First time buyers, buying outright

VonVix

Myself and the other half (no kids) are planning to buy our first home outright, we really don't want to be dealing with mortgages.

So, I have a number of questions!

We have about 150k to play with. Do we have an advantage with buying outright in terms of securing a home we are interested in compared to someone else with a mortgage/deposit?
Also, if hypothetically we were interested in a home that was listed for 150k, how much would we hope be able to get off the price, roughly speaking?

Is there anything in particular we need before going for a property we are interested in? A solicitor? Something else as well?

How long is the process usually when securing interest in a property to the point you get the key and can move in?

Is there anything you would want someone in our position to be aware of?

I know some of these questions can't be answered accurately, but rough estimates from past experience will be good to go by.

Gumbo

Buying with cash means you could in theory close quicker but the normal process takes the same time.

Personally if I was selling, then it makes no difference to me if you are cash, mortgage, etc. I want the best possible price tbh.

If I was in distress and needed to sell ASAP then the cash buyer element may have an advantage.

Del2005

Yes you have an advantage when buying, make sure the vendor knows that you have cash.

No one can know how much discount you could get. If the area is popular it could increase a lot if unpopular a big decrease.

You'll need a solicitor to purchase and a surveyor.

Chuchote

Huuuuuuge advantage. Mostly when you're selling a house you're dealing with a 'chain' - a series of people who are selling their house to buy another, each one dependent on mortgage approval. Sellers will kiss your feet if they think you a) have cash and b) are buying it for your family to live in rather than as an 'investment'.

The very best of luck with your purchase, I hope you have a happy home.

Alkers

You have most of those advantages as a first time buyer rather than the fact you're a cash buyer.

beechwood55

I think it depends on where you are planning to buy. Is €150,000 the total amount you have available to purchase a house with?

VonVix

beechwood55 wrote: »

I think it depends on where you are planning to buy. Is €150,000 the total amount you have available to purchase a house with?

We're hoping for just outside Dublin, semi-rural spot. We're looking for a place that will have potential for us to build on it for the future. We don't mind if it's needs cosmetic work, we just want the foundations to be solid, if you will.

BabySlam

If the sellers have their contract prepared you could get the key in roughly two weeks from "sale agreed".

A surveyor can identify and cost the works to bring the house to best standard.

Any discount will depend on the seller's state of mind/finances so this is hard to predict.

You could have a solicitor for yourselves lined up now and ready to go/ fee agreed.

Buy with your head and not with your heart. Research the area if you don't know it.

Good Luck

Chuchote

Simona1986 wrote: »

You have most of those advantages as a gift time buyer rather than the fact you're a cash buyer.

Speaking as one who has been a first-time buyer, not really. The first-time buyer has to have loan approval, which means that they'll get their own surveyor and possibly architect to look at the house, and then the bank will have to get its surveyor, and wait for the report, and then decide how much it's prepared to lend on the house. There will probably be bridging finance, a separate arrangement from the main loan. Banks slow things down.

aido79

Chuchote wrote: »

Speaking as one who has been a first-time buyer, not really. The first-time buyer has to have loan approval, which means that they'll get their own surveyor and possibly architect to look at the house, and then the bank will have to get its surveyor, and wait for the report, and then decide how much it's prepared to lend on the house. There will probably be bridging finance, a separate arrangement from the main loan. Banks slow things down.

None of this costs the seller a cent. Unless they're in a hurry to sell or need the money quickly they are unlikely to offer a discount.
It's the same result for the seller regardless if the buyer gets a mortgage or has cash.

Chuchote

aido79 wrote: »

None of this costs the seller a cent. Unless they're in a hurry to sell or need the money quickly they are unlikely to offer a discount.
It's the same result for the seller regardless if the buyer gets a mortgage or has cash.

Everyone's in a hurry to sell.

OP, there's also the psychological factor: the idea of hard cash on the table as soon as the surveyor has said ok, and zowie, the place is sold - that has a big attraction.

Rew

At best you will probably get preference over a bid of the same value. You are unlikely to get a discount or any special treatment form a seller. The idea that cash buyers are something special is way over egged. Not being in a chain is the biggest advantage, not the cash aspect.

bmwguy

VonVix wrote: »

We're hoping for just outside Dublin, semi-rural spot. We're looking for a place that will have potential for us to build on it for the future. We don't mind if it's needs cosmetic work, we just want the foundations to be solid, if you will.

Just to let you know you will be quite a long way out of Dublin if you are looking for a place to build on for 150k. At least an hour in any direction.

VonVix

bmwguy wrote: »

Just to let you know you will be quite a long way out of Dublin if you are looking for a place to build on for 150k. At least an hour in any direction.

Yeah, we have noticed.

lollpop

I've recently done this, it doesn't give you the advantage you might expect. A lot will depend on the location and the personal situation of the seller but in my experience it made zero difference until the bidding got down to just two and was almost done. There are a lot of cash buyers around at the moment so you're not unusual. Unless it's an executor sale, chances are the seller is buying somewhere else so that's going to affect timelines and so it's not necessarily quicker. Finally, it'll obviously depend on location but in Dublin it doesnt get you anything off the price.

