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Can you afford to buy a home in Ireland?

  • 16-06-2006 09:16AM
    #1
    Closed Accounts Posts: 83 ✭✭Red Kooga


    ..... Because Im getting seriously worried that I cant and that its just going to keep escalating. A look on Daft.ie tells me I think its time to bag my bags for sunnier shores maybe. Th cheapest coming up on a search for Dublin says a 2 bedroom apartment in Blanchardstown will set me back a mere 299,000 euros. So are you renting like me and waiting to see if these crazy prices drop, thinking of hightailing it to another country or going to rob a bank? There isnt alot of choice left anymore, in Dublin especially, since the SSIA's kicked in is there?


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Comments

  • Registered Users, Registered Users 2 Posts: 17,247 ✭✭✭✭6th


    I havent seen that the SSiA's have actually affected the housing problem yet - its still to come. What about outside Dublin? Alot more people are moving out a bit and it seems to be well worth it.


  • Registered Users, Registered Users 2 Posts: 68,190 ✭✭✭✭seamus


    I could afford one, but I'm appreciating my disposable income too much to do it. Plus I'm probably moving to the UK for a year or so which would make things complicated.

    What's wrong with a 2 bed apartment (apart from the location)? People have to realise that in the last fifty years, nobody ever started out owning a five bedroomed detached home in Dublin. You have to start at the bottom and work up. Years ago, "the bottom" was a 2-up, 2-down terrace, now it's a 2-bed apartment (and you probably have more space in the apartment).


  • Closed Accounts Posts: 556 ✭✭✭JimmySmith


    The SSIAs have been having an effect since the start of the year alright. People have been getting loans based on SSIAs from parents etc.

    I wouldnt worry too much about affording a house. Almost everybody cannot afford a house when they first think about buying, but somehow they do eventually. Its a big purchase and it takes time before you are in a position to do it. Most people cant start with a really big house, afterall it is a ladder. Many people saying they cant afford a house are really saying - 'i cant afford to jump straight onto the third rung' :)

    Jump on the bottom rung the moment you have the means. Dont wait to leap to the second or third because it might just keep getting higher.

    Maybe start with a 1 bed apt instead of a 2-bed? Nice big 1-bed apts can be got for around €275 in Dublin. If you had done this a year ago you would have paid less than €200K for the same apts.

    You can rent for now anyway and at a later stage buy a house. Dont let it stress you too much though. Everyone has been in the same position.


  • Registered Users, Registered Users 2 Posts: 6,854 ✭✭✭zuutroy


    I think I'm one of the few people that doesn't give a damn about owning a house. People get so knotted up about owning something, anything! I'm quite happy not to deal with all the hassle, and not to have any ties. I'll wait until I'm earning enough so my back isn't to the wall if I buy somewhere, be that in Ireland or elsewhere.


  • Posts: 0 [Deleted User]


    I'm slowly coming to the terms of the fact i'll prob be living with my parents with quite some time as much fun as it is, I could rent but I like buying shoes and clothes too much and i'd miss my family


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  • Closed Accounts Posts: 556 ✭✭✭JimmySmith


    zuutroy wrote:
    I think I'm one of the few people that doesn't give a damn about owning a house. People get so knotted up about owning something, anything! I'm quite happy not to deal with all the hassle, and not to have any ties. I'll wait until I'm earning enough so my back isn't to the wall if I buy somewhere, be that in Ireland or elsewhere.

    I used to be the same. Then wife and sprogs came along and i decided it was nice to have them all grow up accross the road from their friends and not move away because the landlord sold the house one day.

    There comes a stage in your life when the rent or buying question becomes a decision you make for others and not yourself.


  • Closed Accounts Posts: 834 ✭✭✭FillSpectre


    6th wrote:
    I havent seen that the SSiA's have actually affected the housing problem yet - its still to come. What about outside Dublin? Alot more people are moving out a bit and it seems to be well worth it.
    Many people believe the 100% mortgage introduction at the end of last year was a pre-emtive move by SSIAs people.
    A 3-4 hour commute to save on a house doesn't seem worth it for many people. Quality of life includes commuting time and cars and petrol will cost more in the long run.

