Irish Property Market chat II - *read mod note post #1 before posting*

But doesn't society improve by not accepting the status quo? That's why women can vote, black people aren't slaves in the US, no apartheid in South Africa, .... . It's never going to be perfect, but we can try.

when its an emergency, then you gotta make do

do you think there isn't one in poland with over 1.5 mil refugees and 10 millions temporarily

the problem with a 3 year lease is there are too many way for the landlord to terminate it

now why would they want to kick out a paying tenant? who knows, but its not really much stability

you don't necessarily need to max out what you can borrow is the answer I suppose, the bank can never assume you are going to have zero kids or 8

and currently what they will lend you is not maxing that because rules were put in place to stop that happening.

if you can't buy within that, well then leave yes

its not much better than renting though, you could always sell and leave

like that 3 years could be 70k in rent... vs 70k in mortgage payments

and yet you have roads, schools, tax, how did they all happen

it is the socialization of money for the greater good

you are the state

Even with contract in place, is it that easy to kick a family that keeps paying in Ireland? (And that not only upkeep the place, but have done a few improvements approved by the landlord). If that's the case, I wasn't aware that we were that much at risk. Might have stayed at my birth country if I had known that, which in retrospective would have been a mistake because we love Ireland.

Regarding payments, yes, you will save more (as in, larger increase to net worth) with a mortgage, but you also lose some freedom. In 3 years I have paid 75600€ of rent, but I will pay around 65k€ in interest payments in the 3 years after I buy a place that I like as much. So assuming no changes to house prices, I will save around additional 10k every three years. And then also get a lot more stability in exchange of loss in freedom of movement (specially if house prices drop in the short term after I buy). In my situation I don't think it was black-and-white, both options (rent and buy) were reasonable. Buy now that rent is extremely high, even for Dublin salaries, I know I wouldn't get into a new rental. Specially because I have dogs, and get extremely de-prioritized by landlords, despite that I leave the places I rent in a way better state than they were when I entered.

sorry how much interest are you paying? can you break that down

you are renting for say 2k somewhere that you would pay roughly 1800 in interest payments?

what I think you are saying is the mortgage repayments would be 1800

yeah the bit less is the big bit, its not just slightly less either, obviously tailed towards the start of the mortage

also you have very cheap rent for a 600k gaff, this is more the issue

the vast majority aren't

This.

At the moment myself and the other half are paying a combined €1,100 a month on rent.

The equivalent mortgage on a 3 bed semi detached in cork is now €1,900 a month based on a decent 110sqm 3 bed in togher @ 360,000. and 4% interest rate.

We are saving well in excess of 2600 a month atm, the only clock that is ticking is the body and we are into the final hour.

There is nowhere in the country where open market rental yields are lower than mortgage rates.

Anyone quoting rents lower than the equivalent interest payment on a mortgage for that property has wayyy below market rent.

For example, an person above was quoting an annual rent of 4% of the property value. This is brilliant, but absurd. Getting a rental at half the going rate is not a viable avenue for most. And for many who have it, it could be short lived when the landlord sells up and they’re faced with a doubling of their rent overnight (if they can even find a place).

Yes.

I've just shown you a 600k house, you may need to recalibrate what you thought you knew.

Oh I know, but it’s a fortunate (and likely temporary) situation a fair number of people find themselves in.

It’s not a viable strategy for people on the other side of it and struggling with exorbitant rent. Trying to generalise it by comparing subsidised rent with a full market value mortgage as a reason to continue renting is unhelpful.

Honestly, I don't know what will happen either; no one really does, but we can make educated guesses.

Whilst there have been job losses in the tech sector, most of it seems to be trimming of the over hiring that went on over the last few years. There are still plenty of high paying jobs out there, and there are still a lot of people who have them.

Rates may not rise much higher if indeed inflation (or at least the metrics used to measure it) stablise. I heard recently that mortgage approvals are at an all time high.

I too paid more than I wanted to for what I got, but I think anyone who's bought in the last few years can largely say the same.