Baby01032012

My advice as a cash buyer in the past is, you have limited buying power with that as the total sum to buy with. Even to buy a house "with future development potential" for a family on the outskirts of Dublin you will need a lot more. Get a small mortgage to give yourself more buying power to get the right house - not just whatever €150k will get. You will have a low loan to value so will benefit from a better interest rate. Can increase your repayments and repay in a short time if you wish. Mortgage rates are low, money is cheap. Better that you have a mortgage at 4% rather than repaying a personal loan at 12% to develop the property in a few years time.
First time buyer is an advantage as not in a chain however being a cash buyer is of little advantage. With a lack of property for sale and huge demand a discount because you are a cash buyer will be unlikely.

quadrifoglio verde

The one place where you'll certainly have a significant advantage is where a mortgage can't be got on a property. You'd want a good structural engineer and a fantastic solicitor though as there are reasons why a mortgage can't be gotten on them

Stealthfins

Lucky bstrds,ye could relocate to Clare and get a nice house by the sea get jobs with a modest income and live better that the other side in D4 lol

Chuchote

Friends of mine in west Cork got a snug little farm with a council cottage and a few acres for €60k last year. They have it lovely!

VonVix

Thanks for the info and experience guys. If anyone has anything else to add, feel free to share your experience, both good and bad. It really, really helps.

We don't want to move waaay away from Dublin however, I work in south Dublin so still need decent access to get to work. :P

Eric Cartman

VonVix wrote: »

Thanks for the info and experience guys. If anyone has anything else to add, feel free to share your experience, both good and bad. It really, really helps.

We don't want to move waaay away from Dublin however, I work in south Dublin so still need decent access to get to work. :P

blessington and surrounding areas may have something, id set your 'daft.ie' search range to 175k and go see some things.

there are also rental properties with tenants still in them that can only be sold for cash.

Tefral

I'm closing on a house that a bank wouldn't touch with a barge pole as its unfinished as a builder went bust but im buying it for it for a fifth of its value. Have a chat with the likes of Pepper Asset Servicing and see what distressed assets they have for sale!

VonVix

Eric Cartman wrote: »

blessington and surrounding areas may have something, id set your 'daft.ie' search range to 175k and go see some things.

there are also rental properties with tenants still in them that can only be sold for cash.

Where would I be able to find these rental properties? If I hypothetically bought one, would that mean I would end up having to evict the tenant(s)? :eek:

Tefral wrote: »

I'm closing on a house that a bank wouldn't touch with a barge pole as its unfinished as a builder went bust but im buying it for it for a fifth of its value. Have a chat with the likes of Pepper Asset Servicing and see what distressed assets they have for sale!

Awh, brilliant, thank you!

meeeeh

You could be spending the money you are saving on the house commuting over the years. You would be no better off plus it would take more time.

I agree with the suggestion of small mortgage, at least you have different options open.

Eric Cartman

VonVix wrote: »

Where would I be able to find these rental properties? If I hypothetically bought one, would that mean I would end up having to evict the tenant(s)? :eek:

some are listed as 'investments' on daft and my home.

You would , but hey, you need a house, their landlord doesn't want one, its not gonna be fun, but house for you.

Chuchote

VonVix wrote: »

Where would I be able to find these rental properties? If I hypothetically bought one, would that mean I would end up having to evict the tenant(s)? :eek:

Presumably you wouldn't want that as a start to your life in the house. But no, not necessarily, depending on the size of the house; friend of friends bought a house with an old lady living in a flat in part of it, and they were loving friends for many years.

VonVix

Eric Cartman wrote: »

some are listed as 'investments' on daft and my home.

You would , but hey, you need a house, their landlord doesn't want one, its not gonna be fun, but house for you.

Ahh, I couldn't do that to someone.

Chuchote wrote: »

Presumably you wouldn't want that as a start to your life in the house. But no, not necessarily, depending on the size of the house; friend of friends bought a house with an old lady living in a flat in part of it, and they were loving friends for many years.

Sounds like they lucked out. We have three dogs (one being a big ol' German Shepherd) which the average non-dog person would be easily scared of, so no housemates for us.

riclad

IF you make an offer ,the offer is accepted it takes about 8 weeks to complete the deal,
until the contract is signed ,the seller can stop the sale going thru.
I would not assume any discount at all,
just by having cash .
its a sellers market at the moment ,unless you are buying in the middle of Now where .you can get old house,s that need work,
new roof, new windows,floors at a good price ,
eg fixer upper,this house needs renovation .
loan buyers won,t buy them as they won,t get a mortgage on them.
sellers mainly look at the price, offers they get on the house ,.
They might not care if its a cash buyer or joe bloggs with a loan.
look on buy and sell, house for sale, not just on daft.ie or myhome.ie .
Old house,s will need a full survey, cost 400 euro plus.
my friend bought an old house on a small farm.
he rents out the land to a farmer .
Some people will look at a house that.s full of old furniture and not bother bidding on it .
ie one that needs rewiring ,redecorating, maybe 15k worth of modernisation .