[quote=“therock67”]As Art has said you can live pretty centrally for 400k I’d say.
All depends on circumstances. I bought this year - had sold last April so got 8 months out of my profit on first gaff and whatever drop there was in the market then.
Decided at that stage I was buying somewhere to live for 30 years so not going to put myself through shit to save a few quid as long as I was happy with what I bought.
Had to use some of my vcash to get the deal over the line but think it was worth it.[/QUOTE]
I havent seen many places you would set up camp in for 30 years for 400k anywhere Id fancy living near the city centre to be honest.
bear in mind when you are getting the mortgage as well that 30k price diferential now is probably equivalent of 70 over the life of a 30 year mortgage.
Look as long as a fella is happy with his lot and satisfied that this is home for a long time to come then go for it. But there are some amount of young married couples in negative equity, in apartments who cant start families, trade up, move home etc now because they are effectively trapped.
Was at a presentation recently and it was interesting to hear the view on what will happen to some existing unsold apartment blocks, thew view is that there are several thousand apartments in greater Dublin area that will be flattened in the next couple of years. Never sold never occupied, just flattened. Would name the prime location but dont want to insult anyone
You can rent a place half the size of a decent house for a grand a month, so over the course of even 3 years you are paying 36 grand down the drain.
I would rather have a slice of toast and a cold cup of sick than pay someone elses mortgage.
Yours etc,
GSH.
I can fully understand why people are holding off. If you have enough cash that the mortgage represents a reduced portion of the equity then the risk of negative equity is reduced, but then you are just risking your capital.
The problem I see is that this hesitation and resulting price spiral is taking property below its true value. when eventually somebody notices this and the buying starts, it will release a torrent of pent up buying which will drive the prices upwards very fast. The result may be that in waiting for another 10k drop, a tardy buyer may miss the bottom and end up paying 50k more. In addition, just like a pendulum with too much momentum, it may swing up too far and end up falling again.
[quote=“dancarter”]
You could live in a top class apartment in D4 Ranelagh/Miltown Rathgar for 2k a month. 2 k a month is a mortgage of about 400 k, youd be living a long way from the city centre to buy somewhere for 400k equivalent of what youd live in for 2k rent. [/QUOTE]
I can see the superficial attraction of this, but at the end of the rental period you’d be no closer to owning anything, your 2k per month would instead have contributed to someone else’s capital wealth and you’d still have to start a mortgage. If you are one who never intends to buy, ever, then this makes sense, but not otherwise. The only reason for holding off is not the attractiveness of rent but rather speculation on the bottom of the price market.
Makes sense. Hopefully it’ll be the poor quality apartments from the early boom (Zoe Developments built a lot of crap) rather than the later ones. Also, the rush into high rise suburban developments never made any sense to me. Its spreads the population into the suburbs and increases the load on transport. A city should have a population density profile that is centered in the middle and tails off into the suburbs.
Does anyone here live in those commuter towns outside of Dublin? Where they flung up blocks of one and two bedroom apartments in arse end of nowhere but it was ok because it was only 10 mins from the train line to Dublin. I’d say some of those estates must be like a ghost town. I know a lad who bought a house in a development and it’s after turning out to be the only house in the development they managed to sell (or build), so he’s the only person living in the estate.
[quote=“Garda Sean Horgan”]You can rent a place half the size of a decent house for a grand a month, so over the course of even 3 years you are paying 36 grand down the drain.
I would rather have a slice of toast and a cold cup of sick than pay someone elses mortgage.
Yours etc,
GSH.[/QUOTE]
Thats the problem with the rental market, the landlords expecting people to pay more than the mortgage. The amount of appartments in Cork (one beds) that are on Daft etc for 6-8 months is ridiculous. Landlords are looking for a grand a month, if they lowered it down to 6-700 at least they’d be getting some of it paid, and contribute themselves, as it is now they must be paying the whole thing themselves, which is sheer stupidity, and stuborness.
I heard a formula that McWilliams came up with there on the radio recently. He had seen a 3 bed house in Kildare or somewhere, nice house, and they were looking for 350,000 or something, but when he worked out what they should be getting for rent over a certain period (this was with his formula the value of the house it was something like 3 years rent x 12-15 or something, can’t remember) it worked out at around 180,000. That would indicate to me houses will keep falling, and no harm either.
[quote=“Garda Sean Horgan”]You can rent a place half the size of a decent house for a grand a month, so over the course of even 3 years you are paying 36 grand down the drain.
I would rather have a slice of toast and a cold cup of sick than pay someone elses mortgage.
