Buying a house 2013!

Norwesterner

Dublin25 wrote: »

Hi All,

Thought i'd join this thread, since we hope to buy in 2013 and its providing brilliant tips.
Also nice to see others going through similar situations.

We have an offer in on a house and was rejected and we are gonna go again on Monday with another offer. Himself is doing the bidding and i'm struggling with the time its taking but thats mainly cos i'm useless at haggling and hate this process.

My major worry, is the vendor not accepting an offer and we have to go looking for another house. We could go to asking price but don't feel like the house is worth it!

Good luck to all!

What's the big rush? It's not 2006.
Repos are coming. Another nice house (maybe cheaper) will come along if you don't get this one.
Don't be panicked into buying in this climate.
it doesn't make sense.

quad_red

There is allot of bluster out there but from doing a call around, I think that wave may have crested a bit.

A few properties that I was following the process on have now gone quiet. Two that were sale agreed are now back on.

Mmmmmm.

jython98

quad_red wrote: »

There is allot of bluster out there but from doing a call around, I think that wave may have crested a bit.

A few properties that I was following the process on have now gone quiet. Two that were sale agreed are now back on.

Mmmmmm.

Agreed, waiting on data from CSO for next few month.

In Feb. alone, http://www.cso.ie/px/pxeirestat/statire/SelectVarVal/Define.asp?Maintable=HPM01&Planguage=0

National - all residential properties
Residential Property Price Index (Base Jan 2005 = 100) 64.4
Percentage Change over 1 month for Residential Property Price Index (%) -1.5
Percentage Change over 3 months for Residential Property Price Index (%) -2.6
Percentage Change over 12 months for Residential Property Price Index (%) -2.6

National excluding Dublin - all residential properties
Residential Property Price Index (Base Jan 2005 = 100) 66.3
Percentage Change over 1 month for Residential Property Price Index (%) -2.1
Percentage Change over 3 months for Residential Property Price Index (%) -3.6
Percentage Change over 12 months for Residential Property Price Index (%) -6.1

Dublin - all residential properties
Residential Property Price Index (Base Jan 2005 = 100) 59.3
Percentage Change over 1 month for Residential Property Price Index (%) -0.3
Percentage Change over 3 months for Residential Property Price Index (%) -1.2
Percentage Change over 12 months for Residential Property Price Index (%) 3.0

minotour

Im not sure how to interpret the CSO data other than at face value, So using that data for Dublin apartments,

Dublin - apartments
Residential Property Price Index (Base Jan 2005 = 100) 52.5
Percentage Change over 1 month for Residential Property Price Index (%) 5.8
Percentage Change over 3 months for Residential Property Price Index (%) 13.4
Percentage Change over 12 months for Residential Property Price Index (%) 7.8

Does this mean that apartment prices have increased 13% in the last 3 months? I find that hard to believe, perhaps im reading it wrong?

roro2

minotour wrote: »

Im not sure how to interpret the CSO data other than at face value, So using that data for Dublin apartments,

Dublin - apartments
Residential Property Price Index (Base Jan 2005 = 100) 52.5
Percentage Change over 1 month for Residential Property Price Index (%) 5.8
Percentage Change over 3 months for Residential Property Price Index (%) 13.4
Percentage Change over 12 months for Residential Property Price Index (%) 7.8

Does this mean that apartment prices have increased 13% in the last 3 months? I find that hard to believe, perhaps im reading it wrong?

That's what the data says. But the CSO note that "the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility". I wouldn't read too much into monthly changes, 3 or 6 month changes might be a better guide generally.

The data is also only from mortgage drawdowns so there is a lag between prices being agreed and the drawdown of mortgages, as well as excluding any sales that don't involve mortgages (somewhere between 25% - 50% it's been suggested).

minotour

roro2 wrote: »

That's what the data says. But the CSO note that "the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility". I wouldn't read too much into monthly changes, 3 or 6 month changes might be a better guide generally.

The data is also only from mortgage drawdowns so there is a lag between prices being agreed and the drawdown of mortgages, as well as excluding any sales that don't involve mortgages (somewhere between 25% - 50% it's been suggested).

Understood ta, you would think the property price register would be a better data source no?

roro2

minotour wrote: »

Understood ta, you would think the property price register would be a better data source no?

