To buy or wait?

Damie

ZYX wrote: »

Your lack of understanding is obvious for the rest of us to see even if you cannot see it yourself.

His point about thus property is you don't know how much it is worth. Yes the property Market in general may be about to go down but clearly not every property will drop the same.

By your logic, if I buy a house today for €350k it will drop in price. If I instead pay €35k for the same house it will still drop. That is the point he is making. You need to know what a reasonable price to pay is.

On the mortgage front you say this house will cost €800k. Now how much will it cost to rent this property for the ext 80 years or what ever?

You and Palmers lack of understanding is pretty obvious to all I'm afraid. Take a deep breath and slow down and read this again, remember this is 2011, not 2007.
A house on the outskirts of a big town, for 350k, regardless of what its spec, in this current climate, is not a good idea.
Its pretty obvious that some on this thread are still oblivious to the fact that the bubble is still bursting, that common sense will have to be used once again, that prices all over the country are still too high for a country that cannot afford to keep itself solvent.
But I imagine that my point will be missed once again, some people still believe that prices will rise again in the next 10 years. This will not happen, we, as a country, are still in a major "correction/adjustment" phase.
But sure keep on those rose tinted glasses and over spend as we have done for the past decade, whats the worse thing that could happen eh?!

My tuppence worth!

Treehouse72

Ray Palmer wrote: »

Negative equity is not a given as you don't know the size of the mortgage they are taking out. Indicating you don't understand the terminology.

Ray, if you have a small mortgage because you have a large deposit and the house falls in value all it means is that, in effect, you have paid your Negative Equity up front.

Rather than the "loss" being a notional amount - as NE is for people who aren't selling at any given point in time - it is in this instance a real amount of real money (equity) that has been wiped out. That is to say, money that would be sitting in your bank account if you had bought after the price fall happened. The fact your NE might be small in absolute terms is only a function of how much, erm, AE (Actual Equity!) you've already lost.

In this context, your comment above is only true in a narrow, semantic sense. For all intents and purposes in the real world it is just wrong-headed.

Ray Palmer

Treehouse72 wrote: »

In this context, your comment above is only true in a narrow, semantic sense. For all intents and purposes in the real world it is just wrong-headed.

It is true because I am using the definition of the term and not making up a new definition up. I get they could lose money but that does not mean it is negative equity. There is nothing narrow about the use it is the correct use of the term using it to describe loss in value is incorrect, simple as.

Damie wrote: »

A house on the outskirts of a big town, for 350k, regardless of what its spec, in this current climate, is not a good idea.

You should go back and read what I said. I clearely stated it is not the time to buy. I still maintain to make a blanket statement on the value of a property that you have not seen is the same mentality as people who said prices would keep going up. To suggest no property near Galway is worth 350k is bonkers IMHO. There is nothing rose tinted about that. You are very quick to judge without all the facts. We do know it is very large and refurbed recently. There is a general floor on prices and it is unlikely that property will be worthless how low they go is a guessing game. There are people waiting for prices to drop before they buy. I will buy more property in the future in the right location,for the rigt price and development oportunity. Now is not the time for me.

Treehouse72

Ray Palmer wrote: »

It is true because I am using the definition of the term and not making up a new definition up. I get they could lose money but that does not mean it is negative equity. There is nothing narrow about the use it is the correct use of the term using it to describe loss in value is incorrect, simple as.

The first two sentences here show you are more interested in point-scoring than you are in debating or helping throw light on the substance of the matter. And the third sentence doesn't make sense. All in all, I'm not interested.

Damie

Ray Palmer wrote: »

You should go back and read what I said. I clearely stated it is not the time to buy. I still maintain to make a blanket statement on the value of a property that you have not seen is the same mentality as people who said prices would keep going up. To suggest no property near Galway is worth 350k is bonkers IMHO. There is nothing rose tinted about that. You are very quick to judge without all the facts. We do know it is very large and refurbed recently. There is a general floor on prices and it is unlikely that property will be worthless how low they go is a guessing game. There are people waiting for prices to drop before they buy. I will buy more property in the future in the right location,for the rigt price and development oportunity. Now is not the time for me.

I'm beginning to think that you are involved in a few threads and getting mixed up with your replies. I could try and explain it again but it would be a waste of time. Of course you're right, thats what you want to hear obviously:rolleyes:

AMG86

The buyer should check out how this house fared out during the very wet weather in December 2009. There was a lot of water around Cregmore. It is another factor that should be considered.

dabestman1

This country is crazy, even thinking about paying 350k is madness. These actions are keeping an already inflated property market artificially high.Finally to pay anymore than 120k for the house is literally throwing money down the toilet.

Mr. Loverman

The CSO are saying (surprise surprise) prices are still dropping. They fell 1% in April alone.

1% of 350k is €3500, and at least double or triple that if you include the interest over the life of the mortgage.

This alone should be proof beyond any doubt that you should wait.

Godge

Have found it difficult to locate decent German property websites but seeing as they are paying to keep this country going, interesting to see what their prices are.

http://germany.homesgofast.com/properties/our-german-home-P601519/

Found this one, rural but close (8 km) to large town (city in Irish terms) with 40,000 population and not far (60km) from Bremen which has population of 500,000 (half the size of Dublin).

Property is on a site of 1.25 acres, living area extends to over 2100 sq. ft. and there are extensive outbuildings as well. Comparable to the one the OP is looking at in terms of accessible location and size.

Price comes in at €215,000.

ArraMusha

350k for a house in Cregmore/Claregalway/Oranmore is overpriced.

The majority of the advise above is to wait, I'd agree with that.

You'd want to be aiming at half that for a 2500sq ft on half acre and a garage within 10k of Galway.