Buying a house 2013!

TheFarneyman

Ok,
Mortgage Interest Relief gone,
upcoming budget,
Property TAX pending
Water charges pending,
lack of growth in the economy
mass unemployment and emigration

All of the above surely mean that the steadying of the property market is completely superficial and it will nose dive again next year???? I think this time next year might be the right time to purchase? We are probably around 55% off peak prices now in Dublin would it be possible with no further incentive to buy that we will hit 70% by the end of 2013?????

TheDriver

when is the right time to buy is the question? Sometimes its when you find the right house and the price is right i.e. not paying over the odds so when they drop a bit more, its no big deal.

I do think all the taxes are going to have an effect on prices and there is only one way they are going to remain going, especially as the artificial MIR spike is gone.

megafan

House prices may not drop much more but likely will remain as they are for many more years.... any rise in the future will be influenced by inflation (if Any?).... Only going to be rises in taxes (water & household rates) and continued downard push on salarys.. any mortgage taken out will be unlikely to be reduced by inflation/price rises as in the past so be sure you can comfortably pay off any loan now as you'll be paying that percentage of your salary for term of loan!

& of course we'll have those with vested interest continually telling us we've turned the corner & house prices will rise tomorrow!!:rolleyes:

davet82

possibly 5% more from peak max. (due to economic factors mentioned) but most likely with very little activity in the first half of next year due to people rushing for the MIR i predict sane asking prices on the likes of daft and myhome which will make it easier to buy and less stressful without having to deal with dellusional sellers.

its all a guessing game though

TheDriver

davet82 wrote: »

its all a guessing game though

tell me all about it. And the auctioneers who tell you a bid is already in............ you really love calling some bluff off these guys, most can't lie straight in bed.
Also don't forget higher land registration fees.
One things for sure, prices aren't going up in most parts.
Also thse houses that haven't sold for 12 months need to adjust their prices inline with others in the area or indeed lower if they want to sell. However I have found a good number of people have no intention of actually selling unless they get a fortune

Idbatterim

One things for sure, prices aren't going up in most parts.

yeah strongly agree with this. Who knows whether the price increases in parts of Dublin are dead cat bounce or not, but Im fairly shocked at the increases in prices of rent and houses compared to a year or so ago. Just look from the price register what some houses were selling for last year, compared to what they are asking and selling for now... For anyone who doubts this, go visit the property pin!

TheDriver

wait for the dead cat to get swept away and MIR fad to calm down and we will be left with more miserable truth for people trying to sell and better data for those of us trying to buy.
Except maybe in lush suberbs

RATM

House prices are directly correlate to unemployment figuers. Less people working means more people who can't afford a mortgage. For those who can there are banks that won't lend in any case.

Government & CSO have admitted last week that our unemployment problem will not improve until at least 2015 so I wouldn't expect prices to rise between now and then. There may well be a dead cat bounce as it is unusual for a property crash not to experience one on the way down but either way until employment levels and confidence rises then house prices will stay repressed.

mel.b

I'm planning on buying next year and the biggest issue for me is lack of decemt stock (i'm in the mid west). Fingers crossed some decent houses come onto the market in the new year

sparrowcar

I'm 3 weeks in my new home (Swords). We bought a family home 20k under asking price. Even if prices go down by another 5-10% it doesn't matter as it's a family home with zero reasons to move in the near to mid future.

If the right property at the right price comes up then that is the time to buy. It may be next week or next year only you will know that at the time?

Ditchfinder

Currently renting 2 years, hoping to buy 2013. We spoke to the EA who sold our previous house, he agrees with most on here in that house prices will drop again next year, after the MIR frenzy has died down. Good luck to all who plan a 2013 purchase, might be lucky 13 for some.

Lyn256

Like ditchfinder, we're renting for 2 years now too (original plan was 3-6 months)
Just can;t find the right house
Was only tlaking to EA who sold my old house bout 2 weeks ago and he said that at best he's hoping houses stablise where they are but realistically he's expecting the arse to fall out of the market again in January.
He also said that MIR was the big factor affecting house prices right now and even if they bring it in again under another name-it won;t affect house prices again until it is close to expiring . . .

nukenelly

I'm in the market to buy. Took my eye off the ball after being outbid a few months ago and was a bit concerned when prices seemed to be stabilising.

