Property Market 2020

Padre_Pio

Pheonix10 wrote: »

Thank you! So if the valuation comes back lower than the sale price, then I can use it an indication that it is overpriced?

Sure, you can use whatever you want to indicate it's overpriced. It's up to you and the seller to negotiate the price.

Other posters may have more experience, but I'd imagine the banks valuation is quite conservative.

tobsey

snoopboggybog wrote: »

Because my salary is 42K.

200K minus 3.5 rule leaves 53K.

Maybe I didn't word it right. If i went to Dublin i'd probably get 65k-70K but don't fancy a four hour commute!!

I should hit the 50K mark anyway in four or five years so will probably just wait till then. I'll be 33 then.

Have you enquires about an exemption? I’d guess you’re mortgage at 175k is only about 800 per month. Stress tested maybe 1000 or so? I’d have thought you’d be close to qualifying since the value of the property is low by national standards.

snoopboggybog

tobsey wrote: »

Have you enquires about an exemption? I’d guess you’re mortgage at 175k is only about 800 per month. Stress tested maybe 1000 or so? I’d have thought you’d be close to qualifying since the value of the property is low by national standards.

I did, unless I actually have the 53K saved when applying they can't alter the exemption for some reason. Maybe its because I'm a single applicant.

Like its absolutely ridiculous. Have a good career, good prospects etc in a company that employs around 35,000 globally.

I'm a 10 minute drive from work in the place where I grew up.

Its just ****ing frustrating. I have the 25K good to go and renting at the same time.

I can understand the 3.5 rule for some jobs but I'm getting absolutely shafted.

IvoryTower

You have plenty of time, prices will drop now so you might pick something up. But you're relatively young as well so just keep saving away until time is right. No panic, most of us have been there while saving thinking we'll never get there. Rent may also drop as well so you'll be saving more.

Beebe

cnocbui wrote: »

I would think the most likely scenario id down.

Is that what happened in the crash in 2008? I don’t know much about economics myself so I am trying to understand how all this might turn out.

GreeBo

chevra13i wrote: »

We're in the middle of purchasing a new build (first-time buyers) - we've only paid the 5k deposit so far so we have the option of pulling out if need be but I'm starting to think that we'd be mad to continue with purchasing at a price that was agreed in early Feb before all the virus disruption.

Thankfully we don't have to pull the trigger until it comes to signing which is a while away yet but it's still stressing me out.

Assuming your personal circumstances havent changed, then why would you change your mind? Sure you could maybe get it cheaper in a few months, but maybe it would be cheaper again in a few years....maybe in a few decades?

If you were happy with the cost last month then you should be happy with it now, again, assuming your personal circumstances havent changed.

voluntary

Pheonix10 wrote: »

Thank you! So if the valuation comes back lower than the sale price, then I can use it an indication that it is overpriced?

It won't be. In vast majority of cases the bank's assessor will take your purchase price and just repeat it in the valuation. They'll only suggest a different one if your purchase price is WAyyyy off. Like if you want to scam a bank, take a 1M EUR mortgage for a shed on the end of the road which you buy from a cousin.

Greentree_uk

voluntary wrote: »

It won't be. In vast majority of cases the bank's assessor will take your purchase price and just repeat it in the valuation. They'll only suggest a different one if your purchase price is WAyyyy off. Like if you want to scam a bank, take a 1M EUR mortgage for a shed on the end of the road which you buy from a cousin.

I really don't see why they do that, makes no sense, but I guess a house is worth what someone is willing to pay for it..

voluntary

Greentree_uk wrote: »

I really don't see why they do that, makes no sense, but I guess a house is worth what someone is willing to pay for it..

Banks simply want to make sure your purchase price isn't madly off from the reality. That's it.

PokeHerKing

GreeBo wrote: »

Assuming your personal circumstances havent changed, then why would you change your mind? Sure you could maybe get it cheaper in a few months, but maybe it would be cheaper again in a few years....maybe in a few decades?

If you were happy with the cost last month then you should be happy with it now, again, assuming your personal circumstances havent changed.

Everyone's personal circumstances have changed. We're at the start of a global pandemic, 50% of the worlds population are under some form of enforced lockdown, financial markets are in free fall, unemployment is skyrocketing.

Having an auld think about the biggest purchase you'll ever make in life would be a good shout.

GreeBo

PokeHerKing wrote: »

Everyone's personal circumstances have changed. We're at the start of a global pandemic, 50% of the worlds population are under some form of enforced lockdown, financial markets are in free fall, unemployment is skyrocketing.

Having an auld think about the biggest purchase you'll ever make in life would be a good shout.

My household personal circumstances haven't changed, why you would assume that everyones have?

"Freefall" and "skyrocket" are very emotive terms to be using.

Cuddlesworth

snoopboggybog wrote: »

I did, unless I actually have the 53K saved when applying they can't alter the exemption for some reason. Maybe its because I'm a single applicant.

Like its absolutely ridiculous. Have a good career, good prospects etc in a company that employs around 35,000 globally.

I'm a 10 minute drive from work in the place where I grew up.

Its just ****ing frustrating. I have the 25K good to go and renting at the same time.

I can understand the 3.5 rule for some jobs but I'm getting absolutely shafted.

You can get a exemption for the income ratio or the deposit. It helps when looking for either, if the other is significantly over. Remember, your in competition for a exception with the banks other customers.

200k = 20k needed for deposit.
25k minus stamp duty, solicitor fees and other is not a significant deposit. Its just there at the minimum.

