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

makeandcreate · 22-03-2020 12:31am

beauf wrote: »

Apple has reopened their Chinese stores and manufacturing is starting back up. Maybe that's financial confidence play I don't know.

Also they hope to have a test to check if someone with no symptoms has had it already. That will be useful.

An easy and cheap corroborative test that shows someone is immune would be hugely beneficial as we currently do not know how many of the last 2 months cold and cough victims where Covid-19.

DaveyDave · 22-03-2020 12:55am

Solicitor contacted us earlier in the week asking if we wanted to pull out of buying the house. We're both in stable jobs so we're happy to proceed. They're going to do what they can to speed things along however there will surely be some delay with people working from home.

Was in on Wednesday to have the floors measured, most of the snag list from the previous week has been completed. Floor company emailed to say no plans on taking a break for when we're ready and IKEA still delivering. It may not be smooth sailing between now and finally sitting down with my first coffee in the new house, but so far nothing out of the ordinary.

patnor1011 · 22-03-2020 12:57am

We are trying to buy for well over a year. In light of what is happening right now and what will happen soon we stopped looking. A lot of economists are convinced that we are in for a recession many times worse than one which happened in 30's.

nhoj88 · 22-03-2020 1:07am

patnor1011 wrote: »

We are trying to buy for well over a year. In light of what is happening right now and what will happen soon we stopped looking. A lot of economists are convinced that we are in for a recession many times worse than one which happened in 30's.

Could you post some links too this please?

king size mars bar · 22-03-2020 9:41am

Selling at the moment, had a buyer and then last Thursday came the phone call, buyer pulling out due job security because of coved 19. Estate agent said not much point putting house back at the minute. Gutted but what can we do.

riddles · 22-03-2020 9:49am

The banks are inundated with 3 month mortgage breaks at the moment. This will have an impact on lending I’m sure.

lomb · 22-03-2020 9:53am

I signed contracts Friday 13th ( unlucky for some) and am still very happy to proceed as price is very reasonable and we aren't talking an 800 grand semi in dublin that has a 250k downside. I need a house for myself and it is NOT an investment. If I was buying for investment I would pull out likely as the demand / supply issues are unknown, rent is unknown etc. Again this depends on price or is it a 200 grand one bed in the city or a 450 grand two bed ,rate of leverage and term of loan and my ability to service the loan rather than rent servicing it.

Whilst most people think their house is an investment it is in reality not its a house to live in if you sell them you no longer have a roof over your head. So if you can afford the payments comfortably and have long term financing in place then crack on, any price differentials will be smoothed over the 20-25 year of the mortgage term.

Bobeagleburger · 22-03-2020 9:56am

House prices should drop with the number of people that will lose their jobs. The bubble has burst.

Anyone that hasn't yet signed. I'd be renegotiating price or sitting tight.

lomb · 22-03-2020 9:58am

6 wrote: »

House prices should drop with the number of people that will lose their jobs. The bubble has burst.

Not necesarily. Price is determined by supply and demand. Whilst job loss does play on demand side, the supply side will reduce at the same rate likely as owners delay sales until the crisis is over. This is clearly the case as the same guy who advised me not to sign and renegotiate a 50k reduction also told me an apartment he is selling next month is now on hold as he will withdraw it so it's all nonsense.
Needless to say I signed and disregarded his advice. In reality you would need to wait for around a year to see how it plays out.

Being honest there could be clouds on horizon as layoffs mean some won't be rehired so this could affect confidence / long term supply and demand. But short term it's good

Bobeagleburger · 22-03-2020 10:00am

lomb wrote: »

Not necesarily. Price is determined by supply and demand. Whilst job loss does play on demand side, the supply side will reduce at the same rate likely as owners delay sales until the crisis is over. This is clearly the case as the same guy who advised me not to sign and renegotiate a 50k reduction also told me an apartment he is selling next month is now on hold as he will withdraw it so it's all nonsense.

Demand will fall through the roof. As will prices.

lomb · 22-03-2020 10:03am

6 wrote: »

Demand will fall through the roof. As will prices.

And I'm very happy if prices fall as I want to buy a buy to let as well so needed to take advantage of 90per cent financing on first time buyer. I can't do that without owning a family home and I'm not going to delay it for two years if something I like and afford and bank will lend on comes up.