There's definitely a MIR factor though. It reminds me of a car salesman acquaintance who told me about customers spending €40-50k who are obsessed with getting into the lowest tax band possible to save a hundred quid or so a year.

I've also noticed a number of properties that failed to sell (in need of TLC, dream price expectations etc.) being pushed back onto the market recently. I think some of them have missed the boat TBH.

I think there may be pressure on Baldy Noonan to extend MIR or come up with some other wheeze. I'm not sure it'd have the desired effect though. What seems to have caused the spike Sept-Nov was the actual panic associated with MIR ending.

Idbatterim

There's definitely a MIR factor though. It reminds me of a car salesman acquaintance who told me about customers spending €40-50k who are obsessed with getting into the lowest tax band possible to save a hundred quid or so a year.

yeah, bmw have reaped colossal benefits of this for years, mainly with the 520d, spend thousands to save hundreds.

gurramok

nukenelly wrote: »

What seems to have caused the spike Sept-Nov was the actual panic associated with MIR ending.

True indeed, just look at the Buying a House 2012 thread. Its riddled with MIR panicking.

TheDriver

gurramok wrote: »

True indeed, just look at the Buying a House 2012 thread. Its riddled with MIR panicking.

I was thinking the same thing, full of folk trying to beat a December deadline.
There is a shortage of nice properties out there all the same but at least we are not chasing an upwards pricing market!
I concur about properties that failed to sell, some people just think that fools will spend a fortune, not anymore. One EA told me that its annoying when a client insists on a high price for the house because they know it will never sell.

sparrowcar

This talk of "panic buying" and "buyers in a Frenzy" is pure EA/Media/Misinformed bullsh!t I'm sorry but it's just not the case. It's what people who aren't in a position to buy now are holding onto to ease the uncertainty of next year. The EA's are telling us this so we buy now instead of waiting but more educated buyers out there will only buy a house if it meets their criteria, not because of MIR expiring.

Why would someone spend 20/30/40k over asking price for something that is only worth circa 15k over 7 years?

Stop believing the hype. MIR frenzy and panic buying reports are no different than the years hearing we "have to get on the ladder" "property is a safe investment" and my favourite one "Crash?, sure that won't happen here"

Do some you really believe that there are people running around like headless chickens putting offers on houses over the asking price? Just read the property price index and open your eyes. I don't discount an increase in interest and sales but certainly not widespread pandemonium like is suggested.

However, having said all that we should remember that the flip side to this is with a very harsh budget on the way that the bank’s lending criteria will change in the new year. A couple approved for a mortgage of 250k now may only get approval for 200k once the budget and new taxes are introduced and the fact that MIR will not be available to them. One’s ability to repay will be reduced and as a result the amount lenders will give will be reduced. It may mean that now IS the time to buy and hence the "increase" in sales towards the year end but then this is only my opinion.

flintash

some EA hijacked 'sparrowcar' account!!! :eek::eek::eek:

sparrowcar

flintash wrote: »

some EA hijacked 'sparrowcar' account!!! :eek::eek::eek:

? In my first paragraph I am slatting EA's?
Just hate hearing this histeria crap. :mad:

efb

Good luck to all the '13's- hope its lucky for you! I'm a v happy 12!

bellson

I definitley wouldnt rush into anything, ive been renting the past 3 years and although it goes against my cultural instincts im comfortable with the situation, there are just too many external factors going on that are being dragged out such as..

how much will the property tax actually be,
will MIR be extended(ineffectual this year so probably!)
will my wages be touched again
USC and PRSI likely to increase

House prices are not going to increase for another few years possibly decades which is another plus!

Theres such a strong rental market out there also preventing people from selling at really reduced rates so finding your perfect house is all the more challenging,

how long do you pay someone else's mortgage for tho??

bidiots

bellson wrote: »

I definitley wouldnt rush into anything, ive been renting the past 3 years and although it goes against my cultural instincts im comfortable with the situation, there are just too many external factors going on that are being dragged out such as..

how much will the property tax actually be,
will MIR be extended(ineffectual this year so probably!)
will my wages be touched again
USC and PRSI likely to increase

House prices are not going to increase for another few years possibly decades which is another plus!

Theres such a strong rental market out there also preventing people from selling at really reduced rates so finding your perfect house is all the more challenging,

how long do you pay someone else's mortgage for tho??

