Are rising rents making buying a better option?

Larbre34

Last Wednesday I made an offer of 165,000 on a house listed for 240,000, an extended and renovated small Council built semi from the 1940s with 2 usable bedrooms and a boxroom. The agent cut to the chase and said if I went to 182,500 I could have it.

Thats the real pricing level out there, the supposed increases are what Bertie would call smoke and daggers.

Of course buying makes more sense than renting, if I bought that place my 80% mortgage would cost me €700 or so per month but I couldnt rent a similar house for less than €1,100, however for anyone entering the mortgage market the conditions are simply prohibitive and where would a young couple get €30,000 for a deposit these days.

In the heady days you could buy a €500k on 100% with loose conditions, now you can barely get a €200k on 80% with draconian conditions - until the balance is struck to normalise the market you'd be wasting your time expecting increases

jester77

goodie2shoes wrote: »

mutual friends have moved in, so that's not really an issue for them.

Until the friends have to emigrate.

handlemaster

Larbre34 wrote: »

Last Wednesday I made an offer of 165,000 on a house listed for 240,000, an extended and renovated small Council built semi from the 1940s with 2 usable bedrooms and a boxroom. The agent cut to the chase and said if I went to 182,500 I could have it.

Thats the real pricing level out there, the supposed increases are what Bertie would call smoke and daggers.

Of course buying makes more sense than renting, if I bought that place my 80% mortgage would cost me €700 or so per month but I couldnt rent a similar house for less than €1,100, however for anyone entering the mortgage market the conditions are simply prohibitive and where would a young couple get €30,000 for a deposit these days.

In the heady days you could buy a €500k on 100% with loose conditions, now you can barely get a €200k on 80% with draconian conditions - until the balance is struck to normalise the market you'd be wasting your time expecting increases

so did you buy ?
Bertie now thats a blast from the past

UCDVet

As it's always been - buying makes more sense, for most people, if you are going to stay in one place for a long time.

Renting gives you flexibility you don't otherwise have with buying. Leases are mostly a joke and if you are willing to lose you deposit you can pretty much just walk away and never hear about it again.

Can't do that with buying.

sfwcork

I think people need to take into consideration how difficult it is to get a mortgage!

Also no point paying for a house if its overpriced just to have one

Market still doesnt seem level to me

but then again what would I know

goodie2shoes

jester77 wrote: »

Until the friends have to emigrate.

i don't think that's an issue tbh, but thank's for trying.

syklops

UCDVet wrote: »

As it's always been - buying makes more sense, for most people, if you are going to stay in one place for a long time.

Renting gives you flexibility you don't otherwise have with buying. Leases are mostly a joke and if you are willing to lose you deposit you can pretty much just walk away and never hear about it again.

Can't do that with buying.

Many people would have you think you can do that. "Shure I'll just post back they keys to the bank and they can keep the flat screen telly...".

Larbre34

handlemaster wrote: »

so did you buy ?
Bertie now thats a blast from the past

I only thought of Bertie cos I heard the Mater hospital site being credited to him as a stroke this morning!

No, havent bought it yet, Im looking at another place thats appeared and the budget deadline isnt relevant to me

sfwcork

wrote:

Larbre34

I only thought of Bertie cos I heard the Mater hospital site being credited to him as a stroke this morning!

No, havent bought it yet, Im looking at another place thats appeared and the budget deadline isnt relevant to me

boards house warming partyyyyy when its done.Whoop Whoop

Zamboni

goodie2shoes wrote: »

besides this thread is dealing specifically with the choice between RENTING Vs BUYING.

Just a point of note - There is no evidence, other than anecdotal that rent is rising.
A DIT analysis of Daft figures is;
- an interpretation
- of asking prices
- submitted by EA's and landlords
- with biased and conflicting interests

Also, even if a monthly mortgage repayment is cheaper than a monthly rental price for the same property - that is only one variable in the plethora of variables that need to be accounted for in a true Rent V Buy equation.
It is insufficient information to make an informed purchase decision.

Try harder next time.

humanji

Take it to the accommodation forum.