Would love some advice....

Trond

Been approved for a mortgage previously (2009/2010). Thankfully didn't commit at the time. Considering applying again. Savings are decent, 35k can possibly can have 45k. Aged 35, single, no commitments/credit cards.

Was away when houses were 40-50k cheaper 2 years ago unfortunately. Genuinely unsure whether now is the time to jump. Renting is such a nonsense presently. Unsure as to what to do...

Eldarion

Trond wrote: »

Been approved for a mortgage previously (2009/2010). Thankfully didn't commit at the time. Considering applying again. Savings are decent, 35k can possibly can have 45k. Aged 35, single, no commitments/credit cards.

Was away when houses were 40-50k cheaper 2 years ago unfortunately. Genuinely unsure whether now is the time to jump. Renting is such a nonsense presently. Unsure as to what to do...

It's a very difficult question to answer, you're basically trying to time the market. Your deposit is nice yes, but your age makes it a bit more difficult, you'll probably get a 25 year mortgage still but you'd have to apply soon.

If you wait much longer waiting for the property prices to decline a little again, which is very likely to happen with the new proposed Central Bank limitations, then you do stand to risk getting approved at all. We've seen some instances where people 40+ have been flat out refused mortgages based on their age.

You're also competing against the standard FTBers who have dual incomes and longer mortgage terms and/or cash buyers. I know I'm probably scaring the life out of you, and it's exactly this fear that caused the bubble, but you have to be realistic about it too.

Straight up advice, I'd go for approval early in the new year and aim to buy in and around the 3rd quarter next year. I expect you'll catch prices on the decline at that stage but you'd have to accept that the prices might continue to decline for the first year or so after you buy.

handlemaster

Where are you looking in the country is going to affect your options also. In your shoes I would get approval straight away, look in the areas you want to buy constantly if you see somthing your interested in and numbers make sence then go for it. The fence will break eventually...

ted1

Trond wrote: »

Been approved for a mortgage previously (2009/2010). Thankfully didn't commit at the time. Considering applying again. Savings are decent, 35k can possibly can have 45k. Aged 35, single, no commitments/credit cards.

Was away when houses were 40-50k cheaper 2 years ago unfortunately. Genuinely unsure whether now is the time to jump. Renting is such a nonsense presently. Unsure as to what to do...

If you see a place that you would like to live in for the next ten+ years , buy it.

If you just want to get on the ladder and don't really see yourself living there in a few years, then don't buy

TrishSimon

Trond wrote: »

Been approved for a mortgage previously (2009/2010). Thankfully didn't commit at the time. Considering applying again. Savings are decent, 35k can possibly can have 45k. Aged 35, single, no commitments/credit cards.

Was away when houses were 40-50k cheaper 2 years ago unfortunately. Genuinely unsure whether now is the time to jump. Renting is such a nonsense presently. Unsure as to what to do...

To me you sound ideal, good deposit no credit cards no committments. Someone has said because of your age you might be looking at a 25 year mortgage thats not totally true its only when you go over 40 that is the situation its 25 or 27 years you could get a longer mortgage but in reality you will be paying more back so if you can afford it get a 25 year one.
I am in the process of trying to get a mortgage with my husband he is 40 and I am 38 we have a good credit history I already own a property and have never missed mortgage payments and we rent and always pay rent on time. I would never advise anyone to rent its a waste of money.

It depends on how much you want to borrow being on your own the standard is approx 3 times your salary and then you have a good deposit on top of it all. House prices vary I have noticed a hike in prices even since September but then some are going down again I think alot of estate agents think people will rush in and get into bidding wars but what we have noticed is that people are putting in a bid and sticking to their max and when it comes close to the max if the EA trys to start a bidding war they are walking away.

I would also agree get the mortgage in place after xmas maybe Feb / March and buy later in the year.

The Spider

Eldarion wrote: »

If you wait much longer waiting for the property prices to decline a little again, which is very likely to happen with the new proposed Central Bank limitations, then you do stand to risk getting approved at all. We've seen some instances where people 40+ have been flat out refused mortgages based on their age.

I'd be very careful of listening to this, property is a supply issue, bank rules or not. However it depends on where your buying, if it's in Dublin, I'd say sooner rather than later, economy is improving on a daily basis more people looking for homes etc.

Lets put it this way if you can afford to buy a house that you're happy with now and are prepared to live in, will you care if prices drop a bit as you'll have your house. If you continue to rent and prices keep rising are you going to look back in two years time and say I wish I'd bought then?

