Buying a house 2013!

kennyb3

quad_red wrote: »

House we are interested in has an asking of 335k.

Called there and after a week on show it has 2 bidders and it stands at 320k currently.

We're going to see it again on Saturday but I put down an offer of 321k. The EA said he 'appreciated' the offer but 1k increments wouldn't win anything as no one would 'lose' a house for a grand.

The Mrs want's me to ask the EA 'what would take this house off the market today'. Is such a question ridiculous?

Our limit is 328k. Should we go all in now and try and put off the other bidders?

Do a slow 1k creep keep people in the game?

Nothing wrong with bidding in increments at all, but from personal experience I definitely found you drag people along as every time they make another bid they get a bit more attached to the house.

If you think €328k represents a fair price, and the house meets all your requirements - you've nothing to lose by trying it.

Say the other two bidders have limits of even 322k - paying an extra €6k too much isn't really that big a deal when its over 25/30 years and it means you secure a house that meets your requirements and you want to live in for the forseeable future. That's not to say €6k is not a lot of money it clearly is but at the end of the day it's an extra 1.9%. You might be outbid anyway.

A lot does depend on the level of supply in the area - in terms of how many similar house are available or are going to come up. Also how certain you are this house meets all the required criteria.

It's easy to come on here (I use to do it) when it's other people's money, lives and you know nothing of the circumstances and say - oh you might end up overpaying by €5k if you bid straight up to €328k. Honestly it's not a whole lot of money in the greater scheme of things given your talking about spending nearly €330k.

Skittlebrau

qwertypop wrote: »

I've been looking at a few places for buy to let (cash buyer) these places have been on the market for nearly 18 months roughly each. All of a sudden there's loads of interest. I'd stand my ground with maybe 324 and leave them hang tell them your not interested in bidding. Once they know you've copped there's no one else interested its yours. They should be damn lucky that there getting anything near the asking.
From looking at the price register and looking at asking prices for these house there roughly about 75% of the asking that there being sold at

Agree completely where a property has been on the market for a good while but in certain parts of Dublin houses are selling quickly and are attracting bids in the first couple of weeks of being listed.

Galego

qwertypop wrote: »

I've been looking at a few places for buy to let (cash buyer) these places have been on the market for nearly 18 months roughly each. All of a sudden there's loads of interest. I'd stand my ground with maybe 324 and leave them hang tell them your not interested in bidding. Once they know you've copped there's no one else interested its yours. They should be damn lucky that there getting anything near the asking.
From looking at the price register and looking at asking prices for these house there roughly about 75% of the asking that there being sold at

Different EAs use different price strategies. This EA may have put a competitive asking price close to market price. If those 2 are real bidders then 1k incremental are pointless IMO. If I were you, I would go all or nothing. 328k and set a deadline. If not accepted then I’d suggest you to walk away. To me, house prices in this country are still overpriced and government current strategy of starving the market is unsustainable. Market will eventually correct itself and the real prices will not look any close those askings today.

skyfall2012

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

gmisk

I think it means the buyer got it for less than the asking price

davet82

skyfall2012 wrote: »

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

mostly property bought off the local council

D3PO

skyfall2012 wrote: »

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

its nothing to do with asking prices. Its to do with not being the full market price.

i.e buying a share of a property from a sibling for example where you both previously owned 50%

etc

qwertypop

davet82 wrote: »

mostly property bought off the local council

Yes exactly or if you buy from a family member or close friend for really cheap price

Ritchi

skyfall2012 wrote: »

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

In a small number of transactions included in the Register the price shown does not represent the full market price of the property concerned for a variety of reasons. For example, the price declared may reflect the retention of an interest in the property by the previous owner, or the fact that a part or fraction only of the property is being purchased; alternatively, the property may have been purchased at a reduced price under the Affordable Homes Scheme. In addition, in a very small number of cases, properties may be declared as purchased in exchange for other property, stocks and shares, etc. All such properties are marked **

http://propertypriceregister.ie/Website/npsra/pprweb.nsf/page/ppr-price-en

skyfall2012

Shouldn't working class housing prices reflect 5 times the average working class wage which by my calculations would be 120,000 euro and that would be single income cos this double income household is negated by cost of childcare.

dines08

Very new to this so thanks for the time and patience
My girlfriend and I, both 28, have viewed a house we both like and are willing to make an offer on. It's slightly above our original plan in terms of price but worth it in my opinion provided we can afford it. Which is why I am here! I need some input and advice on the figures to understand if we are being unrealistic.

