House options

skinny90

Hi All

Currently renting and paying 1500 a month in Galway with a child on the way.

We have deposit ready and in the process with the mortgage.

We have a site which in the future we intend to build on in the next 5-7years, unfortunately the costs, delays and headaches associated with planning has stalled for the time being.

Getting engineers out to assess has been too expensive and even local builders are too busy!

We are now considering a new development up the road, 4 bed semi D which has increased from 380K to 400K from the last phase.

The idea of a higher BER rating, better quality build etc is attractive

Area itself is growing rapidly, with new schools, shopping amenities all near by.

Similar 4bed semis in the area are about 50K cheaper but they are smaller in sq ft and C1 at the highest

Are we mad? If the long term goal is to build on our site?

Is there any point trying to negotiate the older price?

Thanks

Xidu

It’s not mad if it’s for living for next 50 years! It might be mad if it’s for an investment.

also, speaking of my own experience if you buy new house make sure check every single details of the quality

I bought a new built house and there’s leak! And my house isn’t the only one, several other houses also complained about leak inside wall.

Wanderer78

...id be reluctant to jump into the housing market at the moment, as theres a very good chance prices will start falling soon, by how much and at what rate is a mystery though, and of course, it may not happen at all, but current indications are looking so, sit and wait a few months and see. best of luck

awec

Buying now if you want to build in 5 years doesn't make sense. The bank aren't going to give you a mortgage for a self-build while you have an existing mortgage for your new build.

skinny90

why not? If I have a deposit built for a second home and can afford two mortgages why wouldn’t they?

the intention would be to sell the first house after moving in

awec

https://www.boards.ie/discussion/comment/120064198#Comment_120064198

It is extremely unlikely you could afford 2 mortgages unless you have a very large income or both mortgages are tiny.

The likely scenario is you will need to sell before you get approval for the self-build mortgage.

https://www.boards.ie/discussion/comment/120064198#Comment_120064198

It’s not just about whether you can afford it now, it’s about risk. If the price of the house you buy now falls when you want/need to sell to build, the negative equity on the house may take a huge chunk of your savings.

I

spaceHopper

What would the mortgage be v rent, if prices fell 20% over the next 2 years, where would you be v cost of renting. Then also if you weren't able to build? Realistically you are looking at 3 years by the time you get plans approved and find a builder and actually do the work. Then take into account your age, been able to mortgage upto the age of 65 so the longer you delay the shorter time you have to pay it off so your monthly payments will be higher.

I reckon prices are going to fall but still you have to live somewhere. Also you could always sell the site