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Cash buyer: Buy soon or wait it ou
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Borrow the difference and buy want you want. This fear of a mortgage is childish stuff. You may also struggle to get a mortgage as low as 80k and to be honest it’s a dangerous game assuming prices will drop so much if at all. This is not like other “recessions” a lot of people didn’t lose jobs or have pay cuts especially in high paying sectors like tech in fact some areas are booming right though the corona virus. All the business that get back to work over the next while will still have the work they had before hand it hasn’t gradually dried up like normal recessions it was just paused. House prices are already recovering the bit they did drop so I really think you are foolish to assume the big drop will happen that you are hoping for.
Are you also considering the fact you are throwing away 450pm on rent now? If you were to borrow more and have your own place this could go towards paying off the mortgage faster along with the money you intended saving and I wouldn’t be surprised if you did the maths that you could end up mortgage free close to if not as quick going this route but have all the advantages of your own home, not sharing etc.0 -
Either buy something with cash or take a mortgage with 10% deposit
What your doing is absolutely idiotic
Your giving a bank €180,000 in cash, are you mad?
Makes no sense when mortgages are practically free these days, with rates as low 2.6%
Keep your cash or use it to get a bargain, don't give it to a bank
Banks will have so many people in arrears soon and they will be laughing asses off at you giving them €180,000 in these times, when they won't be able to get €100 a week off some customers in 300k houses
Why can't you buy something outright for €180,000 cash?
Where you looking to buy?
You could buy something now with cash, keep saving and then get a mortgage later on and own 2 properties.
With the cash you have, endless options, don't be an idiot and give the bank, all I am saying.
This post is absolute rubbish. To begin with you aren’t giving the bank 180k if you use it towards your purchase you are using it to pay the current owner of the house. Secondly while I wouldn’t use the full 180k it would be very wise to use the majority of it to minimise your mortgage, minimise the interest you pay and minimise your mortgage payments etc. If I had 180k I’d be putting 150k towards the house and keeping 30k in savings/I’m investments and starting to add to it again after buying.
It’s also a very bad idea to “make do” with a house for 180k just because you can afforded it outright much better to use the combination of a mortgage and the savings to buy what you want.0 -
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Chill. Big difference between "the property market" and buying a home. Dont buy anything unless you love it. Pay whatever you can afford. The property market will do whatever it likes for every reaon and no reason. If anyone knew why all auctioneers would retire at 40. No-one has a clue. So sit where you are where you are happy. No rush. Wait until "your house" arrives and then buy it.0
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There will be up to 50,000 social houses built within the next few years, this will ease things with the supply side, i don't think we will see such a big drop though, i'm thinking more along the lines of 12-15% across the board.
There is a big difference between political promises and reality. These houses are unlikely to materialise.
If prices of houses drop by what you hope they will it's unlikely such houses will manifest.
OP, I think there are many people on this board who will tell you buy/don't buy. I've been coming here for two years and the advice has always been the same ,"the market is going to crash in 12 months", or "the market won't crash and it'll be business as usual".
Buy a house when you are ready rather than listening to random people online.
In hindsight I wish we had bought two years ago.0 -
As the title indicates, majority cash buyer here. Age 33, was saving a lot over the past 5 years but was fortunate enough to inherit a large sum of money and i currently have 180k deposit. The properties i am interest in are valued at around the 370k mark. My plan is to save up an additional 40k over the next 2 years and hope to purchase said property for around 300k with 220 down, leaving me with a mortgage of 80k at age 36.
OR
As i know time is not on my side i was contemplating purchase a property now for 250k however it would not be a property i am really happy with and would likely want to move in a few years. The 1st scenario would entail purchasing my forever home.
Currently renting a room from a childhood friend for 450 pm for the past 4 years and very happy with the situation but i need to purchase soon.
Any posters in a similar boat? Should i stay put hoping prices drop a small bit
Danke
With 250K you can buy a 1bed apt in town. You are never gonna regret that even in ten years. Don't take a huge mortgage at any age0 -
If I were you I would buy a house as soon as you can. I doubt we'll see better prices whether it be for mortgages or anything else. If a country wants a fair marketplace and fairer life in general, there has to be people at the top who believe the same and create policies that protect working people. That doesn't happen here; pre covid or post covid. Bottom line is that big business in Ireland has lost a lot of money during the lockdown, and they'll be looking to get all their lost money back! Expect higher prices across the board. I see property prices rising higher.0
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Liliana Full Stock wrote: »This post is absolute rubbish. To begin with you aren’t giving the bank 180k if you use it towards your purchase you are using it to pay the current owner of the house. Secondly while I wouldn’t use the full 180k it would be very wise to use the majority of it to minimise your mortgage, minimise the interest you pay and minimise your mortgage payments etc. If I had 180k I’d be putting 150k towards the house and keeping 30k in savings/I’m investments and starting to add to it again after buying.
