Property Market 2019

Twenty Grand

JJJackal wrote: »

In todays market (interest rate 2.5 to 3%) 144k in rent over 10 years is about a 300k mortgage (10 years paid down

And what about the other tens of thousands you would have spend on upkeep, maintenance, tax, insurance, etc.

Rent is near the only cost for living in a rented property.
Mortgage payments are one of a number of costs for owning a property.

Houses are unfurnished, so most FTBs have to drop about 5k on furniture when they move in.

That's near a years rent for me.

JJJackal

Twenty Grand wrote: »

And what about the other tens of thousands you would have spend on upkeep, maintenance, tax, insurance, etc.

Rent is near the only cost for living in a rented property.
Mortgage payments are one of a number of costs for owning a property.

Houses are unfurnished, so most FTBs have to drop about 5k on furniture when they move in.

That's near a years rent for me.

Probably Twenty Grand over 10 years - plus if you ever want to buy a house you are going to have to buy furniture. Plus the mattress you sleep on in a rented house - realistically you have no idea what the fellow before you did on to or in the mattress. Your landlord does not care.

Maintenance depends on lots of variables if you bought new v second hand. Maintenance on a new house over the first 10 years shouldn't be massive.

So 10 years later if you want to buy a house you still have to buy furniture.

If you never want to own a house that's a different situation.

There is a cost of moving and an emotional cost over the uncertainty of where you will live and how much your rent will be if you have to leave.

Sharing - you dont know who you will share with

myshirt

Twenty Grand wrote: »

And what about the other tens of thousands you would have spend on upkeep, maintenance, tax, insurance, etc.

Rent is near the only cost for living in a rented property.
Mortgage payments are one of a number of costs for owning a property.

Houses are unfurnished, so most FTBs have to drop about 5k on furniture when they move in.

That's near a years rent for me.

5k if you go to Bargaintown.

Twenty Grand

Not a hope of maintaining and keeping a house for 2k per year. House insurance could be 200-400, property tax another 300-400, mortgage protection, life assurance and that's before you decide to paint a wall, buy a lawnmower or change your couch.

And before anything in your house breaks. Your whites, boiler, gas, plumbing, electrics, 70 euro minimum call out fee, plus parts and labour.

Houses aren't cheap. Don't get me wrong, I'll buy one in the next few years, but simply equating rent paid to mortgage payments as if they're equivalent is a false analogy.

myshirt wrote: »

5k if you go to Bargaintown.

I was thinking Ikea. Which is just as bad as the furniture is binned as soon as you can afford something better. You end up paying twice.

JJJackal

Twenty Grand wrote: »

Not a hope of maintaining and keeping a house for 2k per year. House insurance could be 200-400, property tax another 300-400, mortgage protection, life assurance and that's before you decide to paint a wall, buy a lawnmower or change your couch.

And before anything in your house breaks. Your whites, boiler, gas, plumbing, electrics, 70 euro minimum call out fee, plus parts and labour.

Houses aren't cheap. Don't get me wrong, I'll buy one in the next few years, but simply equating rent paid to mortgage payments as if they're equivalent is a false analogy.



I was thinking Ikea. Which is just as bad as the furniture is binned as soon as you can afford something better. You end up paying twice.

Mortgage is cheaper than rent for a lot of people

What's the difference between mortgage protection and life assurance?

2000 would go along way in a new house per year - once furnished

awec

JJJackal wrote: »

Mortgage is cheaper than rent for a lot of people

What's the difference between mortgage protection and life assurance?

2000 would go along way in a new house per year - once furnished

Mortgage protection covers your mortgage.

Life assurance covers your income.

JJJackal

awec wrote: »

Mortgage protection covers your mortgage.

