September 6, 2008, 8:24am
Ah jesus, what a stupid thread - sorry but someone had to say it.
All the reasons listed as good to buy could be relevant no matter what the market - the right house, unique house, keeping a dead relatives house in the family -
Seriously, how could anyone think that, these reasons aside, it is a good time to buy now (assuming there is no pressing reason you have to buy). I mean fact is house prices are decreasing so even if you’re happy with your repayments you will end up paying more for something you could get for less in a matter of months - in my eyes, if you have a choice yet you still buy then you are either (1) so rich it doesn’t matter or (2) just plain stupid.
September 6, 2008, 9:16am
I was hoping to see if there were any bulls prepared to say that they think the market is bottoming out.
2gaffs has gone quiet he used to be dismissive of the apocalyptic predictions here.
I wonder would anyone else care to give a genuine unposed argument that actually there is good value in the market?
I was hoping that this thread would be somewhere people who are more bullish could post without being jumped on be everyone.
but it would seem that there is a severe shortage of people believing it’s always a good time to buy.
An indication we’re moving beyond denial?
It may not be a
good time to buy now. For most people it isn’t. But it is a better time to buy than at any time in the last five years. Next year it will be a better time still.
it’s gettin’ better:
September 6, 2008, 1:48pm
Getting yourself a “home” is the best reason to buy right now. If you have kids, you need somewhere to put down roots. That applies no matter how turbulent the market is. If you can afford your mortgage, and you are happy to live in the house in the medium to long term, then the vicissitudes of the property market are irrelevant.
You should buy now, but don’t take my word for it, take Jimmy Smith’s word!
Jimmy Smith has listed several ‘foolproof’ reasons why you should buy now !
Heres an interesting little tidbit.
My little bro and his girlfriend were
shareing a house with another person for the last 2 years.
€450 pm each in rent.
They just got a bid of €350k accepted on a 2 bed house a few doors away from the one they are renting now. Mortgage will cost them €1500 pm including the latest interest rate increase.
I asked them are they not worried about the amount they are paying out.
‘Not in the least’ they say.
Heres how they broke it down to me.
Their take home between them is €4500 PM between.
They would be paying €900 pm renting. 1500 - 900 = 600 pm extra to be paid.
2 SSIAs still to mature so a few bob in the bank, but by paying into SSIAs they are used to not having the €500 PM in their pockets from the SSIAs.
In 3 months they are not paying into SSIAs anymore. So they will only notice a difference of €100 per month in what they have now.
Even so - 4500 a month minus 1500 leaves them €3000 pm to spend on whatever they want after mortgage is paid.
A few % rise in Interest rates, an extra €30 a month on the heating bill. None of these things will really effect them at all. They have no intention of ever renting the spare room.
I asked if they thought they could invest the excess and make money with it instead of buying.
‘Not at all. We are sick of shareing and want our own house to do with as we please. But we might get salary protection insurance -just in case.’ - fair enough
As my bro says, he was living on €500 pm only a few years ago after rent was paid. He earns more money now than then.
This is a fairly typical scenario nowadays.
In fact if they felt like it and had another deposit they could afford ANOTHER house and still have enough money after they mortgage to live comfortably.
They dont feel they are p1ssing money up against a wall, and neither do i. You could also say a person renting a nice apt in the city centre for €400pm is p1ssing money up against the wall when they could be renting in Fatima mansions for €100 pm.
He earns 35K, she earns about 30K (hardly huge wages for 30 year olds). They dont want to share anymore, be it wioth another renter or their landlord. And you are always shareing with your landlord, even if you are renting the house on your own.
And a house is ridiculously affordable to them.
People have always paid mortgages. People have always paid mortgages early.
People can afford the payments on mortgages. Interest rates rise and fall and always have done. It would take a huge interest rate increase to seriously hurt buyers pockets.
I was reading posts last year proclaiming doom and gloom when rates rise by 1%. Look around you. Still the property market is not crumbling. If the same happens again next year its still not going to crumble.
Despite what the doom mongers KEEP saying, FTBs are well capable of making payments on their mortgages. And the banks are still lending. Why? Because despite what you might like to believe banks are interested in loaning only when the borrower is able to repay easily. There is a huge amount of room to manouver for the banks yet. Look around you. Life is still good for the average homeowner.
Some more reasons to buy, in case you still were not convinced!
House price inflation will slowly correct itself (note, assuming the government does nothing in the budget to hinder property investment) but will not get in a position of negative growth in most of the main business areas in ireland. i.e. dublin, cork, galway. in a few years time i expect house price inflation to be at a level of 1-3% p.a.
I dont predict doom and gloom that others predict. What is my theory based on?
high demand for property in dublin due to it being ireland’s only CBD (Central business district). Its not like if people get pissed off with high property prices that they will move to cavan for better paid jobs…(in comparision the uk has a number of CBD’s)
only so much land in the country and even less people willing to zone land without a brown envelope…
high immigration and low emmigration
baby boom generation will last for another few years
property will always be a long term investment
interest rates will always flucuate up and down.
banks are greedy and will always have attractive mortgage packages
without the use of hyberbole - owning your own house is a million times better than renting. Its your own place etc.
paying rent is “dead money”
I wouldnt be surprised if the government increases stamp duty threshold for FTB’s either this year or next which is good for FTB’s.
Now is a great time to buy, there has never been so
much choice for buyers!
Source: Sponge Bob & Central Statistics Office
Buyers have almost a 50% greater selection than 2002 to choose from.
September 6, 2008, 8:13pm
i was thinking about this since the question was asked and i only thought of the answer a few hours ago. now i see i’ve been beaten to the punch by Ireland is Different. the only logical reason for buying now is choice!