Research findings released last week by GE Money reveal that, despite concerns surrounding Ireland’s property market 75 per cent of non-homeowners consider home ownership a high priority for the future.
With one in five of all Irish adults currently residing in rental accommodation, the research findings revealed that 31 per cent of private renters claim they were likely to purchase a new property in Ireland within the next 12 months.
The top two reasons for this were the security that home ownership would give them and a belief that paying rent is a waste of money.
The survey conducted by RED C Research also revealed that a further 35 per cent per cent of private renters claimed they were very likely or quite likely to take the plunge and purchase in the next three years.
Commenting on the survey findings, GE Money’s Head of Mortgages, Claire Byrne said, "Despite the recent daily negative reports on the condition of Ireland’s property market, it is very encouraging to hear Irish consumers continue to endorse the importance of owning their own home. It is also very heartening to hear that a third of private renters appear to be motivated to take the plunge and buy within the next twelve months while two-thirds are likely to buy within the next 2-3 years."
But over 2/3 of respondants were NOT likely to purchase a property in the next 12 months. Since when does almost 70% of a surveyed group deciding not to enter a market qualify as a positive development?
In any event, thanks to the advance planning undertaken by builders there are already lots of empty new builds for these people to choose from.
I would agree that almost everyone wants to own their own home but not everyone is prepared to get ripped off buying it.
I would also state that I would think most people renting might wish to purchase their home sooner rather than later i.e. probably in the next 3-5 yrs but iI would temper that by saying only if property prices have dropped to realistic levels.
I only have an issue with continuing to rent mid to long term in this country. We don’t really do rental property. So I’d be of the mind that I would like to buy in X to Y time provided figures drop to a realistic level.
daltonr raises hand sheepishly and then looks around room to see if he’s the only one.
In over a decade of working in various parts of Dublin, Waterford and the US, I’ve rarely ever been more than 30 minutes from work, and usually A LOT less than that.
Right now you can rent some 500K places for less than the interest you earn on having 500K in a deposit account. In other words, even if you’re in a position to pay cash for your house, you still could be financially better off renting.
These figures might change in the next 5 years, or they might not. I don’t really care. Right now I’m happy with the place I’m renting and happy with the work I’m doing. If that continues for 5 years, I’ll be fine with that.
I know there are benefits to ownership, but I place a lower premium on them than other people seem to. I have no desire to paint the rooms a different colour, I like the furnture that came with the place, and I don’t want to drive nails into the walls.
I notice they don’t publish the actual questions, survey results without ALL the questions, in sequence, are meaningless as a series of questions can be easily constructed to produce a desired response to the final question simply by leading the interviewee with the initial questions towards the required response. People like to appear consistent to others, especially strangers, so will always consider their previous answers when answering the next question.
How much of a deposit are you assuming?
If it was simple a matter of "here’s the apartment, stamp duty is taken care of, just keep paying the same amount you already are for the next 25 years (or pay it off sooner if you want), then yes. I’d take it.
That would value the place at probably about 250K.
There are smaller apartments asking more than twice that in the area.
To my mind the major reasons for home ownership are the poor legislation regarding security of tenure and also that the average appartment for rent in Galway is appalling in terms of size and finish…absolute monuments to the ‘*uck em up quick someone will buy it’ syndrome.