Buying a house 2013!

TheFarneyman

Ok,
Mortgage Interest Relief gone,
upcoming budget,
Property TAX pending
Water charges pending,
lack of growth in the economy
mass unemployment and emigration

All of the above surely mean that the steadying of the property market is completely superficial and it will nose dive again next year???? I think this time next year might be the right time to purchase? We are probably around 55% off peak prices now in Dublin would it be possible with no further incentive to buy that we will hit 70% by the end of 2013?????

TheDriver

when is the right time to buy is the question? Sometimes its when you find the right house and the price is right i.e. not paying over the odds so when they drop a bit more, its no big deal.

I do think all the taxes are going to have an effect on prices and there is only one way they are going to remain going, especially as the artificial MIR spike is gone.

megafan

House prices may not drop much more but likely will remain as they are for many more years.... any rise in the future will be influenced by inflation (if Any?).... Only going to be rises in taxes (water & household rates) and continued downard push on salarys.. any mortgage taken out will be unlikely to be reduced by inflation/price rises as in the past so be sure you can comfortably pay off any loan now as you'll be paying that percentage of your salary for term of loan!

& of course we'll have those with vested interest continually telling us we've turned the corner & house prices will rise tomorrow!!:rolleyes:

davet82

possibly 5% more from peak max. (due to economic factors mentioned) but most likely with very little activity in the first half of next year due to people rushing for the MIR i predict sane asking prices on the likes of daft and myhome which will make it easier to buy and less stressful without having to deal with dellusional sellers.

its all a guessing game though

TheDriver

davet82 wrote: »

its all a guessing game though

tell me all about it. And the auctioneers who tell you a bid is already in............ you really love calling some bluff off these guys, most can't lie straight in bed.
Also don't forget higher land registration fees.
One things for sure, prices aren't going up in most parts.
Also thse houses that haven't sold for 12 months need to adjust their prices inline with others in the area or indeed lower if they want to sell. However I have found a good number of people have no intention of actually selling unless they get a fortune

Idbatterim

One things for sure, prices aren't going up in most parts.

yeah strongly agree with this. Who knows whether the price increases in parts of Dublin are dead cat bounce or not, but Im fairly shocked at the increases in prices of rent and houses compared to a year or so ago. Just look from the price register what some houses were selling for last year, compared to what they are asking and selling for now... For anyone who doubts this, go visit the property pin!

TheDriver

wait for the dead cat to get swept away and MIR fad to calm down and we will be left with more miserable truth for people trying to sell and better data for those of us trying to buy.
Except maybe in lush suberbs

RATM

House prices are directly correlate to unemployment figuers. Less people working means more people who can't afford a mortgage. For those who can there are banks that won't lend in any case.

Government & CSO have admitted last week that our unemployment problem will not improve until at least 2015 so I wouldn't expect prices to rise between now and then. There may well be a dead cat bounce as it is unusual for a property crash not to experience one on the way down but either way until employment levels and confidence rises then house prices will stay repressed.

mel.b

I'm planning on buying next year and the biggest issue for me is lack of decemt stock (i'm in the mid west). Fingers crossed some decent houses come onto the market in the new year

sparrowcar

I'm 3 weeks in my new home (Swords). We bought a family home 20k under asking price. Even if prices go down by another 5-10% it doesn't matter as it's a family home with zero reasons to move in the near to mid future.

If the right property at the right price comes up then that is the time to buy. It may be next week or next year only you will know that at the time?

Ditchfinder

Currently renting 2 years, hoping to buy 2013. We spoke to the EA who sold our previous house, he agrees with most on here in that house prices will drop again next year, after the MIR frenzy has died down. Good luck to all who plan a 2013 purchase, might be lucky 13 for some.

Lyn256

Like ditchfinder, we're renting for 2 years now too (original plan was 3-6 months)
Just can;t find the right house
Was only tlaking to EA who sold my old house bout 2 weeks ago and he said that at best he's hoping houses stablise where they are but realistically he's expecting the arse to fall out of the market again in January.
He also said that MIR was the big factor affecting house prices right now and even if they bring it in again under another name-it won;t affect house prices again until it is close to expiring . . .

nukenelly

I'm in the market to buy. Took my eye off the ball after being outbid a few months ago and was a bit concerned when prices seemed to be stabilising.

