Million dollar question..to buy or not

Help…just need a Pin perspective on this! Background is hoping to buy a house in the area we have always wanted to live in in Dublin. Have outstanding mortage of approx 200K and would need to borrow approx another 160K to make this happpen. Hubby has good job and i have part time job (both fairly secure, as secure as you can be these days!). I KNOW prices will prob fall next yr but then so will the value of our own house so we would get less for it. Love the estate we want to buy in and is near all amenities, schools etc. Interest rates likely to rise so we could fix longer term to hopefully offset this. Am I mad? Would there be a glut of houses next yr? Is 360K a ‘big’ mortgage to have in peoples eyes these days? Dont envisage ever moving from house we want to buy. Have bought twice before (traded up) so I know the hassle involved! Also what percentage to offer under the asking price these days…have heard approx 10-15%? thanks and sorry for all the questions!!

Tuppence Happenny answer ;- if it were me Id wait.

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Can you actually sell your house? You know, for what you can get as opposed to what it’s worth?

You’re not even in the game at the minute, the question is to sell or not…

I really don’t think you’ve given enough information to allow users to help you out.

what money do you earn, what does your husband. where abouts do you want to live cos dublin is a big place?

have you thought about selling your house and renting in the area you want to buy in?

We earn about 80K between us, hoping to move from Dublin 24 to Dublin 16 (I grew up here). Yes we did indeed think about that option, however not sure we’d be offered a bank loan next year if lending gets worse? PLus we aint spring chickens either, 38 & 40 so we dont have a lot of time to get a mortgage top up/remortgage. PLUS I’d be worried about getting such a nice house in a nice settled area again.

Yes you are right in that we dont know if we will sell our house, we are hoping that reducing the price a lot would sell it quickly. Similar houses are 365K in this area, we were thinking 350 or less would help sell it quickly?

Not meaning to be offensive in any way here, but I reckon that 350k for almost any property in D.24 is madness.

Just my 2 cents. ( Not an Offer) :wink:

You inquire as to the suitability of a 10/15% cut when looking to purchase your next property and then propose a 4% cut in asking price on your own.

Sure, it’s grand, fire ahead.

The real question is not what the asking price of similar houses but what is the actual selling price. I’d wager closer to 300k than 350k.

There have been similar houses in the area that have sold but I’m not sure for how much, they were priced at the 365K mark. Is there any way of knowing this, would the EA be allowed to say what the final selling price was (I’m thinking not).

Yes. And you have to believe what they tell you, it is always the truth :wink:

How much is the asking in D16?

The one in D16 is 495K but we wouldnt offer anywhere near that! Its a 3 bed semi but has a big back garden. Our own is 4 bed semi with attic conversion, opposite playing fields and has nice outlook plus not overlooked at the rear. About 5 mins from M50 too …any offers :laughing: :laughing:

On a 30 year mortgage of 360k, if (when) standard variable interest rates on mortgages hit 7.5%, the monthly repayment will be about €2,500.

Earning 80K between you, one full one part time, and assuming a wage split of roughly 60k/20k to make that up, you are probably taking home about 5k a month at the moment, assuming you have no pension etc. (!).

Therefore within a few years, assuming you both keep your jobs, you could be looking at shelling out upwards of 50% of your take home pay on mortgage repayments.

Just some food for thought.

Which area of D24 is your existing house in?

Don’t slag off tallaght too much. A lot of very nice places, some of Kingswood etc is better than most of Dublin

We’re in Ballycullen, beside Woodstown.

Bob, just to say that when you mention selling your place you say you’ll undercut the standard €365k asking price in the area down to €350k…and yet when you mention bidding on the new place, you say you won’t offer “anywhere near” their asking price. You do see the massive contradiction here, right? (Sorry, I don’t mean that to sound too rhetorical or lecturing - it’s a genuine question I’m trying to ask).

Also, I know the types of houses in Ballycullen/D16 that are asking in the €365k region and I honestly reckon most of those asking prices are no less than 30% higher than where they’ll be in 3 years.

No offence taken at all…its a fair point indeed. I think our best options may be to sell now and rent in the area we are looking to move to or wait it out. Do you mind me asking what factors you are basing the house price drops on? Sorry just joined today so havent had a chance to read other posts on this, thanks!

Spongebob wrote:

No,no,no,sure it’s grand.XX

Assuming this is not a joke -There really is nothing to add is there?As I have said before,nobody has learned a thing from the last three years,the minute the financial conditions in Ireland improve,people will be robbing the food out of their childrens mouths to borrow more money to buy a house.

Based on yer new information, I’d say sell yer house and rent in the area you would like to buy in. Try to pay off your debt as best you can. If you get it all paid off, then start saving a deposit.

Then in a year see how the market is looking and have a think about it again.

Thanks I agree, this is probably the way to go alright! Thanks for everyones input much appreciated.