, at best, mad.

2013 is the bottom and its going to get a lot worse.

Clear all your debts asap, if you cant your fcuked ;-)

MuffinsDa

cgarrad wrote: »

Clear all your debts asap, if you cant your fcuked ;-)

Why is that, exactly?

ntlbell

DeVore wrote: »

WTF?

Where are these 3 bed for 180K in nice estates? Do you mean Galway? (If so, ok, I can understand that but in Dublin there is still nothing I would live in for less then 250K... not in the 3 bed line anywhere <6 miles to Dublin CC.

If anyone can find me a nice 3bed in a nice suburb for <250K I will be impressed.

DeV.

I'm not sure if you consider Cabra "nice" our neigbour recently sold 3 bed semi d for 220k the houses had some minor flood damage down stairs.

The last time I checked there was a few 3 beds in the area around this price range.

cgarrad

We have been printing money non stop to get out of this.

Inflation is basically the volume of money in circulation.

Governments don't like to much inflation, so interest rates go up so as to take money out of the system.

Next thing you know your paying 8 or 10% on you €350,000 house and you have no money.

At 8% your mortgage is north of €28,000 per annum ;-(

Maybe not fcuked but in serious trouble.

MuffinsDa

cgarrad wrote: »

We have been printing money non stop to get out of this.

Inflation is the outcome of more money in circulation.

Governments don't like to much, so interest rates go up so as to take money out of the system.

Next thing you know your paying 8 or 10% on you €350,000 house and you have no money.

At 8% your mortgage is north of €28,000 per annum ;-(

Maybe not fcuked but in serious trouble.

Your points don't really make a huge amount of sense.
WE printed money? who's we? ECB??

What if someone has a fixed rate debt? Or a tracker? Do you think ECB base rate is going to go up to 7% in the next 4-5 years?!

You are making a completely nonsensical sweeping generalization!

Treehouse72

MuffinsDa wrote: »

Your points don't really make a huge amount of sense.
WE printed money? who's we? ECB??

What if someone has a fixed rate debt? Or a tracker? Do you think ECB base rate is going to go up to 7% in the next 4-5 years?!

You are making a completely nonsensical sweeping generalization!

No, the poster is making a completely sensible sweeping generalisation. Not all generalisations are bad or tell us nothing you know.

And clearly she/he means the ECB would print the money (as they in effect have been doing this week in buying Irish debt since nobody else will buy it).

On your other points, fixed rate periods don't go on forever and trackers are effected by rises in the ECB rate. Finally, since the German recovery was shown last week to be stronger than expected (albeit still weak) it is by no means a racing certainty that rates won't rise soon. Maybe not to 7%, but once we set off down that road, who knows?

daltonm

MuffinsDa wrote: »

Your points don't really make a huge amount of sense.
WE printed money? who's we? ECB??

What if someone has a fixed rate debt? Or a tracker? Do you think ECB base rate is going to go up to 7% in the next 4-5 years?!

You are making a completely nonsensical sweeping generalization!

He didn't mention the ECB rate going up to 7% - but even if they went up by 2% someone now on a tracker of .5% (1.5%) on a 300k mortgage could be looking at increases of around 300 per month. Add to that the fact that most of those on trackers bought during the boom and overpaid for their homes - by 50% in some cases.
How many of these could absorb an extra 300 on top of more taxes, property tax, water charges (if they go ahead)?

cgarrad

People really dont understand the mess we are in.

Printing more money and cutting wages by 5% will do NOTHING.

Uk has talk of 8% and they are not in risk of default like greece or us.

It has been 16 or 17% historically and that was nothing like this crisis.

All we have done is brush the problem under the carpet...

It will come back to bite, debts have to be paid.

daltonm

cgarrad wrote: »

People really dont understand the mess we are in.

Printing more money and cutting wages by 5% will do NOTHING.

Uk has talk of 8% and they are not in risk of default like greece or us.

It has been 16 or 17% historically and that was nothing like this crisis.

All we have done is brush the problem under the carpet...

It will come back to bite, debts have to be paid.

No they don't

Keith C

Idbatterim wrote: »

I dont know much about areas in the northside, but around my area i.e Dublin 14, the asking price would be atleast double. Does it have its own drive in garage? if you look to the side of the house you see a Lane and then a garage, that seems to cut into the garden a little...

Stocking lane isnt double that price

http://www.irishpropertywatch.com/salesSearchResults.php?Address=stocking&Beds=4&Type=any&Region=Co.+Dublin

1 Prospect Drive Prospect Manor Stocking Lane Rathfarnham, Rathfarnham, Dublin 16, South Dublin City

as per link:

2007 price €625k

2010 price €395k

Ok its D16 but neighbours of D14

Im sure info regarding Galway prices can be dug from said website.

MuffinsDa

Treehouse72 wrote: »

No, the poster is making a completely sensible sweeping generalisation. Not all generalisations are bad or tell us nothing you know.

They are if they lump together various scenarios without adequate analysis and differentiation and with possibly exaggerated assumptions, and issuing decrees willy-nilly based on those. As you alluded yourself, for example, there is extremely little change of ECB rates going up to the level he used as an example and therefore majority of tracker mortgage holders will never have to pay an interest rate around 8-10%, not even remotely. I don't have a tracker myself by the way. This is just one example of how his exaggerated argument is flawed.

Treehouse72 wrote: »

On your other points, fixed rate periods don't go on forever

But they may go on for, say, 10 years. Another hole in the argument. And noone has a clue what the interest rates are going to be in 10 years, after being through possibly another economy cycle...

Treehouse72 wrote: »

and trackers are effected by rises in the ECB rate.

Please refer to 1st paragraph!

Treehouse72 wrote: »

Maybe not to 7%, but once we set off down that road, who knows?

Then why making a nonsensical, sweeping generlization if you or noone else knows and if it very unlikely to reach the level stated in the generlization?