Oh god here we go.....

TheDriver

bellson wrote: »

Theres such a strong rental market out there also preventing people from selling at really reduced rates so finding your perfect house is all the more challenging,

but only in certain areas. 4 bed detached property doesn't draw much rental in towns where 3bed semis are the big rental earners. Furthermore, some landlords need to cash from house sales to stay afloat.

davet82

bellson wrote: »

how long do you pay someone else's mortgage for tho??

as long as it makes finacial sense or how long it suits your life/family ect imo

now lets never repeat that question again

bellson

davet82 wrote: »

as long as it makes finacial sense or how long it suits your life/family ect imo

now lets never repeat that question again

agreed!

ABajaninCork

I'm not sure that there will be a huge difference in prices next year. Of course, we haven't had the Budget as yet, but it's fairly safe to assume the prices will drop further in the NY.

I too have read the various threads and cannot believe the panic over MIR phase out. From what I've seen and read I think people are still overpaying for property. It's not at the crazy Celtic Tiger prices, but still overpriced, IMO.

However. I think there'll still be people wanting to buy, but they'll be smaller in number and smarter buyers. They'll be the ones who have stress-tested the finances and have allowed proper provision for any water and property taxes coming down the line as well as interest rate rises.

Twinkly

Hi all,

I thought it was rumoured that VAT on construction was to be reduced from 13.5% to 9%. Am I correct in thinking that this reduction did not materialise in the Budget?

Thanks,

Ste-

Hey sorry to drag this up but it seems the most relevant than starting a new thread.

Have been bidding on a house since before Christmas.
At the minute our offer is 13K under the asking price. It's our 3rd offer. But each time we make an offer it takes them about a week to come back to us to say No or any give us any sort of answer. Just wondering if this time frame is the norm or not ?


Thanks.

P.s. reckon I'm going to need this thread this year as hoping to get the house this year.

killers1

Ste- wrote: »

Hey sorry to drag this up but it seems the most relevant than starting a new thread.

Have been bidding on a house since before Christmas.
At the minute our offer is 13K under the asking price. It's our 3rd offer. But each time we make an offer it takes them about a week to come back to us to say No or any give us any sort of answer. Just wondering if this time frame is the norm or not ?


Thanks.

P.s. reckon I'm going to need this thread this year as hoping to get the house this year.

Are you being outbid or are your offers just being declined? Is it a bank sale by any chance? The reason I ask is the fact that it's taking a week to get a decision back. At €13k below the asking price you are very close to it and if there is no other bidder involved I'd suggest stop bidding against yourself and tell them to take it or leave it.

Ste-

killers1 wrote: »

Are you being outbid or are your offers just being declined? Is it a bank sale by any chance? The reason I ask is the fact that it's taking a week to get a decision back. At €13k below the asking price you are very close to it and if there is no other bidder involved I'd suggest stop bidding against yourself and tell them to take it or leave it.

Found out today it's a seperation case involved, we were told we were the only bidders and as they're doing the bidding between them through solicitors it's taking a while and one of them is dragging their feet. We've stopped upping our bids as we were again told they wanted more. We are going to walk away now as if it's this messy at this stage if it goes to accepted it will be even more messy getting documentation out of them.

ABajaninCork

Ste- wrote: »

Found out today it's a seperation case involved, we were told we were the only bidders and as they're doing the bidding between them through solicitors it's taking a while and one of them is dragging their feet. We've stopped upping our bids as we were again told they wanted more. We are going to walk away now as if it's this messy at this stage if it goes to accepted it will be even more messy getting documentation out of them.

I'd agree. Separation/Divorce sales are never good. Walk. Plenty of other properties out there, which I'm sure will be just as nice.

kennyb3

sparrowcar wrote: »

I'm 3 weeks in my new home (Swords). We bought a family home 20k under asking price.

Firstly congrats on the new home.

sparrowcar wrote: »

Even if prices go down by another 5-10% it doesn't matter as it's a family home with zero reasons to move in the near to mid future. If the right property at the right price comes up then that is the time to buy. It may be next week or next year only you will know that at the time?

