Buying a house 2013!

minil08

Can anyone tell me how long it takes AIB to issue the Loan Offer letter to your solicitor?

Thanks

killers1

minil08 wrote: »

Can anyone tell me how long it takes AIB to issue the Loan Offer letter to your solicitor?

Thanks

Anywhere from a day or 2 to a week or 2. It depends on what items were needed for loan offer. If it was just a valuation report it will be fairly quick. If there are underwriting docs too like statements etc it needs to go back to the lenders queue for full approval first which can take a bit of time.

darklighter

killers1 wrote: »

You pick an amount and stick to it, for example repayment is €1k per month, you tell the bank to increase DD amount to €1200pm and repayments stay at that level until you tell them otherwise.

Excellant, thanks Killers.

minil08

killers1 wrote: »

Anywhere from a day or 2 to a week or 2. It depends on what items were needed for loan offer. If it was just a valuation report it will be fairly quick. If there are underwriting docs too like statements etc it needs to go back to the lenders queue for full approval first which can take a bit of time.

Thanks Killers1. .The valuation was sent to the bank approx 3 weeks ago however, our AIP came with the conditions that we needed to supply updated salary certs,1 month bank statements & a gift letter for the sum of €3K. Is the the norm and would this delay the offer letter being issued??

killers1

minil08 wrote: »

Thanks Killers1. .The valuation was sent to the bank approx 3 weeks ago however, our AIP came with the conditions that we needed to supply updated salary certs,1 month bank statements & a gift letter for the sum of €3K. Is the the norm and would this delay the offer letter being issued??

Your application is being underwritten again which takes around 2 week. When did you send in the last bit of documentation?

minil08

killers1 wrote: »

Your application is being underwritten again which takes around 2 week. When did you send in the last bit of documentation?

salary certs & bank statements were sent about 2 weeks ago but the gift letter was only received by the bank yesterday. I assume with the bank holidays there might be delays.

killers1

minil08 wrote: »

salary certs & bank statements were sent about 2 weeks ago but the gift letter was only received by the bank yesterday. I assume with the bank holidays there might be delays.

The gift letter needs to be looked at by the Assessors, scanned onto the system and put back into the lenders queue for full sanction. Your loan offer will probably issue the end of next week or the week after. Unless you send all the AIP conditions in together it's going to add delays..

minil08

killers1 wrote: »

The gift letter needs to be looked at by the Assessors, scanned onto the system and put back into the lenders queue for full sanction. Your loan offer will probably issue the end of next week or the week after. Unless you send all the AIP conditions in together it's going to add delays..

That's great thanks killers1

Norwesterner

AlanG wrote: »

Two years will be about right to wait. There is definitely a dead cat bounce in the Dublin market at the moment but remember we still have not had any real repossessions in the country yet so there are a lot of buy to let properties that will come on the market soon. In addition interest rates at the ECB are at an unsustainably low level so long term they are more likely to be 3-4% higher.
When prices hit around 180 - 200 times monthly rent for an area things will be closer to the international standard. ie. If the government stay out of the market a house that rents for 1000 per month should sell for between 180 and 220k.

I decided 2 years ago to decide in late 2013, and put my savings into a long term account to prevent me dipping into it.
I expect to see a huge amount of BTL's repo-ed this year, and prices will take another fall.
I thank the internet for my strategy.
I'd probably be bankrupt if I had only Irish media for advice and info.

jayjay2010

Hi all, just looking for some advice.

I am looking to buy an apartment near the Bushy Park area in D6w in the next year or two.

Me & my partner are on 24k & 22k respectively (plus commission which would bring up my wage to approx 30k gross).
We plan to have between 10-15k saved each by the end of this year so our deposit would be around 25k.

The apartments that we are looking at are in the region of 215-230k. With a deposit of 25k we would need to borrow about €200,000.

Realistically would we be able to get a mortgage of that amount? We are first time buyers, both in full time employment with a good credit history and in our mid 20s.

Any advice is greatly appreciated!

