Gone sale agreed in Portmarnock

Friends who have been renting have recently gone sale agreed on this property @ 675k…its 2300 sq feet …I have seen on Property Watch that it has been reduced from €825k …is it crazy to be be buying at this time, should they await NAMA, and see if further firesales emerge from Zoe etc?

would welcome any opinions…

myhome.ie/residential/search … SHIR396946

I’m curious, are your friends public servants? It’s a lot of money for this house and it is a strange time to be buying.

No they are not. Do you think they have overpaid and why?..thanks

I would most definitely wait until Sept /Oct at least. August is the slowest month for selling/buying and anyone waiting to put their house on the market will be being advised by EAs to wait till Sept.
So chances are there would be more choice come October and further drops for those houses still on the market in anticipation of the ‘busy’ Autumn selling season.
Houses remaining unsold in Sept-Nov 09 face heading into another year on the market, so there is always renewed effort into selling during the Autumn season.

Most folk on this site would be agreed that with the public sector purge only just beginning, interest rates soon to rise and property taxes on the way, the CRASH Part II is about to get serious.

Still, I wish your “friends” all the best Punter.

Under €300 per sq/ft for a house that looks like it needs no work.
As I’ve never operated in this area, I know nothing about it.
Would anyone else know if this price per sq/ft is above, at, or below current market value, or even what they were achieving during the peak of the boom ?

Good questions, Punter, but it’s your friends to ought to be asking. Are you going to try to talk them out of the deal? Tricky gambit. They mightn’t be friends for long!

& why not wait for a reduction in stamp duty in the next budget?

With NAMA, An Bord Snip & the nastiest budget in history just around the corner, it’s not exactly a great time to buy!

I’d advise them to hold off - chances are that house will still be on the market in 2010, and if not there’ll be plenty more at lower prices. With unemployment heading the way it is, the only way is down IMHO.

I’m really puzzled at this and other similar threads on this site. How could a person be in the market for such an expensive house and have no grasp of basic economics; supply and demand and its relationship with price, Unemployment, the state of the nations finances, plus various nasties.

Anyone who thinks that we are past the denial phase; Think again

Unemployment rising, tax take decreasing.Severe budgets. the very real prospect of the IMF coming in. Shelling out over 600k on a house at this time is bonkers.

house is nice though. Tempting :mrgreen: . Good luck to your friend. You can wait financially but there are other emotional/ social issues involved with home and people will keep on buying and keep on selling no matter what. e.g. I know a couple who were waiting for 3 years (no, not a pinster) and now expecting thier first baby. GF wanted OWN home for first baby (wee women) and they baught it.
Again, it may be cheaper next year (most likely) and He Wanted it Now.

If family commitments are your reason for buying, Why not wait for 18 months +, Rent in the area you are proposing to buy to ensure it is appropriate. Use the savings to send your siblings to college. I’m sure most children would appreciate that more

No, I am not but I am going to give them my opinion which would be in line with most of the comments that I have received here. They know I frequent this site and were interested in an opinion.

Assuming they’ll be looking for a mortgage of sorts on this, I would imagine that they currently have mortgage approval.

When it comes to drawdown time, though, I’ll bet the banks will find some spurious grounds or other not to lend them what they need to close on the sale.

This sale will probably fall through for that reason.

Nice house though!

Couldn’t agree more - lots of people feel the ‘need’ to buy once kids are on the way… but bear in mind that
(a) kids (especially little ones) couldn’t care less if you rent or own
(b) renting (at the moment) you can live in a much better area/closer to work/good schools etc for less money, and the rent will be going down in line with your dwindling take home pay (assuming we can all expect to shell out a few bob more after the next budget, and that’s leaving aside likely paycuts & redundancy)
(c) you can move if said redundancy happens to find the next job
(d) you can suss out an area before committing to it - parents and kids needs evolve as they grow up, so it’s hard to judge this as new parents.

I was recommended to this sight last week and by golly there is some good advice and perspective knocking around on here. I was going to buy this year but having soaked up the general pinster concensus it is obviously better that i rent for a year. Our own property is sale agreed so as soon as that’s nailed down (hopefully) i’m gonna rent and watch what happens next. Two kids (6 and 2) but i think they will appreciate a college education over the sacrafice of living in a nice rented house for a year.

This was exactly what we decided. We owned a house in an area I’d never have been comfortable raising a family in, but for the same outlay we could rent in a great family area. We freed up our cash so could move if we wanted or needed to, and I never have to budget for the boiler breaking down, etc.

I miss owning my own house, it was great to feel the place was yours (well 50/50 with our building society at the peak). But we are so much freer without the house and right now the freedom to be able to move to follow work is invaluable. Especially as my husband is contemplating a career and lifestyle change. If we still had our mortgage, which would now be closer to 80/90% ltv (maybe more) we’d never have been we’d be completely stuck.

Exactly. renting makes you free.

Coming from a man who moved houses about 15 times in the last 12 years and moved countries three times - nothing is further disconnected from the truth.

Each time I moved countries I had properties left behind and that was not limiting my flexibility. Contrary - it gave me flexibility to keep a base and move slowly. The biggest issue of all is not having a home for all your personal belongings. Things that make your life - reminders of the past. I felt worst when I was trying to minimise the amount of stuff I had because the place wasn’t mine and I knew I was going to move. Also there is no point decorating to your choice. That is only half of a life. It is only fit for those who have a rather utilitarian outlook on their home. Sleep, watch TV and keep some clothes. But if you want a home - that is different. I have so many things now I have brought from my trips abroad, all paintings collected in years, a set of china in the cupboard we enjoy on weekends. Kids have their rooms - kids need stability. My paintings, my wife’s chine and kids toys are no longer in boxes all over the world. There is no dreadful prospect of yet another move once lease is up or depending on the whim of the landlord to decide to sell or whatever. Those who think that freedom is defined by not having the duty to pay for a loan - they are wrong - they are not free. I am a free man. I am not afraid of my responsibilities and I do not lose sleep over whether my house will go up or dwon in value.

+1