Ideally it would be, but not in its current format where prices are just published "as is" and with no additional info on the properties. You could compare the average price of properties sold in one period with the next, but the advantage with the CSO data is that they attempt to make a like-for-like comparison by adjusting the data to reflect the different mix of properties sold in a period. In their words:

Residential properties are heterogeneous, meaning that no two houses or
apartments are exactly identical. This poses a challenge when trying to
construct a price index as there is a need to separate pure price change from
differences in the quality of the products being bought over time. Typically
this is done by comparing the prices of exactly the same products, time after
time. This is, for example, the method used in the Consumer Price Index.
However, in the case of residential properties, price is determined by many
characteristics (location, size, build type etc) which make direct price
comparisons difficult. Furthermore, only a small portion of the total housing
stock is sold in any given month.

Independance

roro2 wrote: »

That's what the data says. But the CSO note that "the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility". I wouldn't read too much into monthly changes, 3 or 6 month changes might be a better guide generally.

The data is also only from mortgage drawdowns so there is a lag between prices being agreed and the drawdown of mortgages, as well as excluding any sales that don't involve mortgages (somewhere between 25% - 50% it's been suggested).

Please remember that a number of these appartments have been bought by county/city councils in bulk!!

roro2

But mortgages wouldn't be involved so they won't be included in the CSO data.

Dublin25

Norwesterner wrote: »

What's the big rush? It's not 2006.
Repos are coming. Another nice house (maybe cheaper) will come along if you don't get this one.
Don't be panicked into buying in this climate.
it doesn't make sense.

Thanks, I'm a impatient person so the taking time to come back with offers is doing my nut.
Turns out that the vendor is being akward about it. We saw another this weekend which will suit us better.

I don't think we are rushing as we've been looking for quite some time and the areas that we want are limited in what comes up. Plus its time for us now to move from renting to buying.

makeorbrake

@Dublin25 : It's too big a purchasing decision to act out your impatience. It's only 'time' to act IF the deal is right. I've been looking for 2 years.

Galego

+1

Better off waiting than getting it wrong and regret it for the rest of your life.

Ste-

Signed last week and was told probate was in 2 weeks and it can take 10 or so weeks but it usually quickens to 2 or 3 weeks once contract is in place.
Is this correct ?

Dublin25

The impatience is mainly with calls being returned and the length of time taking for EAs etc to come back to us. I believe we aren't rushing into buying, as I feel its right for us when we find the right house, just so happens the two we are bidding on are right for us now

If both houses fall through then we'll wait around for another right house.
Understand the advice about waiting and holding out and fully agree but how long do you hold out for when you find the right house? Hence why we are bidding.

makeorbrake

I understand your frustration dublin25. If you feel you're being messed about, put a time limit on your offer. Once time has elapsed, move on to the next prospect. In that way, you've made your best offer and can clear your head space and move your thoughts onto the next potential home./property.

darklighter

Does anyone know if you have to make mortgage repayments monthly with AIB or can you do weekly/fortnightly?

khards

darklighter wrote: »

Does anyone know if you have to make mortgage repayments monthly with AIB or can you do weekly/fortnightly?

Mortgage payments are now optional. You only need to make payments if you feel like it or have nothing better to do with your cash.
There is no come back as the bank are only allowed to phone or write to you one per year and they cannot repossess 'you'r house once you have signed the papers.



:cool:

darklighter

khards wrote: »

Mortgage payments are now optional. You only need to make payments if you feel like it or have nothing better to do with your cash.
There is no come back as the bank are only allowed to phone or write to you one per year and they cannot repossess 'you'r house once you have signed the papers.



:cool:

Unfortunately my honest nature will lead to actually, shock, horror, paying off the mortgage :eek:

mel.b

Offer in, now the waiting, fun and games begin

A HUGE thankyou to Killars1 for all his help and advice so far

Skipper12

Hope it goes well for you Mel.B.

We signed the contracts last week and have closing date set for the first weekend in May!

Solicitor through Killers and with Killian at the helm everything has gone really well and trouble free to date.

clicli

I have signed for my house yesterday, and I contacted my mortgage broker in BOI to let him know, and ask for my next steps in order to draw down on the mortgage. He advised me that in order to draw down the mortgage, he will require the "original policy schedule" for my home insurance, showing that BOI are named as an interested party. I contacted the insurance broker, who has advised that the bank don't require this, but a letter of indemnity instead. He stated the only reason that the the bank would require the original policy schedule is for market research purposes, as the letter of indemnity is the only information they require.

Has anyone come across a similar situation? What information do I need to supply to the bank?

killers1

clicli wrote: »

I have signed for my house yesterday, and I contacted my mortgage broker in BOI to let him know, and ask for my next steps in order to draw down on the mortgage. He advised me that in order to draw down the mortgage, he will require the "original policy schedule" for my home insurance, showing that BOI are named as an interested party. I contacted the insurance broker, who has advised that the bank don't require this, but a letter of indemnity instead. He stated the only reason that the the bank would require the original policy schedule is for market research purposes, as the letter of indemnity is the only information they require.

