Dublin is insanity- why did I come back?

riclad

Its not insanity. dublin is booming , not many houses being built.
high demand low supply =rising prices .
insanity was 2005 when joe bloggs could borrow 10 times his wage to buy
a house in sligo.
now you can borrow may 3 times your income and you need 10 per cent deposit saved at least.
no one forced to live in dublin ,maybe buy something in meath or
maynooth and commute .
Prices now have not reached the heights of the boom in most area,s .

Shelga

Shelga wrote: »

Went to a viewing of a nice enough 2 bedroom apartment in Clare Hall at the weekend. It was advertised for €190k and bidding as of lunchtime yesterday was €224k.

It's just so difficult to stay positive. I am on decent enough money but single- I feel I will never be able to even buy an apartment, much less settle down in a house with children, unless I give up on the idea of living in my home city.

I am in no way picky- that was only the first place I looked at and I would consider nearly all areas to live in. Ballymun and Finglas would be next on my list, I doubt I could afford Santry at this stage, which is where I was considering a couple of months ago.

Is it like this at every viewing? I knew it would go for more than the asking price but €224k for that place is madness.

Just needed to vent. Doesn't sound like there will be any improvement in the next 3-5 years- should I just resign myself to a house share until I'm 35? Why are these our options? Why were our parents able to buy 3 bed semi ds with relative ease 30 years ago? Why is society so much more fractured?

Ok I'm being dramatic- I'll just stop whingeing and keep up the search for a 40m2 one bed box in Ballymun.

Whatever you do dont panic and buy any aul property. I see where you are at and i do feel for you but the demand overall is driving the prices sky high and that useless government is happy to accommodate those profiteering from the market.

riclad

riclad wrote: »

Its not insanity. dublin is booming , not many houses being built.
high demand low supply =rising prices .
insanity was 2005 when joe bloggs could borrow 10 times his wage to buy
a house in sligo.
now you can borrow may 3 times your income and you need 10 per cent deposit saved at least.
no one forced to live in dublin ,maybe buy something in meath or
maynooth and commute .
Prices now have not reached the heights of the boom in most area,s .

Its not as bad but its still something to be cautionable about. It could get out of hand easily enough.

riclad

I dont think the government can stop prices rising in dublin ,
They can ease the rental crisis by building 5-10,ooo social housing units per year.
This is not russia ,its an open economy within the eu.
In theory the central bank can put more strict landing rules in place
if the think prices are rising too high.
i presume you can back because theres a wide range of good jobs in dublin vs say clare or mayo for example.

listermint

Erm.. with all due respect op.

You've gone to one viewing and seen one place and bid on it.

Now your done with Dublin.



Dramatic....

myshirt

I'd like to see us get to a point where 1 X average industrial income plus 0.5 average income per extra room can afford a home, eg 3 bed terraced for 280, or 220 for a 2 bed, and 150-160 for a 1 bed.

I certainly do think that those wishing to buy a 3 bed semi by themselves or a 2 bed apartment by themselves are having a laugh. That is too much property for one person, and we don't want the market functioning in a way that property goes to waste like this. I suppose that is one good thing about this rental market, it has forced us all to make better use of property.

LirW

Well people can buy whatever they want once they can afford it.
I also don't think 2 bedrooms is unreasonable for one person when they intend to live in it for the duration of the mortgage. People still socialise, have hobbies, need extra space for a home office, want to have the option to live together with a future partner without having to sell up.

These apartments often have a floor size of around 60m2, that's fine for 1person longterm and even 2 without feeling cramped.

It's not the 60s anymore where you'd have 8 people in a 70m2 corpo house living...

SarahVOW

Ive just bought in Dublin with my partner. We were looking constantly from March, must have went to 20+ viewings and were seriously bidding on 6 houses.

Got sale agreed mid July, got keys 9 weeks later then spent time doing it up and moved in 3 week ago.

Its massively frustrating and we are lucky to have combined income.

Its a sellers market and its not easy. The figures listed of daft for previously owned places mean very little, use property price register for a proper idea of what places in the area are going for.

A place we were bidding on went for €100k over the asking (3 bed terrace in Crumlin) and another 3 we were interested in went for 50k+ over asking. Also we saw houses that had no bids and sellers wouldn't drop to bellow asking or even accept asking in 1 case as they wanted to hold out.

Good luck with it if you need any advise you can PM though im no expert.

TallGlass

Shelga wrote: »

The place is now €234k... agent pitting us all against each other- maybe I’m done with Dublin.

Sorry not a hope in hell would I be paying 234k for an apartment.

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TallGlass

....... wrote: »

But plenty of people will because they cant afford anything else.

I totally understand that. But there are houses to be had for that price. Besides, do you even own the apartment, don't the management still own it? You've to pay them fees, which they don't seem to do much with. Some of the blocks around me need a good paint and a slap of varnish on the wood.

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spaceHopper

Shelga wrote: »

The place is now €234k... agent pitting us all against each other- maybe I’m done with Dublin.

Did the EA ask if you have finance in place? If they didn't

Rule 1 when ever dealing with a EA is state "I have saving and mortgage approval, have you checked if the other bidders have".

You aren't bedding against dreamers so can't close but are driving up the price. Make the EA go back an check. That might knock out a few bidders.

gar32

OP

I have bought twice in Dublin in the last 20 years and I wanted a 2 bed like yourself but did not have enjoy income to buy one. I bought a 1 bed in the city center knowing that if I meet someone and wanted a family I could rent it out. I have paid the mortgage early and now the incoming covers 80% of the rent of the 2 bed I rent. Owning is good but not everyone can have the dream of a house with 3 beds and a garden.

