Currently buying/selling a house? How is it going? READ MOD NOTE POST #1

jrosen

cd76 wrote: »

.. everything down. Not a time to buy unless you are getting serious reduction. Much better to rent and re-assess in 6 to 12 months.

Renting is money down the drain. Depending on what someone is paying a month in rent and if the house is a long term purchase or not should really influence
the decision made.

lomb

jrosen wrote: »

Renting is money down the drain. Depending on what someone is paying a month in rent and if the house is a long term purchase or not should really influence
the decision made.

Not necessarily. With renting a house you rent a house ,maybe have a better location (city center which you wouldnt have if you bought a house- who wants to use their 10% first time buyers on an apartment?) and have flexibility and dont need years of financial history and higher incomes, with getting a mortgage your renting the money ,need to be much more financially organised and prudent but own an illiquid investment with unknown future value and have a forced saving plan to repay the loan.
The real question is what does it cost? Renting money costs 2.3% average blended (2 year fixed @2.9-cash back)but renting a house costs in the recent past around 7%. If house prices fall more than 4.7% then obviously renting wins out for the year. Im buying at the moment hopefully drawdown is tomorrow but honestly its possibly on average cheaper to rent at the moment especially if you can find a flexible landlord while you purchase a house in the next 12 months. This relies on banks being prepared to lend in the next 12 months and stability of income etc.

Summer2020

Question. If you’re currently sale agreed on your own house (3 bed) at example 500k , and you’re sale agreed on a house you want to buy (4 bed) at say 600k.
You realise both are top of the market prices. But if you wait it out a year or two, your own house will have fallen in value along with the value of any future house you may want to buy.
What would you do, given the fact you know you’ll have to get a bigger house at some stage within the next 10 years? I don’t fancy selling our own and renting for 6 months to a year to possibly take advantage of lower prices. It’s not an attractive position with a young infant. Both job security is good (public sector).

Any thoughts greatly appreciated.

lomb

Summer2020 wrote: »

Question. If you’re currently sale agreed on your own house (3 bed) at example 500k , and you’re sale agreed on a house you want to buy (4 bed) at say 600k.
You realise both are top of the market prices. But if you wait it out a year or two, your own house will have fallen in value along with the value of any future house you may want to buy.
What would you do, given the fact you know you’ll have to get a bigger house at some stage within the next 10 years? I don’t fancy selling our own and renting for 6 months to a year to possibly take advantage of lower prices. It’s not an attractive position with a young infant. Both job security is good (public sector).

Any thoughts greatly appreciated.

Its probably a wash. Ie it makes no difference. If you wanted to get ahead then you would sell and then rent but realistically what are you going to come out ahead could be -4.7 if house prices are static, could be zero, could +5 or even +15 if the doommongers are to be believed. So you could be down 25 grand or up 75 grand if you rent for the year.

Summer2020

lomb wrote: »

Its probably a wash. Ie it makes no difference. If you wanted to get ahead then you would sell and then rent but realistically what are you going to come out ahead could be -4.7 if house prices are static, could be zero, could +5 or even +15 if the doommongers are to be believed. So you could be down 25 grand or up 75 grand if you rent for the year.

Yeah my thinking is it makes little difference. Renting would cost us the guts of 25k in a year, and then paying for storage for furniture for a year etc removal fees. Wouldn’t have change out of 30k. So the price would need to drop by 50k to me to make it worth the hassle. While that may happen, you can’t put a price on peace of mind and having your own roof over your head. If we were in a position where we were sitting on the 600k waiting to buy, I’d definitely hold off however.

hometruths

Summer2020 wrote: »

Question. If you’re currently sale agreed on your own house (3 bed) at example 500k , and you’re sale agreed on a house you want to buy (4 bed) at say 600k.
You realise both are top of the market prices. But if you wait it out a year or two, your own house will have fallen in value along with the value of any future house you may want to buy.
What would you do, given the fact you know you’ll have to get a bigger house at some stage within the next 10 years? I don’t fancy selling our own and renting for 6 months to a year to possibly take advantage of lower prices. It’s not an attractive position with a young infant. Both job security is good (public sector).

Any thoughts greatly appreciated.

I'm seem to be one of the biggest property doomsters on here, but in this situation even I would say crack on!

browner85

Would anyone think there won’t be too many houses going up for sale for the next few months or would there be more as investors be looking to sell while they can

Gavin "shels"

Aelun wrote: »

Really sorry to hear this. Had you signed contracts and sent them back for drawdown, or did UB just contact you looking for updated payslips.

Once she got her payslip with the COVID subsidy on it, I forwarded to our Broker. Wanted to ensure it wouldn't affect us as we were weighing up a bid...

Pivot Eoin wrote: »

Try EBS mate, when the COVID-19 Subsidy Scheme finishes, you should be able to get an exception. They told me that on Friday and verbally approved an exception for me before they saw my most recent payslip with COVID-19 Subsidy on it.

