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Smallest amount I can bid?

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    #62
    ted1
    Registered Users Posts: 23,515 ✭✭✭✭ted1


    Claw Hammer wrote: »
    So your 76% was wrong so1

    No, it was used as an example based on price of 100k someone else mentioned.
    However your figure based on a house value of 246k was indeed wrong.


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    #63
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    ted1 wrote: »
    No, it was used as an example based on price of 100k someone else mentioned.
    However your figure based on a house value of 246k was indeed wrong.

    You were replying to me . You took an 80% LTV and then produced another figure which you claim is a lower LTV. makes no sense.


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    #64
    ted1
    Registered Users Posts: 23,515 ✭✭✭✭ted1


    Claw Hammer wrote: »
    You were replying to me . You took an 80% LTV and then produced another figure which you claim is a lower LTV. makes no sense.

    If you pay less and use the same deposit, your LTV will reduce. Makes perfect sense.


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    #65
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    ted1 wrote: »
    If you pay less and use the same deposit, your LTV will reduce. Makes perfect sense.

    Where did you get the 192.8 from?


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    #66
    ted1
    Registered Users Posts: 23,515 ✭✭✭✭ted1


    Claw Hammer wrote: »
    Where did you get the 192.8 from?



    246k * .2= 49.2 deposit
    Mortgage = 196.8

    Take away the 4K you saved by not increasing your bid. Your mortgage =192.8


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    #67
    wench
    Registered Users Posts: 1,644 ✭✭✭wench


    ted1 wrote: »
    246k * .2= 49.2 deposit
    Mortgage = 196.8

    Take away the 4K you saved by not increasing your bid. Your mortgage =192.8
    You've deducted the 4K twice there, off the purchase price and again off the mortgage.


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    #68
    ted1
    Registered Users Posts: 23,515 ✭✭✭✭ted1


    wench wrote: »
    You've deducted the 4K twice there, off the purchase price and again off the mortgage.
    It’s a fictional purchase price.

    If you pay less , you take a smaller mortgage.


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    #69
    wench
    Registered Users Posts: 1,644 ✭✭✭wench


    ted1 wrote: »
    It’s a functional purchase price.

    If you pay less , you take a smaller mortgage.
    Yes, the mortgage went from 200 to 196.8
    You can't deduct the 4k again


    Your suggested deposit of 49.2 + 192.8 only gets us to a purchase price of 242


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    #70
    ted1
    Registered Users Posts: 23,515 ✭✭✭✭ted1


    wench wrote: »
    Yes, the mortgage went from 200 to 196.8
    You can't deduct the 4k again


    Your suggested deposit of 49.2 + 192.8 only gets us to a purchase price of 242

    Yes, as opposed to the fictional price 246


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    #71
    wench
    Registered Users Posts: 1,644 ✭✭✭wench


    ted1 wrote: »
    Yes, as opposed to the fictional price 246
    You started with a price of 250 though, so 246 was the discounted amount.


    ted1 wrote: »
    Say they have mortgage approval of 200k and a 50k deposit. Instead of paying 250k, they could pay 246k. Thus keeping 4K cash.


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    #72
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    ted1 wrote: »
    246k * .2= 49.2 deposit
    Mortgage = 196.8

    Take away the 4K you saved by not increasing your bid. Your mortgage =192.8

    You are paying 246k. You have 50k. The least you can borrow is 196k. 192.8 doesn't come into it. You have deducted the 4k once and then 80% of it subsequently. You can't spend the same money twice!


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    #73
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    ted1 / wench / claw hammer, take it to PM.


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    #74
    witnessmenow
    Registered Users Posts: 7,144 ✭✭✭witnessmenow


    I'm not sure how much other peoples bidding tactics would have impacted us when we were buying. We decided a max figure before we started bidding on the house (it probably helped the max was limited by our finances more than how much we liked the house) and we wouldn't have been put off if someone made a "strong bid" of an extra 20k, if it was below our max, we would have put a new bid in.

    As for minimum bids, I'm not sure about that. I would have thought 1k is the minimum, but im not basing that on anything.
    ted1 wrote: »
    I bought mine for xxx,500
    I let on thats alm I could afford and had to borrow and scrounge to come up with that amount.

    I tried this tactic too, they called my bluff though! It was E2500 less than we ended up paying, my thoughts were E2500 on the top of mortgage, while not a lot extra per month, it was close to E5k over the lifetime of the mortgage. We were the only bidders at the time so we rolled the dice a little. We folded like a bad hand pretty sharpish though!


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