It’s also a very bad idea to “make do” with a house for 180k just because you can afforded it outright much better to use the combination of a mortgage and the savings to buy what you want.
Mortgage money is the cheapest money you ever borrow. People have a fixation with reducing mortgage borrowing. 30 years ago it made sense with interest rates of 8-10% and being charged a 2-3%premium to fix for even 5 years.
People often try to keep mortgage borrowing and are down at the credit unions a few weeks/years later borrowing money at 7%. Twenty years later they borrow another mortgage to put kids through college at 4-5%
There is no way in hell if I could afford to comfortably make the repayments that I would not maximizing my mortgage draw down. You can always change you mind 3-5 years down the line and repay a lump off it.
I semi retired a while back I had 3 loans, a credit union load for a tractor, a small personal loan that we bought a cheap property both att about 7% a with and a fairly substantial commercial tracker that has 5+years left. I paid down the 7% loans but I not giving the bank back any free money they gave me. Money is worth about 5% because of the opportunity value it gives me.Slava Ukrainii
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Bass Reeves wrote: »Mortgage money is the cheapest money you ever borrow. People have a fixation with reducing mortgage borrowing. 30 years ago it made sense with interest rates of 8-10% and being charged a 2-3%premium to fix for even 5 years.
People often try to keep mortgage borrowing and are down at the credit unions a few weeks/years later borrowing money at 7%. Twenty years later they borrow another mortgage to put kids through college at 4-5%.
which is why I said using the example of 180k, I’d be keeping 30kish back and putting the rest towards the house. That 30k should cover anything really that might pop up and the small mortgage means you can start adding to it straight away.
It gives a lot of security having a small mortgage or getting it paid off earlier due to it being small if there are job losses etc or thing pop up. I would certainly encourage people to save towards college etc but I’d see that as a separate account from other savings with child benefit going into it from day one.
The other thing is if you don’t put the money into the house then you would really need to invest it (aside from around 30k or so) to keep track with inflation but if it’s locked into investments you can’t access it and you are in the same situation as if you put it in the house I.e. if something so significant that 30k didn’t cover it came up you would have to borrow as invested money is normally inaccessible.0 -
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Liliana Full Stock wrote: »which is why I said using the example of 180k, I’d be keeping 30kish back and putting the rest towards the house. That 30k should cover anything really that might pop up and the small mortgage means you can start adding to it straight away.
It gives a lot of security having a small mortgage or getting it paid off earlier due to it being small if there are job losses etc or thing pop up. I would certainly encourage people to save towards college etc but I’d see that as a separate account from other savings with child benefit going into it from day one.
The other thing is if you don’t put the money into the house then you would really need to invest it (aside from around 30k or so) to keep track with inflation but if it’s locked into investments you can’t access it and you are in the same situation as if you put it in the house I.e. if something so significant that 30k didn’t cover it came up you would have to borrow as invested money is normally inaccessible.
Giving the bank 150k is idiotic
You can borrow for 2.3%, it's practically free money
Cheapest money ever as pointed out to you
Or look at it another way, you dont invest 150k to get a 2.3% return
Do you think thats a good investment?
That's what your doing effectively0 -
Liliana Full Stock wrote: »which is why I said using the example of 180k, I’d be keeping 30kish back and putting the rest towards the house. That 30k should cover anything really that might pop up and the small mortgage means you can start adding to it straight away.
It gives a lot of security having a small mortgage or getting it paid off earlier due to it being small if there are job losses etc or thing pop up. I would certainly encourage people to save towards college etc but I’d see that as a separate account from other savings with child benefit going into it from day one.
The other thing is if you don’t put the money into the house then you would really need to invest it (aside from around 30k or so) to keep track with inflation but if it’s locked into investments you can’t access it and you are in the same situation as if you put it in the house I.e. if something so significant that 30k didn’t cover it came up you would have to borrow as invested money is normally inaccessible.
30k is only beer money. It has no opportunity value. Say OP is right and houses fall 20%+ would it not make more sense to buy two a home and an investment property. As he said part of the money is an inheritance,l. He had not originally factored it into his deposit. Saving is grand but it will take years to put 100k in opportunity money together again.