    Not everybody will get to own a property in Ireland and less people will. Currently Ireland has the highest homeownership in the world. THe nesxt to us is Italy which has a decreasing population


  • Registered Users, Registered Users 2 Posts: 1,530 ✭✭✭Naked Lepper


    I'm slowly coming to the terms of the fact i'll prob be living with my parents with quite some time as much fun as it is, I could rent but I like buying shoes and clothes too much adn i'd miss my family if
    once you move out there will be no lucking back.....


  • Registered Users, Registered Users 2 Posts: 2,178 ✭✭✭Irish Wolf


    JimmySmith wrote:
    The SSIAs have been having an effect since the start of the year alright. People have been getting loans based on SSIAs from parents etc.

    Really? At the most optimistic I would have thought the SSIA would bring in about 30k, so in my experience, as a lump sum, this wouldn't really impress many lenders. BOI offered me a mortgage of 135k! wow!

    As far as Dublin is concerned, I think it's going to become more and more "accepeptable" to rent rather than buy - a more European vibe. Either that, or the first buyers are going to take the plumge down in the Barn, and it becomes the new Batter...

    If your job is portable - leave Dublin! :)


  • Registered Users, Registered Users 2 Posts: 2,252 ✭✭✭Funkstard


    Many people believe the 100% mortgage introduction at the end of last year was a pre-emtive move by SSIAs people.
    A 3-4 hour commute to save on a house doesn't seem worth it for many people. Quality of life includes commuting time and cars and petrol will cost more in the long run.

    Not everybody will get to own a property in Ireland and less people will. Currently Ireland has the highest homeownership in the world. THe nesxt to us is Italy which has a decreasing population


    No I was reading stats recently...there are a few European countries ahead of us in home ownership levels - Lithuania or Latvia or somewhere is at 97% :eek:


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  • Registered Users, Registered Users 2 Posts: 6,503 ✭✭✭Archeron


    It would be great if those really cheap (less than €90k i think) environmentally sound homes that were on display in that trade show England a few weeks back were to go into production. I'm sure there'd be no shortage of buyers.


  • Closed Accounts Posts: 834 ✭✭✭FillSpectre


    Funkstard wrote:
    No I was reading stats recently...there are a few European countries ahead of us in home ownership levels - Lithuania or Latvia or somewhere is at 97% :eek:
    I do stand corrected but I think you have to consider that the housing in these countries was not bought privately or at least heavily influence by its recent past. I would guess most of it was former state housing given to people through schemes but I don't know for sure

    The Irish State also provided a lot of housing once we gained independence.

    I'd like to see those stats if you have a link.

    I would guess that their homeownship will drop as they become more westernised or europeanised. I am basically saying that is happening to us too.


  • Registered Users, Registered Users 2 Posts: 10,148 ✭✭✭✭Raskolnikov


    Red Kooga wrote:
    thinking of hightailing it to another country
    Try taking a look at the price of property in the metropolitan areas of the UK and the US and you'll find the housing markets just as inflated (relative to average yearly income in the country) as they are in Ireland.

    Just to give you a perspective on the whole "renting is dead money" nonsense, let me explain my circumstance. Living in the Cork City suburbs with my girlfriend in rented accomodation with another couple. We pay €340 a month in rent (including all bills, charges, etc) for newly furnished semi-detached house in a decent area. We could actually rent for cheaper but we prefer to pay for the luxury of a properly fitted place. We're only both starting out on our careers so we only take in €26K and €28K per annum in Net pay. That gives us €54K a year. Minus rent that's €50K. We save €1,200 a week (we could save more but again, we have lives). That gives us €14,400K in savings for ONE year. Assuming interest (3%) roughly matches inflation, even taking into account no future pay increases, we could have the money for a nice 3 bedroom semi-detached paid within 20 years.


  • Closed Accounts Posts: 139 ✭✭utopian


    Currently Ireland has the highest homeownership in the world. THe nesxt to us is Italy which has a decreasing population

    I don't believe that is correct. Italy and Spain are higher, as is Hungary. (Source: RICS European Housing Review 2005)

    Do you have a source for your assertion?


