Thank you…180k and then have to spend maybe 60k on an extension & new windows? Making it a total spend of 240k…It’s the 80 foot garden and potential for what could be done that excites me. The house itself looks pretty drab.
I imagine I’ll get slated for asking this question, but I am genuine so here goes.
We seriously want to buy a house, and have found one that ticks all boxes the price appears right…being 200k cheaper than same properties in area one year ago…which i know we all have to discount now but anyway…
Everyone on this site seems to be of the opinion not to buy at all this year…like, to the point that because we’re even considering it I’m feeling stupid for asking the question…
But buying a house for us means paying 500 euros a month less on rent - I mean, is that not better to be paying off a mortgage than renting? We have been renting in dublin for over 2 years now and have spent almost 36k on rent in that time. We are seeking a mortgage which is 2.5 times our joint salary - and one which can be afforded if the higher earner between us looses their job…although our jobs are public sector.
Also, theres a part of me who thinks that if there are people in this country in a position to buy and feel they have found a property at a price they are willing to pay, well will that not be better for the economy in the long run and get things moving again?
ps: but by taking your points on board guys, if you guys value this house today at 180k, and someone else advises us to wait a year and save 100k, does that mean you are saying we could buy that house next year for 80K???
Seriously, rethink the above statement. You have not spent €36,000 on rent, you have saved the difference between that and whatever your house would have fallen by in the last two years. Put a figure on that and see where you stand.
Even the VIs are in acceptance that houses are going to fall this year. Think about that, if even the VIs can no longer talk things up then you know that there is trouble ahead.
This gaff is suitable for a working class man (non skilled, maybe low paid semi skilled). He would have an income of 20,000 to 30,000 and his wife would probably have a part time job pulling 3,000 or so a year.
So best case scenario. 33,000 income. International standard (when bubbles are not in effect) is ~3 times salary. This means when the dust settles this gaff will be worth ~99,000.
If this is shocking and you find yourself scoffing at it then consider property is a very poor investment. It does not give good returns over the long term. It matches inflation (actually a little below.). So take the price of these properties in 1995 and calculate the average price movement up to this point. Add the average to the 1995 price 13 times to bring the price up to 2008. This is a good indication of what the price will revert to.
To answer some of the questions…the house we are looking at is in the same estate as the link i gave, but not on the market yet. We know the current owners, an elderly couple, who have said they will sell for circa 200k. They are moving into residential accomodation.
We have savings of 30k (to pay for stamp duty and deposit). the house is perfectly livable in, but would require some work down the line. We could paint it and move in and our mortgage would cost under 1,000 per month. (based on borrowing 180k).
We are presently paying rent of 1500 per month - had to leave last rented house which was a 1200 per month as the owners decided to move back and gave us 3 weeks notice. This was in September last and we were really under pressure to find a decent place in such a short time, hence have ended up paying what we are paying. But at the time we figured we would ‘take the hit’ for 12 months as it would hopefully be our last year renting. Current market value of place we rent 500k (lovely new house in D15). Now baby on way and worried that if we try and re-negotiate with the landlord (an agency) they will take the hump and get rid of us when our 12 months are up, in which case we will be house hunting with a baby - not end of world but not ideal. And nothing would surprise me in the world of private renting.
We are both early thirties and earning good salaries in safe enough jobs, but baby on way which is where the pressure is setting in. Have no problem living in a working class estate, as location really appeals and 80 foot garden a dream. Fair enough, we don’t know this area but what we have heard is pretty good so far. but the main issue is wheather now is the right time or not?
finally, we have absolutely no patriotic duty to save this country!!! Just using that in our decision of weather to make the move or not!!!
Thinking of offering 175k and waiting to see what happens…then again, worried that if we go for this even if it is for sale below current market value we will miss out on something better in a years time.