At present you can still buy holiday homes that are pool rental tied for sub 100k. The rental side will be released in 5-10 years in most cases. You still buy investment properties in small to mid sized towns for sub 100k. If OP is willing to gamble on house prices being down in 1-2year time there will be other investment opportunities as well.Slava Ukrainii
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Giving the bank 150k is idiotic
You can borrow for 2.3%, it's practically free money
Cheapest money ever as pointed out to you
Or look at it another way, you dont invest 150k to get a 2.3% return
Do you think thats a good investment?
That's what your doing effectively
And so you keep saying..... Also, that is not not what "i am doing effectively".
What i will be doing (if successful) is owning my forever home outright and being mortgage free at age 40. The peace of mind of not having a mortgage at that age will make me sleep well every night, giving me abundance in almost all areas of life. That is what matters to me, borrow all the "free money" you want, you still have to pay it back(plus interest).
Everyone has a different opinion, it makes life interesting. Enjoy the "free money".0 -
And so you keep saying..... Also, that is not not what "i am doing effectively".
What i will be doing (if successful) is owning my forever home outright and being mortgage free at age 40. The peace of mind of not having a mortgage at that age will make me sleep well every night, giving me abundance in almost all areas of life. That is what matters to me, borrow all the "free money" you want, you still have to pay it back(plus interest).
Everyone has a different opinion, it makes life interesting. Enjoy the "free money".
If your paying off 80 grand in 4 years, including compound interest you must be really making some serious dosh!0 -
Buy now if you can i think. Its not an investment if its your forever home. After you buy....Forget about how much its worth. All you have to think about then is can I afford the mortgage.
Dont assume property prices will fall in 2 years time.
P.s. you are not a cash buyer!0 -
Giving the bank 150k is idiotic
You can borrow for 2.3%, it's practically free money
Cheapest money ever as pointed out to you
Or look at it another way, you dont invest 150k to get a 2.3% return
Do you think thats a good investment?
That's what your doing effectively
You still haven’t explained how to me how using 150k towards the purchase is “giving money to the bank”? Unless you are buying a repossessed house that is.
Also the op would not be able to borrow enough to buy the house he wants without a sizeable deposit. It will be the same for myself with a house build, I will be putting significantly more than 10% towards it in cash as I want to minimise the mortgage but also I simply would not get a mortgage high enough to pay for the house I want to build without a large deposit.Bass Reeves wrote: »30k is only beer money. It has no opportunity value. Say OP is right and houses fall 20%+ would it not make more sense to buy two a home and an investment property. As he said part of the money is an inheritance,l. He had not originally factored it into his deposit. Saving is grand but it will take years to put 100k in opportunity money together again.
At present you can still buy holiday homes that are pool rental tied for sub 100k. The rental side will be released in 5-10 years in most cases. You still buy investment properties in small to mid sized towns for sub 100k. If OP is willing to gamble on house prices being down in 1-2year time there will be other investment opportunities as well.
The op is like most people buying a home and has little or no interest in investment properties. He wants the smallest mortgage possible like most. Now I would personally put the 150k up now and borrow the rest to buy the 370k house rather than keep saving (and wasting money in rent) but I would still agree more with him to be honest than borrowing more than is necessary in a mortgage.
The term opportunity money means nothing to me personally would never enter my head when it comes to trying to minimize a mortgage on my forever home (which is guaranteed in my case as I’m building at home so could never sell).0 -
There will be up to 50,000 social houses built within the next few years, this will ease things with the supply side, i don't think we will see such a big drop though, i'm thinking more along the lines of 12-15% across the board.
Why are you staying here that a 15% drop is expected, yet your opening posts hopes to get a 450k house for 300k ??0 -
I'm in a similar situation. I have a 310k deposit.
Trying to decide between buying a 310k house with no mortgage, buying a 500kish house with big mortgage, something in between or just waiting a while longer.
I'm leaning towards buying mortgage free, I don't buy into this talk of free money. How is it free at 2.6 percent interest....makes no sense to me.
Yes it might be cheaper money but it's not free, I'd rather not pay back interest.0 -
Empty_Space wrote: »I'm in a similar situation. I have a 310k deposit.
Trying to decide between buying a 310k house with no mortgage, buying a 500kish house with big mortgage, something in between or just waiting a while longer.
I'm leaning towards buying mortgage free, I don't buy into this talk of free money. How is it free at 2.6 percent interest....makes no sense to me.
Yes it might be cheaper money but it's not free, I'd rather not pay back interest.
You get to live in a nicer house in a nicer area?
