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Costs Involved in buying a house - advice required

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  • 20-02-2011 11:28pm
    #1
    Whest
    Registered Users Posts: 14 ✭


    Hi All,

    I am thinking of taking the plunge on buying a house. I have been pre-approved for a mortgage of 144k against a property which is priced at 160k (90% of asking price). I am really inexerienced on the finance elements of such a transaction, so I would like to pick your brains on some questions that you would proabably think are basic but nevertheless I would like clarity on:
    • As you will see from the above the shortfall in mortgage v price is 14k. Does this 14k constitute a deposit or will extra have to be paid on top of the 14k to be classed as a deposit?
    • The finance situation is I have 32k in savings and have worked out that all costs is 7,600 excluding any potential deposit as per the above- Do you guys think this is doable?
    Guys, Thanks for taking the time to read this and I would appreciate your feedback.


Comments

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    #2
    Blackjack
    Registered Users Posts: 3,612 ✭✭✭Blackjack


    The Shortfall is 16K, not 14K, but this shortfall is indeed the Deposit.

    The 7600 Should cover your costs including Stamp, however there may be hidden stuff that just crops up that can't be accounted for here, or in advance.

    Best of luck.


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    #3
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    bought my own place around this time last year, so I've experience of this first hand


    fees you might need to cover upfront include:

    stamp duty
    solicitor's fees
    valuation fees
    snag list fee
    first year's maintenance fees (if it's an apartment)

    then there's lots of upfront bills

    tv licence
    property & contents incurance
    esb/bord gais deposit if you don't sign up for DD
    internet/phone/tv one-off set up charges

    and I'm assuming it'll be unfurnished when you move in, the cost of furniture, aplliances, kitchenware, etc can be pretty high too

    and you're best to have a cash bumper too, there's always something you need to buy that you've forgotten, or unforseen expenses.

    realistically, including your deposit you'd need 25k-30k


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    #4
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    seriously : you'd have to be simple


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    #5
    m5ex9oqjawdg2i
    Closed Accounts Posts: 11,221 ✭✭✭✭m5ex9oqjawdg2i


    Tigger wrote: »
    seriously : you'd have to be simple

    Maybe you can elaborate on this?


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    #6
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    I know that some people have stated that since house prices have dropped a good bit that there is value in the market but there really isn't. Look at David McWilliams for an example; he was warning about the chances of prices dropping since 1999 so in his opinion prices were high then and we aren't back down to those prices yet.

    I feel that with rising interest rates rising taxes and falling incomes that prices haven't redach the bottom and that a person with money saved and a stable income should hold out. I'm confident taht any rent is easilly going to be less than the combined interest and depreciation on any house bought at the minute.

    I know there is a lot of denial in the market and I feel it would be ill advised to buy a house right now.


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