Insane rent rates on property in Dublin!

You have to remember one VERY important point in all the talk about property crashes etc.
THE EURO.
As we are now members of the Euro, interest rates are set by the European Central Bank and the muppets (apologies to Kermitt) in Dame Street have no say any more in what happens to rates as the rest of Europe doesn't care about us only their own economies.
So interest (mortgage) rates will NOT rise by the % increases we have seen when we had an Irish Pound!
They will only drift up (or down) by 1/4% (maybe 1/2%).
If the EURO/USDollar exchange rate stays around 1.3000 or higher, there will be no increase in interest rates!
If we still had the Irish pound and were not members of the Euro, we would interest rates of around 7% and the housing market would not be increasing by the rates it has been.

D!ve^Bomb! wrote:

by the by, how does one go about getting a loan of this size?? i heard the bank will give you 10 times what you earn but you have to pay 10% upfront?

is it too much for little old me to look into buying a house on my own? let's say a 250,000 house.. how much would that be per month?

I've never heard of a bank offering 10 times a salary before. I think about 5 times is the most I've heard. Then again if you are buying something with an additional bedroom and are planning to rent it they will take your rental income into account. look at myhome.ie to see what is out there. You'd get a 2 bedroom place in somewhere such as cabra for that price.

Then check mortgages.ie which has a couple of good mortgage calculators. Check out the repayment calculators 1st. It lets you play around with different term mortgages and what happens if you can increase your payments or if the interest rates change.

Just do lots of research about where to buy, look for something where prices have increased nearby, something that needs decorating as you can add up to 10 times the decorating costs to your properties value if you do it well, or something on a new bus route. That way you can best avoid negative equity. And if prices come down in the next few years, they will go up again all you have to do is hold on.

Ok, sorry that was off the original topic. Myself and my partner rent a 2 bedroom place in Ranelagh for €900pm. It also has a small garden. There are good rental places out there if you keep looking. We had to look at a lot of dumps in order to find this place.

But I can't wait to get out of here. We were going to buy a 3bed house with a huge garden on Sundrive rd last year which would have cost us the same monthly. The deal fell through at the last minute. Now we are buying a house in London where we are moving in the summer. We will pay less on the mortgage there than we would on the rent of a smaller place and if we stay there it will be paid off when we are in our 40's. I Seriously hope I will live for more than 5-10 years after that and if I don't I will be leaving an enormous amount to my family.

And if we want to leave London we can always rent the house out in order to cover our mortgage payments. Or sell it and use the equity to buy something else. My partner and I have paid €27,000 in rent in the last 2 and a half years. That is a ridiculous amount of money which I can never, ever get back. If I had been paying it off a mortgage it would be my money if I wanted to sell the house.

seamus wrote:

The bank will give you whatever the hell you want as long as you can show them they will get it back with interest. There's no limit on the amount a bank can loan someone for a mortgage.

Can you tell me which banks you're going to?

I've been to several financial institutions and they all give me back the same answer, essentially just over 5 times my salary. As far as I'm aware the ones I went to are reluctant to give a loan where repayments are greater than 35 - 40% of your take home pay. When you take stress-testing into account (theoretical what if rates increased by 2% could you handle the increased monthly repayments) this will influence how much they're going to give. Obviously if you have someone to go guarantor you can increase how much you get.

The thing is sometimes renting is the only option, while you might easily be able to make the mortgage repayments on €200,000 (say €850 a month, 35 year term), you might not be able to find a property at this price in Dublin (in a location that will save on commuting time and expense). If you decide to go the rental route you can pick and choose the location according to price and walk away if needs be.

I'm in a situation where I want to own my own place but the amount of money I can get my hands on limits my options. Renting is expensive for a one bed place, same as a mortgage, but the rental location is seriously better than where I could buy.

I always wonder about the people that talk about rent not as being dead money..well to me this is just the point..

I reckon by the time i'm ready to retire the average retirement age will be probably 70-75 (currently you can get mortgages to 70 years of age instead of the old 65 ..that suprised me).

So ..i rent till i'm 70'ish ..what happens then if i retire??..i'm no longer earning an income and still have to pay rent?. Do i live in some horrible govt funded shiiitehole with the rest of the populace that never became landowners or had kids to move in with ?

No_fookin_thank_you!!

I will own my own place..when i become an old fart..if needed i'll sell my overpriced Irish house and move to the south of france into a property about 50% cost of the Dublin one and play bowls with the other old farts on those cold 17c January nights!!...

Anyone that says rent all your life is taking a shortsighted view imho..retirement is a time in our lives that is becoming a longer and longer timespan with medical advancements..not planning for this right now is bloody shortsighted imho.