  • Closed Accounts Posts: 556 ✭✭✭JimmySmith


    Archeron wrote:
    It would be great if those really cheap (less than €90k i think) environmentally sound homes that were on display in that trade show England a few weeks back were to go into production. I'm sure there'd be no shortage of buyers.

    Its the land that costs the money though. And dont you know as soon as there is a saving to you the builders will slap on an extra few euro for themselves.

    Irish Wolf wrote:
    Really? At the most optimistic I would have thought the SSIA would bring in about 30k, so in my experience, as a lump sum, this wouldn't really impress many lenders. BOI offered me a mortgage of 135k! wow!

    Its a rare occurance these days for one person to buy on their own, if they are an FTB.

    Only a year ago the hardest part of becoming a home owner was getting a deposit together. Now its not, with SSIAs and 100% mortgages.


  • Registered Users, Registered Users 2 Posts: 6,503 ✭✭✭Archeron


    JimmySmith wrote:
    Its the land that costs the money though. And dont you know as soon as there is a saving to you the builders will slap on an extra few euro for themselves.
    .

    thats true. Perhaps the government could look at providing free or subsidised land from its own land stocks to provide enough housing to at least help the people who are in dire circumstances.

    Regarding the builders profits, they are supposed to be included in the 90k, but its a sad fact that more would probably be tacked on. Would be nice if the goverment introduced legislation to make sure that affordable properties stayed affordable, and put a limit on profit margins.


  • Registered Users, Registered Users 2 Posts: 11,985 ✭✭✭✭zAbbo


    Why on earth would you want to live in Dublin?

    You'd get a good house for unde 300k in most other towns.


  • Closed Accounts Posts: 556 ✭✭✭JimmySmith


    zabbo wrote:
    Why on earth would you want to live in Dublin?

    You'd get a good house for unde 300k in most other towns.

    The simple truth is that the closer to the main Job centres the houses are, the more expensive they get. When there are no jobs to be got, then houses will fall in value. There are other factors of course but that would be the main driver.


  • Closed Accounts Posts: 2,585 ✭✭✭HelterSkelter


    Try taking a look at the price of property in the metropolitan areas of the UK and the US and you'll find the housing markets just as inflated (relative to average yearly income in the country) as they are in Ireland.
    Have to disagree with you there. I was looking at property in London and you can get a two bedroom house in a decent area for €300,000. And the same job pays at least 1.5 times the salary I am on here.
    That gives us €14,400K in savings for ONE year. Assuming interest (3%) roughly matches inflation, even taking into account no future pay increases, we could have the money for a nice 3 bedroom semi-detached paid within 20 years.
    Yeah but you are not taking into account the fact that houses will cost a lot more in 20 years time.


  • Registered Users, Registered Users 2 Posts: 166,012 ✭✭✭✭LegacyUser


    why not buy with a friend?


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  • Registered Users, Registered Users 2 Posts: 24,509 ✭✭✭✭Sleepy


    A lot of threads about this already in the property forum. Many of us are convinced that the current property market in Ireland is a bubble just waiting to burst so I wouldn't worry too much if I were you...


  • Posts: 0 CMod ✭✭✭✭ Jefferson Shapely Marsupial


    I never planned to settle down here, and the house prices are even more of a reason not to.
    No, I can't afford one and I don't plan to try.

    It has a bungalow for 800k! That's stupid!!


  • Registered Users, Registered Users 2 Posts: 1,470 ✭✭✭TheBigLebowski


    That gives us €14,400K in savings for ONE year. Assuming interest (3%) roughly matches inflation, even taking into account no future pay increases, we could have the money for a nice 3 bedroom semi-detached paid within 20 years.

    That's at today's prices. You think you'll be able to buy a 'nice 3 bed semi in 20 years for 350k or so? Not a chance.
    In my opinion, you lose money by trying to save for a house. It's a pointless exercise. What's the point in saving 20 grand in a year when house prices will probably go up by double or treble that meaning you will have to borrow another 20 or 40 grand to add the to the 20k you struggled to save while also wasting money paying rent...