There's definitely a MIR factor though. It reminds me of a car salesman acquaintance who told me about customers spending €40-50k who are obsessed with getting into the lowest tax band possible to save a hundred quid or so a year.

I've also noticed a number of properties that failed to sell (in need of TLC, dream price expectations etc.) being pushed back onto the market recently. I think some of them have missed the boat TBH.

I think there may be pressure on Baldy Noonan to extend MIR or come up with some other wheeze. I'm not sure it'd have the desired effect though. What seems to have caused the spike Sept-Nov was the actual panic associated with MIR ending.

Idbatterim

There's definitely a MIR factor though. It reminds me of a car salesman acquaintance who told me about customers spending €40-50k who are obsessed with getting into the lowest tax band possible to save a hundred quid or so a year.

yeah, bmw have reaped colossal benefits of this for years, mainly with the 520d, spend thousands to save hundreds.

gurramok

nukenelly wrote: »

What seems to have caused the spike Sept-Nov was the actual panic associated with MIR ending.

True indeed, just look at the Buying a House 2012 thread. Its riddled with MIR panicking.

TheDriver

gurramok wrote: »

True indeed, just look at the Buying a House 2012 thread. Its riddled with MIR panicking.

I was thinking the same thing, full of folk trying to beat a December deadline.
There is a shortage of nice properties out there all the same but at least we are not chasing an upwards pricing market!
I concur about properties that failed to sell, some people just think that fools will spend a fortune, not anymore. One EA told me that its annoying when a client insists on a high price for the house because they know it will never sell.

sparrowcar

This talk of "panic buying" and "buyers in a Frenzy" is pure EA/Media/Misinformed bullsh!t I'm sorry but it's just not the case. It's what people who aren't in a position to buy now are holding onto to ease the uncertainty of next year. The EA's are telling us this so we buy now instead of waiting but more educated buyers out there will only buy a house if it meets their criteria, not because of MIR expiring.

Why would someone spend 20/30/40k over asking price for something that is only worth circa 15k over 7 years?

Stop believing the hype. MIR frenzy and panic buying reports are no different than the years hearing we "have to get on the ladder" "property is a safe investment" and my favourite one "Crash?, sure that won't happen here"

Do some you really believe that there are people running around like headless chickens putting offers on houses over the asking price? Just read the property price index and open your eyes. I don't discount an increase in interest and sales but certainly not widespread pandemonium like is suggested.

However, having said all that we should remember that the flip side to this is with a very harsh budget on the way that the bank’s lending criteria will change in the new year. A couple approved for a mortgage of 250k now may only get approval for 200k once the budget and new taxes are introduced and the fact that MIR will not be available to them. One’s ability to repay will be reduced and as a result the amount lenders will give will be reduced. It may mean that now IS the time to buy and hence the "increase" in sales towards the year end but then this is only my opinion.

flintash

some EA hijacked 'sparrowcar' account!!! :eek::eek::eek:

sparrowcar

flintash wrote: »

some EA hijacked 'sparrowcar' account!!! :eek::eek::eek:

? In my first paragraph I am slatting EA's?
Just hate hearing this histeria crap. :mad:

efb

Good luck to all the '13's- hope its lucky for you! I'm a v happy 12!

bellson

I definitley wouldnt rush into anything, ive been renting the past 3 years and although it goes against my cultural instincts im comfortable with the situation, there are just too many external factors going on that are being dragged out such as..

how much will the property tax actually be,
will MIR be extended(ineffectual this year so probably!)
will my wages be touched again
USC and PRSI likely to increase

House prices are not going to increase for another few years possibly decades which is another plus!

Theres such a strong rental market out there also preventing people from selling at really reduced rates so finding your perfect house is all the more challenging,

how long do you pay someone else's mortgage for tho??

bidiots

bellson wrote: »

I definitley wouldnt rush into anything, ive been renting the past 3 years and although it goes against my cultural instincts im comfortable with the situation, there are just too many external factors going on that are being dragged out such as..

how much will the property tax actually be,
will MIR be extended(ineffectual this year so probably!)
will my wages be touched again
USC and PRSI likely to increase

House prices are not going to increase for another few years possibly decades which is another plus!

