Do new houses hold their value

lightspeed

I'm looking at D1 houses very near my parents in balbriggan. They are very sane as my parents house. The bidding has gone higher than I thought it would and I'm starting to consider buying a more expensive A3 house from new build development that is further away from my parents.

So for what I can afford the new build would likely be terraced house and little smaller than one near my parents which is semi detached.

The new build house is priced just over 292k so with govt grant of 30k price to me will be 262k.

I'm thinking if I buy the new build and say recession bites more and house price falls 20k I'd still have a house 10k more than I paid that is better insulated, higher spec home etc.

However I also wonder would most couples prefer to pay 30 to 40k less on lower spec D1 rates, larger semi detached like my parents house than A3 rated newer build?

Would a terraced A3 new build terraced house fall to similar value to larger D1 semi detached if most were not willing to pay for higher spec of a new build?

ozmo

Consider if you are the type that are ok to put the work into an old house to get it up to the spec you would like to live - possibly over a few years depending on the house age and condition.
vs hopefully an issue free house. But saying that - there is a lot to be said for buying near your family...

But buy where you would be happy to live, in a house that suits your space needs. Don't buy something less than what you want as a step on the property ladder as you may be there for some time...

Then you wont have to worry about the price going up or down as you wont be considering moving.

Gumbo

lightspeed wrote: »

I'm looking at D1 houses very near my parents in balbriggan. They are very sane as my parents house. The bidding has gone higher than I thought it would and I'm starting to consider buying a more expensive A3 house from new build development that is further away from my parents.

So for what I can afford the new build would likely be terraced house and little smaller than one near my parents which is semi detached.

The new build house is priced just over 292k so with govt grant of 30k price to me will be 262k.

I'm thinking if I buy the new build and say recession bites more and house price falls 20k I'd still have a house 10k more than I paid that is better insulated, higher spec home etc.

However I also wonder would most couples prefer to pay 30 to 40k less on lower spec D1 rates, larger semi detached like my parents house than A3 rated newer build?

Would a terraced A3 new build terraced house fall to similar value to larger D1 semi detached if most were not willing to pay for higher spec of a new build?

If we hit a recession, the price won’t drop by €20k. It will be multiples of that.

Springy Turf

Gumbo wrote: »

If we hit a recession, the price won’t drop by €20k. It will be multiples of that.

We *have* hit a recession. Most of the forecasts agree with you, but most of those forecasts though we would be already down by 5-10% YoY, which we are not.

AngryLips

From my point of view, I feel like the appeal of a brand new house is more than offset by the thought that you have no idea what the estate/neighbourhood is going to be like after a few years. Also, I've seen plenty of estates that look great when they're first completed but after some time they can come across quite unappealing.

Pkiernan

House prices are not going to fall until supply exceeds demand.


There is no significant ncrease in supply on the horizon, and demand is increasing.

House prices have risen nationally 5% this year.

Theres no drop coming anytime soon.

JimmyVik

I just closed on a house.
I didnt go for new builds because there are just so many council purchases as well as those given over to social housing for each new development.
Ive seen houses bought next door to social houses and they are impossible to sell if the owners of the social house dont take care of it.
Now only a small percentage would be a risk, but I didnt want to take it.
I grew up in a council estate and while 99% of the people in it were great. 1 or 2 families ruined the entire estate and made life miserable for everyone else. I know of one new estate that is over 50% social houseing because the council got their allocation AND bought another lot of them up.

ted1

Once you buy a house the house will fluctuate over the life time of the mortgage. It in my affects you if and you sell.
If it drops 10k in a year, sure you would have paid that in rent.

With houses. It’s location location location.
I’d prefer a detached or semi detached over a terrace

Smouse156

lightspeed wrote: »

I'm looking at D1 houses very near my parents in balbriggan. They are very sane as my parents house. The bidding has gone higher than I thought it would and I'm starting to consider buying a more expensive A3 house from new build development that is further away from my parents.

So for what I can afford the new build would likely be terraced house and little smaller than one near my parents which is semi detached.

The new build house is priced just over 292k so with govt grant of 30k price to me will be 262k.

I'm thinking if I buy the new build and say recession bites more and house price falls 20k I'd still have a house 10k more than I paid that is better insulated, higher spec home etc.

However I also wonder would most couples prefer to pay 30 to 40k less on lower spec D1 rates, larger semi detached like my parents house than A3 rated newer build?

Would a terraced A3 new build terraced house fall to similar value to larger D1 semi detached if most were not willing to pay for higher spec of a new build?

In general new builds do not increase over the short/medium term. If you buy a house and get €30k off help the Brickie, you will not be able to sell it for the same price (as another first time buyer can just pay €262k) so your house depreciates immediately although you don’t lose money as you received HTB yourself.

If a builder can build & sell at a price that he is happy with, he will take the profits and rinse repeat until supply catches up to a point where it is uneconomical to build. Ireland however, has a very dysfunctional housing market with a persistent undersupply, therefore new builds will hold their value better than in other properly function markets. They are also very expensive relative to second hand stock.

However, all this is not really relevant! The question is do you need a home? Is it affordable and what will you save vs renting? In the long run, there are very few really bad times to buy if you have to rent. Any likely drops are going to be small and probably concentrated in more expensive homes or new builds that do not qualify for help the brickie. I would pick the house you like and drive on ahead with the purchase