That's well and good but if it does go down by 5-10% you'll have overpaid by that amount - the whole moving thing only related to negative equity. What your giving up is the fact you'll be paying a higher mortgage every month - so it's the opportunity cost of this money. If you have an extra €100 - €200pm disposable income as a result of a lower mortgage that will give you higher savings/better quality of life (contribute towards meals out/holidays). I think your getting the two mixed up. Prices may not fall but I just don't think your point stands. I've worked out that as long as prices continue to fall by 2.2% p.a that i'm better off continuing to rent rather than buying (intangibles aside).

sparrowcar wrote: »

This talk of "panic buying" and "buyers in a Frenzy" is pure EA/Media/Misinformed bullsh!t I'm sorry but it's just not the case. It's what people who aren't in a position to buy now are holding onto to ease the uncertainty of next year. The EA's are telling us this so we buy now instead of waiting but more educated buyers out there will only buy a house if it meets their criteria, not because of MIR expiring.

Why would someone spend 20/30/40k over asking price for something that is only worth circa 15k over 7 years?

Stop believing the hype. MIR frenzy and panic buying reports are no different than the years hearing we "have to get on the ladder" "property is a safe investment" and my favourite one "Crash?, sure that won't happen here"

Do some you really believe that there are people running around like headless chickens putting offers on houses over the asking price? Just read the property price index and open your eyes. I don't discount an increase in interest and sales but certainly not widespread pandemonium like is suggested.

I actually do believe there has been a MIR frenzy. Take Skerries for example (I'm in the market for a house there). You can apply it to Swords or wherever.

Now from the PPR;

2010 Sales - 72

Q1 15
Q2 27
Q3 20
Q4 10

2011 - 48

Q1 12
Q2 7
Q3 15
Q4 14

2012 - 87

Q1 8
Q2 15
Q3 29
Q4 35

So Q3 & Q4 outstripped any period of the prior 2 years. Sales really dropped off in 2011 only for people to jump back in half way through 2012. Q4 2012 is extremely high.

I wonder why? Did lots of unconnected and independent thinking people suddenly all use their housing knowledge to discover that fundamentals meant it was a good time to buy? Or was it the media influence re a) MIR end b) the stabilisation spin. (take your pick).

Either way people paniced and followed others.

So is Skerries to small a market or sample i hear you say. Lets try Malahide;

2010 - 139 sales

Q1 32
Q2 37
Q3 42
Q4 28

2011 - 115 sales

Q1 31
Q2 22
Q3 32
Q4 30

2012 - 162 sales

Q1 - 28
Q2 - 32
Q3 - 34
Q4 - 68


So yet again we see 2011 declining on 2010 and then the early half of 2012 being quiet - then a big pick up in late 2012.

Again Q4 2012 has the highest overall volume. Mad isn't it?

Wonder why everyone used their own minds to decide Q3/Q4 2012 was a good time to buy

If we look at pg15 of this we see that house prices in dublin were down 3.4% overall in the first half of the year( and 8.6% in Q4 2011). Did it really just take the 3 positive months of April, May & June 2012 before people paniced? Are we all still sheeple who've learned nothing? It seems so to me.

With those Q4 figures for 2012 i really expect early 2013 to be a bloodbath. Seems to be very little activity on this thread.

Also look at the 2012 thread for evidence of the panic.

Ritchi

Panic does not mean overpaid, prices are still falling, so those who bought in Q3 and Q4 will still have bought at a lower price to everyone else. It is getting to to the stage where a lot of people can see a bottom of the market in sight, so if they were going to buy in Q1 or Q2 of 2013, they would have been(depends on the exact figures) better off buying at the end of 2012. I expect Q1 and Q2 for this year will be very low, which will even out the high amount in the previous quarters.

Obviously MIR is a big factor, but another reason is that taxes on second homes are getting higher and only going to increase, so I imagine any one with one is trying to offload, unless they are a proper landlord.

Having said that, I'm sure some people did overpay in Q4.

bidiots

I think there was an obvious 'panic' before MIR ran out, with people paying over the amount that the MIR was worth. Q3/4 of 2013 should tell an awful lot about the market imo

kennyb3

Ritchi wrote: »

Panic does not mean overpaid, prices are still falling, so those who bought in Q3 and Q4 will still have bought at a lower price to everyone else.

So prices are still falling but they didn't overpay???

Ritchi wrote: »

It is getting to to the stage where a lot of people can see a bottom of the market in sight, so if they were going to buy in Q1 or Q2 of 2013, they would have been(depends on the exact figures) better off buying at the end of 2012.

