Buying apartment off plans - dilemma

[kitm]

Hi, I've put a booking deposit on a city centre apartment, but have now found that its not due for completion til Oct 2006. I can't decide if i would be better finding a second hand property which i could move into more quickly. Have thought of
- will pay €9k rent between now and Oct
- have avoided stamp duty by buying new (am FTB, but don't think i'd find a 2-bed under €317.5k)
- property could rise in value by Oct
- I'm working on a 6-month contract (was a sole trader before, and i doubt i'll ever be a permanent employee again). If i get mortgage approval now, but contract ends in May, will i be able to get approval again? (Am assuming that i'll always be emloyable enough to repay the mortgage)
- there are no details apart from square footage and a not-to-scale drawing of layout. Estate agent wants solicitor to request contract to give the agent leverage in getting details from developer. This seems like i'll be paying my solicitor to make the agent's job easier?

Is there anything else i should be taking into account in trying to decide?
All thoughts/advice appreciated!

 

[Sherman]

It's a tough call alright. You mentioned a couple of interesting things - especially the fact that paying all that rent is a sickener - don't forget that if you buy a second hand house up to €381k as a first time buyer you'll pay 3% or approx. €10,500 in stamp duty - not a huge difference between that and the rent you'll be paying. I am firmly of the belief that you still basically pay the same amount with a new house but it goes direct to the builder for his Christmas hols in the Caribbean!

Also, I doubt very much if your apartment will actually be ready by Oct. 2006 - I've heard so, so many stories of apartments being put back time and again - all this time you'd be paying rent.

As you say, you may be in a different financial position in 6mths time and could possible have difficulty renewing your mortgage approval.

Having said all that, the time lag might enable you to save cash for solicitors fees, furniture etc. and also do some research on fixtures and fittings etc.

 

[wheeler]

I can only offer you my experience but it might not mean the same applies across the board.

I am a contractor and got mortgage approval but didn't draw it down for another 8 months. I even asked for it to be topped up with an extra 15,000 for a finish and they didn't ask for any more invoices/pay slips to prove exta income.