I mean that why youd go for the 500k house for a 190k mortgage.Makes sense to me0 -
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Liliana Full Stock wrote: »You still haven’t explained how to me how using 150k towards the purchase is “giving money to the bank”?
He's only required to give 10% deposit on the mortgage, better to keep all that cash for investment purposes, especially if a big recession is coming and opportunites will arise
Banks here don't repossess lightly either, people should use that situation advantage and take the cheap rates of 2.3%, even if you go through hard times you will not be forced out, people are too nice to banks, sounds a bit scummy behaviour but they've done if for years themselves.
Anyway cash has it's advantages, from my own experience I bought my house in early 2016 for 128k in savings, was advertised at 140k, 2 buyers had bids accepted at near asking price in late 2015 but mortgages were taking ages to go through, seller in frustration got back me few months later and accepted my take it or leave bid of 128 ( had forgotten about house ), house is worth approx 200k or so now.
In 2012/13 I could have got similar property for 110k, maybe even 100k, my point is if a recession does come bad again I would love to be in a situation with a low interest mortgage and huge cash savings
Wouldn't you?0 -
As the title indicates, majority cash buyer here. Age 33, was saving a lot over the past 5 years but was fortunate enough to inherit a large sum of money and i currently have 180k deposit. The properties i am interest in are valued at around the 370k mark. My plan is to save up an additional 40k over the next 2 years and hope to purchase said property for around 300k with 220 down, leaving me with a mortgage of 80k at age 36.
OR
As i know time is not on my side i was contemplating purchase a property now for 250k however it would not be a property i am really happy with and would likely want to move in a few years. The 1st scenario would entail purchasing my forever home.
Currently renting a room from a childhood friend for 450 pm for the past 4 years and very happy with the situation but i need to purchase soon.
Any posters in a similar boat? Should i stay put hoping prices drop a small bit
Danke
OP, the best time to buy is the time that's right for you. If you see somewhere you love, buy it - you are in a great position! Do not buy somewhere you wouldn't be happy with, that'd be mad.
You seem to think 190k is a huge mortgage or committment. It's not! It's a pretty small mortgage, even for a single borrower. If you can save 40k in two years, you can overpay on the mortgage as well if you want. Better than paying dead money in rent too.
Prices won't be falling either, and you can't predict what'll happen in 2022! Demand is only going to rise due to various factors, and imo prices will most likely rise or remain steady at the very least.0 -
There will be up to 50,000 social houses built within the next few years, this will ease things with the supply side, i don't think we will see such a big drop though, i'm thinking more along the lines of 12-15% across the board.
What happened with the last recession? They stopped building social housing almost completely so expecting 50k houses to be built while a recession is on isn't going to happen. In fact, the building of houses will grind to a halt if your prediction is true. Can you remember the quality of homes for sale in the last recession? I was looking from 2010 onward and the houses were ****e. Anything half decent and you've got 5+ others bidding against you. The other thing to consider is people who went though the last one know that it will end eventually. People won't be kicked out of their homes for not paying to as we know so supply will be next to none.0 -
He's only required to give 10% deposit on the mortgage,
This is the minimum requirement but unless the op is earning 100k a year he would not get enough of a mortgage to buy his 370k house. If he was on around the average salary in the country he would need to be putting a very high deposit in to make up the difference between what he could borrow and what he needs.my point is if a recession does come bad again I would love to be in a situation with a low interest mortgage and huge cash savings
Wouldn't you?
No I’d prefer to be in the very situation I described (failing actually owning the house I want outright) which is the smallest mortgage possible and enough savings to cover any unforeseen things that crop up along with adding to them savings every month as my mortgage repayment would be quite low.
I will be putting about 80% of our savings into our house build. Not FTB so we would need 20% deposit anyway and it’s going to be expensive and we don’t want a massive mortgage which is a very wise move. I would highly disagree with your outlook and would see it as very foolish getting a bigger mortgage than you need.0 -
Liliana Full Stock wrote: »This is the minimum requirement but unless the op is earning 100k a year he would not get enough of a mortgage to buy his 370k house. If he was on around the average salary in the country he would need to be putting a very high deposit in to make up the difference between what he could borrow and what he needs.
No I’d prefer to be in the very situation I described (failing actually owning the house I want outright) which is the smallest mortgage possible and enough savings to cover any unforeseen things that crop up along with adding to them savings every month as my mortgage repayment would be quite low.
I will be putting about 80% of our savings into our house build. Not FTB so we would need 20% deposit anyway and it’s going to be expensive and we don’t want a massive mortgage which is a very wise move. I would highly disagree with your outlook and would see it as very foolish getting a bigger mortgage than you need.
