Is it possible to buy?

masterboy123

Hi All,

So we are a couple in early 30s and looking to buy an apartment in the range of 110-120K euros in Limerick.
I earn 45k annually and my other half 12k annually. We dont have dependents at the moment or any loans.
We have savings of around 35k. We are not Irish citizen as of yet.

We are tired of paying 750 a month in rent and looking at the possibility to buy an apartment instead and pay rental money in mortgage.

We are not sure if we can get mortgage given our above profiles.

Any thoughts or opinion are very welcome.

Pepe LeFrits

Don't see why not. Just on your own you should be able to well over that amount. Unless you're lacking in job security or acquired your lump sum from means other than saving (e.g. inheritance), I don't see why you'd have a problem.

fits

Id say you have a very decent chance. Get an application together.

Squall Leonhart

With a combined application your joint income is 57,000 which would make you eligible to borrow a maximum of 199,500 (3.5 times your combined salaries).

If you are to buy a place for 120,000 you will need a 12,000 deposit saved if you are a first time buyer, or 24,000 if you have previously bought. So a mortgage of 108,000 if you're a first time buyer. I would say your chances are very strong.

Villa05

Buy a house not an apartment. Apartments in Limerick don't hold their value as well as houses do

masterboy123

Please note 57000 is before tax, after taxes its less. After paying taxes and after my overtime, our joint monthly income is around 4000.
This is our first time property.
We have the minimum initial deposit saved already from our earnings. No gift or inheritance money.

I am reluctant because we are not Irish nationals and last year our car loan (of 10k) got rejected from the bank where we have all our savings. And the reason manager told us verbally that we are new in the country and non-irish citizens.

I feel opening account in another bank may help.

Squall Leonhart wrote: »

With a combined application your joint income is 57,000 which would make you eligible to borrow a maximum of 199,500 (3.5 times your combined salaries).

If you are to buy a place for 120,000 you will need a 12,000 deposit saved if you are a first time buyer, or 24,000 if you have previously bought. So a mortgage of 108,000 if you're a first time buyer. I would say your chances are very strong.

masterboy123

Why is that? Any particular reason?
We liked a terraced end house in our budget but the BER rating is E.

Villa05 wrote: »

Buy a house not an apartment. Apartments in Limerick don't hold their value as well as houses do

L1011

Don't put much trust in BER ratings

masterboy123

But low ratings E or F would result in higher bills. Am i right?

L1011 wrote: »

Don't put much trust in BER ratings

quadrifoglio verde

masterboy123 wrote: »

But low ratings E or F would result in higher bills. Am i right?

I know of an 1890s redbrick with single glazing that got a d1 energy rating.
The house was so cold that the heat had to be on for 3 days before you wouldn't see your breath
Since then, I don't believe bers
While an e or an f is going to cost you more to heat, it's not that expensive to improve it.

Water John

A bank will look differently at buying a house. The car and you could move but a house cannot.
You have a good profile.
Wouldn't over worry about BER. Get your own place, easy to invest a bit into it then over the next few years.

Villa05

masterboy123 wrote:

Why is that? Any particular reason? We liked a terraced end house in our budget but the BER rating is E.

Changing light bulbs to led's brings you up a grade on ber scale

CruelCoin

masterboy123 wrote: »

Hi All,

So we are a couple in early 30s and looking to buy an apartment in the range of 110-120K euros in Limerick.
I earn 45k annually and my other half 12k annually. We dont have dependents at the moment or any loans.
We have savings of around 35k. We are not Irish citizen as of yet.

We are tired of paying 750 a month in rent and looking at the possibility to buy an apartment instead and pay rental money in mortgage.

We are not sure if we can get mortgage given our above profiles.

Any thoughts or opinion are very welcome.

Assuming 3.5 times your combined salary of 57k, the bank would be offering 199.5k.
What the bank would offer you at max would easily cover the 110-120 you need for Limerick.
You also need a 20% deposit yourself, which is 24k, again easily covered by your savings.

You're in a very healthy position. Shouldn't an issue at all!

Kings Inns or bust

Someone once described the BER process in comparison to the NCT. There post was much better than this but essentially they remarked it was like checking the car was road worthy by looking what shopping bags were in the boot. I second the above point on a house rather than an apartment. Obviously if it's a very nice well built apartment, with a good Owner's Management Company (OMC) go for it. Usually thought the walls will be tissue paper thin, you'll hear everything and the OMC will be like a load of squabbling junior infants.

Not being an Irish Citizen is a bit vague, I'm not but I'm an EU national here 15 years. If you've any sort of pending question over residency then you will be at somewhat of a disadvantage. Mortgages are easier to get in someways than car loans, most homes can't be driven onto a Ferry!

CruelCoin

masterboy123 wrote: »

But low ratings E or F would result in higher bills. Am i right?

Those ratings are a guideline, not an absolute.

They work off a checklist, with some items being more valued than others, but in the real world, something valued at less could be better in terms of heat/energy efficiency.

Take it with a pinch of salt, but a rating of E would need some work or you're going to spend quite a bit on heating.