Also remember central bank guidelines are very conservative and have held prices down artificially by restricting borrowing. I've no doubt a 300 grand semi in D22 would be 400k with borrowing like before or what it is in countries like the UK or US

lomb · 22-03-2020 10:15am

king size mars bar wrote: »

Selling at the moment, had a buyer and then last Thursday came the phone call, buyer pulling out due job security because of coved 19. Estate agent said not much point putting house back at the minute. Gutted but what can we do.

You might be gutted but that's exactly what I'm talking about by withdrawing sale until your expectations are fulfilled or might be fulfilled you have equalised the demand supply side equation meaning no reductions for the moment.

Bargain_Hound · 22-03-2020 10:17am

riddles wrote: »

The banks are inundated with 3 month mortgage breaks at the moment. This will have an impact on lending I’m sure.

This isn’t lost revenue, it’s deferred revenue. Mortgage holders will just be paying it on the remainder of their term.

lomb · 22-03-2020 10:18am

Mic 1972 wrote: »

Also if Italy is any indication of what is going to happen, a lot of elderly unfortunately won't survive. Today 700 more people died in Italy, mostly elderly. That's a lot of properties going to be empty that will be used by family or will be sold. It's a scary dynamic but it's happening right now

The thing to do is see if Corona spreads in D4/6 and if it does should be able to pick up a Ranelagh Red brick for 400k!

lomb · 22-03-2020 10:19am

Bargain_Hound wrote: »

This isn’t lost revenue, it’s deferred revenue. Mortgage holders will just be paying it on the remainder of their term.

Exactly, banks have loads of money in current accounts that have no yield. Or they can borrow in the markets at zero or at negative rates. They are sitting pretty unless the loans go bad long term.

milhous · 22-03-2020 10:22am

lomb wrote: »

Not necesarily. Price is determined by supply and demand. Whilst job loss does play on demand side, the supply side will reduce at the same rate likely as owners delay sales until the crisis is over. This is clearly the case as the same guy who advised me not to sign and renegotiate a 50k reduction also told me an apartment he is selling next month is now on hold as he will withdraw it so it's all nonsense.
Needless to say I signed and disregarded his advice. In reality you would need to wait for around a year to see how it plays out.

Being honest there could be clouds on horizon as layoffs mean some won't be rehired so this could affect confidence / long term supply and demand. But short term it's good

Setting a reminder in my phone for this time next year. See how this pans out for you.

lomb · 22-03-2020 10:59am

<SNIP>

riddles · 22-03-2020 11:15am

Bargain_Hound wrote: »

This isn’t lost revenue, it’s deferred revenue. Mortgage holders will just be paying it on the remainder of their term.

If they are able too?

Graham · 22-03-2020 11:31am

Mod Note

folks, thread is for "currently buying/selling a house". Please keep that it mind.

El Gato De Negocios · 22-03-2020 11:32am

We have decided we are going to wait for the next number of months before buying. My wife is in a senior marketing role in the hospitality industry and their budget for the year has literally been slashed to nil. She is with the company 7 years however there is a very real concern that she may be forced to take a pay cut or reduced hours. Problem is we have gone sale agreed on where are living now and will most likely have to pull out (if the buyer doesn't do so of their own volition), I hate the thought of letting the buyers down but I dont think we will have any choice.

Dolbhad · 22-03-2020 11:34am

Maybe prices will drop but job losses will occur. And unlike the last recession, I have a feeling this will affect more areas. Even during the recession pubs and retail shops were opened.

I would advise if it is a long term home and you can afford repayments with potentially one of you laid off, keep going. Myself and partner have been both temporarily laid off (and I would have said if another recession came along, we would have been okay with our jobs) so our house plans are on hold. So no good to us if house prices go down so I don’t want people to be stuck in same situation as us.

This feels very different to other recessions. I feel last time you had a year or two warning that it was coming. This all feels like it hit within a month. And a pandemic is new to us in Ireland so we have no idea what the recovery will be like for something like this.

ittakestwo · 22-03-2020 11:35am

<SNIP>

beggars_bush · 22-03-2020 3:03pm

Statutory Ape wrote: »

We have decided we are going to wait for the next number of months before buying. My wife is in a senior marketing role in the hospitality industry and their budget for the year has literally been slashed to nil. She is with the company 7 years however there is a very real concern that she may be forced to take a pay cut or reduced hours. Problem is we have gone sale agreed on where are living now and will most likely have to pull out (if the buyer doesn't do so of their own volition), I hate the thought of letting the buyers down but I dont think we will have any choice.