Cheers.

lfen wrote: »

Aw I’m really sorry that’s a ****e position for you both to be in. Would her employer not do something given the circumstances?

It's been asked, not sure if they'll do it for one employee when it is a fairly large company but she's waiting to hear.

Ricosruffneck

BOI extending new build energy efficient mortgage cashback offer date of drawdown till Dec 2020. On account of no building work taking place recently.

I was worried I had to drawdown before Jun 30th, nice surprise on a Monday morning.

TheSheriff

Ricosruffneck wrote: »

BOI extending new build energy efficient mortgage cashback offer date of drawdown till Dec 2020. On account of no building work taking place recently.

I was worried I had to drawdown before Jun 30th, nice surprise on a Monday morning.

Great, where are you seeing this? Any extension of the regular cashback (non-new build)?

Hoping to draw down before 30th June for this...

ladystardust

Hi all, we are looking at a house in our area that has been on daft and myhome for a while. We have called and they state it is sale agreed. But they keep updating it on the websites so it comes back to the top. Everytime they update, we call, in case something has changed and they sound almost exasperated that people keep calling. Is this generally done? I mean, I was under the impression that once sale agreed, the property was left up but wasnt generally 'refreshed'.

TheSheriff

ladystardust wrote: »

Hi all, we are looking at a house in our area that has been on daft and myhome for a while. We have called and they state it is sale agreed. But they keep updating it on the websites so it comes back to the top. Everytime they update, we call, in case something has changed and they sound almost exasperated that people keep calling. Is this generally done? I mean, I was under the impression that once sale agreed, the property was left up but wasnt generally 'refreshed'.

Yes, quite normal. They likely just refresh all listings regularly.

ladystardust

TheSheriff wrote: »

Yes, quite normal. They likely just refresh all listings regularly.

Ok sure, it's just been the bane of my life, calling everywhere just for it to be sale agreed for months on end.

givyjoe

TheSheriff wrote: »

Yes, quite normal. They likely just refresh all listings regularly.

Why don't they just mark it as sale agreed then? It seems like some EA's dont know how to use Daft.

mcbert

givyjoe wrote: »

Why don't they just mark it as sale agreed then? It seems like some EA's dont know how to use Daft.

Perhaps not all EA's pay for the full EA account. I think some only use the joe-punter account. Those cant be marked as sale-agreed

Padre_Pio

givyjoe wrote: »

Why don't they just mark it as sale agreed then? It seems like some EA's dont know how to use Daft.

Because sale agreed is not sold.

I asked an EA and he said he likes to keep interest there in case the sale falls through. Huge PITA when you're house hunting.

givyjoe

Padre_Pio wrote: »

Because sale agreed is not sold.

I asked an EA and he said he likes to keep interest there in case the sale falls through. Huge PITA when you're house hunting.

Again, not knowing how to use Daft and it's simply wasting peoples time and irritating them. If they don't make it as Sale Agreed, all thats happening is people like myself (and as others have said) contacting the EA just to be told that its sale agreed, wasting my time and theirs and most definitely not keeping me interested. Some EA's do seemingly know how to use Daft correctly and do mark houses as Sale Agreed before removing them. Really isn't rocket science for them to work out.

Agreed, it is a PITA.

Techn0

Hi guys,

I keep seeing EBS pop up as the go to for exemptions at the minute.

Are they underwritten/ share the same policies as AIB? I recently went to look for an exemption with AIB and their exemption policy was absolutely ridiculous. They wanted a single to have €2,400 disposable income after a stress tested mortgage and commitments taken care of which I found a bit extreme to be honest.

I was thinking of talking to EBS but if they're the same as AIB then I'll not bother.

Otherwise I'll be going back to the developer (currently reserved a new build) and looking for a 5% discount to bring it within the 3.5x.

gavvvvers

Let us know how the discount conversation goes - interested to see if you can get money off a new build - we are in same conversation now looking for approx 5% too - no joy yet! House currently at 430k

lenny4545

I also tried to get 5% discount for new build but no luck! But as it a forever home think we going to proceed anyway!

JL555

givyjoe wrote: »

Why don't they just mark it as sale agreed then? It seems like some EA's dont know how to use Daft.

Most of them do, some don't though. But most of the time they leave it as 'for sale' to make sure they keep interest registering in it if a sale falls through. Just before Christmas I made an enquiry on a bungalow that was advertised for sale for 8 months, it was advertised for €249000, the EA told me sense of urgency in his voice that the vendor was looking to move quickly and they had just received an offer of €255000. I told him to jog on.

DaveyDave

Techn0 wrote: »

Are they underwritten/ share the same policies as AIB? I recently went to look for an exemption with AIB and their exemption policy was absolutely ridiculous. They wanted a single to have €2,400 disposable income after a stress tested mortgage and commitments taken care of which I found a bit extreme to be honest

Are you sure that's correct?