Water John

Coin is right. But it may be some thing like, that it has electric storage heaters that's giving it the low BER rating.
The detail as to what is giving it the poor rating is what you look for. The above, single glaze windows, suspended timber groundfloor, no insulation, would be the greatest offenders. The BER Report will contain a list of suggested measures.

masterboy123

This thread is great.

What about choosing between apartment vs terraced house?

Water John

It depends what ye see as yer future. Whether having children is some thing that may occur. We have a fondness here for having a bit of garden.

Ursus Horribilis

We're new to the apartment game in this country so not all of them are suitable for families or long term living. Many of them were thrown up to maximise profit for property developers so little thought was given to soundproofing, storage facilities or what else might be needed to make them family friendly. You'd also want to find out about the management company if you decide to buy. Who are they, what do they charge and what do they do?

masterboy123

Management company charging 1800 euros annually.

Thats right. We might have children after few years and our salary may not go higher but expenses will double up...thats something everyone should give a thought on...

Ursus Horribilis wrote: »

We're new to the apartment game in this country so not all of them are suitable for families or long term living. Many of them were thrown up to maximise profit for property developers so little thought was given to soundproofing, storage facilities or what else might be needed to make them family friendly. You'd also want to find out about the management company if you decide to buy. Who are they, what do they charge and what do they do?

athtrasna

masterboy123 wrote: »

Management company charging 1800 euros annually.

Thats right. We might have children after few years and our salary may not go higher but expenses will double up...thats something everyone should give a thought on...

Annually is incorrect 99.9% of the time. In 12 years my management fees have never been the same twice. Fees are a percentage of the development budget and more often than not they increase, though we have had a few decreases. I know lots of people who own in other developments, same story. Heard of a 1k increase in one development with lifts.

masterboy123

So it's not fixed and varies.
What about in terrace house? Do they still have these so called "management fees"?

athtrasna wrote: »

Annually is incorrect 99.9% of the time. In 12 years my management fees have never been the same twice. Fees are a percentage of the development budget and more often than not they increase, though we have had a few decreases. I know lots of people who own in other developments, same story. Heard of a 1k increase in one development with lifts.

Water John

Probably not. You look after your own services generally. The garden is yours, everything else is public property.

athtrasna

masterboy123 wrote: »

So it's not fixed and varies.
What about in terrace house? Do they still have these so called "management fees"?

It depends on the development and the articles of association of the management company. Houses in our development pay fees on the same scale as apartments. Not fair but not something we realised until it was too late.

Ursus Horribilis

Villa05 wrote: »

Buy a house not an apartment. Apartments in Limerick don't hold their value as well as houses do

This is something else to bear in mind. If it's an apartment you want rather than a house, do your research. When the housing bubble burst here, apartments in many places bore the brunt of the crash. I seem to remember reading that some banks wouldn't issue mortgages to people wanting to buy apartments unless they came up with a 20% deposit. This was years before the central bank rules came in. In certain towns and cities, apartments are a more desirable and sellable thing than in others.

If it was me, I'd much rather buy a house. You're less likely to be subject to management fees for starters. You'll have more freedom to do what you want with your house, stick up a satellite dish and have more control over what TV services/broadband you want. Even if you don't have kids to safely play outside, a back garden is a nice thing to have. Even just as somewhere to sit out or to have a bit of space to do things. It's also dead handy to be able to have the car parked right outside the door instead of having to lug things up and down steps or negotiating lifts. But that's just me.

endacl

masterboy123 wrote: »

But low ratings E or F would result in higher bills. Am i right?

Using more service results in higher bills. Put on a jumper if you get cold. You can always upgrade insulation later.

Villa05

Ref ber
Heat loss mainly occurs through the attic which is not a huge cost to address. Next is the windows which is a bit more but 5k would cover a small house including door

Apartment buildings in limerick have degenerated over time which the individual occupant has little control over. With a house the occupants have full control over upkeep of the building

masterboy123

Thanks everyone.

So it looks like it's a better option to get a house instead. We are going to do bit of more reading on pros vs cons between the two.

Yes i would also prefer to have my own garden and parking right outside.

masterboy123

I was reading articles online and found that house prices are hiking at the moment and buyers should probably wait a year or two to get better deals. Is this legit info?

athtrasna

masterboy123 wrote: »

I was reading articles online and found that house prices are hiking at the moment and buyers should probably wait a year or two to get better deals. Is this legit info?

No crystal balls on this forum! Ask the people who waited in 2003/2004, and ended up buying at peak prices. Buy what you can afford when you can afford it imo.

Villa05

masterboy123 wrote:

I was reading articles online and found that house prices are hiking at the moment and buyers should probably wait a year or two to get better deals. Is this legit info?

Limerick and Waterford were the last cities to hit bottom of the market roughly around the middle of 2014. Limerick supply is quiet low. Talk to friends colleagues who are trying to find rental accommodation. Its not easy. House prices are below replacement cost in most areas.

Waiting could be very costly both in terms of renting and the price you might pay in 2 years.