Norwesterner

jayjay2010 wrote: »

Hi all, just looking for some advice.

I am looking to buy an apartment near the Bushy Park area in D6w in the next year or two.

Me & my partner are on 24k & 22k respectively (plus commission which would bring up my wage to approx 30k gross).
We plan to have between 10-15k saved each by the end of this year so our deposit would be around 25k.

The apartments that we are looking at are in the region of 215-230k. With a deposit of 25k we would need to borrow about €200,000.

Realistically would we be able to get a mortgage of that amount? We are first time buyers, both in full time employment with a good credit history and in our mid 20s.

Any advice is greatly appreciated!

I'd think very hard about investing over 200k in an apt.
Don't forget service charges and huge oversupply of apts.
Keep saving and wait for the repos.
There are 2 bed apartments in the centre of Berlin for sub 50k (and they have a functioning economy).
Really, just wait and watch. You should pick up a 3 bed house with garden for the same price within the same time-scale.

stone_cutter

Norwesterner wrote: »

I'd think very hard about investing over 200k in an apt.
Don't forget service charges and huge oversupply of apts.
Keep saving and wait for the repos.
There are 2 bed apartments in the centre of Berlin for sub 50k (and they have a functioning economy).
Really, just wait and watch. You should pick up a 3 bed house with garden for the same price within the same time-scale.

its a bit pointless comparing dublin to berlin , their is a completley different culture in germany when it comes to property than ireland and that is not going to change , if irish people can afford to buy property , they will

that said , i would not spend 200 k on an appartment anywhere in dublin , id buy a two bed terraced house in somewhere like stoneybatter for the same money , the appartment market has not yet bottomed out

Ritchi

jayjay2010 wrote: »

Hi all, just looking for some advice.

I am looking to buy an apartment near the Bushy Park area in D6w in the next year or two.

Me & my partner are on 24k & 22k respectively (plus commission which would bring up my wage to approx 30k gross).
We plan to have between 10-15k saved each by the end of this year so our deposit would be around 25k.

The apartments that we are looking at are in the region of 215-230k. With a deposit of 25k we would need to borrow about €200,000.

Realistically would we be able to get a mortgage of that amount? We are first time buyers, both in full time employment with a good credit history and in our mid 20s.

Any advice is greatly appreciated!

Fairly sure you'll need a 20% deposit for an apartment, so you'll need to save for another while. You'd realistically need close to 45-50k savings to cover solicitors fees etc.

I'd also be cautious about buying an apartment too, but that decision is up to you.

quad_red

The two houses we've bid on since Christmas have both been bought by cash buyers who came in 10/15k above bidding to close the deal.

All we hear all weekend is how house prices in Dublin have 'surged' 9%. This is obviously EA bollox being peddled by the compliant media but the more of this ****e that is put out there the more likely it is that people will start to get carried away again.



One of the areas we were looking was Portmarnock

121 Ardilaun - sold for 375k last September.

http://www.myhome.ie/residential/brochure/121-ardilaun-portmarnock-dublin/1872728

212 Ardilaun - on for 395k but not takers.

http://www.myhome.ie/residential/brochure/212-ardilaun-portmarnock-co-dublin/2228679

216 Ardiluan - just added for 500k. WTF???

http://www.myhome.ie/residential/brochure/216-ardilaun-portmarnock-dublin/1372006

davet82

quad_red wrote: »

The two houses we've bid on since Christmas have both been bought by cash buyers who came in 10/15k above bidding to close the deal.

All we hear all weekend is how house prices in Dublin have 'surged' 9%. This is obviously EA bollox being peddled by the compliant media but the more of this ****e that is put out there the more likely it is that people will start to get carried away again.

I feel your pain, if I have to listen to the shortage of houses line again i'm gonna be up for assault, like there is never ever gonna be another 3 bed semi for sale again EVER! But some people do buy into it and I've viewed 2 houses I was interested in go for more than the asking price which I thought was on the high side anyways!

all you can do is bide your time and wait, good luck!

quad_red

davet82 wrote: »

I feel your pain, if I have to listen to the shortage of houses line again i'm gonna be up for assault, like there is never ever gonna be another 3 bed semi for sale again EVER! But some people do buy into it and I've viewed 2 houses I was interested in go for more than the asking price which I thought was on the high side anyways!