One thing I'll say is that I think it's unlikely prices are going to drop irregardless of the central bank limitations, others here will disagree, but you only have to look through threads where people predicted large waves of repossessions were going to reduce prices, it didn't happen.

There was a lot of talk about people buying houses in their ideal SCD locations as predicted that has now become ideal greater Dublin area locations, as supply has dried up.

Cona

If the central bank limitations come into affect in January, then you will find that demand for houses will have to drop. If demand drops then prices will follow suit. FTB'ers who are hovering around with a 10% deposit now need to wait a further 1-3 years to save further (assuming they are still in the market for the same priced house). Houses at the more expensive end of the market will probably be unnaffected. Lower end houses may see greater demand as FTB'er struggle to get on the market and lower their expectations as a result

The Spider

Cona wrote: »

If the central bank limitations come into affect in January, then you will find that demand for houses will have to drop. If demand drops then prices will follow suit. FTB'ers who are hovering around with a 10% deposit now need to wait a further 1-3 years to save further (assuming they are still in the market for the same priced house). Houses at the more expensive end of the market will probably be unnaffected. Lower end houses may see greater demand as FTB'er struggle to get on the market and lower their expectations as a result

Wishful thinking as far as Dublin is concerned, at the moment there is 2,279 available houses in Dublin, 35,000 new houses are required in Dublin between now and 2018, just to meet demand, that's 8750 a year.

And that's new houses not houses that already exist and are for sale, with that kind of demand and the limited supply available I don't for the life of me see how prices will drop, there's easily enough buyers out there with 20% deposits to buy 2,279 houses.

Also bear in mind that any new houses will not be the mature areas that are so desirable.

Eldarion

The Spider wrote: »

Wishful thinking as far as Dublin is concerned, at the moment there is 2,279 available houses in Dublin, 35,000 new houses are required in Dublin between now and 2018, just to meet demand, that's 8750 a year.

And that's new houses not houses that already exist and are for sale, with that kind of demand and the limited supply available I don't for the life of me see how prices will drop, there's easily enough buyers out there with 20% deposits to buy 2,279 houses.

Also bear in mind that any new houses will not be the mature areas that are so desirable.

Requirement and desirability are not demand. Demand requires capacity to pay, if the mortgage approval rate and approval amounts drop then this has a direct downward effect on demand. Demand drops, prices drop.

The Spider

Eldarion wrote: »

Requirement and desirability are not demand. Demand requires capacity to pay, if the mortgage approval rate and approval amounts drop then this has a direct downward effect on demand. Demand drops, prices drop.

Yes but my point is there's plenty of people with the capacity to pay for the current supply.

Ush1

The Spider wrote: »

Yes but my point is there's plenty of people with the capacity to pay for the current supply.

Erm, yes, but if the new rules come in, less people will be able to afford many of those houses. Hence prices may drop.

The Spider

Ush1 wrote: »

Erm, yes, but if the new rules come in, less people will be able to afford many of those houses. Hence prices may drop.

Hang on are you seriously telling me that out of a city of 1.3million people where there is 2,279 houses for sale, that there isn't enough people earning salaries that will allow them to buy that limited supply?

You'd probably find enough people to cover that between the IFSC and Grand Canal Dock.

Ush1

The Spider wrote: »

Hang on are you seriously telling me that out of a city of 1.3million people where there is 2,279 houses for sale, that there isn't enough people earning salaries that will allow them to buy that limited supply?

You'd probably find enough people to cover that between the IFSC and Grand Canal Dock.

No I'm saying that prices may drop, as they have done in the past.

Trond

Thanks v much for the replies.

Im looking buy in Dublin. Specifically on the North side. I was always set on a house in the past but given the price rises an apartment is something im considering more seriously.

Somewhere near to the city centre is another important factor for me. Glasnevin would be my number 1 choice but I know already that isn't really an option. Cabra seems to be area with the most value at the moment.

The Spider

Ush1 wrote: »

No I'm saying that prices may drop, as they have done in the past.

Prices dropped in the past because there was a massive worldwide banking crisis which left multiple banks exposed, it didn't just affect Ireland, it affetced all of Europe and the US, Freddie Mac and Fannie May two huge banks in the US collapsed. The acronym P.I.I.G.S was used to describe Portugal, Ireland, Italy, Greece and Spain, as our economies were destroyed.

Even after that the lowest prices achieved in Dublin 14 for a three bed semi at the absolute bottom was around 345'000.

