3 days ago, I didn't have a view other than wait and see how it pans out.Things are evolving daily - they'll have a lot more information by the time that comes along
The cost of credit on a €100k mortgage, at a fixed rate of 3% amortised over 30 years, is €51,777.45.what is a €50k or even a €100k fall amortised over one’s lifetime?
...I also agree that 100k extra mortgage is absolutely huge when you are paying it back with interest over time. I don't see any reason someone would want to take that chance for the sake of waiting a few months .
You might have the money and mortgage approval now. You might not in 3 months.
Absolutely not. And if they do check out internet forums, tell them to watch out for a guy called Gordon...Why should they pull away? Because some people on AAM think they should?
We're fully in agreement here.Conversely, I would be very wary of overstretching to buy somewhere today if I worked in a vulnerable sector or if the property I’m buying is merely an interim home.
In a 'normal' market, I completely see logic in your argument. I often see people who say their 'absolute max' is 800k. And yes, what's an extra 50k in those circumstances, for the right house? If you can't afford an extra 10% repayment, you're already too stretched.Yes, house prices may weaken somewhat, but what is a €50k or even a €100k fall amortised over one’s lifetime?
This is where our opinions differ. Or maybe it's the potential of a 10% drop Vs 'collapse'.And I think it’s a big leap to be predicting house price collapses
If you can get your own sale through this will not have a major impact as you are selling and buying at the same time. I wouldn't sign the contract on the new house till the buyers have signed on your sale but I'm guessing your solicitor is advising you.I read this post with great interest as we have recently gone sale agreed. We have also gone sale agreed on our own
Thanks Gordon
The future is very uncertain. Share prices have priced this in. They may have priced this in too much. Or they may not have priced it in enough. But today's share prices reflect a balance of knowledge and fear and greed and stupidity.
But the future is very uncertain for house prices as well. But the housing market is not a market subject to the same analysis as the stock market. And one house is not the same as another whereas one Ryanair share is exactly the same as another.
If someone is thinking of buying a house today, I would say go right ahead
If you do not meet all of these criteria, I would say wait until you see how things develop.
- If you have at least a 30% deposit
- You will be in this home for at least 10 years
- Your jobs are very secure i.e. public servants
- You can comfortably handle the repayments
I can't predict how house prices will move over the next two years.
But I would be fairly sure that they have fallen by 20% or maybe more in the past month. We won't know for some time.
If I had gone sale agreed on a house a month ago at €100k, I would expect that a similar house could now be bought for €80k.
If houses rarely come up for sale on that street and that is the only street in Ireland I want to live on, then maybe I would pay the €20k premium to live on it.
Brendan
Where I am confused is that if you remain in a position to purchase a house despite of Covid, then surely the value is the same as 3 months ago?
I have just gone sale agreed on a house sale.
Not at all.
If I could afford to buy a house for €300k in January and I can still afford to pay €300k for the house today, it might appear that nothing has changed.
However, a lot of people who were competing with me for that house have now dropped out of the market. They have lost their jobs. They are less sure of themselves. Their own sale has fallen through.
So I will bid €250k for that house now and it may well be the highest bid.
Brendan
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?