Costs associated with buying !!

tharmor

Hi Guys,

First time buyer here and just wanted to understand costs related to buying a house.

Currently looking for property in range of 200-240k.

I am eligible for a mortgage of 200k based on 3.5 times salary rule....so i assume i can buy anything around 240k paying 40k as deposit(hope these calculations are correct)

What other costs should i bare in mind while going home hunting ??

Thanks in advance

Millem

tharmor wrote: »

Hi Guys,

First time buyer here and just wanted to understand costs related to buying a house.

Currently looking for property in range of 200-240k.

I am eligible for a mortgage of 200k based on 3.5 times salary rule....so i assume i can buy anything around 240k paying 40k as deposit(hope these calculations are correct)

What other costs should i bare in mind while going home hunting ??

Thanks in advance

We are on our 3rd sale agreed

€250 for a survey (none of the houses have been older than 30 years)
€135 for a bank valuation
€2000 for legal fees
Stamp duty at 1%
Balance of property tax for the year
I think €200ish admin fee to bank for drawing down mortgage


Also we have to have our mortgage protection policy and house insurance in place before we sign

Miamiheat

Millem wrote: »

We are on our 3rd sale agreed

3 times sale agreed?? what happened?
Wondering how does one protect him/herself against those issues => not normal to take a loss when you intend to buy a place in good faith.

Millem

Miamiheat wrote: »

3 times sale agreed?? what happened?
Wondering how does one protect him/herself against those issues => not normal to take a loss when you intend to buy a place in good faith.

We are on a serious time scale at this stage!!
On the first house, there were too many delays and in the end we were told the deeds were lost..we ended up walking after 4 months!!!
On the second there was planning issues with an extension.
We are now on our third house and hoping to sign in the next few days

It has been a rollercoaster....I have told solicitor that we are NEVER buying another house again!!!

Miamiheat

Millem wrote: »

We are on a serious time scale at this stage!!
On the first house, there were too many delays and in the end we were told the deeds were lost..we ended up walking after 4 months!!!
On the second there was planning issues with an extension.
We are now on our third house and hoping to sign in the next few days

It has been a rollercoaster....I have toldy solicitor that we are NEVER buying another house again!!!

I feel for you. Do you have any way of recovering money lost to solicitor work, surveyor and valuations? This is what worries be the most as i just had to cancel a purchase and it already was about 1500€ in combined costs, plus the time you stop looking for another place! So i can't imagine doing this a few times. Since I am new to this I may be missing some info here but it really does make sense to me that a serious buyer has to take all this risk without some type of guarantee.

Miamiheat

tharmor wrote: »

Hi Guys,

First time buyer here and just wanted to understand costs related to buying a house.

Currently looking for property in range of 200-240k.

I am eligible for a mortgage of 200k based on 3.5 times salary rule....so i assume i can buy anything around 240k paying 40k as deposit(hope these calculations are correct)

What other costs should i bare in mind while going home hunting ??

Thanks in advance

the figures cited by MILLEM are pretty much it. plus build in a cushion for mishaps like going sale agreed 3 times and paying some on these fees repeatedly (surveyor and solicitor especially)
stamp duty is 1% so house of 250k is 2500 euros

Millem

Miamiheat wrote: »

I feel for you. Do you have any way of recovering money lost to solicitor work, surveyor and valuations? This is what worries be the most as i just had to cancel a purchase and it already was about 1500€ in combined costs, plus the time you stop looking for another place! So i can't imagine doing this a few times. Since I am new to this I may be missing some info here but it really does make sense to me that a serious buyer has to take all this risk without some type of guarantee.

Well the valuers gave me a €35 discount on the valuation the third time! The surveyor's money is gone and my legal bill on the first house was €600...I haven't recieved my second legal bill (I am praying) it is in or around the same.

The pain is waiting 2 weeks for booking deposit...so we are going to have to "borrow" €10k off a relative for a few days!

Things always work out for the best...if the first house had gone through I would be in negative equity! We were not 100% happy of the layout of second house so we would have to do a job on it. The third house is Defo the best and is a forever house

Miamiheat

Millem wrote: »

Well the valuers gave me a €35 discount on the valuation the third time! The surveyor's money is gone and my legal bill on the first house was €600...I haven't recieved my second legal bill (I am praying) it is in or around the same.

The pain is waiting 2 weeks for booking deposit...so we are going to have to "borrow" €10k off a relative for a few days!

Things always work out for the best...if the first house had gone through I would be in negative equity! We were not 100% happy of the layout of second house so we would have to do a job on it. The third house is Defo the best and is a forever house

I hope i wont go to number three though. Cheers and best of luck.

tharmor

Thanks guys...never knew u might lose some money even before sale agreed....