Now unless there is another huge worldwide collapse, I don't see it happening.

On a side note all the arguments being put forward here, were being put forward in 1996-2002 as house prices accelerated and supply decreased.

If you think renting is bad now try it in the late 90's queues out the door to see substandard flats and bedsits. No daft, just the evening herald.

For prices to drop the economy needs to collapse, it won't it's in recovery as more and more jobs are added every day, and believe me there's enough people getting salary increases to cover the 20% deposit required for the available supply.

So sorry I don't see how they'll drop outside of wishful thinking, if anybody can give a reasoned argument as to why they will with such limited supply, I'm all ears.

The Spider

Trond wrote: »

Thanks v much for the replies.

Im looking buy in Dublin. Specifically on the North side. I was always set on a house in the past but given the price rises an apartment is something im considering more seriously.

Somewhere near to the city centre is another important factor for me. Glasnevin would be my number 1 choice but I know already that isn't really an option. Cabra seems to be area with the most value at the moment.

Cabra is a good area, if you an get something there, I'd go for it, plenty of friends living around that area.

Ush1

The Spider wrote: »

Prices dropped in the past because there was a massive worldwide banking crisis which left multiple banks exposed, it didn't just affect Ireland, it affetced all of Europe and the US, Freddie Mac and Fannie May two huge banks in the US collapsed. The acronym P.I.I.G.S was used to describe Portugal, Ireland, Italy, Greece and Spain, as our economies were destroyed.

Even after that the lowest prices achieved in Dublin 14 for a three bed semi at the absolute bottom was around 345'000.

Now unless there is another huge worldwide collapse, I don't see it happening.

On a side note all the arguments being put forward here, were being put forward in 1996-2002 as house prices accelerated and supply decreased.

If you think renting is bad now try it in the late 90's queues out the door to see substandard flats and bedsits. No daft, just the evening herald.

For prices to drop the economy needs to collapse, it won't it's in recovery as more and more jobs are added every day, and believe me there's enough people getting salary increases to cover the 20% deposit required for the available supply.

So sorry I don't see how they'll drop outside of wishful thinking, if anybody can give a reasoned argument as to why they will with such limited supply, I'm all ears.

Strange you don't see the irony in what you are saying.

The things you are saying about the economy not slowing down were said by many before the collapse. Prices can be effected without the economy collapsing also.

The truth is nobody knows but the new rules may effect the prices as less people will be able to afford current prices.

pc7

Trond wrote: »

Thanks v much for the replies.

Im looking buy in Dublin. Specifically on the North side. I was always set on a house in the past but given the price rises an apartment is something im considering moret.

Just be careful with apartments as you'll have management fees, if it's long term as you age do you want lots of turnover in neighbours, stairwells etc. glasnevin avenue finglas East area is nice and settled and might suit your budget.

The Spider

Ush1 wrote: »

Strange you don't see the irony in what you are saying.

The things you are saying about the economy not slowing down were said by many before the collapse. Prices can be effected without the economy collapsing also.

The truth is nobody knows but the new rules may effect the prices as less people will be able to afford current prices.

I still predict that the new rules will increase prices in the commuter belt, middle income earners who have a 10% deposit for a house in Dublin are priced out and are forced to use that 10% (which would equal 20% of the price of a house in the commuter belt) to buy houses outside Dublin, if they wish to own.

Of course the things I've said were said before the previous collapse, but they were said between 1996 and 2006, so that took ten years, not one year. And then they won't collapse to the levels they're at today.

Robbie32

I recently sold my house, and to be honest didnt get much in my pocket after the mortgage was paid off.
I am now looking in dublin. I am lucky that I have a bit of a deposit saved.
I have been talking to banks recently and the money they have been offering me is crazy. I was actually offered more of a mortgage then I was offered in 2008, when I bought my last house.
My salary hasnt increased much since then, so it was a shock at the amount being offered.

It is insane at the moment. There were 2 couples looking to buy my house and they were cash buyers. They actually told me when I gave them the keys that it was the 4th house they have bought recently as an investment.
My parents have recently sold their house and they had 8 people looking to buy it, and all cash buyers. My parents have actually put and offer in on a house 2 months ago and havent even been told whether accepted or not. So they pull out of that for another one. The offer was accepted, not it looks like the bank is acting up with the current owners over negative equity. It seems to be a minefield.

I am inclined to think that thes new rules will push the prices of the "affordable houses" into a place where they are out of reach.
I have actually decided to rent to see what happens. no point jumping the gun....