Am I oversimplifying this? (buying an apartment)

dubliner999

mea_k wrote: »

Did you read Re-Build Ireland website?
How you can secure mortgage with them is if you do have refusals from other banks. Meaning you wont get refusal perse but will get offer of less mortgage ...

Yes i have. From what I know that's still a refusal?

Eg. If I need 200k mortgage but a bank will only give me 150k - that counts as a refusal.

mea_k

I must be understanding something wrong. If i go to bank tomarrow. Ask for mortgage . in good situation etc and i do not get offered 500k mortgage and get declined however get offered 200k it means i did get offered a mortgage ? Not one i would have liked but did get offer. Also not in your favour is your status. You are single male in 20s as you described . no kids no commitments. They will take in to account that some years down the line you will have family- property won't be no longer available to be sublet, you will have child and spouse to support. Childcare costs in cork area creches are nearly second mortgage aka roughly 800e per month....Not trying to be asshole but just going what was told to me . more plausible is to keep your savings and maybe drop 5k extra on crypto and keep saving..

CollyFlower

mea_k wrote: »

I must be understanding something wrong. If i go to bank tomarrow. Ask for mortgage . in good situation etc and i do not get offered 500k mortgage and get declined however get offered 200k it means i did get offered a mortgage ? Not one i would have liked but did get offer. Also not in your favour is your status. You are single male in 20s as you described . no kids no commitments. They will take in to account that some years down the line you will have family- property won't be no longer available to be sublet, you will have child and spouse to support. Childcare costs in cork area creches are nearly second mortgage aka roughly 800e per month....Not trying to be asshole but just going what was told to me . more plausible is to keep your savings and maybe drop 5k extra on crypto and keep saving..

Wow, that's looking way ahead, do the lenders do that?

Good luck OP, you sound like you have it all worked out.. most apartments heve all electric and it shouldn't be no more than 200 per quarter. If it's gas it should be less.

dubliner999

mea_k wrote: »

I must be understanding something wrong. If i go to bank tomarrow. Ask for mortgage . in good situation etc and i do not get offered 500k mortgage and get declined however get offered 200k it means i did get offered a mortgage ? Not one i would have liked but did get offer. Also not in your favour is your status. You are single male in 20s as you described . no kids no commitments. They will take in to account that some years down the line you will have family- property won't be no longer available to be sublet, you will have child and spouse to support. Childcare costs in cork area creches are nearly second mortgage aka roughly 800e per month....Not trying to be asshole but just going what was told to me . more plausible is to keep your savings and maybe drop 5k extra on crypto and keep saving..

Under your line of thinking if I tried to get a mortgage of 200k and the bank said 'look, we'll give you 25k' then to you that's still not a refusal.

As far as I'm aware rebuilding Ireland helps people get mortgages that they otherwise wouldn't have gotten, whether that's the bank saying a flat out "no" or if they bank is willing to loan something but not enough for the borrower.

dubliner999

CollyFlower wrote: »

Wow, that's looking way ahead, do the lenders do that?

Good luck OP, you sound like you have it all worked out.. most apartments heve all electric and it shouldn't be no more than 200 per quarter. If it's gas it should be less.

Thanks, I don't feel like I have it all worked out just yet though to be honest 😂

hanaimai

mea_k wrote: »

I must be understanding something wrong. If i go to bank tomarrow. Ask for mortgage . in good situation etc and i do not get offered 500k mortgage and get declined however get offered 200k it means i did get offered a mortgage ? Not one i would have liked but did get offer. Also not in your favour is your status. You are single male in 20s as you described . no kids no commitments. They will take in to account that some years down the line you will have family- property won't be no longer available to be sublet, you will have child and spouse to support. Childcare costs in cork area creches are nearly second mortgage aka roughly 800e per month....Not trying to be asshole but just going what was told to me . more plausible is to keep your savings and maybe drop 5k extra on crypto and keep saving..

You are still eligible for the Rebuilding Ireland scheme if you get an insufficient offer of funds. Eligibility criteria on their website specifically says "provide evidence of insufficient offers of finance from two banks or building societies".

Also no lender will take into account that the OP could someday have a family or other commitments. You are assessed for a mortgage based on your circumstances in the present and near future (i.e. immediate job security, stress tests for increased rates etc.), not on some hypothetical situations 10 years down the line that might never materialize.

messy tessy

dubliner999 wrote: »

It's 50k for a single applicant. I'm on under that so it should be fine.

Also I know about the rejections, I could also get that I'd say.

Did you read the threads on here about Rebuilding Ireland?

Alot of people that meet the criteria are getting rejected. Not trying to be negative here, but I wouldn't bank on this scheme entirely.

dubliner999

messy tessy wrote: »

Did you read the threads on here about Rebuilding Ireland?

