Planning to buy 2bedroom apartment

Limerick west

Hi

I am planning to buy 2 bed apartment and I need advice. Is it a good time to buy now? and where is the best area that could hold its price in future? Because I am thinking to sell the unit after three years.

Your help is appreciated

Lenny

WHy would you get a mortgage out on a property and plan on selling it in 3 years?
are you planning on moving or selling up to move abroad?

brahma

I think you will lose money on it after 3 years? i dont think the property market will pick up by then. But if you are buying the city centre is the only place that will have good 12 month rental chance.

Limerick west

Lenny wrote: »

WHy would you get a mortgage out on a property and plan on selling it in 3 years?
are you planning on moving or selling up to move abroad?

I am renting now and planning to stay for the next three years. I think it is better for me to buy property and then sell it later hoping this will make some investment and also to safe some renting. I have some saving and I saw some cheap properties in daft.ie

Limerick west

brahma wrote: »

I think you will lose money on it after 3 years? i dont think the property market will pick up by then. But if you are buying the city centre is the only place that will have good 12 month rental chance.

I don't like the city center and do you think the price will go more down after three years by more than 25%. Given that saving my runt will make up the lose

Insect Overlord

Limerick west wrote: »

Given that saving my runt will make up the lose

Wut?

Limerick west

Insect Overlord wrote: »

Wut?

Simply my rent now is 850*12*3=Euro 30600 and if i am planning to buy apartment around 120,000 to 130,000 and sell it later for 100,000. Rent that I am saving will make up this difference. hope it is clear

brahma

Limerick west wrote: »

I don't like the city center and do you think the price will go more down after three years by more than 25%. Given that saving my runt will make up the lose

It's very hard to pick a good area to buy in limerick now, the regeneration has people moved all over the suburbs. All ill say is be careful where you buy and if its cheap its cheap for a reason. Good luck I hope it works out.

MadsL

If the apartment drops by 20-25k by the time you sell you are well out of pocket after fees. Renting could easily SAVE you money. Rent is not dead money in a faling market.

Buying a house for a 3 year period is madness unless the market is skyrocketing.

Think about it carefully.

Look at the drops Limerick has experienced in even the past year.

http://www.daftdrop.com/#!searchView?f=&from=5/20/11&to=11/30/12&a=limerick&min=2&max=2&iA=false&iD=false&t=Apartment%20For%20Sale

Culleeo

Limerick west wrote: »

Simply my rent now is 850*12*3=Euro 30600 and if i am planning to buy apartment around 120,000 to 130,000 and sell it later for 100,000. Rent that I am saving will make up this difference. hope it is clear

I think you're mad doing this. Why would you want to have a mortgage hanging over you for the sake of, lets just say best case scenario, saving €10,600. What if you can't sell it when the time comes? What if the price of said apartment drops significantly? Too much of a risk. I don't see the point in buying for three years. That's just me though.

Limerick west

MadsL wrote: »

If the apartment drops by 20-25k by the time you sell you are well out of pocket after fees. Renting could easily SAVE you money. Rent is not dead money in a faling market.

Buying a house for a 3 year period is madness unless the market is skyrocketing.

Think about it carefully.

Look at the drops Limerick has experienced in even the past year.

http://www.daftdrop.com/#!searchView?f=&from=5/20/11&to=11/30/12&a=limerick&min=2&max=2&iA=false&iD=false&t=Apartment%20For%20Sale

This is realy shocking. God with those famlies who faced this diffecult time.

bazz26

OP, have you applied for a mortgage? Banks require a hefty deposit these days and even at that will limit what they will lend you based on what they deem you can afford to repay based on your income.

Personally I think its a bad idea, the market is still in decline despite what estate agents tell you. Yes it might be a good time to buy as a long term investment and your idea would have been good during the Celtic Tiger where you would have made a nice profit but these days taking out a mortgage for only 3 years is financial madness imo.

Did you look at renting a cheaper place?

Casperbhoy

Great time to buy if you have a large deposit. Id buy in Castletroy near UL or near the hospital. You can always rent if you cant sell and still make profit

vkid

I think you are mad....but if you really want to buy an apartment, buy in a small development of apartments...no more than 15-20 apartments (and less if you can find one). Less chance of hassle imo and more chance or reselling.

You'd nearly get a house for similar money tbh...and are more likely to be able to sell a house over a two bed apt, no matter what state the property market is in.l

Any of the larger apartment developments, prices are not going to recover for a long time , if ever imo.

Raiser

No disrespect but this is a terrible idea.

- Bookmark this page and come back someday to admire the dodged bullet.

Also check out the renting market in detail and you should do a lot better than your current rent, no Landlord holds any power over anybody these days.

Louche Lad

Limerick west wrote: »

Simply my rent now is 850*12*3=Euro 30600 and if i am planning to buy apartment around 120,000 to 130,000 and sell it later for 100,000. Rent that I am saving will make up this difference. hope it is clear

You also need to factor in the loss of interest on your savings, plus the payments on your mortgage if you need one.

aspasp1

Limerick west wrote: »

Simply my rent now is 850*12*3=Euro 30600 and if i am planning to buy apartment around 120,000 to 130,000 and sell it later for 100,000. Rent that I am saving will make up this difference. hope it is clear

It is not that simple as it sounds..

RubyWoo83

I don't think you've thought this through to be honest. You haven't taken interest, solicitors fees or anything into consideration. If you are lucky enough not to lose any value you would probably still be out of pocket somewhat.

I'd be more inclined to ask for a reduction in rent or move to a cheaper apartment because in current market rates 850 a month for a two-bed apt is very expensive! You'd easily pick something nice up around the 650- 700 mark.

If you do go ahead though I would be looking at somewhere close to the city centre but on the commuter loop for either Raheen(yet to be confirmed but will probably be 450 jobs at the old Dell plant) or Shannon(850 jobs announced).

FutureGuy

Madness OP. I can't stress that enough. We are nowhere near the bottom and apartments prices are very volatile.

Beaver1

you should have went to this auction, you could have grabbed a bargain
http://www.limerickleader.ie/news/business/pre-budget-nerves-blamed-for-poor-sales-in-limerick-auction-1-4563192

aN.Droid

You have to remember that you save allot of money in repairs and upkeep when you rent aswell. Burst pipes? Not your problem. Financially at least.