Outside the M50 and 3 beds are hitting €500k!!

beauf

imitation wrote: »

... Irish people refuse to rent or live in apartments, its going to be the same crazy prices scenario in no time.

In fairness a lot of the apartments that were built were very poor and unsuitable. In particular for family living.

Mongfinder General

fartyarse wrote: »

Myself and my OH received approval in principle two months ago for 450k, he earns 50k and I earn slightly less, around 48k. That's based on a 35 year mortgage, monthy repayments would be €2400, stress tested to €2,700.

Something is wrong here. A loan of $450k at 4.5% works out $2,129.66 per month. Please don't tell me that your rate is higher than 4.5%?

Kaizersoze81

fartyarse wrote: »

Myself and my OH received approval in principle two months ago for 450k, he earns 50k and I earn slightly less, around 48k. That's based on a 35 year mortgage, monthy repayments would be €2400, stress tested to €2,700.

What bank? I earn 48,000 and was approved for 220

DublinDilbert

Mongfinder General wrote: »

Something is wrong here. A loan of $450k at 4.5% works out $2,129.66 per month. Please don't tell me that your rate is higher than 4.5%?

Ummmm its usually a good idea to pay back the principle amount, that's where €2400 comes from.

Although in the last boom/bubble the banks weren't even too keen on you paying back the principle and many Buy to Let's are still on interest only :eek: sure where's the harm in that!

Mongfinder General

DublinDilbert wrote: »

Ummmm its usually a good idea to pay back the principle amount, that's where €2400 comes from.

Although in the last boom/bubble the banks weren't even too keen on you paying back the principle and many Buy to Let's are still on interest only :eek: sure where's the harm in that!

UMMM, my calculation includes the principal and interest calculation.

http://www.rams.com.au/home-loans/calculators/principal-and-interest-calculator/

Somebody is ripping the op off.

DublinDilbert

Mongfinder General wrote: »

UMMM, my calculation includes the principal and interest calculation.

http://www.rams.com.au/home-loans/calculators/principal-and-interest-calculator/

Somebody is ripping the op off.

BOI calculator came out at €2400 / month

I think that's the builder that's looking forward to ripping them off, followed closely by the bank when the rates go up again

Icepick

Cuddlesworth wrote: »

These ones?

Why do they keep recycling that fugly house design?

custom_build

DublinDilbert wrote:

I think that's the builder that's looking forward to ripping them off, followed closely by the bank when the rates go up again 

Do you honestly have the foggiest idea of how much profit the builder is making, or are you just throwing out an uneducated populist soundbite.

jay0109

Icepick wrote: »

Why do they keep recycling that fugly house design?

Wow...that's just 1,240 sq ft for the detached....€412 per sq ft:eek:

fat_sam

anncoates wrote: »

Irish people seem to have this touching idea that just because we had a property crash that there will never be cyclical supply and demand price increases ever again and if there is, it's down to some dastardly coalition of forces stopping the market finding its "real level" (houses in Dublin 6 for 100k)

those cranks over at property pin have a lot to answer for , permabears are as lacking in credibility as permabulls

johnnyskeleton

anncoates wrote: »

Irish people seem to have this touching idea that just because we had a property crash that there will never be cyclical supply and demand price increases ever again and if there is, it's down to some dastardly coalition of forces stopping the market finding its "real level" (houses in Dublin 6 for 100k)

Even more bizzare are the people who, having seen one of the largest crashes in living memory assume it cant happen again and jump in eith both feet!

quadrifoglio verde

quadrifoglio verde wrote: »

Provided your willing to rent for the next few years/few years longer than initially Anticipated, then carry on.
However, If it's somewhere where you can see yourself living in, until you come out in a box, then provided you can afford it, I'd buy now, because over the next 40 years, it's not going to make much difference anyway

You're either going to be paying rent for the next few years, or a mortgage. So long as you're not buying with the intention of trading up in 5 years time then fluctuations in price shouldn't bother you

Fluctuation in prices could mean a house purchased now could be 100k more than in 3 or 4 years, over a 30 year term that would make much of a difference to most sane people.

mr_seer

johnnyskeleton wrote: »

Even more bizzare are the people who, having seen one of the largest crashes in living memory assume it cant happen again and jump in eith both feet!

When house prices in Dublin are rising at an annual rate of 25% (and a lot higher in some areas), in an environment where incomes are stagnant (incomes actually fell in 2013), it is clearly a bubble. Granted the reasons are different than the last time but that does not make this one any more sustainable

fat_sam

johnnyskeleton wrote: »

Even more bizzare are the people who, having seen one of the largest crashes in living memory assume it cant happen again and jump in eith both feet!

we are only in year four of the current property cycle in south dublin and in year three in the capital overall , after we peaked in 2006 , 2007 saw a small enough dip , things got serious towards the middle and third quater of 2008 and by the time the IMF arrived , we were in a perfect storm of fears about currency , a deep recession and complete investor paralysis

just as emotions became exhuberent around 2006 , we irrationally overshot the bottom as recent as 2010 , the country wasnt nuked , we were never syria , property was always going to recover as there were still a very significant number of people in this country who had plenty of money , let alone international capital which will find opportunity where it exists

well done to those who made the move at a time which will come to be seen as a generational low nearly four years ago

having said all that , i dont think dublin property is a good buy right now from an investment POV , that ship has sailed

fat_sam

mr_seer wrote: »

When house prices in Dublin are rising at an annual rate of 25% (and a lot higher in some areas), in an environment where incomes are stagnant (incomes actually fell in 2013), it is clearly a bubble. Granted the reasons are different than the last time but that does not make this one any more sustainable

interest rates are at record lows , people earn nothing in savings , inevitably leads to asset appreciation and irish people will always buy property when they can

NIMAN

They always say a house sells for what people think its worth, so the buyers of these houses obviously think they are worth half a million.

