Buying a house 2013!

mel.b

skyfall2012 wrote: »

When you pay a deposit on a house, is that not in effect a contract and the seller cannot pull out?

No, either party can pull out up until the contracts are signed and exchanged.

Galego

m6219 wrote: »

Hi lads, have a question. We are applying for approval in principle and our bank will only lend us 92% of the sale price of the property. Just say we bought a house for 200k that needed 50k to make right, are there any banks that will lend you 250k, rather than 92% of 200, or are they all the same? Thanks in advance

I'd say, no a chance a bank will lend you over 100% of LTV. I am happy to be proven wrong though.

roro2

Galego wrote: »

I'd say, no a chance a bank will lend you over 100% of LTV. I am happy to be proven wrong though.

You won't be!:D

adam88

roro2 wrote: »

You won't be!:D

It is possible but very tricky. I'm going through it at the moment. The bank will need to get someone who will value the work and state that the current value plus value of work will be more than what is being out in.

roro2

adam88 wrote: »

It is possible but very tricky. I'm going through it at the moment. The bank will need to get someone who will value the work and state that the current value plus value of work will be more than what is being out in.

Yes, but LTV won't be >100%.

adam88

roro2 wrote: »

Yes, but LTV won't be >100%.

Ya that part is true. But will be more than the current value of the house

joe316

I could be wrong but isnt the following

90/92% of the purchase price - 200k @ 90% = 180k

75% of the cost of upgrades - 50k @ 75% = 37.5k

So for the house costing 200k and 50k worth of renovations, you'll need cash funds of 37.5k at least.

But the cost of the upgrades will have to be verified by the bank via a surveyor/QS/numerous quotes etc (at your cost).. before they will entertain it so you could probably add a couple of k on to this as well.

tonyw28

Looking for advise. What do people think will happen with potential house repossessions over the next 12 months. Do you think the banks will start to act on, for example, the people who bought houses to let which might flood the market and drive houses down a bit further?
We are a couple of months off having the deposit to buy a house for about 170. The banks will give me up to 220 when I get the deposit up. At the moment there is nothing really in the areas we are looking for anyway for 170-200. We are under pressure to leave where we live basically rent free at the moment which has allowed us to aggressively save. So we are at a bit of a cross roads whether to just get out now and rent for awhile as save a bit more slowly and maybe next year there might be more available anyway or should we continue to live like refugees until after Christmas to get our money up

khards

I think the market will be flooded with repos by easter next year. Those here who say no that cant happen in Ireland or the banks do not want that are in denial, just like they were in denial during the boom.

Banks want to repossess those 20,000+ who are not paying anything towards their mortgages.
The banks have to pay interest on the money they borrowed to lend to those who are paying nothing back.

It is in the banks best interest to repo those who are not paying and dispose of the property, that way they will generate some cashflow from the non-performing asset.

since credit to the housing market is not expanding, house prices are going nowhere quickly, so I would wait until next year and see what happens. The wost ouctome is that youy have to rent for 6/12 months.

OMD

khards wrote: »

I think the market will be flooded with repos by easter next year. Those here who say no that cant happen in Ireland or the banks do not want that are in denial, just like they were in denial during the boom.

Banks want to repossess those 20,000+ who are not paying anything towards their mortgages.
The banks have to pay interest on the money they borrowed to lend to those who are paying nothing back.

It is in the banks best interest to repo those who are not paying and dispose of the property, that way they will generate some cashflow from the non-performing asset.

since credit to the housing market is not expanding, house prices are going nowhere quickly, so I would wait until next year and see what happens. The wost ouctome is that youy have to rent for 6/12 months.

How will repossessions effect price? Say 20,000 repossessions as you suggest. That is 20,000 properties onto the market but also 20,000 individuals or families seeking housing. Pretty much a 0 sum game.
Now, if there is a substantial number of properties uninhabitated, in locations where people want to buy/rent then that may affect prices but there is unlikely to be many of these types of properties.

theUbiq

OMD wrote: »

How will repossessions effect price? Say 20,000 repossessions as you suggest. That is 20,000 properties onto the market but also 20,000 individuals or families seeking housing. Pretty much a 0 sum game.
Now, if there is a substantial number of properties uninhabitated, in locations where people want to buy/rent then that may affect prices but there is unlikely to be many of these types of properties.

Of course the banks repossessing houses will push prices down. More houses means better choice and better prices... No?