I'm a factory worker in a permanent job earning €2400 per month after tax
She is a PHD physiotherapist working for the HSE in a permanent position earning €2100 per month after tax. We are completely debt free and have been saving in the region of €250 each per week for the last year and couple of months which gives us savings of €30000.
The house has an asking price of €300000 and the current highest offer is €280000

The advice I need is would we be eligible for the loan amount and repayments?
Also, what sort of increments should we increase the offer by?

Shedite27

Just wondering where I can get information on where current "follow on rates" for mortgages are published? Been looking through the banks websites and all they advertise is "4.2% fixed for 2 years" but can't get any information on variances between the banks follow on rates.

Is there a big discrepancy between different banks follow on rates? Are they secretive about these things?

For example, AIB advertise 4.08% 1 year fixed, PTSB 3.99% 1 year fixed, but I can't find information on what eyar 2/3 would be (obviously know these are likely to change but is there any info on what they are currently?)

killers1

dines08 wrote: »

Very new to this so thanks for the time and patience
My girlfriend and I, both 28, have viewed a house we both like and are willing to make an offer on. It's slightly above our original plan in terms of price but worth it in my opinion provided we can afford it. Which is why I am here! I need some input and advice on the figures to understand if we are being unrealistic.

I'm a factory worker in a permanent job earning €2400 per month after tax
She is a PHD physiotherapist working for the HSE in a permanent position earning €2100 per month after tax. We are completely debt free and have been saving in the region of €250 each per week for the last year and couple of months which gives us savings of €30000.
The house has an asking price of €300000 and the current highest offer is €280000

The advice I need is would we be eligible for the loan amount and repayments?
Also, what sort of increments should we increase the offer by?

Presuming you've no kids you'll be fine for mortgage approval in excess of €300k. You've asked for monthly repayments but what loan amount do you want to base them on?

In terms of putting an offer in, I wouldn't go too far above €280k initially and see how it goes.

killers1

Shedite27 wrote: »

Just wondering where I can get information on where current "follow on rates" for mortgages are published? Been looking through the banks websites and all they advertise is "4.2% fixed for 2 years" but can't get any information on variances between the banks follow on rates.

Is there a big discrepancy between different banks follow on rates? Are they secretive about these things?

For example, AIB advertise 4.08% 1 year fixed, PTSB 3.99% 1 year fixed, but I can't find information on what eyar 2/3 would be (obviously know these are likely to change but is there any info on what they are currently?)

AIB's 1 yr fixed rate is 4.15%, you are looking at their APR on a 20 yr term (4.08%). AIB are one of the few banks who don't differentiate between new & existing business rates and the follow on rates are the same i.e. someone purchasing @ 92% LTV can borrow at 4.15% fixed for 1 yr and move on to 4.88% 3 yr fixed rate at expiry (provided no change in rates). Be very careful with follow on rates or discounted 'headline' rates advertised by other banks as a carrot to get your business. They may have attractive looking discounted variable rates which move to much more expensive SVR's after the discounted period. If you want any specific rates let me know..

GetWithIt

killers1 wrote: »

Presuming you've no kids you'll be fine for mortgage approval in excess of €300k. You've asked for monthly repayments but what loan amount do you want to base them on?

In terms of putting an offer in, I wouldn't go too far above €280k initially and see how it goes.

In excess of 300K seems high. Based on my sample set of 1, the combined salaries if they were held by one person would indeed come in well above 300K. But I thought banks were returning to the more traditional metrics of, say, 2.5 + 1 for couples?

killers1

GetWithIt wrote: »

In excess of 300K seems high. Based on my sample set of 1, the combined salaries if they were held by one person would indeed come in well above 300K. But I thought banks were returning to the more traditional metrics of, say, 2.5 + 1 for couples?

