Advice Sought - Buying First Home

kennyb3

Current Situation

Renting apartment (duplex) in robswall malahide for about 7months now with GF - lease is up in June.

Considering buying a house at some stage this year.

Issues

1. There seems to be a conflicting report evry day as to when house prices will bottom out, so kind of wondering if there is any general consensus as to when this might occur? i.e buy in June or wait till November. We will buy this year id imagine.

2. If a house is advertised at a price what sort of first offer is deemed reasonable acceptable and not derisory? 360k on a €380k house?

3. Are more houses likely to come on the market (esp in malahide - see 3 below)

4. How do people go about weighing up area's? For example, we initially felt we would love to live in malahide however it seems too expensive -very little for under €400k and very few houses on the market.

Is paying €400k for a small house in malahide really worth it? the ones in seabury seem to be going for €420k+

We want to live in north county dublin (ideally on train and with the sea) and have ruled out Balbriggan (im originally from there), Rush and the likes of swords.

Skerries is appealling (but her family live there so im not overly sure) but is still expensive enough.

Bettystown was also mentioned as there are huge houses for half the price (presumably a reason for this) and we d worry about living in a ghost estate. Has anyone any opinions on this area btw?

So how do you weigh up location versus house size/value for money?

Is it an entirely personal thing?

Kind of wish we could afford malahide but there seems so little availability and our hand will probably be twisted to look elsewhere - we cant wait forever. But if we did there would we be getting a small house and just paying for location. very confused

Thanks again

Danbo!

1. There seems to be a conflicting report evry day as to when house prices will bottom out, so kind of wondering if there is any general consensus as to when this might occur? i.e buy in June or wait till November. We will buy this year id imagine.

If you have to buy this year, I'd buy on December 31st. Prices are likely to keep dipping for the rest of the year at least. If you guess the bottom of the market, well done, but no one really can, only in hindsight. Im no expert, but I cant see it bottoming out in 2010.

2. If a house is advertised at a price what sort of first offer is deemed reasonable acceptable and not derisory? 360k on a €380k house?

Offer even less. Buyer's market. Its been said that if you are not embarrassed by an offer then it is not low enough.

3. Are more houses likely to come on the market (esp in malahide - see 3 below)

Yes, when interest rates rise people will be squeezed even more and are then likely to sell, bringing more houses to the market

4. How do people go about weighing up area's? For example, we initially felt we would love to live in malahide however it seems too expensive -very little for under €400k and very few houses on the market.

Very little under 400k asking prices? Im not familiar with property prices in the area, but bear in mind that anything priced slightly over 400k would probably go for less than 400k.

Is paying €400k for a small house in malahide really worth it? the ones in seabury seem to be going for €420k+

Going for 420k or priced at 420k? As said above, asking price and selling prices are usually quite different.

kennyb3

Thanks, based on your reply it seems best to hold off as long as possible this year hope the houses we have our eye on get into low 400k's and hope to get them for 380k.

Think just focus on saving extra deposit therefore lower loan value.

JoeyJJ

Some people reckon there is a 10-20% difference in asking prices v selling prices, you are hoping to pay 5% less than asking price! 400K Some people suggest going no more than 340-350 with first offer depending on house maybe lower, Buyers market. Sad to say but later in the year there could be a spate of repossessions which would make more houses available and more competition for buyers.

I'm spending time reading property forums liver thepropertypin and these are the general views. I am new to this game though hoping to buy this year or next but don't want to catch a falling knife. (more propertypin talk)

James Howlett

You could think long term - move somewhere further afield where rent is much cheaper in order to save up a good sized deposit. It keeps you away from what you want in the short term but once you have a good bit of savings Malahide might be on the cards again for you.

I used to live in Malahide, always loved waking up and going for a run along the coast road to Portmarnock. I still do that same run sometimes, even though my starting point has been pushed back by some miles...

kennyb3

James Howlett wrote: »

I used to live in Malahide, always loved waking up and going for a run along the coast road to Portmarnock. I still do that same run sometimes, even though my starting point has been pushed back by some miles...

ha ha weird you say that, that run is a huge reason i love living in malahide. i do it most nights after work. plus access and runs around the park

antiskeptic

kennyb3 wrote: »

Considering buying a house at some stage this year.