Has anyone come across a similar situation? What information do I need to supply to the bank?

The Letter of Indemnity with BOI's interest noted on it and a reinstatement sum insured of no less than the figure indicated in the Bank Valuation Report should be sufficient.

clicli

killers1 wrote: »

The Letter of Indemnity with BOI's interest noted on it and a reinstatement sum insured of no less than the figure indicated in the Bank Valuation Report should be sufficient.

Thanks for your advise

sportfanatic

Ok, we've had an offer accepted on a house we really love. That was a few weeks ago and since then we've been getting everything in place with banks, solicitors, insurance, valuation, etc.

We are due to move in at the end of May. Everything going smooth so far. But......

The house was advertised as having a B2 BER rating, but our solicitor received the actual BER Cert today and the rating is actually C2....

Does this change things significantly?
Should I have requested the cert before we got this far?
Should I be pis*ed off about this?

daver123

sportfanatic wrote: »

Ok, we've had an offer accepted on a house we really love. That was a few weeks ago and since then we've been getting everything in place with banks, solicitors, insurance, valuation, etc.

We are due to move in at the end of May. Everything going smooth so far. But......

The house was advertised as having a B2 BER rating, but our solicitor received the actual BER Cert today and the rating is actually C2....

Does this change things significantly?
Should I have requested the cert before we got this far?
Should I be pis*ed off about this?

Seen as though it is probably one of the the biggest investment you will make, why don't you request that you can get a architect / engineer to fully check out the property before you sign for it.

air

sportfanatic wrote: »

The house was advertised as having a B2 BER rating, but our solicitor received the actual BER Cert today and the rating is actually C2....
Does this change things significantly?

To me that seems like cause for a significant reduction in the asking price to refelect the increased running costs and lower residual value that the poorer energy rating reflects.

khards

sportfanatic wrote: »

Ok, we've had an offer accepted on a house we really love. That was a few weeks ago and since then we've been getting everything in place with banks, solicitors, insurance, valuation, etc.

We are due to move in at the end of May. Everything going smooth so far. But......

The house was advertised as having a B2 BER rating, but our solicitor received the actual BER Cert today and the rating is actually C2....

Does this change things significantly?
Should I have requested the cert before we got this far?
Should I be pis*ed off about this?

For a start it is false advertising which is against the law. At this stage I would find out from an engineer what work it need to make it up to B3 then get the seller to knock that off the price.

Did the listing have a cert no.? If not the it looks like it was deliberate and the seller MUST have seen the house advert and known that the rating was incorrect - it is very obvious what the rating is once you have the cert.

nammona

Thought I'd tag on to this thread with my query: I am a first time buyer, I have just made an offer for a newly built house - paid EA deposit, have the bank's approval in principal. Bank has requested a valuation report but the state of the house is still pending a few finishes: install kitchen, whb etc that are to be included in the sale. I have been advised to wait until all this is done before getting the valuation done. Question is, what can i do in the mean time to keep things progressing (from either the solicitor or bank side of things) or is the valuation report a determining factor on whether the sell will go through or not? Appreciate any advice/thoughts...

sportfanatic

Thanks for all the feedback guys,

We've had an architect complete a survey on the property, he was very happy with the build quality but he did say that he had a query on whether the depth of the insulation in the roof was up to the building regulations for when the house was built (2007). We are waiting for him to confirm if it did or did not meet the regulations of the time.

Just looked at the BER Cert again, and it was issued at the start of this month, so maybe they assumed it was B2?

What pisses me off is that it's advertised in multiple places (daft, myhome, brochure) as having a BER of B2 and now this. EA also claimed it was b2 rating.

Galego

sportfanatic wrote: »

Thanks for all the feedback guys,

We've had an architect complete a survey on the property, he was very happy with the build quality but he did say that he had a query on whether the depth of the insulation in the roof was up to the building regulations for when the house was built (2007). We are waiting for him to confirm if it did or did not meet the regulations of the time.

Just looked at the BER Cert again, and it was issued at the start of this month, so maybe they assumed it was B2?

What pisses me off is that it's advertised in multiple places (daft, myhome, brochure) as having a BER of B2 and now this. EA also claimed it was b2 rating.

Roof insulation alone wont usually make a house go from C2 to B2. If I was you, I'd get an energy expert to check the house and point out to you what jobs are needed to make the house B2, also get quotes for those jobs. Then go back to the EA and renegotiate the sale price accordingly.