PetuniaT

I'm on my third sale agreed too and hanging on indefinitely for it to go through. First was apartment that tenant refused to leave so had to walk as the eviction process could take up to a year. Second we found out the home bond had expired and there were 1.7million of structural damage to the roof of the apartment block so had to walk and the third (& current house) the chain collapsed three days before closing as the house they were buying fell through. I'm still sale agreed on that one but playing the long wait while they find another house to buy. Sure it's only been six months, what's another few eh? I've paid out for three surveys, legal fees on each purchase

PetuniaT

Six months on this purchase but two years in total trying to sell my own and the other two failed purchases

Miamiheat

PetuniaT wrote: »

I'm on my third sale agreed too and hanging on indefinitely for it to go through. First was apartment that tenant refused to leave so had to walk as the eviction process could take up to a year. Second we found out the home bond had expired and there were 1.7million of structural damage to the roof of the apartment block so had to walk and the third (& current house) the chain collapsed three days before closing as the house they were buying fell through. I'm still sale agreed on that one but playing the long wait while they find another house to buy. Sure it's only been six months, what's another few eh? I've paid out for three surveys, legal fees on each purchase

Unbelievable and nobody thinks some changes should be made to this system??

I suggested an idea in another thread - i do not know if it's being done or not - and i think it should help if people are decent and fair play. Sellers in a chain should not drag a sale out because their own purchase is slowed down. It is unfair for a straight buyer who is doing what he is supposed too. Instead i would try to convince the sellers to go through with the sale and then become tenants until they can close on their purchase. I am sure that although that would imply some rent payments, the seller get their cash in full from the sale and probably end up in a better position to move on. Although not "ideal" for the buyer, the buyer is able to be done with all the conveyancing and draw the loan from bank and complete all that paperwork. And then he collect a few mortgage payments from seller until seller moves..

Miamiheat

tharmor wrote: »

Thanks guys...never knew u might lose some money even before sale agreed....

Technically it happens after Sale Agreed, but before buyer or seller signs contracts.

PetuniaT

Miamiheat wrote: »

Unbelievable and nobody thinks some changes should be made to this system??

I suggested an idea in another thread - i do not know if it's being done or not - and i think it should help if people are decent and fair play. Sellers in a chain should not drag a sale out because their own purchase is slowed down. It is unfair for a straight buyer who is doing what he is supposed too. Instead i would try to convince the sellers to go through with the sale and then become tenants until they can close on their purchase. I am sure that although that would imply some rent payments, the seller get their cash in full from the sale and probably end up in a better position to move on. Although not "ideal" for the buyer, the buyer is able to be done with all the conveyancing and draw the loan from bank and complete all that paperwork. And then he collect a few mortgage payments from seller until seller moves..

We actually tried this approach however as I had signed contracts subject to them closing on the other sale, the vendors were legally allowed to hold tight. In fairness to them, they had nothing to do with the other seller pulling out last minute and are in a similar situation to me. I'm just going to have to be patient if I want this house.

tharmor

So how much is at stake everytime you finalize a house but sale falls through ?

Millem

tharmor wrote: »

So how much is at stake everytime you finalize a house but sale falls through ?

For me it was about €1000 on the first house...I don't have a final figure on second house yet. But time wise it has taken us since December and we have about 5 weeks left on mortgage under old rules! If this one falls through we won't be able to buy anything in the area we want under the new rules the whole process has been extremely stressful.

Miamiheat

tharmor wrote: »

So how much is at stake everytime you finalize a house but sale falls through ?

Well now that you know about this before starting (unlike me ) let me give you one advice:

1st in order is Survey: don't make your solicitor work until the house is cleared by engineer and you are happy to proceed.
Then once you are happy proceed with conveyancing.

It would be helpful to have a chat with solicitor in advance and agree on some type of arrangement if you cannot complete the process. My solicitor did not warn me, and on top she gave me bad advice which was to wait for contracts before doing survey. On the next house I will hand my booking deposit after survey is done and will hand out the details of my solicitor at that time. As soon as they start working they are billing..

leelee77

Hi all,

Sorry to jump into the thread but my dilemma is kind of relevant and I was wondering what ye might think.

We found a house that we love. It needs a bit of work doing to it but seems like it is mainly cosmetic. We were about to bid on it when OH was headhunted and offered a far better job. He starts next month and there is a 6 month probation period. We had AIP from PTSB.

The house itself has been on the market since February and has had no bids and recently dropped the price by €20,000. We have been to view it twice and the location, price and aspect is perfect for us.

I am tempted to write to the vendor, explain our situation and ask them to consider us, should there be not further interest.

It seems to me that house sales are dragging on for months anyway, at least we are upfront about mortgage approval. We are not looking for an amount near the top of our budget and the broker has assured us that the application should be a very straightforward one.

SillyBeans

leelee77 wrote: »

Hi all,

Sorry to jump into the thread but my dilemma is kind of relevant and I was wondering what ye might think.

We found a house that we love. It needs a bit of work doing to it but seems like it is mainly cosmetic. We were about to bid on it when OH was headhunted and offered a far better job. He starts next month and there is a 6 month probation period. We had AIP from PTSB.

The house itself has been on the market since February and has had no bids and recently dropped the price by €20,000. We have been to view it twice and the location, price and aspect is perfect for us.

I am tempted to write to the vendor, explain our situation and ask them to consider us, should there be not further interest.

It seems to me that house sales are dragging on for months anyway, at least we are upfront about mortgage approval. We are not looking for an amount near the top of our budget and the broker has assured us that the application should be a very straightforward one.

Would you be able to apply for the mortgage in your name alone? I'm not sure if you could potentially count your OH's share of the mortgage as a rental income since their name won't be on the mortgage? I'm not sure if that's even possible but potentially?