Max Power1

OMD wrote: »

How will repossessions effect price? Say 20,000 repossessions as you suggest. That is 20,000 properties onto the market but also 20,000 individuals or families seeking housing. Pretty much a 0 sum game.
Now, if there is a substantial number of properties uninhabitated, in locations where people want to buy/rent then that may affect prices but there is unlikely to be many of these types of properties.

Yes, but 20,000 who will not be given another mortgage and will have to rent

So that will affect the market by effecting a change on the number of properties available.

OMD

Max Power1 wrote: »

Yes, but 20,000 who will not be given another mortgage and will have to rent

So that will affect the market by effecting a change on the number of properties available.

But then demand for rental properties goes up, rents rise, more investors buy houses to rent out and prices go up.

Overall the overall demand for property is unchanged.

(By the way if you want to be pedantic about grammar, there is such a thing as a full stop. Also the line "Yes, but 20,000 who will not be given another mortgage and will have to rent" is grammatically incorrect. Luckily no one is going to be so ridiculous as to point out typographical errors in your post.)

tonyw28

khards wrote: »

I think the market will be flooded with repos by easter next year. Those here who say no that cant happen in Ireland or the banks do not want that are in denial, just like they were in denial during the boom.

Banks want to repossess those 20,000+ who are not paying anything towards their mortgages.
The banks have to pay interest on the money they borrowed to lend to those who are paying nothing back.

It is in the banks best interest to repo those who are not paying and dispose of the property, that way they will generate some cashflow from the non-performing asset.

since credit to the housing market is not expanding, house prices are going nowhere quickly, so I would wait until next year and see what happens. The wost ouctome is that youy have to rent for 6/12 months.

Thanks for that. Yeah I wouldn't know the ins and outs of the markets but you would think something has to give if people are not paying the banks for two years, particulary those where its their second and third properties and they have been collecting rent and still not paying.

As said, get the money up or near to it (we can probably stay where we are for 3 more months) then go renting and keep on eye on the market in case anything you see that you are willing to pay for comes up. Worse case scenario we lose our deposit if we need to leave rented accom early but if we find the right house would gladly do it

techdiver

OMD wrote: »

But then demand for rental properties goes up, rents rise, more investors buy houses to rent out and prices go up.

Overall the overall demand for property is unchanged.

Not entirely true.

Not everyone who is repossessed will enter the market immediately, be it for rental or otherwise. Some will house share if they can, others with families may move in with relatives. It is already happening is some cases.

So 20,000 repossessions does not equate to 20,000 required properties for those who were re-possessed.

OMD

techdiver wrote: »

Not entirely true.

Not everyone who is repossessed will enter the market immediately, be it for rental or otherwise. Some will house share if they can, others with families may move in with relatives. It is already happening is some cases.

So 20,000 repossessions does not equate to 20,000 required properties for those who were re-possessed.

Ok fair point, but if 20,000 properties are repossessed in the next 9 months (as was suggested which is about 100 a day) a significant number of people will enter the market for rental properties. The overall affect on the market will be very small (not 0 as I said).

Anyway there is absolutely no possibility of 100 repossessions a day for next 9 months.

Shedite27

You may get the house for cheaper but you will still end up with the same house.

skyfall2012

I am currently buying a house we contacted our solicitor end of April. We signed contracts 14 June our solicitor gave us 5 July date for finalizing purchase. Our solicitor goes on holidays for 2 weeks(on 14 June). We rang after her holidays to discover she was sick.

She said the solicitor on the other end has the contract and it is signed by the other party, but has not put it in the post.

I have told my landlord we were moving out on the 10 July and I have made other commitments and I am beginning to feel very stressed.

I was told that on average buying a house takes 8 weeks, this is heading for 3 months. Why would the other solicitor be delaying forwarding the contract?

Blackjack

theUbiq wrote: »

Of course the banks repossessing houses will push prices down. More houses means better choice and better prices... No?

In theory yes. I think however the banks are going to be selective however in terms of what and where they repossess. Areas that are seeing good price growth right now will probably be first to get repossessed and sold.

However right now (in certain area, more specifically Dublin) a lack of suitable supply of family homes is leading to price increases. From the banks perspective this is good news as the value of the asset they are taking back (repossessed house) is now greater than it was say 1 year ago, and can fetch a higher price on the open market.

Given the length of time it takes the courts to do anything here, I would not expect a flourish of properties going on as repossessions anyway. Added to that, the banks will do what they can to drip feed the repossess properties so as to ensure that supply is limited and selling price is therefore likely to be greater for those released rather than if they released the whole lot in one go.