How come all these people came to the same conclusion re a bottom at very similar times?

What did they base it on?

The CSO stats for Q4 2011 and Q1 2012 didn't suggest. One quarter (Q2 2012) looked positive and everyone dived in based on that?

Ritchi wrote: »

I expect Q1 and Q2 for this year will be very low, which will even out the high amount in the previous quarters.

I do too. So what will happen to those houses still for sale? How will they sell without dropping prices to attract bidders? Do they hold firm and wait it out?

Ritchi wrote: »

Obviously MIR is a big factor, but another reason is that taxes on second homes are getting higher and only going to increase, so I imagine any one with one is trying to offload, unless they are a proper landlord.

Having said that, I'm sure some people did overpay in Q4.

I agree costs of ownership are increasing, which affects affordability which in turn affects price.

Anyway my point was just that something (MIR imho) caused a lot of people to come off the fence together in Q3 and particularly Q4.

The previous poster suggested it wasn't MIR but thats certainly not how it looks based on the statistics.

Ritchi

I mean they didn't overpay for the market at the time, which is evidenced by the fact that prices still fell in those few months. If there was a big panic, given that the supply of houses would remain relatively constant, it would mean prices would have had to go up, which they didn't. You're talking about in the long term, in which case you're most liekyl right, as the general trend is still going down.

I'm not sure if anyone thinks we're at the bottom, the bottom is almost impossible to predict, and can only really been seeing a long time after. But the general consensus would be that we are close to a bottom now. And by close I don't mean a few months, I mean it's most likely within 10-20% of the bottom(so about 5-10 from peak), but obviously, nobody can know for sure.

My point was that people usually come to a point where they are ready to buy, and given some may not be able to get a full length mortgage(due to getting closer to 65), and if they were going to buy at some stage in early 2013, they would probably have been better off to buy in late 2012. Now, if they are willing to wait until 2014, then they should do that.

Anyway, buying a house is not totally a monentary thing, it's where you live, and will most likely live for 30-40 years. Going into details about a few quid here and there, although something you should be aware of, is not the only thing that you should look at.

quad_red

And so here we are and it's 2013.

A second wee one due this summer, so after four years on the fence, I think we'd both like to settle.

Found a house in a decent area that we're interested in. Saw it over two weeks ago but not impressed with how the vendor and EA are asking. Promised a BER in "two to three days".

Nothing two weeks later.

With the stats from the house register we can see a house of the exact same type on the same road in considerably better condition sold for 40k less 3 months ago.

But EA has said vendor sees a strong recovery a few months down the line and can wait.

I would have hoped the end of MIR etc. would bring a new attitude to EAs and vendors.

Doesn't seem like it.

Ritchi

Vendors and EA;s are always going to think it's going to get better, and even if they don't they'll tell you it will.

Call their bluff and wait.

davet82

quad_red wrote: »

But EA has said vendor sees a strong recovery a few months down the line and can wait.

I would have hoped the end of MIR etc. would bring a new attitude to EAs and vendors.

Doesn't seem like it.

ya can blame charlie and the indo on spreading that delusion

crazy_kenny

I'm mortgage approved since October 2012. In the market for 4 bed semi or detached in Waterford. Prices in the city are in and around 170000. I have 15000 so would need to borrow 155000. Over 20 years payments per month with AIB at 4.3% are 958. I'm currently renting for 680 per month and saving 800 per month. I'd like to wait another year or two before buying but the other half has me under pressure to buy asap.

L1011

quad_red wrote: »

But EA has said vendor sees a strong recovery a few months down the line and can wait.

Tell the EA to let him have his crystal ball, and find a different house. You might get it for less than your current bid in a few months anyway...

qwertypop

quad_red wrote: »

And so here we are and it's 2013.

A second wee one due this summer, so after four years on the fence, I think we'd both like to settle.

Found a house in a decent area that we're interested in. Saw it over two weeks ago but not impressed with how the vendor and EA are asking. Promised a BER in "two to three days".

Nothing two weeks later.

With the stats from the house register we can see a house of the exact same type on the same road in considerably better condition sold for 40k less 3 months ago.

But EA has said vendor sees a strong recovery a few months down the line and can wait.

I would have hoped the end of MIR etc. would bring a new attitude to EAs and vendors.

Doesn't seem like it.