  • Banned (with Prison Access) Posts: 16,397 ✭✭✭✭Degsy


    I bought my gaff three years ago through Dublin City Council Shared Ownership scheme.Basicly you only need 1500 euros for a deposit,be in full time emplyment for ayear or more and they will lend you up to 270k.That doesnt sound like much but there are apartments to be had for that money,especially round finglas which is an upcoming area at the moment.Two friends have bought under this scheme in the last six months and they're both very happy with thier purchases.If you're not in Dublin,mosty local authorities offer a similar scheme as well.Forget all this nonsense about bubbles bursting,that kind of scenario will only ever hurt investors and other people who want to make a profit out of buying a house.If its a home you're after buy now,coz you wont be able to afford it next year.


  • Closed Accounts Posts: 139 ✭✭utopian


    That's at today's prices. You think you'll be able to buy a 'nice 3 bed semi in 20 years for 350k or so? Not a chance.
    In my opinion, you lose money by trying to save for a house. It's a pointless exercise. What's the point in saving 20 grand in a year when house prices will probably go up by double or treble that meaning you will have to borrow another 20 or 40 grand to add the to the 20k you struggled to save while also wasting money paying rent...

    The only wonder of it is that more foreign investors aren't piling into the Irish housing market. Returns well above deposit or stock-market rates, for ever and ever and ever...


  • Registered Users, Registered Users 2 Posts: 10,148 ✭✭✭✭Raskolnikov


    Have to disagree with you there. I was looking at property in London and you can get a two bedroom house in a decent area for €300,000. And the same job pays at least 1.5 times the salary I am on here.
    Have you lived in London? If so then you'll know what you're posting is utter nonsense. The average price of a house in Greater London is £306,664 source, in Eurons, that comes to a whooping €448,957.92 at todays rates. The average house price in Dublin is €378,822 source. If you've been to London, then you'll also know that the cost of living there is scandalous, even worse than here in ireland, little wonder that London is ranked 3rd and Dublin 13th in the world's most expensive cities to live in. source

    I think the old adage about far away hills certainly rings true here.


  • Registered Users, Registered Users 2 Posts: 17,247 ✭✭✭✭6th


    I bought my house 5 years ago for £149,000 (irish) its now worth €385,000 - but the thing is i dont care what its worth! It could fall to nothing and i wouldnt care, i have a roof over my head.

    Get in there and buy with a friend if you have to, its a start.


  • Closed Accounts Posts: 834 ✭✭✭FillSpectre


    utopian wrote:
    I don't believe that is correct. Italy and Spain are higher, as is Hungary. (Source: RICS European Housing Review 2005)

    Do you have a source for your assertion?


    Yeap, I am aware it is not the most up to date

    http://www.nationmaster.com/graph/peo_hom_own-people-home-ownership

    Without reading the whole report you posted any chance of the actual information and figures you are quoting. I am sure there has been movement but not massive ones


  • Closed Accounts Posts: 2,585 ✭✭✭HelterSkelter


    Have you lived in London? If so then you'll know what you're posting is utter nonsense. The average price of a house in Greater London is £306,664 source, in Eurons, that comes to a whooping €448,957.92 at todays rates. The average house price in Dublin is €378,822 source. If you've been to London, then you'll also know that the cost of living there is scandalous, even worse than here in ireland, little wonder that London is ranked 3rd and Dublin 13th in the world's most expensive cities to live in. source

    I think the old adage about far away hills certainly rings true here.

    You are looking at the average cost in London which takes into account houses in mega expensive areas like central London, Chelsea, etc. Have a look at http://ononemap.com/map/index?maptype=Sales, go into an area such as Tooting (SW17), there are 15 two bedroom houses there for £200,000 or less. Up the price to £250,000 and you get 68 two bedroom houses. I am in London quite a lot and I find it cheaper than here for day to day expensives (e.g. Groceries).


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  • Closed Accounts Posts: 13,224 ✭✭✭✭Kinetic^


    I've got a 2 bed apartment and I'm currently selling it to move to a house twice the size :D


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