Buying an House in Dublin

tendjose

Is obvious that rents are going up and so the price of the houses.

It might be a good business to buy one know but i can only afford that in 1 year.

Will in 1 year be to late?

Second, a friend of mine from Galway says he is going to buy now because there's a gap of 2 years between Dublin and Galway.

I don't agree with this last statement, since I believe housing in Dublin is growing because of the IT jobs and many foreigners coming in, and I don't expect these jobs to go with such a high demand to Galway or Cork.

euroboom13

Hold off!

If you don't need a house, only buy a bargain!(and you will find very few, even thou we are meant to be in recession/ hasn`t started yet, as far as housing goes)

ulinbac

tendjose wrote: »

Is obvious that rents are going up and so the price of the houses.

It might be a good business to buy one know but i can only afford that in 1 year.

Will in 1 year be to late?

Second, a friend of mine from Galway says he is going to buy now because there's a gap of 2 years between Dublin and Galway.

I don't agree with this last statement, since I believe housing in Dublin is growing because of the IT jobs and many foreigners coming in, and I don't expect these jobs to go with such a high demand to Galway or Cork.

Are you buying to live there yourself or buy to let?

The LTV on these are very different. If its BTL, Do you know the average BTL only rents for avg. 10 months a year? Could you afford to take 2 months of no rental plus costs of repairs to broken things like toilets, washing machines etc. Then there will be property tax and tax on income from rental .

There are also management fees if you go through a company. Plus some more like insurance.

euroboom13

ulinbac wrote: »

Are you buying to live there yourself or buy to let?

The LTV on these are very different. If its BTL, Do you know the average BTL only rents for avg. 10 months a year? Could you afford to take 2 months of no rental plus costs of repairs to broken things like toilets, washing machines etc. Then there will be property tax and tax on income from rental .

There are also management fees if you go through a company. Plus some more like insurance.

Also income tax on rent after expenses !

tendjose

I would live there because I don't have an house, but the plan would be to sell it in 8 years or something like that.

I'm very surprised with these opinions (not that I don't believe you), is that everyone around me is thinking like me at the moment.

Anyway if we are in recession, why the prices and the rents keep increasing?

If you share, you easily pay 700€ for a room on a decent apartment.

If you don't share you easily pay 1200€ for one bed or 1500€ for 2 beds, this in an old apartment in Dublin 2.

If you go to Grand Canal it's better not even talk about it. Just make a quick look in daft.ie

topper_harley2

I'm renting one bed flat for 750/month in D6

Rents increase due to more demand and less supply. Check number of places to rent now vs 2010. Similar with sales, no construction means less houses for sale and any sort of demand increases prices.

People who didn't buy in 2009...now are trying to buy as they IMO are panicked at increase in price and the 'get foot on property ladder' has set in again.

I wouldn't buy a house with intention of selling at profit in eight years. Buy a house you want to live in long term would be/will be my approach in X years time

euroboom13

Rent is going up because most people can't afford to buy at these prices.

The worst time to buy is when interest rates are low, because borrowers can borrow more ,creating an expensive, busy market.

Best time to buy is when rates are high, less buyers ,cheaper prices!

Rachiee

Prices are rising at the moment but that doesn't mean you need to buy straight away or miss the boat. Housing policy in this country is a joke very laise faire, if you are going to buy the safest bet is to buy somewhere you can grow into at least two beds and remember that apartments are incredibly difficult to offload if you were hoping to sell. At the moment people are saying buy now before prices go up even more its exactly what caused the last boom and we all know how that worked out its cringeworthy to watch everyone's case of collective amnesia.

Gandalph

Professor Brian Lucey from TCD has an interesting piece on Dublin house prices at the moment, can be found on his web page, take from it what you will.

tendjose

So buying for living now is recomendable? Has to have 2 beds, or can be one bed?