Other options are invest in a portfolio to get returns to cover your rent. (Done a lot of countries where house prices are too high.)

Fall in love with someone who has a place or money.

Stay renting all your life and just look on it as a cost. You can change places if your work changes.

Try find land and put new prefab house on it which does not need planning permission.

http://www.independent.co.uk/property/house-and-home/modular-housing-green-stylish-and-yours-for-just-16330000-1922235.html#gallery

New ways to build houses are coming soon. I seen a 3D printed house in China for €30k

Irish people are hung up on owning a house. Times are changing and so should the view on where and how you live.


Good look and don't worry your plans could change at any time if the right person comes along.

Cyrus

agent pitting us against each other..


as opposed to what exactly?

utmbuilder

I don't mind buying what ever a house costs. As long as it doesn't drop by 40% in 5 to 10 years. That's the real fear when buying.

Interested Observer

utmbuilder wrote: »

I don't mind buying what ever a house costs. As long as it doesn't drop by 40% in 5 to 10 years. That's the real fear when buying.

If you're not planning to sell in the next 5 years then does it really matter?

utmbuilder

Interested Observer wrote: »

If you're not planning to sell in the next 5 years then does it really matter?

It's called the "property ladder" for a reason.

I want to trade up a few times like generations before me.

pilly

Interested Observer wrote: »

If you're not planning to sell in the next 5 years then does it really matter?

This is the thing that people need to get over. You should buy your primary residence as a home not an investment.

Idbatterim

youd wonder about one bedroom apartments, the efficiency I mean. With a small 8-10m second bedroom, you could let it out if situation changes i.e. you lost job or had pay cut and it would also do if you had a child, might not be ideal, but would work.

The main expenses of kitchen and bathroom are already paid.

Tigerandahalf

....... wrote: »

Unfortunately the model of management fees seems to be extending to most new housing estates also these days so you will have to pay them no matter where you buy as the council no longer seem to take new estates in hand. The issue with management fees in Ireland is that there are pretty much no penalties for non payers. This wouldnt fly in another country but in Ireland you get a minority of non payers which then leaves a difficult situation for everyone else as there is not enough coming in to cover the costs of running the development - and you end up with what you describe of buildings needing a lick of paint etc...

I am not sure if this approach is a good idea. It doesn't cost the council a lot to cut gardens and pay for led street lighting in the greater scheme of things.

The downside is if a recession hits and a good few households lose jobs people will just not pay fees putting other costs first. That leaves other homeowners picking up the tab or deciding not to cut grass or maintain areas. Estates would become run down. You then just end up with bad will amongst neighbours.

What happens if a kid trips and falls in an area not maintained. It leaves management companies open to claims.

Are the mgt companies responsible for public liability in these estates?

pilly

Tigerandahalf wrote: »

I am not sure if this approach is a good idea. It doesn't cost the council a lot to cut gardens and pay for led street lighting in the greater scheme of things.

The downside is if a recession hits and a good few households lose jobs people will just not pay fees putting other costs first. That leaves other homeowners picking up the tab or deciding not to cut grass or maintain areas. Estates would become run down. You then just end up with bad will amongst neighbours.

What happens if a kid trips and falls in an area not maintained. It leaves management companies open to claims.

Are the mgt companies responsible for public liability in these estates?

Yeah, I don't understand this either and think it's a recipe for disaster in the future.

TallGlass

pilly wrote: »

Yeah, I don't understand this either and think it's a recipe for disaster in the future.

So is there LPT in these estates along with management fees?

Tigerandahalf

TallGlass wrote: »

So is there LPT in these estates along with management fees?

Yes

Cyrus

TallGlass wrote: »

So is there LPT in these estates along with management fees?

yes there is

it needs to be resolved, in our new build estate of 22 houses, we have had our first year charge of 1,100. We would hope to get this down but add LPT on top and its an expensive way to live

pilly

Cyrus wrote: »

yes there is

it needs to be resolved, in our new build estate of 22 houses, we have had our first year charge of 1,100. We would hope to get this down but add LPT on top and its an expensive way to live

That's nuts. What's your LPT for then?

Cyrus

pilly wrote: »

That's nuts. What's your LPT for then?

good question

and this is because the council are making it a condition of planning not to take the estates in charge

side note - new builds are exempt from LPT until tax year 2019

Tigerandahalf

Cyrus wrote: »

good question

and this is because the council are making it a condition of planning not to take the estates in charge

It will also make developers reduce the green space available in new estates. Just paving at front of house and a driveway in to estate to reduce running costs.
People can have their back gardens to themselves.

No green spaces for kids to play any longer.

amtc

I live in a development with a management company although I have a house. There is a playground, which I have never seen a child in. There is also a bench which according to last year's accounts cost 2k. This year the agents wanted to spend 15k from the sinking fund to upgrade the playground and insurance. Myself and another girl work from home a lot and pointed out that in a full month we had seen no children playing nor the bench being sat on. So we defeated the motion.

Cyrus

Tigerandahalf wrote: »

It will also make developers reduce the green space available in new estates. Just paving at front of house and a driveway in to estate to reduce running costs.
People can have their back gardens to themselves.

No green spaces for kids to play any longer.

to be fair i think they will always comply with the minimum requirements as per whatever act is in force at the time