Yours etc,
GSH.[/QUOTE]
i don’t get that mentality at all TBH…who gives a fcuk who’s rent your paying if its going to save you cash in the long term which obviously now it is…my mate bought a house 3 years ago for 620,00…its now going for 400,000 asking price as the estate is still half empty…I’d gladly take paying 36,000 for 3 years to any man or beast if it saves me over 170,000…
The thing about a mortgage is that the interest is as much dead money as rent. Buying a house is just a method of enforced saving, if you think about it - the interest you pay on the mortgage is like rent, whilst the capital repayments are savings.
I’d be interested to look at analysis of paying a mortgage versus renting and saving with the savings going into a deposit account, don’t think there’d be a huge difference in the greater scheme of things.
My philosophy anyway is just to buy a house that you will be able to live in long term, not to make money.
Fair point. But property bubble notwithstanding, longterm returns on property are greater than cash deposits. Furthermore, a house that is also a home adds an additional intangible value over a balance in a deposit account.
And here be the detail that the much mentioned devil lives in. The average punter will not save the difference in a deposit account. At worst they’ll flitter it in the pub or at best spend it on ephemeral items such as 50 inch Plasma TVs and designer clothes.
Very valid point, which I believe GSH has also alluded to. Buying houses as Capital investments (as opposed to rental investments) is at the core of our current problem.
While i believe owning property has become a disease in this country i wouldn’t classify owning a home the same.
People need to separate the concept of houses from homes.
No doubt house prices will drop further but if you want a home, if you have a family and want to have a homestead you wish to pass to your offspring when you die then you will need to jump on the ladder at some stage.
[quote=“HBV*”]While i believe owning property has become a disease in this country i wouldn’t classify owning a home the same.
People need to separate the concept of houses from homes.
No doubt house prices will drop further but if you want a home, if you have a family and want to have a homestead you wish to pass to your offspring when you die then you will need to jump on the ladder at some stage.[/QUOTE]
Exactly HBV. Big difference between buying a house and a home.
[quote=“dancarter”]I havent seen many places you would set up camp in for 30 years for 400k anywhere Id fancy living near the city centre to be honest.
bear in mind when you are getting the mortgage as well that 30k price diferential now is probably equivalent of 70 over the life of a 30 year mortgage.
Look as long as a fella is happy with his lot and satisfied that this is home for a long time to come then go for it. But there are some amount of young married couples in negative equity, in apartments who cant start families, trade up, move home etc now because they are effectively trapped.
Was at a presentation recently and it was interesting to hear the view on what will happen to some existing unsold apartment blocks, thew view is that there are several thousand apartments in greater Dublin area that will be flattened in the next couple of years. Never sold never occupied, just flattened. Would name the prime location but dont want to insult anyone [/QUOTE]
it can be done, maybe not 400k but if you go to 450(asking price) you will find them in places that youmight possible like to live, like dun laoghaire with it’s rich sailing heritage :mad:
the other thing to bear in mind from talking to estate agents is that sellers are very amenable to offers.
one final thng I’d add would not be to buy anything that was built post 95 as the build quality is shite and nary a solid wall in the whole fucking gaff
[quote=“artfoley”]it can be done, maybe not 400k but if you go to 450(asking price) you will find them in places that youmight possible like to live, like dun laoghaire with it’s rich sailing heritage :mad:
the other thing to bear in mind from talking to estate agents is that sellers are very amenable to offers.
one final thng I’d add would not be to buy anything that was built post 95 as the build quality is shite and nary a solid wall in the whole fucking gaff[/QUOTE]
[quote=“north county corncrake;176869][QUOTE=artfoley”]it can be done, maybe not 400k but if you go to 450(asking price) you will find them in places that youmight possible like to live, like dun laoghaire with it’s rich sailing heritage :mad:
the other thing to bear in mind from talking to estate agents is that sellers are very amenable to offers.
one final thng I’d add would not be to buy anything that was built post 95 as the build quality is shite and nary a solid wall in the whole fucking gaff[/QUOTE]
[/QUOTE]
rolling eyes again, you must get that from your missus’ reaction every time you open your gob
[quote=“artfoley”]it can be done, maybe not 400k but if you go to 450(asking price) you will find them in places that youmight possible like to live, like dun laoghaire with it’s rich sailing heritage
the other thing to bear in mind from talking to estate agents is that sellers are very amenable to offers.
one final thng I’d add would not be to buy anything that was built post 95 as the build quality is shite and nary a solid wall in the whole fucking gaff[/QUOTE]
Fuck me, he’s a property expert now as well as a legal expert.
[quote=“HangBlaa”]They only Gaffs in that range in Dun Laoighre are next to the methadone clinic.
You seem very au fait with the property market Art, how many houses have you bought and sold ?[/QUOTE]
not necessarily so HB ,there’s a couple of nice ones near bakers corner
not a property expert by a long stretch but have kept a very watchful eye on property for the last 10 years, I also held up the conveyancing on NCC’s house;)
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