Alot of people that meet the criteria are getting rejected. Not trying to be negative here, but I wouldn't bank on this scheme entirely.

I did. And you're right, it's not guaranteed at all. However I do think I'm in a fairly good position so would hope that I'd be able to use this scheme.

Daisy78

dubliner999 wrote: »

Just outside the city, I reckon I could even get a bit more to be honest with you? Within 10km or 15km from the city. (North side)

I think any more might be pushing it. Maybe for an ensuite room but not for a bog standard double room if you are talking those distances.

dubliner999

Daisy78 wrote: »

I think any more might be pushing it. Maybe for an ensuite room but not for a bog standard double room if you are talking those distances.

Oh it'll be an ensuite alright! Want 2 bedrooms and 2 bathrooms minimum.

JustAThought

Make sure you can afford the mortgage IF you dont have a tenant . Tenants can be unreliable and leave you at a financial loss or high and dry - and then you will be in proper problwm area if you need it to fulfill your reaponsibilities to the bank.

Regarding renting lots of people dont want to share with an owner occupier - this can reduce your market though in this market you may not struggle.

Today there are currently almost 600 student style rooms in Dublin to share listed on the daft share website - that is AVAILABLE - still not rented. Dont believe all the hysteria you hear from the newspapers which are mostly lobbyist press releases.

I would not take the risk of buying an appartment. Management companies in Ireland are unregulated and they can charge what they want - usually the sliding scale increases depending on how many rooms your appartment has - e1,300 for a 1 bed, e1,500 for a 2 bed etc. By now the structural and other problems with badly built appartments are beginning to appear as is the 10 or 15 year wear and tear from celtic tiger builds - the block owners or mgmt company can vote to increase the spend to fix whatever is needed - new foof, car park resurfacing, replacement of all keyfobs and electric gates, new lift for h&s reasons - etc. All these are big ticket items and will be tagged onto your annual bill in a shared basis - people are being f'd by it all over the city and they are a law onto themselves - and certainly not regulated or under the power of any agency or body.

Asking for advice - from experience personally I'd buy a house. You can always find a family to rent a house if you get transferred to another city or hate your commute and if needs be you can live in it by yourself and rent out rooms (or not) as your needs evolve. You are far.more in control,have more space,far less neighbours and antisocial and noise issues and are free from the tyrany of mgmt companies.

There you go!!

At your age I probably wouldnt buy a house /appartment -I would rent a bit, see what I.liked in terms of places, live a little and experience abroad and living away, and not have the burden of people,leases, and all.the hassle of being a homeowner. Once you start its a non stop hamster wheel - always something.

Btw I think.your figures are vastly underestimated as you will need at least 8-10k to set up house /appartment to rentable condition. It typically will come with concrete floor and no utilities unless you are rare lucky so I'd add to my upfront costs to make it rentable (very underestimated for a basic 2 bedder basic:

Floor or carpet for entire house /flat : basic 1200
Tiling in kitchen and or bathroom e600
3 piece suite for appt/house: e800
TV not too big not too small : e400
Coffee table and/or TV table e150
2 beds basic double frames : e300
2 matresses basic doubles : e500
Bedding for beds and pillows /bed protecters/sheets/duvets/ covers: e150
Bedside lockers and lamps: e150
Kitchen table and 4 chairs : e400
Washing machine : e 400
Cooker and hob inc instillation : e500
Fridge freezer : e450
Microwave : e50
Legal requirement to rent ;hob fan : e500
Power shower and LX contracter to install: e800
2 Floor length mirrors and a few pictures e150
Curtains or blinds for bedrooms e 250
Curtains or blinds for living room e12
Opening night crate of beer. E25

Thats the minimum - assuming you go for bargins and bottom drawer style for everything and dont have to paint the place as many do - for which you can add an extra 1k as you dont need that kind of hassle and ugly aftermath in your life.

If you actually go.into bargaintown or DiD electric or somewhere and look at what you want to.live surrounded by and what it costs you will see it quickly adds up. That is why if you are renting you will have to factor in damage to property and write offs as part of the costs - as well as the risk of.them absconding and oweing you. Not all people are honest or reliable. Sadly. Although to listen to tv you would.think them all golden martyrs.

markpb

JustAThought wrote: »

Management companies in Ireland are unregulated and they can charge what they want - usually the sliding scale increases depending on how many rooms your appartment has - e1,300 for a 1 bed, e1,500 for a 2 bed etc.

Your post was great and very helpful but this part is totally untrue. Owners Management Companies are made up of their members, the people who own the apartments. The company can only charge what is in the budget and approved by the owners at the annual general meeting. Your share of the overall budget is specified in the lease you sign when you buy.

It's about as far from unregulated as you can get! You get a say in the budget and, if you want, you can volunteer to be elected to the board of directors and be a part of the running of the company.