Theres such a strong rental market out there also preventing people from selling at really reduced rates so finding your perfect house is all the more challenging,

how long do you pay someone else's mortgage for tho??

Oh god here we go.....

TheDriver

bellson wrote: »

Theres such a strong rental market out there also preventing people from selling at really reduced rates so finding your perfect house is all the more challenging,

but only in certain areas. 4 bed detached property doesn't draw much rental in towns where 3bed semis are the big rental earners. Furthermore, some landlords need to cash from house sales to stay afloat.

davet82

bellson wrote: »

how long do you pay someone else's mortgage for tho??

as long as it makes finacial sense or how long it suits your life/family ect imo

now lets never repeat that question again

bellson

davet82 wrote: »

as long as it makes finacial sense or how long it suits your life/family ect imo

now lets never repeat that question again

agreed!

ABajaninCork

I'm not sure that there will be a huge difference in prices next year. Of course, we haven't had the Budget as yet, but it's fairly safe to assume the prices will drop further in the NY.

I too have read the various threads and cannot believe the panic over MIR phase out. From what I've seen and read I think people are still overpaying for property. It's not at the crazy Celtic Tiger prices, but still overpriced, IMO.

However. I think there'll still be people wanting to buy, but they'll be smaller in number and smarter buyers. They'll be the ones who have stress-tested the finances and have allowed proper provision for any water and property taxes coming down the line as well as interest rate rises.

Twinkly

Hi all,

I thought it was rumoured that VAT on construction was to be reduced from 13.5% to 9%. Am I correct in thinking that this reduction did not materialise in the Budget?

Thanks,

Ste-

Hey sorry to drag this up but it seems the most relevant than starting a new thread.

Have been bidding on a house since before Christmas.
At the minute our offer is 13K under the asking price. It's our 3rd offer. But each time we make an offer it takes them about a week to come back to us to say No or any give us any sort of answer. Just wondering if this time frame is the norm or not ?


Thanks.

P.s. reckon I'm going to need this thread this year as hoping to get the house this year.

killers1

Ste- wrote: »

Hey sorry to drag this up but it seems the most relevant than starting a new thread.

Have been bidding on a house since before Christmas.
At the minute our offer is 13K under the asking price. It's our 3rd offer. But each time we make an offer it takes them about a week to come back to us to say No or any give us any sort of answer. Just wondering if this time frame is the norm or not ?


Thanks.

P.s. reckon I'm going to need this thread this year as hoping to get the house this year.

Are you being outbid or are your offers just being declined? Is it a bank sale by any chance? The reason I ask is the fact that it's taking a week to get a decision back. At €13k below the asking price you are very close to it and if there is no other bidder involved I'd suggest stop bidding against yourself and tell them to take it or leave it.

Ste-

killers1 wrote: »

Are you being outbid or are your offers just being declined? Is it a bank sale by any chance? The reason I ask is the fact that it's taking a week to get a decision back. At €13k below the asking price you are very close to it and if there is no other bidder involved I'd suggest stop bidding against yourself and tell them to take it or leave it.

Found out today it's a seperation case involved, we were told we were the only bidders and as they're doing the bidding between them through solicitors it's taking a while and one of them is dragging their feet. We've stopped upping our bids as we were again told they wanted more. We are going to walk away now as if it's this messy at this stage if it goes to accepted it will be even more messy getting documentation out of them.

ABajaninCork

Ste- wrote: »

Found out today it's a seperation case involved, we were told we were the only bidders and as they're doing the bidding between them through solicitors it's taking a while and one of them is dragging their feet. We've stopped upping our bids as we were again told they wanted more. We are going to walk away now as if it's this messy at this stage if it goes to accepted it will be even more messy getting documentation out of them.

I'd agree. Separation/Divorce sales are never good. Walk. Plenty of other properties out there, which I'm sure will be just as nice.