Even though the rest of us think they are loons!

uli84

fartyarse wrote: »

Myself and my OH received approval in principle two months ago for 450k, he earns 50k and I earn slightly less, around 48k. That's based on a 35 year mortgage, monthy repayments would be €2400, stress tested to €2,700.

Thanks, I must have been talking to the wrong bank all this time...

EmilyHoward

Now for half a million, do these houses come with decking and a patio heater or do I have to borrow more for that ?

morrga

DublinDilbert wrote: »

BOI calculator came out at €2400 / month

I think that's the builder that's looking forward to ripping them off, followed closely by the bank when the rates go up again

I think that's where BOI are catching everyone out with their fancy 'we'll pay your stamp duty' but just shove it back in to your repayments.

boardie100

fartyarse wrote: »

Myself and my OH received approval in principle two months ago for 450k, he earns 50k and I earn slightly less, around 48k. That's based on a 35 year mortgage, monthy repayments would be €2400, stress tested to €2,700.

they are still giving out 35 year mortgages?... did you actually get approved for that amount with a child?...

so for a 35 year mortgage you would be effectively paying one of your salaries a month towards the mortgage...not to mention what childcare costs and other expenses... leaving you with a pittance to live on all for the luxury of living in Leopardstown... I hope you told them where to stick that offer... !

an extra 300 stress tested ... how about a stress test of a job loss?

mariaalice

fartyarse wrote: »

Myself and my OH received approval in principle two months ago for 450k, he earns 50k and I earn slightly less, around 48k. That's based on a 35 year mortgage, monthy repayments would be €2400, stress tested to €2,700.

Approval in principle is not the same as actual approval which will most likely be lot a less, its amazing the amount of people who think they are the same thing. Any couple who take on a 450k mortgage with an income of 100k are nuts even if they could get the mortgage in the first place.

mad m

Jesus 2,400 a month.......Doesnt bare thinking about. Wow....

quadrifoglio verde

johnnyskeleton wrote: »

Even more bizzare are the people who, having seen one of the largest crashes in living memory assume it cant happen again and jump in eith both feet!

It certainly can and it probably will. There's very few asset classes (if any) that don't have ups and downs.
So long as you're buying as a place to live in for the next 20 odd years and the cost between renting and owning isn't massive, then there's nothing wrong with buying in a rising market.
It's when your buying with the intention of flipping it in 2 years time so you can release the equity in order to trade up to a bigger house but in doing so a bigger mortgage (if your house has rose 100k, the bigger house in the area has probably rose 2/300k) that you can run into problems as people through there own fault either get trapped in "unsuitable" houses or massive debts.

Likewise if you're buying investment properties, buy for yield, not with the thinking oh it'll be worth 300k more in 5 years time.

Iintripod

jay0109 wrote: »

Wow...that's just 1,240 sq ft for the detached....€412 per sq ft:eek:

Grangehill.ie

I visited these at weekend. They are selling off plans on Harold's grange road. Website says the 4 bed is c.1900 sq ft so if you apply the above that puts them at 780k for a 4 bed..... They have them advertised at 620k off plans........ Someone's wrong.....

Zamboni

Better off gentrifying places like this inside the M50 for a quarter of a mil.

http://www.daft.ie/sales/43-whitechurch-avenue-rathfarnham-dublin/999205/?ea=1

o1s1n

boardie100 wrote: »

they are still giving out 35 year mortgages?... did you actually get approved for that amount with a child?...

so for a 35 year mortgage you would be effectively paying one of your salaries a month towards the mortgage...not to mention what childcare costs and other expenses... leaving you with a pittance to live on all for the luxury of living in Leopardstown... I hope you told them where to stick that offer... !

an extra 300 stress tested ... how about a stress test of a job loss?

So for 35 years, neither person can afford to lose their job. If it happens, they'll either fall behind on their mortgage repayments or else have zero income to spend on anything else.

That's absolutely crazy really. The only stress test I'd ever trust on a mortgage of that length would be the 'job loss' one you mentioned alright.

Grandpa Hassan

boardie100 wrote: »

an extra 300 stress tested ... how about a stress test of a job loss?

If job loss was part of the stress, no-one would ever get a mortgage

imitation

It does seem crazy to assume that for the next 35 years that in order to service the mortgage you need to assume

Pay more than 50% of your net salary from 2 decently paid jobs.

That both people need to stay in said decent job for 35 years. No quitting for lifestyle choices, looking after the kids, looking after a sick family member nor can either person get any serious illness.

You can't loose the job or get a serious pay cut. A lower paid job would probably result in default after a few months.

Finally, to have any hope of being able to move house or have a comfortable living arrangement the economy can only go in one direction, up, otherwise the whole thing falls to bits.

Why would you take a loan like that, why would you give a loan like that ?

Zamboni

Grandpa Hassan wrote: »

If job loss was part of the stress, no-one would ever get a mortgage

Of course they would. Just for a much lower value

Iintripod

imitation wrote: »

It does seem crazy to assume that for the next 35 years that in order to service the mortgage you need to assume

Pay more than 50% of your net salary from 2 decently paid jobs.

That both people need to stay in said decent job for 35 years. No quitting for lifestyle choices, looking after the kids, looking after a sick family member nor can either person get any serious illness.

You can't loose the job or get a serious pay cut. A lower paid job would probably result in default after a few months.

Finally, to have any hope of being able to move house or have a comfortable living arrangement the economy can only go in one direction, up, otherwise the whole thing falls to bits.

Why would you take a loan like that, why would you give a loan like that ?

If we were to look at it this way would anyone ever do anything.......