Mortgage borrowing is the cheapest firm of borrowing you will ever access. At present variable and long term is sub 3%. To put it into perceptive a 250k mortgage costs about 1150/month.
OP expects to be able to save 15-20k/year even when paying a 80k mortgage. Those that consider 30k as suitable to cover situations arising are not looking at day to day issues. OP will have to furnish and maybe carry out renovation to his house. There is always spendings on any so called forever home. Then there is maybe the need to buy a car or other mid ticket items. If OP has to borrow money for any of these the lending will be short term (3-5 years) and at nearly 3 times mortgage lending.
As I said 30k is beer moneySlava Ukrainii
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Empty_Space wrote: »I'm in a similar situation. I have a 310k deposit.
Trying to decide between buying a 310k house with no mortgage, buying a 500kish house with big mortgage, something in between or just waiting a while longer.
I'm leaning towards buying mortgage free, I don't buy into this talk of free money. How is it free at 2.6 percent interest....makes no sense to me.
Yes it might be cheaper money but it's not free, I'd rather not pay back interest.
You're in an amazing position with that deposit it sounds like, so go for the home you really want. If you can afford the resulting payments, a mortgage is a smart way of getting it while minimising the size of it with that large deposit.0 -
Bass Reeves wrote: »Mortgage borrowing is the cheapest firm of borrowing you will ever access. At present variable and long term is sub 3%. To put it into perceptive a 250k mortgage costs about 1150/month.
OP expects to be able to save 15-20k/year even when paying a 80k mortgage. Those that consider 30k as suitable to cover situations arising are not looking at day to day issues. OP will have to furnish and maybe carry out renovation to his house. There is always spendings on any so called forever home. Then there is maybe the need to buy a car or other mid ticket items. If OP has to borrow money for any of these the lending will be short term (3-5 years) and at nearly 3 times mortgage lending.
As I said 30k is beer money
The 30k is also being added to every month remember also so it’s increasing. I also wouldn’t consider any of that being towards furnishing/renovations it’s that would could out of the 150k in the ops situation.
I honestly don’t know what sort of unexpected expanses you have because seeing 30k as only beer money is just outlandish. It’s a significant amount of money and will cover what most people could need in any unforeseen situation. Also it’s being added to monthly. You are also ignoring the fact that you should not be holding large sums of cash it should be invested. So in your example, max mortgage keep large sums of money the majorly should be invested and therefore it would not be accessible for the unforeseen things above 30k which you are coming up with.
I also just don’t like it as a way to manage finance, I’d rather get a car loan if needed than be trying to predict into the future especially as there are no plenty of low to 0% options out there on pcp etc also.0 -
Liliana Full Stock wrote: »The 30k is also being added to every month remember also so it’s increasing. I also wouldn’t consider any of that being towards furnishing/renovations it’s that would could out of the 150k in the ops situation.
I honestly don’t know what sort of unexpected expanses you have because seeing 30k as only beer money is just outlandish. It’s a significant amount of money and will cover what most people could need in any unforeseen situation. Also it’s being added to monthly. You are also ignoring the fact that you should not be holding large sums of cash it should be invested. So in your example, max mortgage keep large sums of money the majorly should be invested and therefore it would not be accessible for the unforeseen things above 30k which you are coming up with.
I also just don’t like it as a way to manage finance, I’d rather get a car loan if needed than be trying to predict into the future especially as there are no plenty of low to 0% options out there on pcp etc also.
30k is beer money
20k is a decent kitchen
Its nothing tbh
A new roof, tripled glazed windows, outside garage type building, landscaping a nice garden would blow most of it
A decent walk in wardrobe costs 10k
Someone buying a 370k property should know that0 -
all of the government revenue or borrowings will go towards maintaining public sector pay and welfare , there wont be enough to build all these social houses0
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30k is beer money
20k is a decent kitchen
Its nothing tbh
A new roof, tripled glazed windows, outside garage type building, landscaping a nice garden would blow most of it
A decent walk in wardrobe costs 10k
Someone buying a 370k property should know that
I made the point in my last post that the 30k in the example is totally speerate and not to be earmarked for the house. For simplicity I was working off the assumption that the 370k house is in perfect condition etc. Obviously if you need furnishings, work done etc you increase the mortgage amount and keep back more of the deposit towards the works. I thought that would have been fairly clear.
Also 10k for a walk in wardrobe? I’d like to be doing work for you if that’s what you think it should cost.0
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