House sold, sitting on deposit. Scared of inflation

Bass Reeves

Darc19 wrote: »

And it's your answer that convinces me it's a troll.

Btw, nothing says it's a he or a she.

If the person the op has created is a woman with four children, and mortgage was near paid off, a court would never ever ever agree to a sale of the property

It's a total bullsh1t op especially when you look at the posts in other threads

They may or may ot. The situation is possible. If the house was sold the judgement may have been 12-18 months ago. They may have moved house or have only purchased this house when there first or second child was born. If it was a 25 year mortgage they would only be half way through. They have equity from the SE and probably savings. Four children could have a total 7-8 years age gap add 5-6 for the youngest and could only put them half way through the mortgage.

Would a judge order the sale of a house. Where there is substantial equity he generally would. If the order was granted 2 years ago it might at the time have seem a reasonable ruling. 350k would have bought a house or apartment.

If the mortgage was unsustainable for the OP by themselves ( ie. they could not get agreement from mortgage provider to put it in OP's name) then a judgement to sell might have been approved. Remember OP spouse has a housing need as well and if his name was on the loan he could not borrow for himself.
I have seen this situation back in 2015/16.

cluelessbuyer9

CIARAN_BOYLE wrote: »

You suggest a 4 bed in Dublin for 4 kids.

So there's 3 rooms for kids. Your saying it's OK for 2 of the kids to share but there's no possibility for others to share.

You might need to suck it up and say sorry kids you get 2 bedrooms between you when you visit here.

Forgot to mention i have a 19 year old from a previous relationship staying two nights per week plus four children under the age of twelve.

cluelessbuyer9

Darc19 wrote: »

In 30 years of buying and selling and moving and keeping an eye on the market, the sensationalist media and estate agents have NEVER got it right when it comes to pricing.

And I think they are very wrong now.

There's a short term shortage. There are 20,000+ new builds coming on stream between now and early next year.

You also have similar number that will come from people passing away ( media always forget this supply source)

Central Bank won't make many changes to rules and with many tech companies allowing work from home for at least two days a week, the pressure on Dublin prices will ease very soon.

Buying now would mean paying over the odds imo.

Thanks for taking the time, i hope you're right.

Experience_day

Seems like renting the best way forward for yourself imho....

inflation might be a swine but the market is certainly....uncertain.......

Flinty997

cluelessbuyer9 wrote: »

Thanks for taking the time, i hope you're right.

People have been saying this for about 10 yrs though. Supply going to explode and demand fall through the floor.

Flinty997

cluelessbuyer9 wrote: »

Forgot to mention i have a 19 year old from a previous relationship staying two nights per week plus four children under the age of twelve.

What you want isn't in Dublin. I realize that's useless advice. But from a space and cost POV Dublin's the worse place to be.

cluelessbuyer9

Flinty997 wrote: »

People have been saying this for about 10 yrs though. Supply going to explode and demand fall through the floor.

Sooner or later they will be right.

Dav010

cluelessbuyer9 wrote: »

Sooner or later they will be right.

Looks like it will be later.

cluelessbuyer9

Dav010 wrote: »

Looks like it will be later.

It could be but many expects have been wrong in the past.

Dav010

cluelessbuyer9 wrote: »

It could be but many expects have been wrong in the past.

This time house price rises are not built on easy credit or average wage earners buying BTL’s, it is due to lack of supply due to low build rates and huge demand even though there are stringent rules applied by the CB to ensure those who borrow can afford it. Neither are supply likely to increase, nor demand decrease to the extent that prices will drop any time soon.

You are right about the experts though, many expected the pandemic to cause prices to at least stagnate, but the supply/demand issues are so serious in Ireland, that prices continue to rise. Hence why I think hopes of price falls at least over the next few years is wishful thinking.

berocca2016

Check out this property I found using Daft

https://www.daft.ie/for-sale/semi-detached-house-6-oldtown-gardens-naas-co-kildare/3282836

Maybe look outside Dublin?

CrabRevolution

Dav010 wrote: »

This time house price rises are not built on easy credit or average wage earners buying BTL’s, it is due to lack of supply due to low build rates and huge demand even though there are stringent rules applied by the CB to ensure those who borrow can afford it. Neither are supply likely to increase, nor demand decrease to the extent that prices will drop any time soon.

You are right about the experts though, many expected the pandemic to cause prices to at least stagnate, but the supply/demand issues are so serious in Ireland, that prices continue to rise. Hence why I think hopes of price falls at least over the next few years is wishful thinking.

