been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new Semi

M

mave

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hi

Today we got some good news we have finally been approved a mortgage at long last.

We have our eye on a house already have for some time now its currently priced at €305k. How much should we start with to negotiate price?

We have been told by estate agent that they are open to neg

Its a 4 bed in the Dublin 15 area new Semi D?

Any advice would be greatly appreciated.
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

Would probably need alot more info to gauge an offer price, what would the house cost in 2006? what are other similar houses in the area on the market for? is there alot of other similar house in a 1 mile radius? Why have you picked this house over the hundreds of others?



If you want to buy in the current market you should be looking at what amount you can comfortably afford, not what price you can get the house for. As what ever price you pay now, it will/could be a lot cheaper in a year or two time. A price drop is not such a problem if the repayments are well within your means, it can be a huge problem if your stretching yourself for the repayments. How large a deposit do you have? Have you worked out what your repayments will be when interest rates return to a more normal level of 5-6%

What price would the house be if you used a traditional lending multiple? Say 3.5 times the main earner and 1 times second?

What would the house cost if the the monthly repayments were 35% of the main earners net monthly wage, minus any other loans and a interest rate of 6%?

Basically what can you afford to pay, say if one of you loses your job? if you both get a 10% wage cut? this will happen over the next few budgets.
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

Although the house is priced at 305K it is only actually worth what you will pay for it. I would consider starting around €220K. If the house has been on the market for some time then they may be happy to take a offer of a lot lower that the asking price.
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

i know the houses were selling for 450 nearly 3 years ago??
we havent really thought bout if the interest rates go up how much it would be good point senna.
we currantly have a 50k deposit so only taking out a mortgage of 83%.
there is only 3 remaining of these type houses but over 50 remaining of the 3 bed style.
220 would that not be a bit cheeky??
sorry im a bit naive wen it comes to this i really havent a clue just reading papers and listening to news and everyone is saying this is the time to buy??
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

another question would it be wise to just ring the builder directly and make him an offer instead of going through estate agent???
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

Ask about Maintenance Charges,Some of the new estates around Dublin 15 are on this even though they are not apartments,its the way the councils are going
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

mave said:
everyone is saying this is the time to buy??
Click to expand...

Alarm bells should be ringing in your head, when everyone is saying buy, its probably the worst time to buy.

You say that there are 3 other similar houses for sale in the estate, say you buy this one for 230k today, how would you feel if the house next door, identical to yours went on the market in 6 months time for 180k?

Read www.thepropertypin.com for better advice on the market.
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

there was a question mark after that question slap head i was not saying it is the time to buy i was actually asking the question.

Still in neg bout the house.
Asked out management fees 270per year are housing estates not meant to pay these??
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

Senna said:
Read www.thepropertypin.com for completely one sided, everything will be worth 10k in 8 months time, sort of advice.
Click to expand...

Thought I'd fix that for you. :)

I read someone on here before saying that if you believe that the market will drop x% in the next few days, month, years then you should consider that in your bid.

Yes housing estates are supposed to pay management fees. IF they do a good job on the grounds of the estate then 270e / year seems a good price to me.
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

thanks wiggles for the advice
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

Mave it difficult to advise not knowing your financial situation.
BUT

1) Would the mortgage represent more than 3.5 time earnings?
2) Do you need to consider what would happen if you lost yr job, how would this effect your ability to pay?
3) Would the mortgage repayments represent more than 30-40% of yr net home pay? (Taking the mortgage over 20 years, repayment and interest, NOT interest only)
4) Could you cope with further tax increases which are envitable, and higher interest rates (which will happen in the medium term)
5) Do you plan on living there for 10 years +

The price at which you say YES to all of the above is the MAX price you should offer for the house, you'll be grand. When house prices fall further you won't be too exposed because you have done 1), 3) and 5) and you are aware of the implication of 2) and 4) and can adapt to "survive"
Just my opinion.
 
Re: been approved mortgage; Negotation strategy for 4 bed in the Dublin 15 area new S

Another consideration may be to hold 10k out of your deposit to keep in your mortgage account for worst case scenario. It would pay the bones of 1 years mortgage if you needed it.
 
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