You could rent after your sale goes through

There will be loads of properties on the market and most normal landlords would prefer to have rent coming in than having a house empty

Mic 1972 · 22-03-2020 3:16pm

beggars_bush wrote: »

You could rent after your sale goes through

There will be loads of properties on the market and most normal landlords would prefer to have rent coming in than having a house empty

Normal landlords will do what is more convenient for them, some will rent out at current lower rents, while others will leave the property vacant until the rental market become competitive again. Renting is not hassle free, you dont do it unless there real profit

scarepanda · 22-03-2020 6:03pm

For those that are planning on closing soon, have you any moving plan in place for if/when there's a lockdown?

El Gato De Negocios · 22-03-2020 6:54pm

beggars_bush wrote: »

You could rent after your sale goes through

There will be loads of properties on the market and most normal landlords would prefer to have rent coming in than having a house empty

The other issue we have is that we have a portable tracker that has to be availed of within 6 months of closing a sale. Renting is an idea but you are still talking not too far off doubling our current mortgage as well as potentially being locked into a 12 month lease.

davedub2015 · 22-03-2020 10:56pm

Sale agreed on a property for 450 in d12 no contracts signed but feel we should negotiate prices based on the economy any suggestions with this?
Thanks

Deco99 · 22-03-2020 11:59pm

davedub2015 wrote: »

Sale agreed on a property for 450 in d12 no contracts signed but feel we should negotiate prices based on the economy any suggestions with this?
Thanks

Thoughts, certainly not advice so we are clear.

First part, 450 is no small change so are the jobs secure enough to assume ye will be ok after this blows over?

Second, negotiation is based on leverage. If someone else will pay 450 and seller knows this you have none.if seller can wait til uncertainty blows over they might wait even if it eventually does go down. The sweet spot is if they are keen to sell and you're the only show in town. But how do you know any of these variables

sun0shine · 23-03-2020 1:01am

Hi..

I was in process of buying a new build house in commuter town ~360K range, loan offer in place but haven't signed contracts yet. Certainly market is going to tumble..
Bargain on new build an option? or time to pull out?

Idbatterim · 23-03-2020 1:34am

davedub2015 wrote: »

Sale agreed on a property for 450 in d12 no contracts signed but feel we should negotiate prices based on the economy any suggestions with this?
Thanks

What’s 450 getting you in Dublin twelve ? Yeah look obviously try to get it cheap as possible. I won’t be surprised though if they only drop it a percent or two or even nothing at all...

beauf · 23-03-2020 1:34am

Deco99 wrote: »

. .But how do you know any of these variables

If you get Gazumped, or don't, you'll know.

Sweet.Science · 23-03-2020 9:47am

I assume banks might make allowances when this is all over. Like waive the 6 month payslips . Otherwise there will be a big crash

Gavin "shels" · 23-03-2020 10:13am

Sweet.Science wrote: »

I assume banks might make allowances when this is all over. Like waive the 6 month payslips . Otherwise there will be a big crash

Waive 6 months payslips? :eek:

IndieRoar111 · 23-03-2020 12:32pm

Have to laugh at some still eager to buy. Like lemmings falling off a cliff

hottea2019 · 23-03-2020 12:49pm

Anyone has been successfully re-negotiated the price further down during this pandemic? Any tips?

beauf · 23-03-2020 12:51pm

IndieRoar111 wrote: »

Have to laugh at some still eager to buy. Like lemmings falling off a cliff

You were still on the fence less than a week ago. :rolleyes:

The advice you were told then that made up your mind still applies. if your ideal place comes up and you can afford it comfortably, it may not be bad decision. If you are stretching and its not your ideal house and location then wait.

Since I bought mine there's been two recessions and one crash. In that time there been hardly any similar properties in the same area.
I doubt I'd have had the same ability (liquidity) to buy in the same area after I did buy. I may moving this year or next, but in the same area. Supply is still scarce in the same area as it has been for decades.

If you don't care about location and are looking at it as an investment. Then thats entirely different.

skooterblue2 · 23-03-2020 1:25pm

IndieRoar111 wrote: »

Have to laugh at some still eager to buy. Like lemmings falling off a cliff

Give it about 3 months and watch the prices tumble. About 1/3 is going to come off the price before christmas!

Mic 1972 · 23-03-2020 1:29pm

I wouldn't rule out completely the possibility to buy now, if anything it's a good time to negotiate.
In the unfortunate event of helicopter money being distributed around, the Euro will lose a lot of its currency value, so people's savings will lose their value unless they get invested in property or stocks and share
it's a vicious circle

beauf · 23-03-2020 2:17pm

skooterblue2 wrote: »

Give it about 3 months and watch the prices tumble. About 1/3 is going to come off the price before christmas!