Massive house price rises are a worldwide phenomenon after the pandemic:

https://www.ft.com/content/3082fe00-cdb7-4eb9-ab2d-2309b9848114 Presumably behind a paywall but:

House prices have set records in the US and parts of Europe as vast fiscal and monetary stimulus help residential property markets to continue shrugging off the impact of the coronavirus pandemic.

AndrewJRenko

berocca2016 wrote: »

Check out this property I found using Daft

https://www.daft.ie/for-sale/semi-detached-house-6-oldtown-gardens-naas-co-kildare/3282836

Maybe look outside Dublin?

Daft has more than 50 4-bed properties for under €375k for sale in Dublin right now.

Flinty997

cluelessbuyer9 wrote: »

Sooner or later they will be right.

Broken clock is right twice a day. You are right there.

JustAThought

cluelessbuyer9 wrote: »

Hi, in need of advice.

We sold our family home due to separation recently, i have moved home and am currently sitting on my share (190,000). I would like to buy sooner rather than later but can't find property for my needs concurrently. I need a 4 bed in Dublin as i have 4 kids, the max i could spend is around 370,000 but i cannot find any property on the market right now.

The idea of staying put for a year or two to save more and see if suitable property emerges is appealing to me but i am not getting any younger (39) and keep hearing news of inflation on the radio and i am cautious of putting the deposit into other investment vehicles as they look like bubble territory right now.

I am getting anxiety of inflation eating my only source of wealth but i have lost every bidding war i entered (15 in total) and have a limited budget at the moment.

Wherabouts in Dublin do you have to commute to work? Where do your kids go to school ? Is moving their school a possibility?

Didn’t a Spanish bank/company offering longer term mortgages at fixed for life rates of a maximum of 2% start offering mortgages in Ireland recently? Surely with your deposit of almost 50% and 20 years left ‘working’ and a loan to value rate as good as you will have you clild avail of their even lower, fixed lifetime loan rates - this would leave you with more flexibility and bargaining power?

Can you buy a 3 and extend?

What would people in Dublin city center tell me in 2007 when I could tell them that in 2008 many of them will lose jobs and them property will cost half price ?
Everybody would point them finger to me laughing and tell me that You are sick.
That is all about inflation,demand and supply and recession not gona happen
We are in recession already and growing people savings show that many of them does not believe any government stories about recovery and inflation

If I could sit on 190K I would invest 50K to gold coins and sit on rest waiting for crash.

I am not believe a single word from any media since 2007 and never will again.

Dav010

[Deleted User] wrote: »

What would people in Dublin city center tell me in 2007 when I could tell them that in 2008 many of them will lose jobs and them property will cost half price ?
Everybody would point them finger to me laughing and tell me that You are sick.
That is all about inflation,demand and supply and recession not gona happen
We are in recession already and growing people savings show that many of them does not believe any government stories about recovery and inflation

If I could sit on 190K I would invest 50K to gold coins and sit on rest waiting for crash.

I am not believe a single word from any media since 2007 and never will again.

I suspect the people were too busy applying for easy credit and going around to the many estates looking at houses available to buy, two conditions which do not exist today.

With interests rates at zero on savings, inflation means you would be losing quite a lot on your €140k over the years. That’s sound financial advice.

Dav010

Dav010 wrote: »

I suspect the people were too busy applying for easy credit and going around to the many estates looking at houses available to buy, two conditions which do not exist today.

With interests rates at zero on savings, inflation means you would be losing quite a lot on your €140k over the years. That’s sound financial advice.

The gold will absorb inflation loses.
I am better will lose my 140 000 in 50 years by 2 per cent inflation per year than I will spend them on property which will lose at least 50 per cent value during next crash

I bought property in 2007 listening the same songs about inflation and in 2008 I lost 60 per cent of value.
Even today I still lost 30 per cent of the price because price of the property are low by 30 per cent than I spent in 2007
When another crash will happen I will lose again

Better I was sitting on bag of money and spend them in 2008.

SteM

Revolution 1917 wrote: »

The gold will absorb inflation loses.
I am better will lose my 140 000 in 50 years by 2 per cent inflation per year than I will spend them on property which will lose at least 50 per cent value during next crash

I bought property in 2007 listening the same songs about inflation and in 2008 I lost 60 per cent of value.
Even today I still lost 30 per cent of the price because price of the property are low by 30 per cent than I spent in 2007
When another crash will happen I will lose again

Better I was sitting on bag of money and spend them in 2008.