Life assurance covers your income.

mortgage protection covers your mortgage repayments should you die
life assurance covers

life assurance is for a fixed sum that covers your mortgage but there may be some left over depending on the value and type of policy you have

you do not need both for a mortgage - my point being they are not 2 separate required expenses for buying a house (you only need one)

Income protection covers income

Evd-Burner

awec wrote: »

Mortgage protection covers your mortgage.

Life assurance covers your income.

Payment protection insurance covers your income. Life assurance is a payment when you die.

I have life insurance (fixed term), payment protection insurance and soon enough I will have mortgage protection insurance as well!

Twenty Grand

JJJackal wrote: »

Mortgage is cheaper than rent for a lot of people

What's the difference between mortgage protection and life assurance?

2000 would go along way in a new house per year - once furnished

You'd be lucky to come away with 1k after your tax and insurance.
Could you maintain a house for 1k per year?

Maybe. If nothing broke and you didn't buy a stick of furniture.

airportgirl83

Do you think mortgage limits will be changed by Central Bank later this year? I've been reading that property developers / estate agents are pushing for it. Personally hope they'll keep 3.5 times in place.

Danzy

airportgirl83 wrote: »

Do you think mortgage limits will be changed by Central Bank later this year? I've been reading that property developers / estate agents are pushing for it. Personally hope they'll keep 3.5 times in place.

They should, more than that is just the same b.s. that broke the country.

Roberto_gas

JJJackal wrote:

Mortgage is cheaper than rent for a lot of people

Do people understand cost of credit in Ireland ??

JJJackal

Roberto_gas wrote: »

Do people understand cost of credit in Ireland ??

Do you understand the cost of rent? 😂

kippy

Roberto_gas wrote: »

Do people understand cost of credit in Ireland ??

Some do and some don't.

As I'd always say when this topic comes up again and again, there are tonnes of variables involved in the rent versus buy scenarios. It's a very individual thing.

Wexforllion

Has anyone else got a looming sense that property prices as well as economies are about to crash.

I mean within the next couple of months.

It just feels like we are at that slight pause before gravity takes over.

Blueshoe

Wexforllion wrote: »

Has anyone else got a looming sense that property prices as well as economies are about to crash.

I mean within the next couple of months.

It just feels like we are at that slight pause before gravity takes over.

Why though?

Cal4567

airportgirl83 wrote: »

Do you think mortgage limits will be changed by Central Bank later this year? I've been reading that property developers / estate agents are pushing for it. Personally hope they'll keep 3.5 times in place.

I reckon they will tweak it or make it an election promise to do so. Not by a lot though. 4% perhaps.

coolshannagh28

Im in business myself and there is a softness in trade and property at the minute , many businesspeople are concerned about it . Maybe Brexit related and June can be a funny month but there is volatility out there hopefully it will pass.

Cal4567

Wexforllion wrote: »

Has anyone else got a looming sense that property prices as well as economies are about to crash.

I mean within the next couple of months.

It just feels like we are at that slight pause before gravity takes over.

No, but we do appear to be in a bit of a soft landing. Speak to any agent and developer, and you get a sense of this. I've said on other threads, if you are out there looking to buy a property, I would make offers below the asking price and capitalise on that uncertainty.

Blueshoe

Cal4567 wrote: »

I reckon they will tweak it or make it an election promise to do so. Not by a lot though. 4% perhaps.

House prices will automatically raise at least 4% in that case and continue to climb . People will be able to bid higher

alwald

Wexforllion wrote: »

Has anyone else got a looming sense that property prices as well as economies are about to crash.

I mean within the next couple of months.

It just feels like we are at that slight pause before gravity takes over.

Prices of new developments increased too much since 2015/2016 and have exceeded the affordability ceiling. They are ought to come down to keep the same level of sales otherwise we will see a decline in the number of new houses built per year. Apartments are a different story as entire blocks are being bought by councils/IRETs for social housing or rent.

JJJackal

I read somewhere that a developer or estate agent suggested that your mortgage should be based on the proportion of your net salary that would need to be used to service the mortgage - he suggested that people could manage 30% if they wanted and mortgage should be base on that.

