should i buy now

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stolen

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Hello,

I am a single person earning 45k a year . I am in the process of getting a mortgage from boi at the moment. If the approval is successful, is now a good time to but for a first time buyer like myself as I am thirty six and not getting any younger :eek:) The house is a new build, was valued at about 260 and am getting if for 190,000 builders finish. This will be my home for as far into the future as I can see, ie. i will not be selling. So, do I keep renting or make the move? I know that there is no definate answer to this, I am just looking for advice? Any help appreciated.

Thanks, David
 
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spursfan1234

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i would think thats a good deal. the price is down 70k. if your looking for a home where you will stay then make the move and go for it. thats my opinion anyway
 

mf1

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There comes a time in everybodys life............

At a certain stage, most people want to stop renting ( a very Irish thing as most continentals are happy to rent but then there is a longer tradition of it), get their own place, do it up the way they want it and be able to come home, close the door behind them and know that they are at home.

I think you have to see it that way rather than see it in terms of making money or losing money. If you can afford it, if you feel secure in your job, if its what you like, and if you do not want to continue to rent, then do it.

mf
 

Teknon

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I am in a similar position albeit a bit younger, I have my 8% deposit and have been approved in principal for a mortgage of EUR300K. I don't think you will have a problem getting a mortgage for EUR190K but make sure you have at least an 8% deposit. Personally I am going to wait until the end of the year as I am in no rush to see it there is any more shift in prices. At the end of the day it is up to you, but you might save yourself a bit of cash by holding out a few more months !
 

callybags

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I would go for it.

hen I bought my house in 2000 I thought it was at the top of the market and I was mad. However, my father, who has been around the block a few times in relation to property said to me more or less what you are thinking.

If you can afford it ( allowing for increases in interest rates) nad are happy with location etc. then the value is less important.
 
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stolen

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thanks to everyone for that, that's what I was thinking myself, it's going to be my home and I'm tired of waisting money on rent every month, even if the price drops more, it will bounce eventually :eek:)
 

Brendan Burgess

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Being tired of paying rent is not a reason for buying now.

You are currently renting a property. After buying a house, you will be renting money to buy that house.

If you think that property prices will continue to fall, then, financially, you should wait. The fact that they will probably recover at some stage in the future is not relevant.

If you are spending €190k now, maybe in 6 months' time, you will be able to buy a bigger house in a better location for the same €190k. Or you might be able to buy the same house for less money.

I cannot predict house prices, so they could rise over the next 6 months as well.

It's your decision but you should make that decision having given due regard to all the factors. Don't make the decision based on popular myths such as "rent is dead money" or false logic such as "it doesn't matter as house prices will eventually rise again".
 
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stolen

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Hi Brendan, that makes sense, can I ask you a question, what would you do?
 
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z103

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Has the ban on house price discussion now being lifted?
(I suppose since there must at last now be consensus on the issue)
 
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JoeB

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I wouldn't pay full price... however if the price has dropped from 260 to 190 that seems quite good if not very good. At least you'd be far better off than the people who spent 260.

If you also have savings of 40K say then you'd owe even less, and so if the price dropped to 150 in the future you might not mind.. a bit of a gamble but one worth taking I'd have thought.. as you say you intend to live in it, not make massive profits off it.

Maybe try to get some added value, like a fitted kitchen or wardrobes for the bedroom, or landscaping etc. Or maybe offer 175 and see what happens?
 

Timbo

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Being tired of paying rent is not a reason for buying now.

You are currently renting a property. After buying a house, you will be renting money to buy that house.

If you think that property prices will continue to fall, then, financially, you should wait. The fact that they will probably recover at some stage in the future is not relevant.

If you are spending €190k now, maybe in 6 months' time, you will be able to buy a bigger house in a better location for the same €190k. Or you might be able to buy the same house for less money.

I cannot predict house prices, so they could rise over the next 6 months as well.

It's your decision but you should make that decision having given due regard to all the factors. Don't make the decision based on popular myths such as "rent is dead money" or false logic such as "it doesn't matter as house prices will eventually rise again".
Add some more myths:

"if you can afford it the value/price doesn't matter/matter so much".

How many people here could afford €10 for a loaf of bread?
How many people here would think it doesn't matter if you pay €10 for a loaf of bread?
 

David_Dublin

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I would not buy now if I was you. You are in the driving seat. Prices are VERY VERY unlikely to go up any time soon - falling wages, increasing taxes, reduced immigration, increased emmigration, increasing unemployment etc, it's hard not to see them go down quite a bit further.