How much rent would you have paid since 2007 ,you would have needed to live somewhere. Did you factor that into your figures? I bought in 2007 too. Would have spend approx 168000 in rent since then, have spent less on my mortgage in that time.

SteM

SteM wrote: »

How much rent would you have paid since 2007 ,you would have needed to live somewhere. Did you factot that into your figures? I bought in 2007 too. Would have spend approx 16800 in rent since then, have spent less on my mortgage in that time.

Paying rent I save money
Paying mortgage I spend money for mortgage and interest
When crash happen I play back money spent for rent and money which I have spend pay interest
Buying house now I will pay 250 000
Buying house during crash I will spend 125 000 plus saving money which I had to pay taking mortgage at 250 000
Buying for 125 K I could pay cash
There is many ways for calculation oposite your way
Paying rent is not wasting money it's freedom also

Flinty997

I think people will find ways to justify whichever path they take.

Dav010

[Deleted User] wrote: »

The gold will absorb inflation loses.
I am better will lose my 140 000 in 50 years by 2 per cent inflation per year than I will spend them on property which will lose at least 50 per cent value during next crash

I bought property in 2007 listening the same songs about inflation and in 2008 I lost 60 per cent of value.
Even today I still lost 30 per cent of the price because price of the property are low by 30 per cent than I spent in 2007
When another crash will happen I will lose again

Better I was sitting on bag of money and spend them in 2008.

How would you “lose again”? You haven’t lost anything unless you sell at a lower price than you bought at. Seems you still own the house.

Had you bought gold in 2011, you would have lost 40% of its value by 2015. There is no guarantee that your gold will make you money.

In another year or two you may find your property is at the 2007 value. Why not sell it then?

Darc19

[Deleted User] wrote: »

The gold will absorb inflation loses.
I am better will lose my 140 000 in 50 years by 2 per cent inflation per year than I will spend them on property which will lose at least 50 per cent value during next crash

I bought property in 2007 listening the same songs about inflation and in 2008 I lost 60 per cent of value.
Even today I still lost 30 per cent of the price because price of the property are low by 30 per cent than I spent in 2007
When another crash will happen I will lose again

Better I was sitting on bag of money and spend them in 2008.

If you bought as your main residence in 2007 and got a tracker mortgage, then overall you did better than those who bought in the past 3 years.

#1 - your mortgage was on average 2% lower than others

#2 - you got extensive and generous mortgage interest relief up to last year. It was particularly generous in the initial years.

#3 - you have not had to pay rent over the past 14 years

#4 - prices have recovered and assuming a 30 year mortgage, you have paid off over 40% of the mortgage and have decent equity in the home


Of course if you didn't get a tracker the figures change.

Yellow_Fern

Revolution 1917 wrote: »

Paying rent I save money
Paying mortgage I spend money for mortgage and interest
When crash happen I play back money spent for rent and money which I have spend pay interest
Buying house now I will pay 250 000
Buying house during crash I will spend 125 000 plus saving money which I had to pay taking mortgage at 250 000
Buying for 125 K I could pay cash
There is many ways for calculation oposite your way
Paying rent is not wasting money it's freedom also

Renting does bring freedom and for some it is the best thing. You will read about people who buy young and then limit their careers by not moving due to the house. That been said, it immensely risky to bank on 50% drops in housing crises. That often doesn't happen or they might only happen every 30 years and you also lose the great power of a leverage in a mortgage.

paulieeye

Revolution 1917 wrote: »

If I could sit on 190K I would invest 50K to gold coins and sit on rest waiting for crash.

I am not believe a single word from any media since 2007 and never will again.

I bought in 2017, people in this forum were saying the same thing at the time. Promising, hoping and dreaming about the upcoming crash so they could snap up a 4 bed in ranelagh for 300k.

The fact of the matter is you cant predict the market. You can do your best to avoid high points but where do you draw the line? If I had waited to buy I would of spent roughly 96k in rent. Instead I took 30k off the mortgage.

However its not an easy decision, and the market does seemed very inflated at the moment. But how long will it be inflated...years??

cluelessbuyer9

Revolution 1917 wrote: »

What would people in Dublin city center tell me in 2007 when I could tell them that in 2008 many of them will lose jobs and them property will cost half price ?
Everybody would point them finger to me laughing and tell me that You are sick.
That is all about inflation,demand and supply and recession not gona happen
We are in recession already and growing people savings show that many of them does not believe any government stories about recovery and inflation

If I could sit on 190K I would invest 50K to gold coins and sit on rest waiting for crash.

I am not believe a single word from any media since 2007 and never will again.

