Hi all. I have a question that I hope some of you can help me with please. I am a FTB, mortgage approved for 210K and have a deposit of 40K. I’m in a steady job, on an average wage, and having rented for years I am at the stage where I’d like to buy my own home. I’m not looking to buy South Fork. I’d like a second-hand 2-bed (with room to extend should my partner and I have kids), or a 3-bed for the same reason. I’d like a decent enough garden, in a decent, safe part of Dublin 8 (not Rialto, Dolphins Barn or Inchicore) or further out in the likes of Harolds Cross/Terenure. I don’t want to go northside - not for snobbish reasons, but purely because my family are all southside and for personal reasons I need to be as near to them as possible. I nearly bought a house very recently but backed out for the same reasons most pinsters warn about, and have decided to wait until prices fall further, and just to see what the hell is going to happen what with the precarious nature of the economy. According to the property report in today’s Indo though (and my own house hunting of course), I am still WAY off getting my hands on what I am looking for. On 250K, am I ever going to afford what I am looking for? Is it just time for me to draw a line under ever buying and commit to a future of renting? All advice welcome. But please, I don’t want a lecture on owning being a privilege and not a right. I am aware of that. I really just want to know should I forget about this buying a house business and get on with my life.
Patience Patience…My partner and I are in EXACTLY the same position and have been for the last 5 years. Just find somewhere nice to rent (there is very good value out there) and sit tight, saving as much as you can towards your deposit. As you will read time and time again on this forum, there is no scope for anything but a downward movement on house-prices so you have nothing to worry about, everything is on your side.
Chillax… stop looking and wait for the prices to continue dropping.
I was in a similarish position… and after deciding to just stop looking at houses for 6 months, when I recently went back looking at asking prices they had dropped so significantly that I was glad I held off and will continue to do so.
Tis a bit like paint n grass…
A watched property market never falls
I don’t understand why you can’t still get on with your life. Why your life is on hold per se? Me, I’m keeping an eye out for the right house but my life isn’t on hold. I rent in the area I want to live in and I’m getting on with things. I don’t see why you make a decision on rent or buy one way or the other if you are getting on with life.
250k will get you something nice in that area when this is all over. In the same position, and yes sometimes I have to argue with the other half that life is not on hold. There is no law saying you cannot do X until you own a property.
And please please ignore anything in the indo’s property section, its mostly written by EA’s to benefit themselves.
That took me five minutes on Daft.
It’ll take a little bit of bargaining and negotiation, and probably a little bit of getting to know estate agents, but I don’t get why you’re talking about giving up, you can get what you’re looking for right now according to your own numbers.
All you need is 3 - 10% off, and I understood that all sellers were expecting to knock at least 10% off the house price at the moment.
You’d want to make sure that you can afford borrowing 210k. If there’s only one average wage, that’s a lot of leverage.
Firstly, debt will get more expensive to service. Bank’s still need to increase their margins and the ECB rate is very low at present.
Secondly, taxes (both direct and indirect) will increase. At present average and below average earners pay little income tax when compared to other EU states. Over the next few budgets, they’re likely to get hit. As living expenses are a greater portion of net income for lower earners, increased taxes will be more keenly felt.
I have seen all those myself already, but they don’t tick all the boxes. For instance , the third one is less than 700 square feet in size. If we had a baby in a couple of years (which is the plan) we would outgrow that very quickly. We need somewhere that we could be comfortable in for the long term. As for the rest of them, like I said, they don’t tick various boxes. At least one of them needs a lot of work, so even if I got it for around 240, I wouldn’t have enough money left over to put into it. And just overall, while I am not looking for perfection, if I am going to part with such a huge sum of money and make such a massive commitment, the house has to have the major boxes ticked, and for me personally, this particular selection doesn’t do that.
So, I think I’ll take the advice of holding off for at least a year, as hopefully then I’ll get more value for money. Thanks to everyone for the advice by the way. It is much appreciated.
Calina, do you have all day?!!! I totally hear what you are saying, but not everyone’s circumstances are the same. There are things I’d like to do that may preclude me from buying house. For instance, I’m in a profession that I’d like to go freelance in, but if I do that I’ll never get a mortgage. So do I bite the bullet and just do it anyway and forget about buying a house? I could go on, but then that might be more suited to a life-coaching or psychic forum.
Your life is too binary for me. I now get a signal of “freelance” or “mortgage”. You have to decide which is the more important lifestyle choice for you. Is it the case that the savings will either go to a mortgage or setting up your own business?
In that case I cannot give any advice because ultimately it involves a certain amount of self-reflection and more specifically, decision making on your part.