To Buy or Not to Buy

circlek

After being unsuccessful for nearly two years I've finally narrowed in to one apartment in Dublin 18.


Got a mortgage but the vendors wants to sell quick as they are looking to relocate so will drop the price by €10k for a cash purchase, which I have as I had an issue with another apartment in a different complex earlier and had to raise cash.


Thanks to boards.ie I'm now confused about the economy, housing market etc.


Should I buy now or wait?


The apartment (2bed/2bath/80sqm) costs €360,000 down from asking €375,000, for cash it is €350,000.


During the "last" recession, apartments in the complex sold for around 180-250k.



So what would you do if you have the cash funds, selected an apartment, not a forever home, be looking to upgrade in 5-10 years to a 3+ bed house.


Thanks

Idbatterim

Depends on cost and how bearable your current set up is. How secure is job ? Few big factors for me there personally

You don’t have budget for “ forever” home now ? I think I’d compromise on location within reasonable. And go for house, rather than apartment, if apartment is planned on being a shortish term option

AlmightyCushion

I'd be wary of anyone looking to do a quick cash sale. There could be something wrong with the place that means you can't get a mortgage on it or they could be hiding something and are hoping you skip surveys or solicitor's checks to close the sale and don't find it out until after the sale is complete.

Of course, everything could be above board but do your due diligence and don't skip anything.

circlek

Idbatterim wrote: »

Depends on cost and how bearable your current set up is. How secure is job ? Few big factors for me there personally

You don’t have budget for “ forever” home now ? I think I’d compromise on location within reasonable. And go for house, rather than apartment, if apartment is planned on being a shortish term option

Secure enough job. Even if I lose my job, the rent a room allowance itself "should" be able to keep me floating until things improve.

I've tried houses and prices are mad. A 3 bed, 96sqm, asking 425, goes for 460 in a not great area. Same house during the last recession was sold cheaper than the apartment!

Isn't an apartment at the lower end of the scale(€300-350k), built 10-15years ago, low BER(C+) supposed to hold its value better than a house (€450-500k) built over 20-25 years ago with high BERs(E-) in average areas?

The house(460k) and apartment(360k) are both within the M50 area bordering Sandyford/Dundrum.

Rent wise - house (3bed) and apartment (2bed) will get a similar rent! Only difference is the apartment will have management charges etc. so after tax value is lower.

circlek

AlmightyCushion wrote: »

I'd be wary of anyone looking to do a quick cash sale. There could be something wrong with the place that means you can't get a mortgage on it or they could be hiding something and are hoping you skip surveys or solicitor's checks to close the sale and don't find it out until after the sale is complete.

Of course, everything could be above board but do your due diligence and don't skip anything.

I've been bitten once already! Had to pay solicitor, surveyor and engineer and walk away with a big enough loss.

dalyboy

circlek wrote: »

Secure enough job. Even if I lose my job, the rent a room allowance itself "should" be able to keep me floating until things improve.

I've tried houses and prices are mad. A 3 bed, 96sqm, asking 425, goes for 460 in a not great area. Same house during the last recession was sold cheaper than the apartment!

Isn't an apartment at the lower end of the scale(€300-350k), built 10-15years ago, low BER(C+) supposed to hold its value better than a house (€450-500k) built over 20-25 years ago with high BERs(E-) in average areas?

The house(460k) and apartment(360k) are both within the M50 area bordering Sandyford/Dundrum.

Rent wise - house (3bed) and apartment (2bed) will get a similar rent! Only difference is the apartment will have management charges etc. so after tax value is lower.

In the event of total economic destruction I would not be counting on rental income from the “rent a room” scheme. Things will change VERY quickly and both the rental demand / high rents and general rental dynamic is not predictable. Good luck either decision you make though

Idbatterim

Just looked at d18 there on my home. I take it at that price it’s inside m50? Do you work locally ?

Look at below.

https://www.myhome.ie/residential/brochure/7-blackthorn-grove-sandyford-dublin-16/4412792#&gid=1&pid=7

DelBoy Trotter

Idbatterim wrote: »

Just looked at d18 there on my home. I take it at that price it’s inside m50? Do you work locally ?

Look at below.

https://www.myhome.ie/residential/brochure/7-blackthorn-grove-sandyford-dublin-16/4412792#&gid=1&pid=7

A house that is right beside the m50, very close to two Luas stops and is in Sandyford (with an asking price of €350k ) is cheap for a reason, and it's not the actual house

Idbatterim

DelBoy Trotter wrote: »

A house that is right beside the m50, very close to two Luas stops and is in Sandyford (with an asking price of €350k ) is cheap for a reason, and it's not the actual house

Your saying estate is dodgy ? Its settled.

DelBoy Trotter

Idbatterim wrote: »

Your saying estate is dodgy ? Its settled.

It is dodgy. It's not as bad as it was 20 years ago, but it's still dodgy

Diemos

What about here?
Good area, close to the dart.

https://touch.daft.ie/for-sale/semi-detached-house-108-quinns-road-shankill-co-dublin/1510231

Claw Hammer

circlek wrote: »

Isn't an apartment at the lower end of the scale(€300-350k), built 10-15years ago, low BER(C+) supposed to hold its value better than a house (€450-500k) built over 20-25 years ago with high BERs(E-) in average areas?

The house(460k) and apartment(360k) are both within the M50 area bordering Sandyford/Dundrum.

.

Apartments NEVER hold their value as well as houses.

0gac3yjefb5sv7

Claw Hammer wrote: »

Apartments NEVER hold their value as well as houses.

Any evidence?

Dolbhad

Pheonix10 wrote: »

Any evidence?

In last recession if people couldn’t afford a mortgage on an apartment, you can bet the last thing they were paying was management charges. Then the management company had no money and operating at a loss. Made it very difficult to shift an apartment if management company wasn’t operated.

It’s much easier for things to go wrong in an apartment down the line outside your control. Management company could be sued, the roof could have leaks etc. And your dependant on someone else to fix these but affects you selling.

0gac3yjefb5sv7

Dolbhad wrote: »

In last recession if people couldn’t afford a mortgage on an apartment, you can bet the last thing they were paying was management charges. Then the management company had no money and operating at a loss. Made it very difficult to shift an apartment if management company wasn’t operated.

It’s much easier for things to go wrong in an apartment down the line outside your control. Management company could be sued, the roof could have leaks etc. And your dependant on someone else to fix these but affects you selling.

They may not afford management fees, but they may also not afford housing repairs and maintenance which wouldn't be the case for an apartment. House insurance etc.

Claw Hammer

Pheonix10 wrote: »

Any evidence?

Many older blocks in Dublin were built in very good areas and when new cost mosre than neighburing standard houses. Milltown in Dublin is a good example. Thrre was a very high class development built there 40 years ago called Grove House. There is an ex council house on the market in Windy Arbour of asking more than one on the market in Grove House. The square footage is similar. 40 years ago the differential was massively in favour of the apartment.