Cost of buying a house

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Snowblaze

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I am a first time buyer and want to buy a second hand house. The house will cost approximately 120000. What other costs do i need to factor in? Do I have to pay stamp duty? What do I need to be aware of before deciding if I can afford to go ahead! Thanks
 
Are you working, are you a cash buyer, will you need a mortgage, married/single, have you a solicitor in place? They're a few of the details you might tick off the list. Might need to get a survey done of property, septic tank. Is it a nice area, near schools, shops, public transport, church, etc. Stamp duty, see below;

Stamp duty on property

Stamp duty is paid on the transfer of property
www.citizensinformation.ie www.citizensinformation.ie

Have just spotted ClubMan's post and his links. Very good, most of what you need and all proper info in there.
 
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There is a lot of costs involved.
Mortgage is the main one.
Deposit will be 10%.
Legal fees €3,000-€7000 (roughly).
Valuation €150
Life insurance € who knows
Property insurance € who knows
Survey - €300-€700

That’s most of it covered
 
Thanks guys thats a lot of good info, ill just need to re-evaluate my situation. It looks like first time buyers pay stamp duty also which wasn't the case a number if years ago.
 
Pinoy adventure said:
There is a lot of costs involved.
Mortgage is the main one.
Deposit will be 10%.
Legal fees €3,000-€7000 (roughly).
Valuation €150
Life insurance € who knows
Property insurance € who knows
Survey - €300-€700

That’s most of it covered
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Add the following
local property tax
Stamp duty
Registration fees
Search fees
commissioners' fees
VAT on most fees above

To give you an idea my own costs on buying a 305k home was in the ballpark of slightly above 7k
Add to that any moving expenses and renovation expenses if the house needs redecoration or significant repairs.
If you are renting need also to price in rent if you have a notice period to work through.
 
Leo said:
They'll need to provide a min of 10% cash or equity, but the deposit itself is usually a lot smaller.
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Sorry, I don't understand this.
Isn't the 10% cash or equity required as the deposit? I'm a bit lost on this.
 
Horatio said:
Sorry, I don't understand this.
Isn't the 10% cash or equity required as the deposit? I'm a bit lost on this.
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This is probably assuming that any mortgage will be a maximum of 90% of the purchase price so the buyer needs to come up with at least 10%. But the deposit paid to the seller's solicitor during the purchase process may be less than 10%.
 
Horatio said:
Isn't the 10% cash or equity required as the deposit? I'm a bit lost on this.
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If you go sale agreed the EA will require a booking deposit. This is totally refundable at this stage. When the solicitors agree the legals you will be required to sign and pay a deposit. The standard deposit is 10% - inclusive of the booking deposit already paid to the EA. Once you sign the full 10% is forfeitable if you are unable to complete (subject to any conditions agreed in the contract, eg, the bank not withdrawing the mortgage offer).

Say you go sale agreed on a house at €300,000. The booking deposit is non-standard but typically might be around €5k - €6k. The solicitors then get to go over the paper work and agree contracts, while you typically would arrange a house survey. If all is in order you will be required to sign a binding contract to proceed with the purchase and pay a 10% deposit. If you have already paid €6k to the EA then you now have to come up with another €24k. to bring you up to the 10%.

The 10% is not mandatory but is standard. It can be varied by agreement but this would not be usual. So expect to have to come up with it at this stage.
 
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Horatio said:
Sorry, I don't understand this.
Isn't the 10% cash or equity required as the deposit? I'm a bit lost on this.
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No, the deposit is paid to the estate agent in order to go sale-agreed. That is set at a level slightly above what they expect their fees and outlays will be (to ensure they get paid.) Last house I bought, that deposit was in the region of 2% of the purchase price. That was the only deposit involved.

There are lending rules that stipulate the maximum percentage of a purchase price that can be borrowed, 90% for first time buyers, 80% for others. People often refer to the remaining 10 or 20% as a deposit amount, but it's not a deposit in any sense of the word. Other then the small deposit paid to the EA to go sale-agreed, the balance is all paid on exchange on contracts.
 
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