So from what you have said, it seems like you would have better luck if you had a extra 10k or so in your deposit to "get" the exception. At that point, your pay will probably have increased for additional borrowing capacity. Or the house could go down in value.

PokeHerKing

GreeBo wrote: »

My household personal circumstances haven't changed, why you would assume that everyones have?

"Freefall" and "skyrocket" are very emotive terms to be using.

So you're going about your normal day as you were last month?

Knex*

GreeBo wrote: »

My household personal circumstances haven't changed, why you would assume that everyones have?

"Freefall" and "skyrocket" are very emotive terms to be using.

Whatever about emotive, they're accurate.

what_traffic

Know of two purchases in the last week.
Galway City (asking 240k sold for 215k)
and
Waterford City (245k sold for 225k)

Tasfasdf

what_traffic wrote: »

Know of two purchases in the last week.
Galway City (asking 240k sold for 215k)
and
Waterford City (245k sold for 225k)

What locations was the Galway one? Seems a huge drop for Galway city

Mad_maxx

pearcider wrote: »

The Japanese bubble is dwarfed by the US bond bubble. Both the balance sheet of the federal reserve and the fiscal position of the US treasury have deteriorated dramatically since 2008.

The bond market has been in a bull market since 1982,bubbles don't last the guts of forty years

They are manic induced and last no more than a few years

Mad_maxx

Tasfasdf wrote: »

What locations was the Galway one? Seems a huge drop for Galway city

I wouldn't consider that a huge drop at all

Zenify

Mad_maxx wrote: »

I wouldn't consider that a huge drop at all

I was thinking the same. Sellers did very well given the current circumstances

what_traffic

Tasfasdf wrote: »

What locations was the Galway one? Seems a huge drop for Galway city

Westside of the City. Rahoon/Newcastle
House in same area 9 months ago were selling 250k, house needed 20k interior work done.

GreeBo

PokeHerKing wrote: »

So you're going about your normal day as you were last month?

From a financial point of view, yes.

GreeBo

Knex. wrote: »

Whatever about emotive, they're accurate.

I didnt realise anyone had defined either of them

shatners bassoon

EA emailed me about a house in D7 which had been sale agreed at c530k pre covid but fell through to advise that there are now two bidders and the current offer is 510k.

lir6777

Can I ask people's advice on a new build? I put a booking deposit down less than a month ago but am now worried the house will no longer be worth what I agreed to pay. I could back out but this was a situation where I had to queue in the small hours of the night to put my name down and was lucky to get it, so I'm reluctant to just let it go without a good think. I doubt there's much scope to negotiate the price for a big development is there? Or would the eventual valuation from the bank next year be an issue? I really don't want to end up in negative equity, even though I planned in theory to stay put for at least 5 years I don't want to be totally trapped either. Just want to know what my options might be in terms of the price- any thoughts?

fliball123

lir6777 wrote: »

Can I ask people's advice on a new build? I put a booking deposit down less than a month ago but am now worried the house will no longer be worth what I agreed to pay. I could back out but this was a situation where I had to queue in the small hours of the night to put my name down and was lucky to get it, so I'm reluctant to just let it go without a good think. I doubt there's much scope to negotiate the price for a big development is there? Or would the eventual valuation from the bank next year be an issue? I really don't want to end up in negative equity, even though I planned in theory to stay put for at least 5 years I don't want to be totally trapped either. Just want to know what my options might be in terms of the price- any thoughts?

Well it depends on your current circumstances are you renting, living at home and can you continue to do so. also if you go ahead there might be a fair amount of time before movers, tilers, sparks and other handyman or workers are around to put in the finishing touches to your new house.

Claw Hammer

You haven't got a contract out yet so you are under no pressure. When you get the contract you can sit on it for a while before you are forced to do something.
It may well be that there will be no funding to finish out building projects and the house will not be built anyway.

SozBbz

lir6777 wrote: »

Can I ask people's advice on a new build? I put a booking deposit down less than a month ago but am now worried the house will no longer be worth what I agreed to pay. I could back out but this was a situation where I had to queue in the small hours of the night to put my name down and was lucky to get it, so I'm reluctant to just let it go without a good think. I doubt there's much scope to negotiate the price for a big development is there? Or would the eventual valuation from the bank next year be an issue? I really don't want to end up in negative equity, even though I planned in theory to stay put for at least 5 years I don't want to be totally trapped either. Just want to know what my options might be in terms of the price- any thoughts?

I'd evalutate the costs of going ahead (monthly repayments etc) to the costs of your current circumstances.

In any event, it sounds like it was a desirable development if you had to queue like that. You can always try to see if you can renegotiate the price (don't ask, don't get) but keep in mind the developer might not be motivated to talk just yet. Another option would be to see if you could get some extras to stay in the sale, like flooring or a kitchen etc depending on what is or isnt already included.

Knex*

shatners bassoon wrote: »

EA emailed me about a house in D7 which had been sale agreed at c530k pre covid but fell through to advise that there are now two bidders and the current offer is 510k.

I find that very hard to believe.

what_traffic

what_traffic wrote: »

Know of two purchases in the last week.
Waterford City (245k sold for 225k)

To add context, just 1 month ago offer was made for 230k, was rejected, then EA rang back last Tuesday saying offer was accepted - put in 225k and was accepted 1h later. Sale Agreed
I personally would have held off for another period of time. This is only the start of the downturn.

landofthetree

Mad_maxx wrote: »

I wouldn't consider that a huge drop at all

It's over 10% after only a couple of weeks of the crisis