What to do now??

The OH wants us to go see a house, in crap condition but in the location we wanted. It’s asking 450k. I can’t get over the fact my OH wouldn’t consider a higher bid on a property I loved here in 2012- it eventually sold for 280K!! 450k seems ridiculous. Is anyone here just bowing out? I am seriously thinking of just telling everyone (parents etc) to back off, we are not buying.
I don’t want to panic buy an overpriced hovel, but the OH and his parents seem to want us to do just that. Is everyone here who is not buying 1) priced out of the market or 2) actually making a conscious decision not to buy now

Personally: probably both. Definitely #2, and because of that decision I’m not bothering to engage with #1.

The condition should be irrelevant in itself, assuming you have the budget to fix it.

But it’s never good idea to spend a lot of money on something you don’t like.

It’s panic. Try and stall.
Good luck.

You’ll not find a shortage of #2s on the pin.
Btw the biggest (probably) financial investment of your lives and it’s gonna be borne out of pressure coming from members of ‘the herd’ (or ‘sheeple’ as I’m now becoming more fond of calling them)???
Tell him to cop the fuck on. Do it because BOTH OF YE want to do it.
Do not do it if both of ye are not 100% about it. (It’s not complicated logic!)

Both 8DD

Buy in haste, repent at leisure.

I recently sales agreed my apartment. Time to cash in the chips. I could buy now, but there would be significant compromises. I’m going to wait it out though.

Why has he changed his tune after €170k of rises?

Was there a communicated plan all along about when to buy, and for how much?

Is €450k affordable?

What are the alternatives?

Personally if it was me I wouldn’t be buying now - the supply and demand relationship is fucked at present. When supply increases (god knows when) sanity might return. Hard to know how long things will remain rigged. If I was in your position I’d be hoping for an external shock.

Wait what out though?? It appears not be be a dead cat bounce. House prices are rocketing in Dublin and the government refuse to acknowledge even the possibility of a bubble. In fact, I strongly suspect they want one and are acting in such a manner to assist rising prices…
They can help force prices up, thereby wiping out negative equity, making the bank’s security look better, and facilitating repossessions that will clear the balance of the mortgage leaving the debtors free to walk away and the banks repaid in full. It looks like a win-win situation, if one ignores the fact a whole generation of people will again be saddled with crippling and unsustainable mortgage debt to make this happen. And the whole process starts again.

I suspected the arrears issue would start to be resolved this year with a surge in voluntary surrenders or sales (as opposed to repossessions, which people still find fairly distasteful) I am unsure if this has had any noticeable effect on the property market.

Lots of people in your position.

Very few people are actually priced out of the market, it’s just that the downward expectation of what you get for your money hits a point that you simply can’t countenance.

I am nearly there now, and based on the way that market is going there’ll be nothing left that meets my expectations in the €250K bracket very shortly. To house a family of 5 at that level is very soon going to result in choosing to live in socially disadvantaged areas (i.e. high levels of anti social activity, risk of reading about your neighbours in the court pages, etc.), even though from a socio economic perspective in every other sense I would say we are far from disadvantaged.

Your 2) naturally follows from that.

Love it Ken - I really hope we get a 1930’s style depression some day soon! 8DD

No but after I went back to college for a while, and household income has risen. We are in a position for 450k but that’d be the max. I would have though 450k would b a super house (I recall one selling for 420 back hen we were looking at 280k one - wish I could have affored it then!) He is just sick of living in a flat. So am I. We both want a house, but I never thought the infrastructure was in place for houses to shoot up like they did. If it continues it is another bubble imo. I am sick at the thought of waiting it out for another 7 years. His father keeps telling to buy now or we’ll never get one. He refuses to listen when I point out he’s been saying that since I’ve known him :open_mouth: I don’t want to move to rent another place and eat up our capacity to save, as rents are shooting up too.

I think you answered your own “Wait What Out?” question Sala.

Do you actually think a another bubble will be encouraged after everything that has happened? I wouldn’t have believed it but now I’m starting to think I was very wrong.

I’d probably be better off buying now that having to wait the 7-10 years for the next crash.

I would say buy, even if you feel it’s overvalued, on the basis that

  1. You have done your own stress testing
  2. You would be happy to live in the property for 15 years or more
  3. You could live with the notion that in 5 years from now for the same money you may be able to buy double the house if a crash happened

I wouldn’t stretch to buy. The real question to answer is how low you will allow your expectations to go within the bounds of what you can afford to pay.

That sums up the market in a nut-shell. It should lead to a gentrification of some areas with previously bad reputations. This could be socially positive for the areas as it may mitigate against ghettoisation. to be honest, I thinkt here will be a much better long term uplift in some currently borderline areas (i.e. without pervasive antisocial behaviour) once they are located close enough to the city/community facilities.

Interestingly, while everybody knows that ghettoisation is hugely harmful for disadvantaged families, there is an understandable but unspoken desire to lump all antisocial householders into the one area to avoid them abusing innocent neighbours. Maybe this should become an actual policy.

BTW - if I were the OP I would stretch to buy if he/she can live in the house for the forseeable future. I bought a vastly over-priced house in 2005 but ultimately I am glad I did as I could not get the same house again now and I am well into a 25 year mortgage. At one stage I thought of selling up but a look at the rental market put me right off that idea.

That assumes no crash. If the current bubble bursts, you will be left living in that area as the only element of it’s gentrification. :wink:

We are nowhere near harsh enough in this country on anti social behaviour. It is one of the scourges of the 21st century.

Despite saying I wouldn’t buy if I was in the position, I pretty much agree with all this, and would add to 3) that you can live with paying €100k plus over a few years ago. None of us have a crystal ball and can tell what will happen and hindsight is great. I said i’d wait it out as I personally couldn’t buy now for fear of buying at the top (or near) of a mini bubble/spike.

Also I wouldn’t like to be pushed into it by family or an OH. A lot of possible resentment issues there. I’d need to be 100% committed to buy.

When we took the decision to buy - we were both 100% behind it and it was for 20+ years regardless of what happened. We timed it as best we felt we could regardless of what happened. Also we could easily afford it then (<25% of NDI).

the amount of transactions during this ‘bounce’ are low, and evidence suggests that alot of these are at lower LTVs with alot of cash purchases. Also the banks are not generating new big exposures to property development

personally I think if you are hoping to wait it out and prices to come down a lot it will be some time before it happens if it all. I know its galling to buy at +200k where you passed on it 2 years ago but at some point you have to stop trying to pick the bottom and look at your long term financial position to see if it makes sense. I bought this year and while I think the price was high for a relatively modest 3 bed semi, I don’t see things changing in the near future, ie 3-5 years. I would have loved to buy 2 years ago but couldn’t and it was frustrating watching prices rise in my face.