Throwing their incomes into a banks calc taking €38k & €32k as gross annual figures (approx. based on net figures supplied) equates to a loan amount of over 300k over a 35 yr term which they qualify for based on AIB's income calc, they don't work off multiples (few banks do) and instead allow the mortgage repayment be up to a certain % of net monthly income. The % changes depending on the income levels. Their combined net income of €4500, less living exp guidleline for a couple with no dependents of €2,050 leaves €2,741`available to cover stressed mortgage repayment. Stressed repayments on €300k over 35 yrs @ 6.24% = €1,759pm so well within policy. They have been saving €250 each per week or €2,166pm giving them a proven repayment capacity to afford a mortgage of €300k..

GetWithIt

Ah, 35 years.

Like I said, I had a sample set of one. I wanted the best rate for the shortest period of time.

Personally I would not like a mortgage of that size where neither partner has take home far in excess of that figure. Personally.

killers1

GetWithIt wrote: »

Ah, 35 years.

Like I said, I had a sample set of one. I wanted the best rate for the shortest period of time.

Personally I would not like a mortgage of that size where neither partner has take home far in excess of that figure. Personally.

The OP and his partner are both 28 so qualify to have their application assessed over a 35 yr term. Just because they might take a 35 yr term doesn't mean it can't be paid over a short term. Whether they want to take on a debt of that level is completely their decision, I was just pointing out that they would qualify. If they are used to saving €2166pm they should be able to cope with the actual mortgage repayment of €1,371pm. Also, if the highest offer on the property is currently €280k the chances are they wouldn't need a mortgage close to €300k to buy the property. You're right to always want the cheapest rate and aim to pay it off as quickly as possible..

bedstuybosco

Like many others here looking for house purchase advice.

My other half and I have 2 houses, we both bought before we met. The one which we live in is in negative equity and on a variable rate and the other which we rent is not in negative equity and on a tracker.

We have one child and are both public servants and would like to buy a bigger house. We have a loan of about 14000 but otherwise debt free. We also have about 20,000 savings

Should we try and shake loose the property which isn't in negative equity before applying for mortgage as it would give us more equity and less if a financial burden? The current tenants are interested in buying it.

I gues what I'm asking is what's the best wat to go about getting another mortgage. Any houses we seem to like are around the 300k mark and would be hoping to have around 50k saved so possibly looking for mortgage of 250k. Do we have any hope?

I'm sure there are plenty of people like us who had houses before they met.

Any advice greatly appreciated

Thanks in advance

killers1

bedstuybosco wrote: »

Like many others here looking for house purchase advice.

My other half and I have 2 houses, we both bought before we met. The one which we live in is in negative equity and on a variable rate and the other which we rent is not in negative equity and on a tracker.

We have one child and are both public servants and would like to buy a bigger house. We have a loan of about 14000 but otherwise debt free. We also have about 20,000 savings

Should we try and shake loose the property which isn't in negative equity before applying for mortgage as it would give us more equity and less if a financial burden? The current tenants are interested in buying it.

I gues what I'm asking is what's the best wat to go about getting another mortgage. Any houses we seem to like are around the 300k mark and would be hoping to have around 50k saved so possibly looking for mortgage of 250k. Do we have any hope?

I'm sure there are plenty of people like us who had houses before they met.

Any advice greatly appreciated

Thanks in advance

You're missing a lot of info for anyone to give you an accurate idea of how you are fixed...

1. Ages?
2. Incomes?
3. Mtg amounts o/s on each property?
4. Monthly repayments on each?
5. Amount of rent being recevied? How long has it been rented?
6. LTV on tracker mortgage?
7. Level of NE on existing property?
8. Repayment amount on €14k loan?
9. How much do you add to savings per month or on average over the past 6 months?

adam88

Hi all. Just a quick one for ye.

Bought a house last year for a knock down price of 55k had 20 in savings but really wanted to keep that as a raining day fund so I took out two personal loads of 45 to buy the house. Used ten in savings to supplement. Current loan repayments are about 900 a month and 200 a month in savings. This is manageable as I'm single and no children.
I'm a public servant with about 2100 after tax a month.
Finally getting around to doing up the house and am wondering would it be possible to get a mortgage and if so how much. I'm 25. Obviously I'd pay off the personal loans (one bank loan and one credit union loan) from this mortgage and do up the house with the balance.
Also if I was to get the house valued I'd be hoping to get a value of about 85 to 90 k on it. Person selling was really stuck and I had cash available hence how I got it so handy.

