Tips Buy apartment or house.

Nicknamed

Hi.
Any ideas on Good and bad aspects each of buying apartment or a house near rochestown avenue in south dublin..
Which is better house or apartment and why?
What is the normal process for buying? If you do not have that much money at the moment how does it work out? Do you give down payment and then pay monthly the arrears directly to the seller? Or bank gets involved?
No experience in this so would really appreciate guidance.
Thank you

Santa Cruz

Nicknamed wrote: »

Hi.
Any ideas on Good and bad aspects each of buying apartment or a house near rochestown avenue in south dublin..
Which is better house or apartment and why?
What is the normal process for buying? If you do not have that much money at the moment how does it work out? Do you give down payment and then pay monthly the arrears directly to the seller? Or bank gets involved?
No experience in this so would really appreciate guidance.
Thank you

As you approach the house/apartment you wish to buy you will see a man. Give him all your money and he will give you magic beans which can be exchanged for the house/apartment

Zaph

I'm afraid you'll need to speak to the bank OP, property just isn't sold on the basis of paying back the seller monthly. Looking at your previous posts it appears that you are Muslim. I know Islamic banking is a bit more complicated because of the issues regarding interest, however I believe that some of the main banks have mentioned fairly recently that they were interested in getting involved with Islamic finance. It might be worth dropping into your local branch to have a chat with them.

L1011

RBS in the UK offer sharia-compliant mortgage equivalents whereby they purchase the house and hold it in their name and then take monthly instalments towards a (significantly higher) price that they're reselling it to you at. Nominally there's no interest charged as a result.

I'd contact Ulster Bank, as part of RBS, to see if they can offer that here.

Nicknamed

I didn't ask the question from religious perspective.. Just wanted to know the normal process involved and options... Looking at my religious background before replying to my post seems judgmental to me..

The_Morrigan

Normal process is that you buy with cash, the full amount being paid to the seller on closing the sale. Or if you do not have the full cash amount you borrow via a mortgage provider and repay the principle amount plus interest over a period of time..typically 25-35 years.


Here are some links for you to read in relation to buying a house in Ireland:

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/steps_involved_buying_a_home.html
http://www.buyingahouse.ie/first-time-faq.html
http://www.consumerhelp.ie/buying-a-home-step-by-step-guide

Zaph

Nicknamed wrote: »

I didn't ask the question from religious perspective.. Just the normal process involved.

Fair enough, in that case just go talk to some banks or a mortgage broker and see what they can arrange for you. As I mentioned previously, there isn't anyone who would sell you a property and would be prepared to get paid for it in monthly instalments.

Zaph

Nicknamed wrote: »

I didn't ask the question from religious perspective.. Just wanted to know the normal process involved and options... Looking at my religious background before replying to my post seems judgmental to me..

Apologies if I offended you, that was not my intention. However your OP showed such a complete lack of understanding as to how the property buying process works that I thought there might have been a reason for it, such as a different cultural background.

Nicknamed

Zaph wrote: »

Apologies if I offended you, that was not my intention. However your OP showed such a complete lack of understanding as to how the property buying process works that I thought there might have been a reason for it, such as a different cultural background.

Thanks no Problem. Actually I d0 have total lack of understanding being from a different country altogether. I was renting till now. The replies have started enlightening me on buying.

Nicknamed

The_Morrigan wrote: »

Normal process is that you buy with cash, the full amount being paid to the seller on closing the sale. Or if you do not have the full cash amount you borrow via a mortgage provider and repay the principle amount plus interest over a period of time..typically 25-35 years.


Here are some links for you to read in relation to buying a house in Ireland:

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/steps_involved_buying_a_home.html
http://www.buyingahouse.ie/first-time-faq.html
http://www.consumerhelp.ie/buying-a-home-step-by-step-guide

Very useful information. In between say after two years is it possible that you start paying back to the bank higher installments or even total amount or you have to wait for 20-30 years as originally agreed with bank?

hfallada

OP you need to have a credit rating. To have a credit rating you must have had a loan and repaid it in full. If you have never had a loan in Ireland. Apply for a credit card, use it and repay it on time. Or get a car loan. The bank needs to see that you can repay a loan without any issues.

The_Morrigan

Nicknamed wrote: »

Very useful information. In between say after two years is it possible that you start paying back to the bank higher installments or even total amount or you have to wait for 20-30 years as originally agreed with bank?