I'm dealing wit something similar myself. The ea I'm dealing with told me there was someone looking at the house this am my relations live directly across from the gaf and no one went next to near the place. This imaginary man also put an offer in of 15k more than my offer. I called her bluff and said na won't be rising my offer

gurramok

crazy_kenny wrote: »

I'm mortgage approved since October 2012. In the market for 4 bed semi or detached in Waterford. Prices in the city are in and around 170000. I have 15000 so would need to borrow 155000. Over 20 years payments per month with AIB at 4.3% are 958. I'm currently renting for 680 per month and saving 800 per month. I'd like to wait another year or two before buying but the other half has me under pressure to buy asap.

Never let emotions get ahead of a life purchasing decision.

RoverZT

gurramok wrote: »

Never let emotions get ahead of a life purchasing decision.

Agreed.

Your doing great as it is, fair play on saving 800 a month that's alot.

I think your crazy to change a good thing like that, wait.

Dan133269

crazy_kenny wrote: »

I'm mortgage approved since October 2012. In the market for 4 bed semi or detached in Waterford. Prices in the city are in and around 170000. I have 15000 so would need to borrow 155000. Over 20 years payments per month with AIB at 4.3% are 958. I'm currently renting for 680 per month and saving 800 per month. I'd like to wait another year or two before buying but the other half has me under pressure to buy asap.

I really wouldn't buy in Waterford city anytime soon if you're looking to get a house as its cheapest price. If I remember correctly, the Daft report from the end of last year showed that in Q3 2012, prices in the south east fell by 9%, in just one quarter!

Things are set to continue, high rates of unemployment, nothing new on the horizon, the airport looking as if it's going to close down, and there are still a lot of deluded sellers out there asking ridiculous prices.

This 3/4 bed semi-detached house in Kill St. Lawrence sold for 50k last month:
http://www.propertypriceregister.ie/website/npsra/PPR/npsra-ppr.nsf/eStampUNID/UNID-F43EB05D7E8B596180257AF50051C4C0?OpenDocument

Gosub

I've just returned to Spain from a two week session of looking at houses for sale in the south-east. I went with files on 17 houses to look at, compiled the week before I left for Ireland. On contacting the agents on the first day, 3 cried off saying the vendors had accepted offers and 2 vendors had raised their prices saying they were not under financial pressure anymore - like this made the house more valuable. (I thought this only happened in Spain. "someone's interested? Raise the price!")

Another house sold the day after we looked at it, we went to the agent to make an offer and he said that a viewer offered 205K on a 218K asking price and it was accepted.

Only one of the houses we looked at was a desperation sale and therefore reasonably priced. Pity it was in a bad place for us. someone will get a great bargain there.

All of the agents reported being unusually busy for January with unprecedented viewings. I know... who can believe agents?

To summarise: the market seems busy and houses seem to be selling. The greedy and deluded sellers are still out there. I felt a lot of optimism on our trip. No doubt the Q1 or Q2 2013 figures will burst that bubble. I'm going to just wait and see.

gaius c

Idbatterim wrote: »

yeah strongly agree with this. Who knows whether the price increases in parts of Dublin are dead cat bounce or not, but Im fairly shocked at the increases in prices of rent and houses compared to a year or so ago. Just look from the price register what some houses were selling for last year, compared to what they are asking and selling for now... For anyone who doubts this, go visit the property pin!

The rent situation in Dublin is worrying. A single income family on average industrial wage type money will pretty much be spending half their net income on putting a roof over their head in even the least attractive parts of Dublin. Don't believe me? Have a look at Ballyfermot. You'd be spending nearly a grand a month to get a house there.

Daft rental supply in Dublin has gone from over 8,000 in late 2008/early 2009 to 2,300-2,400 before xmas. As of today, it's dropped to 2,157. That's bad bad news for renters and it just doesn't seem right to me. We spent over a decade building like maniacs but have burned through the oversupply in Dublin in just 4 years despite no appreciable population rise? There's something funny going on.

crazy_kenny wrote: »

I'm mortgage approved since October 2012. In the market for 4 bed semi or detached in Waterford. Prices in the city are in and around 170000. I have 15000 so would need to borrow 155000. Over 20 years payments per month with AIB at 4.3% are 958. I'm currently renting for 680 per month and saving 800 per month. I'd like to wait another year or two before buying but the other half has me under pressure to buy asap.