Any help appreciated

killers1

adam88 wrote: »

Hi all. Just a quick one for ye.

Bought a house last year for a knock down price of 55k had 20 in savings but really wanted to keep that as a raining day fund so I took out two personal loads of 45 to buy the house. Used ten in savings to supplement. Current loan repayments are about 900 a month and 200 a month in savings. This is manageable as I'm single and no children.
I'm a public servant with about 2100 after tax a month.
Finally getting around to doing up the house and am wondering would it be possible to get a mortgage and if so how much. I'm 25. Obviously I'd pay off the personal loans (one bank loan and one credit union loan) from this mortgage and do up the house with the balance.
Also if I was to get the house valued I'd be hoping to get a value of about 85 to 90 k on it. Person selling was really stuck and I had cash available hence how I got it so handy.

Any help appreciated

Your best bet is to approach the bank that you have the current loan with as other banks don't have any appetite to lend mortgage monies to clear another banks debt. You should qualify for a small mortgage easily enough based on your income and the fact that your current loan & savings will far outstrip the stressed mortgage repayment on the amount you'll need.

bedstuybosco

killers1 wrote: »

You're missing a lot of info for anyone to give you an accurate idea of how you are fixed...

1. Ages?
2. Incomes?
3. Mtg amounts o/s on each property?
4. Monthly repayments on each?
5. Amount of rent being recevied? How long has it been rented?
6. LTV on tracker mortgage?
7. Level of NE on existing property?
8. Repayment amount on €14k loan?
9. How much do you add to savings per month or on average over the past 6 months?

Pm ;-)

adam88

killers1 wrote: »

Your best bet is to approach the bank that you have the current loan with as other banks don't have any appetite to lend mortgage monies to clear another banks debt. You should qualify for a small mortgage easily enough based on your income and the fact that your current loan & savings will far outstrip the stressed mortgage repayment on the amount you'll need.

What's the max you'd expect them to lend on my wages

Independance

just wondering, if you were a cash buyer and really liked a house would/should you disclose this to the EA.

Would you be at advantage or disadvantage, would they phantom bid you to get more money?

killers1

adam88 wrote: »

What's the max you'd expect them to lend on my wages

In effect you are looking for an equity release mortgage on your existing property so will be bound by their loan to value criteria. You might not be allowed borrow in excess of 75% of the value of the property. Your income is fine to borrow close to €140k so it's the loan to value which will control how much you can borrow.

adam88

killers1 wrote: »

In effect you are looking for an equity release mortgage on your existing property so will be bound by their loan to value criteria. You might not be allowed borrow in excess of 75% of the value of the property. Your income is fine to borrow close to €140k so it's the loan to value which will control how much you can borrow.

Was thinking that alright. Just have to get a very genourous value so lol shouldn't be too hard. 140k you say. Is the 2.5 of your salary being relaxed as of late???

killers1

adam88 wrote: »

Was thinking that alright. Just have to get a very genourous value so lol shouldn't be too hard. 140k you say. Is the 2.5 of your salary being relaxed as of late???

The 2.5 times salary was probably last used in circa 1989 ... If your net income is €2,100 the guidleline is that you should have €1300pm to live off so that leaves you with €800pm to put towards a mortgage repayments. The stressed mortgage repayment on €140k over 35 yrs is €820pm, so yes in and around €140k is the max your salary would allow you to borrow

dines08

killers1 wrote: »

Presuming you've no kids you'll be fine for mortgage approval in excess of €300k. You've asked for monthly repayments but what loan amount do you want to base them on?

In terms of putting an offer in, I wouldn't go too far above €280k initially and see how it goes.

Sorry about the missing information. Just as a guide, the house asking price minus our savings. So a loan amount of €270000. We have a baby on the way in June so I'm assuming this will affect the amount we can borrow. My take home pay mentioned above is my basic wage. I was lead to believe that banks don't consider overtime and bonuses. Would that be correct? Would it rule out borrowing the loan amount we are talking about?

Perfect Ring

yeah with a baby on the way they will deduct the amount and add to your expenses what you expect to pay on childcare.