I presume this means that if you take home 2000 a month you should be able to borrow the amount that 600 (presumably a little less to allow for rises in interest rates) a month would service.

Thought this was a good and sensible idea. Not sure how this would impact on the 3.5 threshold (up or down). I presume it would essentially make the 3.5 higher since an estate agent suggested it!

Zenify

Cal4567 wrote: »

airportgirl83 wrote: »

Do you think mortgage limits will be changed by Central Bank later this year? I've been reading that property developers / estate agents are pushing for it. Personally hope they'll keep 3.5 times in place.

I reckon they will tweak it or make it an election promise to do so. Not by a lot though. 4% perhaps.

I have a little faith left in humanity. All will be lost if they relax these rules. The Central Bank of Ireland has repeatedly said they wont be changing them. These rules are to protect banks and people from themselves. I doubt they would relax them because the market is softening.

Banks seem to have become tighter with the softening of the property market, they didn't use all their exemptions last year and they are asking a lot more questions with applicants finances (from experience). This may have a knock on effect.

alwald

Zenify wrote: »

I have a little faith left in humanity. All will be lost if they relax these rules. The Central Bank of Ireland has repeatedly said they wont be changing them. These rules are to protect banks and people from themselves. I doubt they would relax them because the market is softening.

Banks seem to have become tighter with the softening of the property market, they didn't use all their exemptions last year and they are asking a lot more questions with applicants finances (from experience). This may have a knock on effect.

I agree with the above and I would like to add that banks won't necessarily welcome a change of the 3.5 limits as it is too risky.

Villa05

Zenify wrote:

Banks seem to have become tighter with the softening of the property market, they didn't use all their exemptions last year and they are asking a lot more questions with applicants finances (from experience). This may have a knock on effect.

As prices rise. Less people qualify for exemptions. This probably is a sign of the market reaching its peak under current conditions

Austria!

Wexforllion wrote: »

Has anyone else got a looming sense that property prices as well as economies are about to crash.

Loads of people, just like last year, and the year before that, and the year before that.

Interested Observer

Zenify wrote: »

Banks seem to have become tighter with the softening of the property market, they didn't use all their exemptions last year and they are asking a lot more questions with applicants finances (from experience). This may have a knock on effect.

Really? A few I talked to had used all theirs by the summer.

AlmightyCushion

JJJackal wrote: »

I read somewhere that a developer or estate agent suggested that your mortgage should be based on the proportion of your net salary that would need to be used to service the mortgage - he suggested that people could manage 30% if they wanted and mortgage should be base on that.

I presume this means that if you take home 2000 a month you should be able to borrow the amount that 600 (presumably a little less to allow for rises in interest rates) a month would service.

Thought this was a good and sensible idea. Not sure how this would impact on the 3.5 threshold (up or down). I presume it would essentially make the 3.5 higher since an estate agent suggested it!

2000 net a month works out about 28,000 a year. Under current mortgage rules if you have 2 people on that money that would let you borrow 196,000. If you go by what was suggested in that article then they would be able to service a 1200 Euro a month mortgage. At 3% over 30 years that's nearly 300,000 or about 5 times multiplier.

WAL1992

Was at a viewing in a new development last weekend in Meath and the agent had noted a recent dip in interest in the past few weeks. Expected there to be a few interested parties but was only myself and two others and I was only there to get a feel for the area so felt bad . The agent noted Brexit as an impact due to the uncertainty attached to it

Interested Observer

WAL1992 wrote: »

Was at a viewing in a new development last weekend in Meath and the agent had noted a recent dip in interest in the past few weeks. Expected there to be a few interested parties but was only myself and two others and I was only there to get a feel for the area so felt bad . The agent noted Brexit as an impact due to the uncertainty attached to it

There's no need to feel bad for the agent, I assure you. Looking at every house going is all part of the buying process.