Given the vast sums of money involved, consider buying when the time is right.

2. If a house is advertised at a price what sort of first offer is deemed reasonable acceptable and not derisory? 360k on a €380k house?

Go looking now and get a feel for the market. The best place to gauge the price of a house is standing with an estate agent in the master bedroom of the house you've just viewed. Do this 10 or 20 times (you'll need to do it 10-20 tims irrespective of budget - just to get used to finding out what it is you like and don't) and you'll get to know what the actual price of a house tends to be

Then keep your eyes peeled for a bargain that is a bargain now. And wait until the bad news stops being bad news for 6 months. Then buy.

You might miss the peakdip by a month or three. But what's a few thousand compared to thinking of purchasing when no one knows if the bottom will be reached this or next year?

kennyb3

Have to say in one day yesterday between reading boards, askaboutmoney and property pin i learnt a huge amount. i had no idea how bad things really were and what a vast oversupply of houses there is.

also learnt things will only get worse due to rising interest rates and difficult budgets. think we ll be trying to make it as late as possible this year if we do have to buy this year.

only issue is the rent we have to pay in the mean time.

Danbo!

kennyb3 wrote: »

only issue is the rent we have to pay in the mean time.

If you spend lets say €12,000 in rent in the next year, it'll probably be nothing compared to the amount a €400,000 house will drop in value. You could see a reduction of lets say €50,000 therefore waiting is saving you €38,000 off a mortgage. Obviously these figures are for example only, but that's the way you need to think. You must ignore the phrase "rent is dead money" in a falling market, and other celtic tiger phrases such as "'starter homes" and "getting your foot on the property ladder". Those days are gone.

Also, as you are doing your research, make sure to check the source of any news/blog articles on property. The last few months has seen articles entitled "Property prices have bottomed out" etc. etc. You will notice these almost always come from auctioneers, estate agents, who want to increase there almost non-existent business.

GoogleON247

hi,
i was about to buy my first house in september 2009 and was told to hold on. friend of mine bough house in the same location few months before us and...TODAY she already lost 50K on that purchase as of price drop. i spent around 4 hours yesterday researching property markets, statistics and areas! house prices are to go up in a second half of 2010. mortgage rate is to go up as well! now, i have no idea whom to believe, but...
house i was about to buy for 240K in Sep 2009 is on the market from 169K now as for today :eek:. i honestly don’t think that price should drop any lower, because we’re talking about NEW 3 bedroom house for 170K.
location will play a big part in house price and also conditions (second-hand house price will be more stable when new house price dropped as low as it possibly could).
now, all info above refers to house markets in Balbriggan
There are few real estate agents offering house in Balbriggan at a very low price.
2 bedroom apartments/houses are starting from 149K to 170K and 185K, when 3 bedroom apartments/houses are starting from 169K to 205K and 220K.
i did come across 1 bedroom apartment for 129K...and...i never seen prices like that before.
good house prices are up for a grab in Blanchardstown and some parts of Castleknock, not to mention Clonee and Clondalkin , but u'll not find any bay there.

JoeyJJ

I'd say if your happy to stay in the house for the considerable future, you won't out grow it in a couple of years then its not a bad time to buy at the right price. The 170K Balbriggan place may be attenable for 145-155k if you put in an offer you never know unless you offer it. If you think this is value and can afford it then why not.

jobless

GoogleON247 wrote: »

house i was about to buy for 240K in Sep 2009 is on the market from 169K now as for today :eek:. i honestly don’t think that price should drop any lower, because we’re talking about NEW 3 bedroom house for 170K.

