Softening house market?

Is it such a big jump most products and services produced in this country will be reliant on energy. Look no one knows for sure but I can see lots of coffee shops, hair dressers, clothing, hardware, pubs, restaurants and other industries/companies that have lower paid wages hitting the wall. Its not just high energy prices, people will not work in these jobs with such low wages and with the increase in costs to living add in the owners of such companies are not going to stay open if they are not turning a profit.

I am confused by your recent posts. Only a week, you said you couldn’t see a price decrease in the properly market for the next 5 years but you think there will be so many businesses closing that it will drive some MNCs to leave Ireland.

How do you expect MNCs leaving Ireland and not impacting the property market?

Yeah I still maintain that the government keep propping this up prices with different schemes and our demand for property far outstrips supply and it will take time for the above to impact, as things keep going I would re adjust this to about 2/3 years I think the oncoming recession will impact property prices a lot sooner than I first thought.

Looking for opinions here.

In the market to buy a house in the southeast. We sold a property in the greater Dublin area last year and have been renting since. Property market where we are in Kilkenny is pretty limited in supply.

We have made an offer on a property just outside the town. I really like the house. About 30 years old but well appointed and up to date. Asking was 645 and an offer of 645 came in about 2 weeks after first viewing. A week later we viewed again and were put under pressure to make an offer by the agent. We put 650 on. Were later told that the owners wanted closer to 675 but that the other party had pulled out and we were sole bidder. So obviously we didn't bid against ourselves. They have now accepted our offer.

Problem is my wife is having second thoughts. She is worried that we are paying over the odds. I'm not so sure that we are, the house is lovely but needs some modernisation in the kitchen and bathrooms. It's quite big at 230sqm with a gorgeous garden. It's 3km from the city centre. All in all, in a situation where supply is limited a decent house like this does command a price.

Just wondering if anybody here has thoughts on the situation? Is it mad to pay upwards of 3/4 of a million for a nice, but fairly standard house outside a rural town? Need to make our minds up on this so just looking for input from unbiased folk here. I'm also conscious that the recent announcement of Abbott creating 800 new jobs in Kilkenny is probably going to impact the market here for some time as employees look for property in the area.

Not contradictory I said 5 years for house prices I am now saying that time frame will be shorter maybe 2/3 years

Don't remember inflation this high in the last crash. high inflation and salary increases could keep house prices high

House is just slightly above 2500sq feet. To builders finish it would cost 450k at least at present building costs. That is 200k for site, planning, landscaping and present interiors of the house.

What are you paying in rent. What is your fixed rate mortgage going to be over 5 years and 10 years.

You have being renting for 12 months maybe more, will you be renting another 12 months waiting for similar property. Is twelve months rent costing 15k. On a mortgage a 1%extra interest rate over five years on 500k will cost 25k( assuming you buy next year and five year fixed have in teased by 1%).

It could take a 10% drop before you see anything in savings.

It should not need a rewire or a replumb. Insulation and Ber rating I would be more worried about.

Problem with going back with a reduced offer is that vendors may not only not accept it but lose trust in you as a buyer. It may work however another buyer may emerge.

There is risk as well as reward

Do we actually have less coffee shops, or have the locations just moved? I think there are less in the city center but far far more in suburbs now.

My advice to anybody unsure of buying a property is make sure the house can retain value. That means in the worse case scenario you could rent it easily. Close to college or hospital makes the most sense. What you seem to buying is a great family home but not something many renters would look for and/or afford. Seems like a lot of money but certainly not a fairly standard house at that size. I wouldn't do it it unless I had plenty of security financially and employment wise

I've heard mention of more people being refused for mortgages. Can anyone explain why this is the case to me?

I can understand why fewer people might be applying for mortgages for various reasons, which would lead to an overall reduction in the amount of mortgages approved. But unsure why more people are being declined - surely the banks assessment criteria are the same now as they were a year ago? I.e. 3.5 times income, credit history, savings, etc.

Is it due to the ECB interest rate rise, or recuction in exemptions given out perhaps?

Anecdotally it feels like prices and demand have risen a lot where I'm looking vs 3 or 4 months ago. We've lost a couple of bidding wars that have gone 100k over asking, and the average asking price of our daft filter feels like it has gone up by around 100k over the last few months ago too. The sticker price for new phases in new estates we'd had our eye on also seem to still be going up. We originally thought we were in the 800k range for the size and location we wanted, now looking more like 900k+ and still rising.

My house is 30+ years old. There are is no problems with the plumbing or the wiring knock on wood. Ya if you decide you dislike the he kitchen or a bathroom that is another issue, if the house is thirty years old the plumbing is more than likely still copper and standard radiators.

As well the house is in the higher tier house section. A lot of these were one off builds and the quality was often monitored by those that bought the original houses..

I imagine the house is something like this

if it is I be thinking long and hard before I walked away from it especially if it was not stretching me financially.

That is indeed the house in question. It is not stretching us financially, we both have good stable jobs. I am delighted to have had the offer accepted, my wife is just on the fence but I think with some further discussion she will see sense.

While that is true, we put the bulk of the cash into prize bonds and it has earned us almost €1000 in interest since December so we are not doing as bad as we would have by putting it in a savings account.

Thank you, good post here to put things in perspective. Rent is currently €1300 per month. Mortgage will be fixed at 2.55% for 5 years. We don't have a choice on the provider because my salary is in Sterling.

I hadn't considered the maths of waiting it out with potential rate increases. Worth considering.

That is true, these are the risks you take with a second hand property. However this one is well maintained and looks to have been built to a high standard. The boiler was replaced about 5 years ago.

There's another property my wife prefers due to it's location, it's smaller though.

My problem with this house is that the bedrooms are very small and the layout downstairs is poor. I would be inclined to add an extension to the house, possibly incorporating the garage. Planning should not be an issue as there are examples in the same cul-de-sac of the same thing having been done. But then you are into major expense and renting for another year waiting for the work to be done so I'm not keen on the idea.