To buy or not to Buy

H

hardmoney

Guest
I am considering buying a new house in Cork city area. It is a 4 bed semi for 378K and it is around 130 sq meters. It is a new estate wtih 40 odd town houses (4 of these being 4 bed semi's).

I am unsure if now is the right time to pay this type of money for this house in the area it is in. I have tried to negotiate the price with the builder but he will not budge nor will he put any extras in the house.

Interested to know what your thoughts would be. I am not going to sign anything until after the budget anyway just in case.

Thanks
 
There'll be stamp duty on it as it's over 125 sq.mts. No one can really make up your mind whether to go for it or not.
 

Are there many units still left unsold? Are there any flippers who bought there and are now heading for the hills? If so it could point to price falls coming downstream.
 
It depends on your situation. If you like the house and feel you will be content to live there for the medium -long term (10-20 years) and you can afford the mortgage (allowing for 2-3 % increase in interest rates) then you may choose to buy.

Personally I feel the next 6-12 months will see the whole property price bubble collapsing. Figures published todayshow it is the property and construction industry which keeps our economy going. We are building far more houses than we need and increasing fuel bills and interest rates are pricing the first time buyer out of the market. Gradually the tap of first time buyers is being turned off. When that stops the rest of the market will grind to a halt and price stagnation and ultimately price drops will be the result.
 
depends where it is - if it will appreciate much or not, and if you can live in the area and enjoy it - whats the local shops and clubs/pubs like. Some dodgy areas of cork
 
This depends on whether you're buying as an investment or buying to use it as your home. If its for investment - I'd pass. If your buying a home, then I'd advise you to proceed assuming you can either fix your interest rate or that you can afford to cover 1-2% increase in int rates. Dont plan on waiting for the much heralded property bubble burst. If that unlikely scenario happens there will be economic chaos(unemployment etc) in which case you still would struggle to buy
 
Thanks for your replies. The propery is in Cathedral road and the area is quite good. The property is about a 10 minute walk to the city centre so that is good. The concern I would have though is that it is in a development of town houses and maybe this will affect my selling price if I decide to sell in 2 to 3 years.

J
 

i think i know where you are talking about (behind the gurranabraher church?). I also looked here but was looking at the 3 bed semi's. i saw one of the 4 bed semis and they are excellent, I heard that the homes have to be owners occupiers so that is a good thing as i was worried about houses being rented out. the 3 bed semi's were great inside but i found that they were very close together. I hpoe we are talking about the same place there is another phase of these to be released and i would be interested to see what price they are going to be because there seems to be a lot of the phase 1 houses still available and the EA was doing a lot of pressure selling (i'll hold it for you until tomorrow but you'd want to hurry, kind of crap). If you are willing, you should look at the houses being built in hollyhill they are an excellent quality house and you get great value for money but you are still in hollyhill and i dont want to be mean because i have a lot of friends from there but lets be honest people are trying to get out of it and not into it.
 
have to agree with Tony, The area is not good, it is a pty as it is a short walk to the heart of the city but if i were you and wanted to buy there anyhow i would buy an older one on the road you seem to pay for what you get compared to a new build which are expensive for some reason. Really i would hate to live there and i lived and worked in that area of the northside.
 
In relation to stamp duty I don't think there will be a liability here.

If a new house is over the 125 sq metres don't they divide the purchase price by 4 and if this figure is then below €317,500, no SD will be payable.

Isn't this the case?

I know it is slightly off the topic but I reckon the original poster will want to know.
 

The purchase price of a new build includes vat @ 13.5%. This is deducted from the total and stamp duty is applied to the net amount. In this case, approx 333K. The 317K threshold is for first time buyers only. In any event this property is over that limit.
 
seems expensive for the area involved, (also wouldn't have the best rep), i think alot of builders are putting up the price so that "it must be good if there asking that much for it". I would look to somewhere like passage west and invest there as you'll get a better return in a few years, but it depend on your job etc and personel choice.

good luck with ur choice
 
there will be no stamp duty on this house regardless of size. I bought a new house 1,800 sq ft last year and did research on it (my broker hadn't a clue) by using the revenue web site and rang them too. No stamp duty. Don't even worry about it. There is a formula that I figured out to work this out and I can tell you 100% no stamp duty
 
As I understand it if you buy a new house you are in fact undertaking two transactions 1. You are buying property i.e. the land the house is built on and 2. You are employing a builder to provide a service i.e. construct a house. Unless the site is of a value to attract stamp duty then there is no stamp duty as the building of a structure is not liable to stamp duty no more than if you built an extension or a garage for your home.
 

So in general when (as in under what circumstances) would you pay stamp duty for a new house that is over 125sq metres.
 
Personally, I agree with thejuggler???
We have bought a three bed semi in Tipperary as we were in a situation that suited us. But there are 90 houses in the estate and about two thirds of them are still empty. They are built nearly 18 months at this stage and aren't budging. The builder has even gone to the extreme that he is now offering them with contents and they still aren't budging.If I were you I'd wait unless your prepared to live there long term or if you need to make the move urgently.
 

Is that in SR or NR.
 
That sounds extemely over priced, with stamp duty added and the whole whack, I think it would be a bad move.
 
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