They will be very mindful of the negative publicity from the "free gaff" brigade such as the Kelly's of Killiney and their likes - e.g. the Kelly's spoke to the evening herald of their being removed from their homes by the banks, even thought they had last made a payment of half the monthly mortgage 3 years ago. "It was terrible" said Concepta. "All we wanted was to have our own place, we didn't thing we'd ever have to pay again what with the banks getting their bailout. We decided seen as it was all our tax money that was being paid to keep the banks open, that we'd help ourselves to some of it back at the expense of the taxpayer". Concepts, who lives with her Partner of 35 years and their 3 adult children, none of whom have ever actually paid any tax, was turfed out of her home on foot of a repossession order requested by big bad bank.
"sure I couldn't pay the mortgage anyway or we'd have to cut down from 80 smokes to 20 a day and cut off the sky sports, and I wouldn't be able to spend a month in Spain on holidays etc etc. "

uberalles

I think each bank will act selfishly and sell as many repros as possible as fast as possible without consulting each other. I cant see them acting together and drip feeding the market.

See this thread ......

Glut of repossessed houses could depress prices ‘by up to 25%’
http://www.boards.ie/vbulletin/showthread.php?t=2056898823

DMG1983

Hey guys, I closed on my apartment last week and the funds are being transferred tomorrow. From your experience when I should expect to get the keys?

Dublin25

We got our keys the day we closed. Was there a closing date on your contracts?

quad_red

Dublin25 wrote: »

We got our keys the day we closed. Was there a closing date on your contracts?

Did you pay cash?

The banks won't finalize the mortgage until the deal is closed and contracts are signed. Then the transfer the money to your solicitor.

And the vendors won't hand over the keys until they get their money off the buyers solicitor.

Hence there has to be some sort of delay if a mortgage is applicable?

DMG1983

quad_red wrote: »

Did you pay cash?

The banks won't finalize the mortgage until the deal is closed and contracts are signed. Then the transfer the money to your solicitor.

And the vendors won't hand over the keys until they get their money off the buyers solicitor.

Hence there has to be some sort of delay if a mortgage is applicable?

I'm getting a mortgage! I just wanted an idea of how long people waited, hopefully I will get them next week! The process began in January so another week won't hurt!

Dublin25

quad_red wrote: »

Did you pay cash?

The banks won't finalize the mortgage until the deal is closed and contracts are signed. Then the transfer the money to your solicitor.

And the vendors won't hand over the keys until they get their money off the buyers solicitor.

Hence there has to be some sort of delay if a mortgage is applicable?

No we had a mortgage.
Now perhaps i miss understood what way our solicitor worked but I know that all contracts were signed and the date we were given to close was the date we picked up the keys. Well plus 1 day. Mortgage was drawn down the monday after we picked up the keys on the Friday, according to the Bank details we received.

quad_red

DMG1983 wrote: »

I'm getting a mortgage! I just wanted an idea of how long people waited, hopefully I will get them next week! The process began in January so another week won't hurt!

January? Ouch! Ye deserve it at this stage.

We're still stuck dealing with the vendor's solicitor who is a total waste of space. Nine weeks in and he hasn't responded to any of the pre contract queries, to the apparent surprise of the vendors who touched base through the EA on Friday.

Sunny Dayz

quad_red wrote: »

We're still stuck dealing with the vendor's solicitor who is a total waste of space. Nine weeks in and he hasn't responded to any of the pre contract queries, to the apparent surprise of the vendors who touched base through the EA on Friday.

We are much the same, pre contract queries were sent from our solicitor to their solicitor mid June and not a word out of the vendors solicitor since. Our solicitor has sent them two letters so far chasing it.

There were a LOT of queries and now as time passes I am starting to lose hope....

khards

Many sellers are playing delaying tatics in the hope that property prices rise 15% this year.

quad_red

khards wrote: »

Many sellers are playing delaying tatics in the hope that property prices rise 15% this year.

You're saying that allot of sellers are accepting offers, going sale agreed, then deliberately slowing down the process with the intention of pulling out after months of tortuous negotiation in order to pump the house back on the market and get a better price?

khards

quad_red wrote: »

You're saying that allot of sellers are accepting offers, going sale agreed, then deliberately slowing down the process with the intention of pulling out after months of tortuous negotiation in order to pump the house back on the market and get a better price?

Yes, that is exactly what I am saying.