4ensic15

JustAThought wrote: »

Make sure you can afford the mortgage IF you dont have a tenant . Tenants can be unreliable and leave you at a financial loss or high and dry - and then you will be in proper problwm area if you need it to fulfill your reaponsibilities to the bank.

Regarding renting lots of people dont want to share with an owner occupier - this can reduce your market though in this market you may not struggle.

Today there are currently almost 600 student style rooms in Dublin to share listed on the daft share website - that is AVAILABLE - still not rented. Dont believe all the hysteria you hear from the newspapers which are mostly lobbyist press releases.

I would not take the risk of buying an appartment. Management companies in Ireland are unregulated and they can charge what they want - usually the sliding scale increases depending on how many rooms your appartment has - e1,300 for a 1 bed, e1,500 for a 2 bed etc. By now the structural and other problems with badly built appartments are beginning to appear as is the 10 or 15 year wear and tear from celtic tiger builds - the block owners or mgmt company can vote to increase the spend to fix whatever is needed - new foof, car park resurfacing, replacement of all keyfobs and electric gates, new lift for h&s reasons - etc. All these are big ticket items and will be tagged onto your annual bill in a shared basis - people are being f'd by it all over the city and they are a law onto themselves - and certainly not regulated or under the power of any agency or body.

Asking for advice - from experience personally I'd buy a house. You can always find a family to rent a house if you get transferred to another city or hate your commute and if needs be you can live in it by yourself and rent out rooms (or not) as your needs evolve. You are far.more in control,have more space,far less neighbours and antisocial and noise issues and are free from the tyrany of mgmt companies.

There you go!!

At your age I probably wouldnt buy a house /appartment -I would rent a bit, see what I.liked in terms of places, live a little and experience abroad and living away, and not have the burden of people,leases, and all.the hassle of being a homeowner. Once you start its a non stop hamster wheel - always something.

Btw I think.your figures are vastly underestimated as you will need at least 8-10k to set up house /appartment to rentable condition. It typically will come with concrete floor and no utilities unless you are rare lucky so I'd add to my upfront costs to make it rentable (very underestimated for a basic 2 bedder basic:

Floor or carpet for entire house /flat : basic 1200
Tiling in kitchen and or bathroom e600
3 piece suite for appt/house: e800
TV not too big not too small : e400
Coffee table and/or TV table e150
2 beds basic double frames : e300
2 matresses basic doubles : e500
Bedding for beds and pillows /bed protecters/sheets/duvets/ covers: e150
Bedside lockers and lamps: e150
Kitchen table and 4 chairs : e400
Washing machine : e 400
Cooker and hob inc instillation : e500
Fridge freezer : e450
Microwave : e50
Legal requirement to rent ;hob fan : e500
Power shower and LX contracter to install: e800
2 Floor length mirrors and a few pictures e150
Curtains or blinds for bedrooms e 250
Curtains or blinds for living room e12
Opening night crate of beer. E25

Thats the minimum - assuming you go for bargins and bottom drawer style for everything and dont have to paint the place as many do - for which you can add an extra 1k as you dont need that kind of hassle and ugly aftermath in your life.

If you actually go.into bargaintown or DiD electric or somewhere and look at what you want to.live surrounded by and what it costs you will see it quickly adds up. That is why if you are renting you will have to factor in damage to property and write offs as part of the costs - as well as the risk of.them absconding and oweing you. Not all people are honest or reliable. Sadly. Although to listen to tv you would.think them all golden martyrs.

Those prices are astronomical. The o/p is going to be sharing. He will not be left high and dry by a tenant. The number of vacant student spaces is 600. This is the middle of July. There will be tens of thousands seeking accommodation when the CAO offers come out. Furniture can be bought cheaply in auctions. A lot depends on whether the o/p buys a second hand or new apt. If he buys second hand he may well get flooring and curtains as well as some furniture thrown in.

dubliner999

4ensic15 wrote: »

Those prices are astronomical. The o/p is going to be sharing. He will not be left high and dry by a tenant. The number of vacant student spaces is 600. This is the middle of July. There will be tens of thousands seeking accommodation when the CAO offers come out. Furniture can be bought cheaply in auctions. A lot depends on whether the o/p buys a second hand or new apt. If he buys second hand he may well get flooring and curtains as well as some furniture thrown in.

Definitely second hand. I know I couldn't afford a new build.

An_Toirpin

bmm wrote: »

You would see more capital appreciation in an old 2 bed terrace house. You could spend a few quid improving it in the next few years. Mgt fees are wasted cash! 30k in 10 years!

Don’t wait for cryptocurrency !!

This is untrue. Location is far more important for price appreciation than the actual type of property itself. This is easy to show objectively. People do prefer houses but that is a much smaller factor than a quality location so if you can get an apartment in high quality location or a house in a medium quality location, the apartment probably will appreciate more.