I am starting to adopt a similar set of beliefs. It seems some of the big players are checking out and the likes of Buffet are sitting on the sidelines.


Big funds and banks love crashes, they can buy assets cents on the euro. I can't shake the feeling that a crash will happen if i buy this year but it's silly thinking. 2-3 years is more likely.

paulieeye

paulieeye wrote: »

I bought in 2017, people in this forum were saying the same thing at the time. Promising, hoping and dreaming about the upcoming crash so they could snap up a 4 bed in ranelagh for 300k.

The fact of the matter is you cant predict the market. You can do your best to avoid high points but where do you draw the line? If I had waited to buy I would of spent roughly 96k in rent. Instead I took 30k off the mortgage.

However its not an easy decision, and the market does seemed very inflated at the moment. But how long will it be inflated...years??

To be honest I can not understand were inflation coming from
The inflation in Europe were dead before Covid and ECB due with deflation brought interest rates to zero or below trying force inflation
The economy in Ireland was dead 2 years and now we have talks about inflation
On start of the housing problem we heard only that cuckoo funds are hoovering the property out of the market that why we have shortage
Now the main trend in media is that people ( when is 21 per cent unemployment ) taking mortgages and hoovering the property market
Guys,please decide who is finally hoovering the market cuckoo or buyers
The next thing the fresh printed money are creating inflation
Guys,I went from 700 per week to 350 PUP for 6 months.I have just enough to pay bills ! I can not afford holiday in Spain when I had 2 per year already ! Were inflation coming from ?
Who take the mortgages when they were on PUP loosing average wage per year ?

On your place I would sit on bag of cash and waiting for crash

riclad

Theres very few 4 bed houses in most areas , my advice buy a 3bed house with a garage
or a house with an extra room downstairs ,
sitting room /parlour
he problem is by the time you find a 4 bedhouse you will likely be outbid
or else be left behind by rising prices , inflation .
building costs have risen by 30 per cent.
many builders have left ireland due to the pandemic.
also maybe buy a house with a large garden,
in a years time , maybe build a small extension.
theres ups and downs in my experience but in the long term house prices go up.
houses are cheaper even in county meath.
Dont look for a house in perfect condition.
i,d not rely on media to make predictions.
we had a bust ,boom in 2008, due to no regulations on house buying,
mortgages,
eg banks were lending 300k to anyone who had a job.
no banks lend 3- 3.5 times salary plus they expect buyer to
have 20 per cent deposit.
the central bank has strict lending rules in place for all house buyers.
builders are building offices, hotels, apartments.
land is expensive in dublin.
the no of new houses being built is very small.

i,ve been using this forum for years,
theres always someone posting in a thread,
saying ah sure prices might fall,
eg i cant afford to buy a house now,
i,m hoping for a recession so i,ll be able to buy a house at a cheaper price.

buy a 3 bed house in 2 months if you cannot find a 4 bed house in your price range.

house prices are going up in the uk, ireland ,usa
this is an international trend

C14N

cluelessbuyer9 wrote: »

Fwiw - i will be staying in my fathers where there is space and the length of stay is not an issue so i'm told. I would ideally want to move out sooner rather than later but could stretch it out for two or three years if needed. Do people expect prices to cool down or will they keep going sky high? As lifetime FF voters my extended family appear to be moving to SF in the next election, if SF win we think more houses may be built but this will take some time to come to fruition.

No offense, but this is an absolutely abysmal strategy to follow. Demand is so high that housing is being built pretty much as fast as it can, and it will take years to catch up with demand. Even being as generous as possible to them, Sinn Fein likley won't take power until 2025 (if at all) and them being in charge can't suddenly make builders put houses up twice as fast. Being less generous, Sinn Fein have a history of actively slowing down and stalling new buildings, so I'd expect it to get even worse.

I think as others have said, you'd be very lucky to get a 4 bed in Dublin at that price now or any time in the forseeable future, except maybe in places a bit further out from the city like Tallaght, Lucan, or Blanchardstown. If I was in your shoes I'd probably either be looking at 3 bed houses and buying bunk beds, maybe seeing if you could buy a garden office if it's important to have a room for that, or else if the larger house was really important, start also factoring in possibility of places in Kildare or Meath that might be within a commutable distance.

riclad

You will probably have to buy a 3bed house with a large garden buy some bunk beds not every child needs their own room
We need about 20 new housing units built every year we are not even close to that
You will be bidding against other potential buyers
Meanwhile you are spending money on rent
Go to daft. Ie my home.ie search dublin 4bed house
and 3bed hpuse