That's the thing though. Broad metrics on the whole Dublin market aside. Horrible fortune cookie level of integrity surveys from asshole EAs aside.

If people are getting the heebie jeebies and are blowing their full budgets on 3/4 bed houses in desirable middle class areas then this is a serious problem for us.

We could get more money off the bank. But we want to leave ourselves with a sustainable mortgage. In hindsight, prices last September were well within that barometer (but we were'nt ready to buy at that point).

But every month house prices in the decent areas we are looking in are moving up and houses are selling quickly for asking or over.

kennyb3

quad_red wrote: »

212 Ardilaun - on for 395k but not takers.

http://www.myhome.ie/residential/brochure/212-ardilaun-portmarnock-co-dublin/2228679

If I had the budget! Looks decent value - esp when you see 3 beds in island view, malahide going for 400k.

Norwesterner

Wait for the BTL repos, people.

dines08

Norwesterner wrote: »

Wait for the BTL repos, people.

If you had the deposit saved and the mortgage approved would you wait or would you buy now?

Norwesterner

dines08 wrote: »

If you had the deposit saved and the mortgage approved would you wait or would you buy now?

Depends on where you're looking.
Outside of a few square kms along the coast in SCD, I see prices falling slightly more, but more importantly, a wider choice of stock available.
Whereas sub 100k, will currently restrict you to "doer-uppers", apartments, and isolated homes, I think next year 100k or below, will provide us with more family homes in decent areas.
I'm holding out personally, and continue saving.
I'm a cash buyer, but not taking the bait from the E.A's, and their rose tinted glasses.

dines08

Norwesterner wrote: »

Depends on where you're looking.
Outside of a few square kms along the coast in SCD, I see prices falling slightly more, but more importantly, a wider choice of stock available.
Whereas sub 100k, will currently restrict you to "doer-uppers", apartments, and isolated homes, I think next year 100k or below, will provide us with more family homes in decent areas.
I'm holding out personally, and continue saving.
I'm a cash buyer, but not taking the bait from the E.A's, and their rose tinted glasses.

You beat me to my editing of my post. I'm in a very similar situation but in a different part of the country(limerick). Deposit saved, mortgage all but approved as we've been in direct contact with the bank on numerous occasions. Both in permanent employment and with a baby on the way in June. We don't know whether to stick or twist at the moment. The property market is like a minefield

Norwesterner

dines08 wrote: »

You beat me to my editing of my post. I'm in a very similar situation but in a different part of the country(limerick). Deposit saved, mortgage all but approved as we've been in direct contact with the bank on numerous occasions. Both in permanent employment and with a baby on the way in June. We don't know whether to stick or twist at the moment. The property market is like a minefield

Well, I just read this today, and it seems to me there's another huge crisis heading towards Ireland.
Maybe bigger than the banks crisis of 2008.
Some scary graphs too.
http://qz.com/50615/welcome-to-ireland-where-house-payments-are-optional-apparently/
It's really lose-lose as;
if there are widespread repos, it will drive down prices.
If there isn't widespread repos, it will also drive down prices (as banks will have less liquidity and unable to give credit to new buyers).

jython98

dines08 wrote: »

If you had the deposit saved and the mortgage approved would you wait or would you buy now?

If I am you, I will at least wait around another 3 month until the 2013 half year report/data is in, and then decide.

there is no point to compare the last 12 month data as there was MIR last year Remember there was a price fall in Feb. this year according to CSO data. A survey from EA, or some reports about asking price doesn't make me nervous, I call it bluff.

Also there is repos on the way so...

Ritchi

I'm not sure if MIR will pay as big a part in price reductions as people think. Banks don't take MIR into account when calculating how much they will lend you. I suspect prices will continue to slide this year, but I think they slide is going to get less and less over the next 1-3 years, before it settles, and eventually rises with inflation.