I understand that you dont want to rent forever, and that (as one stockbroker said) "all you get trying to pick the bottom is a smelly finger" but why not sit it out a little longer and at the very least you will have the same options open to you with less competition.

Good luck!
 

george.shaw

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Never catch a falling knife !

Unless you have a wife and kids I would hold off and wait until at least a quarter or an annual rise in house prices.
 
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stolen

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thanks again for all the replies, great forum and very helpful information, david
 

jonq74

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I am one of those who have just taken the risk like you are considering and purchased a 4bed terraced. last year it was 275k with nothing provided. this year i got it for 200k with free legal fees all appliances fitted kitchen, carpets, wooden floors, wardrobes all in all over 10k's worth of extras. so it depends really. the builder was trying to sell his last few houses so for me I cant see the price dropping any further. i would say its near or at the bottom of the market for first time buyers anyways. but thats just my experience.
 

NorthDrum

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I am one of those who have just taken the risk like you are considering and purchased a 4bed terraced. last year it was 275k with nothing provided. this year i got it for 200k with free legal fees all appliances fitted kitchen, carpets, wooden floors, wardrobes all in all over 10k's worth of extras. so it depends really. the builder was trying to sell his last few houses so for me I cant see the price dropping any further. i would say its near or at the bottom of the market for first time buyers anyways. but thats just my experience.
Really and truely its very difficult to work out whether or not it is near the bottom of the decline in prices. Most of us would like to think it is to be honest.

If you are considering taking out a mortgage right now, you should factor in:

  • The cost and affordability factor of interest rate increases
  • Your job stability
  • How much it will benefit you or how much you really want it
People should make up their own minds based on their own circumstances. We could be speculating for months or years whether or not the value of property will increase or decrease. At the end of the day you are buying a house cheaper then last year and you are getting a good deal today. People buy houses to live in, not necessarily to be making money. If you are comfortable with the idea of living in the property for 10 years + you should not be concerning yourself with "timing the markets" as much as you should be concerned with your ability to finance this venture long term.

People renting are in an enviable position in that they can either wait or buy. There is nothing to SUGGEST that house prices will increase in the next 3-5 years or so, but theres nothing to SUGGEST that they will decrease dramatically either.

Comparing rent as dead money is basically a perception that some make and it depends on your circumstances and what happens longterm in the markets with house values and Interest rates. I dont particularly class it as a myth as it is relevant when interest rates are low (cheaper mortgage) and house prices are increasing (cost more to get a mortgage) and its certainly not money you will ever see bear any return.

Irish People generally prefer to own their own houses , where'as on the continent they are just as comfortable renting all their lives. Me personally, I see rent as dead money in that I will never own anything by paying rent. Even if you are only paying small sums of money off your mortgage initially you are still the owner of that property unless you are unable to pay the money back. In most cases the banks would do everything they can to prevent them from having to repossess your house (and they will generally give you time to get back on your feet). A landlord can simply throw you out.

Again, THIS IS SIMPLY MY PERSONAL OPINION, NOT BASING THIS ON PROFESSIONAL ADVICE, I think an arguement can be made either way for renting or buying in the current climate, but once a person weighs up the pro's and con's of both rationally and prudently, then they will make the correct decision for themselves.
 

Maximus152

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I would buy now, I bought back in 90's and ppl would tell you (openly laugh) your mad paying that. Alas I never subscribed to peer group pressure made my own calculated decision, was it good value, was it in a reasonable location, and was I able to afford the payments if the rate went up a few notches and if so that was fine because if the price did fall (which would not have been much as the overall purchasing price was low) I would really care as I would hold on to it for at least 5 years. What I am saying is, strike the Iron when hot, i f you listen to ppl you will get a bum steer, look at it rationally, just my humble 2 pence worth but hey what do I know.


Maximus 152
Because Im worth it.
 

Ciaraella

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I think you have to decide whether you want to go by your heart or your head. If you love the house, if it's in an area you want to live in for the next twenty years and you can afford it then i'd say go for it. If you are compromising location etc for the sake of buying then hold off. Myself and my fiance bought a house that we are planning on raising a family in so the rise and fall of prices was never an issue for us.
 

Maximus152

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Bronte,
Glad to hear that, and I might add I agree with Maximus152 post, very good post (and in no way saying North's post was inadequate). LMAO I love this website, makes me smile sometimes.

Maximus152
100,000 lemmings can not be wrong.
 
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