I believe a single application is a bit different, but PTSB were giving us dodgy figures too. We make €70k between us, monthly net of €4,717. Their mortgage of €1,200 and my car finance of €323 would leave us with €3,194 net. They said we needed 170% of the mortgage payment left over, which is €2,040, but she said we didn't have enough, weren't even close. Her Excel sheet was obviously broken.

Did you speak with a broker or a mortgage advisor in the bank? We were told complete nonsense by PTSB and BOI, broker was the one telling us where we stand and giving us real advice. Exemption requirements change throughout the year, they get stricter as they run out of exemptions. PTSB previously only wanted 150% of mortgage payment left over prior to us seeing them.

We got a 4.5x mortgage with KBC. I'm the higher earner, if I lost my job the GF could afford the entire mortgage, all the bills without cutting back, touching savings or taking a break in the mortgage. But PTSB said we don't have enough. KBC stress tested us at an additional 2%.

Ricosruffneck

TheSheriff wrote: »

Great, where are you seeing this? Any extension of the regular cashback (non-new build)?

Hoping to draw down before 30th June for this...

was emailed by my BOI mortgage advisor

amyed198

lenny4545 wrote: »

I also tried to get 5% discount for new build but no luck! But as it a forever home think we going to proceed anyway!

Mental

lir6777

DaveyDave wrote: »

Are you sure that's correct?

I can second what this poster said, AIB themselves told me about the 2400 NDI in January so it's not to do with covid or how the year is progressing. The advisor there told me it was unusually high and they were interpreting it as the bank not wanting to give out exceptions. 2400 is completely ridiculous for a single buyer

Dylan94

lir6777 wrote: »

I can second what this poster said, AIB themselves told me about the 2400 NDI in January so it's not to do with covid or how the year is progressing. The advisor there told me it was unusually high and they were interpreting it as the bank not wanting to give out exceptions. 2400 is completely ridiculous for a single buyer

Would this mean that they would want 4800 for a couple left over after paying the mortgage and other loans?

lenny4545

amyed198 wrote: »

Mental

Mental to be going ahead with purchase or mental that they won't give discount?

James 007

Mental, mental, mental, its all mental:rolleyes:

Techn0

DaveyDave wrote: »

Are you sure that's correct?

I believe a single application is a bit different, but PTSB were giving us dodgy figures too. We make €70k between us, monthly net of €4,717. Their mortgage of €1,200 and my car finance of €323 would leave us with €3,194 net. They said we needed 170% of the mortgage payment left over, which is €2,040, but she said we didn't have enough, weren't even close. Her Excel sheet was obviously broken.

Did you speak with a broker or a mortgage advisor in the bank? We were told complete nonsense by PTSB and BOI, broker was the one telling us where we stand and giving us real advice. Exemption requirements change throughout the year, they get stricter as they run out of exemptions. PTSB previously only wanted 150% of mortgage payment left over prior to us seeing them.

We got a 4.5x mortgage with KBC. I'm the higher earner, if I lost my job the GF could afford the entire mortgage, all the bills without cutting back, touching savings or taking a break in the mortgage. But PTSB said we don't have enough. KBC stress tested us at an additional 2%.

Funny how clear it is now that depending on who you have at the other end of the phone will shape very different conversations, I had the exact opposite to yourself.

I had a conversation with BOI who told me that I qualify for exemption needed however given there's a pause it'd be a no go. Albeit I'm looking for a relatively small mortgage (circa €800), she said even stress tested I would have more than enough capacity (I'm earning just under your wage quoted).

AIB stress tested my mortgage of €800 up to €1,225 (no idea what percentage stress test that represents) which in my mind was nonsense. It was nearly clear she just wanted me off the phone. Just for laughs I had asked how much I would qualify per her calculations and she came out with €170k (2.8x LTI...). I worked out the numbers for AIB myself. I would have needed to be making around €75k gross per annum with zero commitments for AIB to give me a €230k mortgage which is just ridiculous when you actually stand back.

That's an impressive exemption to obtain well done. Not sure if you were taking out 90% LTV. I usually only see 4x plus exemptions for people with large (25%+) deposits to hand.

Anyway, I spoke to my broker today and he told me basically not to bother looking for an exemption with any bank right now. I'm going to chat to PTSB as apparently their policies around any variable income appear to be the best (apparently they'll take 100% of any bonuses which you can support by way of payslip into account).

Techn0

Dylan94 wrote: »

Would this mean that they would want 4800 for a couple left over after paying the mortgage and other loans?

This was only for a single applicant looking for an exemption. It wouldn't be this extreme for a joint application.

Most banks will base their decision on your ability to repay. The number I usually see thrown around here is around €1,300 disposable income (single applicant, think its €2,500 for joint) remaining after stress tested mortgage and commitments which is usually doable.

I'm taking home around €3,500 per month, with €200 per month in commitments however they refused on the basis that I wouldn't be able to afford the stress tested mortgage of €1,225 even though the actual mortgage figure is closer to €800 per month.... Not sure what people spend €2,400 per month in disposable income but apparently the good folks at AIB do!