I don't mean to sound offensive but you'd be mad to buy at that level. Stress test to 6.3% and you get an idea where rates "could" end up because that's where long term Bundesbank rates always were before the euro. Interest repayments are dead money too.

And for anyone wondering about the effect of MIR on the market, I was told by an Ulster Bank mortgage advisor to knock 5% off any offers due to the removal of MIR. Banks are taking it into account in their calculations of what to offer us so we need to do likewise.

quad_red

Gosub wrote: »

I've just returned to Spain from a two week session of looking at houses for sale in the south-east. I went with files on 17 houses to look at, compiled the week before I left for Ireland. On contacting the agents on the first day, 3 cried off saying the vendors had accepted offers and 2 vendors had raised their prices saying they were not under financial pressure anymore - like this made the house more valuable. (I thought this only happened in Spain. "someone's interested? Raise the price!")

Another house sold the day after we looked at it, we went to the agent to make an offer and he said that a viewer offered 205K on a 218K asking price and it was accepted.

Only one of the houses we looked at was a desperation sale and therefore reasonably priced. Pity it was in a bad place for us. someone will get a great bargain there.

All of the agents reported being unusually busy for January with unprecedented viewings. I know... who can believe agents?

To summarise: the market seems busy and houses seem to be selling. The greedy and deluded sellers are still out there. I felt a lot of optimism on our trip. No doubt the Q1 or Q2 2013 figures will burst that bubble. I'm going to just wait and see.

I wish I felt like that. We've been waiting on the sidelines for years. Have a young family and the rental situation in Dublin is a serious pain in the ass.

I have no intention of getting sucked in but the reality of prices in Dublin really hasn't stopped people living in la la land.

Making offers based on the actual real data available on the house price register, as opposed to the magical unicorn asking prices, is still seen as horrifically rude to most EA's in my experience.

A house sold down the road (exact same type, in better condition) for x in November. X happens to be 42k less than the asking. You offer x minus 30k (a reaonable offer given that there is 30k of work required to bring the house up to the standard of the one that sold in November) and the EA was genuinely insulted.

Seriously - just spluttered it was 72k less than asking. He was genuinely pissed off. The asking price is 100% irrelevant. What is relevant is what houses are in reality selling for.

Gosub

quad_red wrote: »

I wish I felt like that. We've been waiting on the sidelines for years. Have a young family and the rental situation in Dublin is a serious pain in the ass.

I have no intention of getting sucked in but the reality of prices in Dublin really hasn't stopped people living in la la land.

Making offers based on the actual real data available on the house price register, as opposed to the magical unicorn asking prices, is still seen as horrifically rude to most EA's in my experience.

A house sold down the road (exact same type, in better condition) for x in November. X happens to be 42k less than the asking. You offer x minus 30k (a reaonable offer given that there is 30k of work required to bring the house up to the standard of the one that sold in November) and the EA was genuinely insulted.

Seriously - just spluttered it was 72k less than asking. He was genuinely pissed off. The asking price is 100% irrelevant. What is relevant is what houses are in reality selling for.

I don't know what the agents are getting their panties all knotted up about. Their job is to put any and all offers to the vendors, unless specifically told not to entertain bids below a certain level. They'll get their cut of any sell so it's worth pushing an offer, no matter what it is. 2.5% of a bid is still better than no sell.

Melanoma

Average rent Birmingham ... 724 euro. London varies greatly by area. 3 bed can be got for 1000 euro. Dublin is not London. I think affordability of houses has improved. Old small terrace houses sold for around 100,000 euro in 2000. Incomes and population are still ahead of levels then. Maybe they are worth asking price but I think levels will continue to fall by 20 to 30%. There is still the effect of abandonment of properties which will accelerate as people leave what they now believe is a dump of a country. Overall the recession has ended with an equity inflation bubble about to begin. Dunno though I am not confident about its sustainability which earlier I had expected to know by now. Too many financial instruments in play and not enough economy.

quad_red

Well, put in an offer today on a house that's been on the market for 11 months.

They had one offer last March (apparently). We're undercutting that significantly.

EA said zero chance of acceptance. Given the works that need to be done on it it's a fair price given what's on the price register.

Not holding out much hope for realism though.

Still, now that we've put to offer in we can move on!