It depends on the bank and the agreement you have with them, but must will allow overpayments.
Your best bet is to talk to different banks and let them know that in the future you may wish to over pay - ask them if any penalties would be imposed if you did that.

The_Morrigan

hfallada wrote: »

OP you need to have a credit rating. To have a credit rating you must have had a loan and repaid it in full. If you have never had a loan in Ireland. Apply for a credit card, use it and repay it on time. Or get a car loan. The bank needs to see that you can repay a loan without any issues.

I got my mortgage without any previous lending under my name.
I don't understand the obsession with credit/debt in this country.

Nicknamed

The other part of question remains less attended.. House or apartment?

hfallada

The_Morrigan wrote: »

I got my mortgage without any previous lending under my name.
I don't understand the obsession with credit/debt in this country.

Its not an irish thing at all. Its the same in America and the UK. If you have never had a loan before and paid it off. How does the bank know you are credit worthy? A bank isnt going to give a loan for several hundred thousand euro because you paid you rent on time for the last few years

The_Morrigan

hfallada wrote: »

Its not an irish thing at all. Its the same in America and the UK. If you have never had a loan before and paid it off. How does the bank know you are credit worthy? A bank isnt going to give a loan for several hundred thousand euro because you paid you rent on time for the last few years

Mine did

L1011

hfallada wrote: »

Its not an irish thing at all. Its the same in America and the UK. If you have never had a loan before and paid it off. How does the bank know you are credit worthy? A bank isnt going to give a loan for several hundred thousand euro because you paid you rent on time for the last few years

They do, though; frequently. Plenty of people never have anything more than a credit card prior to applying for a mortgage.

Nicknamed

Say f0r a typical 250000 euro priced aprtment.. How much extra in total do you pay to the bank in the form of interest over 30 years?

The_Morrigan

Nicknamed wrote: »

The other part of question remains less attended.. House or apartment?

That depends on your circumstances to be honest.
For instance, apartments are fine if you do not have an expanding family, but if you need a residence you can grow with, then a house is better.
If you wish to keep pets, then leases in apartment complex may forbid these.
Extra costs associated with an apartment - management fees, water charges being on the flat rate.
Noise levels, can you live with people on all sides of you?
Do you wish to have a garden?
Parking - do you have more than one car?

L1011

Nicknamed wrote: »

Say f0r a typical 250000 euro priced aprtment.. How much extra in total do you pay to the bank in the form of interest over 30 years?

Another 175,000 or so at current variable rates.

Nino Brown

hfallada wrote: »

Its not an irish thing at all. Its the same in America and the UK. If you have never had a loan before and paid it off. How does the bank know you are credit worthy? A bank isnt going to give a loan for several hundred thousand euro because you paid you rent on time for the last few years

I'm sure regular saving is acceptable. Maybe even more so than regularly buying things you can't afford but paying for them later.

Trish56

hfallada wrote: »

OP you need to have a credit rating. To have a credit rating you must have had a loan and repaid it in full. If you have never had a loan in Ireland. Apply for a credit card, use it and repay it on time. Or get a car loan. The bank needs to see that you can repay a loan without any issues.

That's not true once you have a savings history and pay rent this will suffice in order to qualify for a mortgage. Having a credit rating would be a plus but not necessary.

Del2005

Nino Brown wrote: »

I'm sure regular saving is acceptable. Maybe even more so than regularly buying things you can't afford but paying for them later.

Banks rather having people owing them money than owing money to people. So someone who regularly borrows money from them is considered a better customer than someone who just sticks money in, as they make a bigger profit on loans.

solargain

There are hidden costs with an apartment that are out of your control , mangement companies , common area problems noisy neighbours and lack of storage space in general. You can be lucky or unlucky with what you buy. I would run a mile from anywhere that has a management company

riclad

SAY you borrow 100k,
you.;ll pay back 200k, approx capital plus interest ,over 25 years.
approx.

of course interest rates could go up,
say rate 4 per cent now,
if its 5 per cent in 2016, your mortgage payments will rise by 20-25 per cent .

tax on landlords is based on what tax allowances you claim,
maintenance,service charges, insurance, you can claim 75 per cent of the interest paid
on the rental loan, mortgage ,against tax.

SO you could be getting rent, 600 euro, loan payment ,700 euro,
end up being taxed , on profit, 200 euro approx,

EVEN THOUGH YOUR LOAN expenses, are higher than the rental income you recieve.

BASICALLY you are taxed on rental income minus ,tax allowances claimed against
the rental expenses .