250k Deposit - Buy or rent?

awec

homerjay2005 wrote: »

negative equity is one of the most flawed and misunderstood logics around.

if you are somebody buying a house to live in it and youve no intention of selling it, then negativity equity matters a damn.

somebody was on to me a few months ago about a house they bought 12 years ago and how they were in negative equity on it bla bla bla trying to make me feel sorry for them, despite the fact that it was their family home for the last 12 years and in 10 years time they would be completely debt free and then own an asset in Dublin, worth a considerable amount of money.

they also refused to factor in the logic that they would have forked out 140k in rent in that time and have nothing to show for it.

Yea, the reason negative equity was such a big deal in the crash was people bought houses that they knew would only be suitable for them for the very short term.



Couples on the brink of starting a family buying two bed houses, people buying single bedroom apartments etc.

Blazedup

Tweet Morgan Kelly!

bleary

I would not be waiting around for another crash. From 1998 ,I did even though I had a substantial deposit.eventually it made no sense to buy and then I had to wait till the last few years to be in a position to do so again.
As said government will try to maintain housing market as much as possible. The only reason not to buy at the moment if paying market rents would be if you intend doing something else in the short to medium term with the money or your life. Eg change careers, move countries etc.
If maintenance doesn't appeal buy an apartment.
If you find something you like and can afford I'd recommend it.

bleary

And prices are not that expensive when you consider that they are limited by the income and deposit requirements. Compared to the time you could walk in and get multiples of up to 10 times your salary. That's hopefully not going to happen again.
Supply near city centres will not increase that much, development will be more on the edges of towns and cities. I procrastinated a few years ago then decided that 2 bed houses with gardens weren't being built in central areas anymore and just went for it.
Throughout the world Not a lot of places are available for sub 300k in urban capitals

M.Cribben

bilbot79 wrote: »

Prices are artificially high. If they weren't the values would be half.

Have you any logic or stats/reports to back that assertion up? What makes you think the real value of Irish property is half it's current price?

I could just as easily say "prices are artificially low, if they weren't prices would be double".

EvolvedApe

Cyrus wrote: »

Few things

If you believe prices will fall and don't need to buy a house then don't , wait it out and see what happens worst case you are wrong and it costs a bit more when you do buy, you have a big deposit

If you do buy future proof yourself I.e. try buy a 3 or 4 bedroom place and spend a bit more rather than spend less but need to move again in 10 years

Also did you save the 250 or inherit it ? If you saved it what's your annual savings because if you are saving a lot it may make sense to invest what you have and continue to save to see if you can outperform property if you are bearish on it .

No I didnt inherit, all savings.

I dont like the idea of a bit house though, I only need something small, 2 bed would be perfect.
Pity there are no decent houses or apartments fitting this.

Interested Observer

EvolvedApe wrote: »

I do have an inkling that property prices will drop considerably but I am not sure when. I am reluctant to push all saving into a housing market that could drop.

Imo you're playing a mug's game here.

On a long enough timeline house prices WILL drop, there is no doubt whatsoever about that. Nobody knows what that timeline is or how much they'll rise before they do drop. If you 1) want to own your own home, 2) find a place you like and 3) can afford it then just buy it.

And there are no decent 2 bed houses or apartments available? Eh, yes there are plenty.

EvolvedApe

Interested Observer wrote: »

Imo you're playing a mug's game here.

On a long enough timeline house prices WILL drop, there is no doubt whatsoever about that. Nobody knows what that timeline is or how much they'll rise before they do drop. If you 1) want to own your own home, 2) find a place you like and 3) can afford it then just buy it.

And there are no decent 2 bed houses or apartments available? Eh, yes there are plenty.

What I am saying is I think prices with drop soon, obviously no one knows for sure. We are all guessing.

There are very few decent 2 bed houses and apartments, unless silly prices.

Interested Observer

EvolvedApe wrote: »

What I am saying is I think prices with drop soon, obviously no one knows for sure. We are all guessing.

There are very few decent 2 bed houses and apartments, unless silly prices.

Well it sounds like your mind is made up anyway.