You're comparing the price they are now to what they were at the bubble height..... how much were they in 1995? im not saying they are overpriced but i wouldnt say they are low either

mathie

GoogleON247 wrote: »

i honestly don’t think that price should drop any lower, because we’re talking about NEW 3 bedroom house for 170K. [/COLOR]

Why shouldn't they drop any lower?
Are you of the belief that high property prices are good for the country?
Sure lets continue selling houses to each other for 500K and we'll all get rich.

My uncle bought a 2,500 sq foot 4-bed in a very nice area in Dublin in 1993 for less than 100K. Now how much since then has been inflation and how much has been speculation?

And I wonder how much he could have picked up a three-bed shoebox for back then. Very little I'd assume as it wasn't what people were looking for to live in ('live' and not 'invest').

GoogleON247

hi there,
well, thanks a mil for reply (have no idea on how to select ur names on the screen)...
dear "joblsess and mathie"! - what was the wage like in Ireland in 95'?
i don't want to look back and see what it used to be like, i want to look and see what's the lowest possible price for today is or at least; if it's any realistic?! unfortunately nobody can say if prices are to go up or to go below "today's lowest" price. my guess is - 3 bedroom house for 170K is a good offer. also...even if i loose another 30K on house value in few months after perchase....i should be grateful for not gettin the same house for 300K in 2007

mathie

GoogleON247 wrote: »

hi there,
well, thanks a mil for reply (have no idea on how to select ur names on the screen)...
dear "joblsess and mathie"! - what was the wage like in Ireland in 95'?
i don't want to look back and see what it used to be like, i want to look and see what's the lowest possible price for today is or at least; if it's any realistic?! unfortunately nobody can say if prices are to go up or to go below "today's lowest" price. my guess is - 3 bedroom house for 170K is a good offer. also...even if i loose another 30K on house value in few months after perchase....i should be grateful for not gettin the same house for 300K in 2007

True you will be better off than peope who bought a few years ago.
BUT in a few years time will people be talking the same way about people who bought now?

As I read before about the dotcom bubble a lot of people were burned on the way up but a lot more were burned on the way down trying to call the bottom.

GoogleON247

mathie wrote: »

True you will be better off than peope who bought a few years ago.
BUT in a few years time will people be talking the same way about people who bought now?

As I read before about the dotcom bubble a lot of people were burned on the way up but a lot more were burned on the way down trying to call the bottom.

hi mathie, cool that u're here on a fast reply mode
i guess, year 2010 might come up as lowest in "today's low" housing prices.
loads of new estates were sold at a crazy price due to costs involved, such as construction materials & human power. especially human power in construction between 06'-07'!!!
houses i'm looking at were established & planned in 07', so i guess "today's low" price is good for me...but...a killer for developer!

mkahnisbent

Houses are still way overpriced. Anyone who can't see this still has bubble on the brain.

Idbatterim

could you rent somewhere cheaper so that you can save quicker? as has been mentioned on boards left right and centre recently, buying and then selling 2 or 3 years later days are over! if you are going to buy make sure it is the right house for atleast the medium term! None of us know when prices will start to rise but i know this, unemployment is increasing, there is emigration, reduced pay packets, a budget that took 4 billion out of the economy, rising interest rates! drops in prices will still be significant, any potential rises if and when they arise will be negligible.

kennyb3

we have about 28k saved the vast majority of a deposit, we need about another 7k for the most basic furniture to start solicitor and other fees. we should have that with 2 saving by late summer and wouldnt be buying before then anyway given the fall in prices expected. we really dont wanna move out as we love it here although i do get that every euro we save is one less we ll have to borrow

Idbatterim

there is another article or two in the SINDO today about property prices etc. But at this stage its stuff we all know and have heard before. Bear in mind you will be paying back atleast double what you borrow. Id imagine holding off on buying, will be alot more prudent that buying now in most cases. Id be wary of any advice from vested interests i.e estate agents, banks, economic advisers etc... Funny how everyone is so eager to hop back on the bandwagon! given the recent and ongoing carnage! the selling price also depends on how desperate people are! can they afford to wait or do they absolutely have to sell...