The issue with buying now is the lack of good quality houses in areas that people want to live in. Repossessions should help with that, assuming that they are houses that people want, I suspect that the majority of them won't be.

lima

dines08 wrote: »

If you had the deposit saved and the mortgage approved would you wait or would you buy now?

I am waiting. I have been waiting since I got approval last September.

Listen, you should compare the quality of houses in Ireland to other countries, then you will realise how bad the housing quality is in Ireland!

Take your time everyone, and don't read the indo!

Shedite27

Ritchi wrote: »

The issue with buying now is the lack of good quality houses in areas that people want to live in. Repossessions should help with that, assuming that they are houses that people want, I suspect that the majority of them won't be.

That was my worry so I did a bit of investigation. Feel free to point out any issues in my logic here.

House price/value is generally accepted as 160 times the rent per month. So pick your buying budget, divide it by 160 and look on daft.ie for houses in that price range will give you an ideas of houses that if reposessed should be on sale for about that amount (obviously market will dictate price but it gives you an idea).

Just as an example in the lovely SCD area that keeps getting mentioned, here's two 4 beds in Clonskeagh, few hundred meters apart, one for rent at €2400 a month (we'll say 2600 to cater for tax, bins, insurance etc) and one for sale at €530k.

House for rent - €2600*160 - €416k
House for sale - €530k

Now obviously this is just an example, but if the rent house was a buy to let (no idea what the story is, just as likely to be mortgage-free), and IF this was repossessed, it SHOULD be sold closer to €416k than €530k.

quad_red

Shedite27 wrote: »

That was my worry so I did a bit of investigation. Feel free to point out any issues in my logic here.

House price/value is generally accepted as 160 times the rent per month. So pick your buying budget, divide it by 160 and look on daft.ie for houses in that price range will give you an ideas of houses that if reposessed should be on sale for about that amount (obviously market will dictate price but it gives you an idea).

Just as an example in the lovely SCD area that keeps getting mentioned, here's two 4 beds in Clonskeagh, few hundred meters apart, one for rent at €2400 a month (we'll say 2600 to cater for tax, bins, insurance etc) and one for sale at €530k.

House for rent - €2600*160 - €416k
House for sale - €530k

Now obviously this is just an example, but if the rent house was a buy to let (no idea what the story is, just as likely to be mortgage-free), and IF this was repossessed, it SHOULD be sold closer to €416k than €530k.

I don't think most Irish people think rationally or logically to be honest.

We've been mortgage approved for well over a year.

I've seen houses in poor condition go for 60k more than the exact same structure/garden orientation in better condition down the road went for 3 months beforehand (this data being available to anyone to see in the property register).

Why would *anyone* overpay like this?

davet82

quad_red wrote: »

We could get more money off the bank. But we want to leave ourselves with a sustainable mortgage. In hindsight, prices last September were well within that barometer (but we were'nt ready to buy at that point).

But every month house prices in the decent areas we are looking in are moving up and houses are selling quickly for asking or over.

The smart money was spent last year imo. The MIR cleared the housing stock and now we're left with the bottom of the barrel to bid each other up on, feel like a bit of a mug at the moment but i'm gonna sit tight and continue my search for a half decent home at a sane price in the later half of this year.

Hopefully the BTL repos will be the release valve for this madness!

relax carry on

Shedite27 wrote: »

That was my worry so I did a bit of investigation. Feel free to point out any issues in my logic here.

House price/value is generally accepted as 160 times the rent per month. So pick your buying budget, divide it by 160 and look on daft.ie for houses in that price range will give you an ideas of houses that if reposessed should be on sale for about that amount (obviously market will dictate price but it gives you an idea).

Just a query on the above. Is that a general rule of thumb used by banks and or estate agents? Or is it one used by property investors?

Shedite27

relax carry on wrote: »

Just a query on the above. Is that a general rule of thumb used by banks and or estate agents? Or is it one used by property investors?

Not sure where I picked it up now that you ask, read/heard it somewhere