It will be interesting to see if you are right.

https://www.daft.ie/report/ronan-lyons-2019q4-dafthouseprice

Mic 1972 · 23-03-2020 2:20pm

beauf wrote: »

It will be interesting to see if you are right.

https://www.daft.ie/report/ronan-lyons-2019q4-dafthouseprice

Btw the Daft Report for Q1 sales is due next Monday, very curious to see what they have to say about the current status of the market

Bargain_Hound · 23-03-2020 2:30pm

Mic 1972 wrote: »

Btw the Daft Report for Q1 sales is due next Monday, very curious to see what they have to say about the current status of the market

I think Q2 will be more interesting.

IndieRoar111 wrote: »

Have to laugh at some still eager to buy. Like lemmings falling off a cliff

Not everybody's circumstances are equal. Some have been long planning to get to the stage they are at now.
For example our situation we sold last august, living with family now with 1 child, its no easy task.
We are sale agreed in the 300-325k region in Dublin with great schools on our door step, Dublin mainline bus stop 50m from our front door and mortgage payments in the region of 60% what we would pay in the equivalent rent. Also, 300k is still 30% less than the same property in the development were sold for at the peak 2009/2010. We were not financially ready to purchase at the bottom of the market in 2011/2012 like some lucky people who picked up properties at a steal. Such is life, not everybody is as lucky.

Yes we are probably looking at negative equity for sometime if the crash is as bad as expected, but we need somewhere to live and we feel given the above circumstances, we are well without our own and the banks affordability criteria.

garhjw · 23-03-2020 2:34pm

Mic 1972 wrote: »

Btw the Daft Report for Q1 sales is due next Monday, very curious to see what they have to say about the current status of the market

I think they will say it is too early to say how significant the impact on the market will be. Too many unknowns at this time.

beauf · 23-03-2020 2:36pm

Bargain_Hound wrote: »

I think Q2 will be more interesting.

People think they'll be getting property for free by then, and still able to borrow from the bank to buy these bargains...

skooterblue2 · 23-03-2020 2:46pm

beauf wrote: »

People think they'll be getting property for free by then, and still able to borrow from the bank to buy these bargains...

You will if you are in a stable job.

Mic 1972 · 23-03-2020 2:51pm

beauf wrote: »

People think they'll be getting property for free by then, and still able to borrow from the bank to buy these bargains...

People who depend on mortgage will see no changes to their buying power
House prices are high when banks injects money into people's pockets to buy property
Without money there will no demand

Jay Dee · 23-03-2020 3:13pm

skooterblue2 wrote: »

You will if you are in a stable job.

Like a Jockey !!

beauf · 23-03-2020 3:16pm

skooterblue2 wrote: »

You will if you are in a stable job.

Didn't make difference the last time. Bank stopped lending period.

beauf · 23-03-2020 3:22pm

Mic 1972 wrote: »

People who depend on mortgage will see no changes to their buying power
House prices are high when banks injects money into people's pockets to buy property
Without money there will no demand

I think you are deluding yourself. I know one guy who had a 40% of the house in cash, and a job of over 100k in a public sector and he struggled for a long time to get a mortgage the last crash. he also had a partner also in Public sector on good money. Didn't make any difference. Banks just weren't lending. Banks were stupid as well, they wouldn't let people sell until the property fell into negative equity. Then they sold at a huge loss, making people bankrupt. Then tried to get money off people, ended up writing it off.

People are being selective thinking only parts of the chain that they need to fall will fall and the bits they don't want to fall won't.

IvoryTower · 23-03-2020 4:04pm

Plumbthedepths wrote: »

I'm genuinely amazed that some are considering proceeding with a purchase despite so many unknowns.

Some people can get a mortgage now based off the money they were earning before Corona, they may not have an income like that again for a long time so they may see it as best chance to own a home and will still be paying a lot less than rent.

That would be my take anyway

fifth · 23-03-2020 4:05pm

A planned development of 50 houses in my town now has been paused. Less than 10 houses started and the developers will not build anymore. I guess they're going to wait it out, keep supply low and prices high.

I've booked one of the houses but I'm going to pull out. Am sure the EA will say there's other buyers waiting since the supply has been cut short - but it just feels crazy to spend 350K on a house now with all this uncertainty (not in dublin). I still need a house but maybe I'll just rent a little longer and watch.

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

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