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03-11-2018, 09:59   #1
masterboy123
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Is it the right time to buy? Financial crash

We are a couple and both of us are working full time, in Limerick.

We are looking to get a home and settle. There are new builts home launching in these months but prices are in the range of 280,000 euros for semi detached 3 bedroom house.

Few colleagues saying there will be a crash around Brexit time period and these houses will be worth 200,000, and so advising to wait until mid 2019. I know it's a very difficult question to ask as no one can firmly say when exactly are we going to face another financial crash.

Anyone got opinion/views?
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03-11-2018, 10:07   #2
EriT
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It's all a guessing game , in theory brexit could up house value in several ways .e.g jobs moving from UK or people emigrating from UK to Ireland .A couple of people in my office have moved from UK to Ireland this year, they are all now starting to look to buy
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03-11-2018, 10:21   #3
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If you are happy that you want to live in limerick long term, your employment is secure and you can afford the repayments on a house that suits you then it’s the right time.

Nobody, and I mean nobody can predict what will happen with any degree of certainty. Yes it would be a sickener if the houses you are looking at drop to €200k and you’ve already paid €280k but if they do will banks be lending for mortgages or will Brexit lead to another credit squeeze? Nobody knows. When houses dropped the last time it was only investors and cash buyers that benefitted in any meaningful way.
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03-11-2018, 13:18   #4
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It seems like a lot of the 3 bed semi in Limerick suppose it all depends on the area but here's a 5 bed for 190k https://www.daft.ie/11939890
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03-11-2018, 13:58   #5
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Your colleagues have no idea what the houses will be worth around Brexit time.

If you can afford and you like the place then buy.
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03-11-2018, 14:42   #6
masterboy123
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Thanks for the link.
We are looking for a new buy or a house which has good energy rating. Tired of paying high bills.
My friend got A3 energy rating house and paid 400 annually for heating.

Thanks everyone for their opinions

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It seems like a lot of the 3 bed semi in Limerick suppose it all depends on the area but here's a 5 bed for 190k https://www.daft.ie/11939890
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03-11-2018, 15:10   #7
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Quote:
Originally Posted by masterboy123 View Post
We are a couple and both of us are working full time, in Limerick.

We are looking to get a home and settle. There are new builts home launching in these months but prices are in the range of 280,000 euros for semi detached 3 bedroom house.

Few colleagues saying there will be a crash around Brexit time period and these houses will be worth 200,000, and so advising to wait until mid 2019. I know it's a very difficult question to ask as no one can firmly say when exactly are we going to face another financial crash.

Anyone got opinion/views?
Are your collages experienced economists or speculators, with a track record of predicting and profiting from market fluctuations?

If so, I would pay heed to their advice and take a short position as they no doubt have on the back of their own detailed analysis.

If not, I would consider just why it is that these great minds are not employed in investment or market regulatory roles
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03-11-2018, 20:54   #8
tvjunki
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Quote:
Originally Posted by masterboy123 View Post
We are a couple and both of us are working full time, in Limerick.

We are looking to get a home and settle. There are new builts home launching in these months but prices are in the range of 280,000 euros for semi detached 3 bedroom house.

Few colleagues saying there will be a crash around Brexit time period and these houses will be worth 200,000, and so advising to wait until mid 2019. I know it's a very difficult question to ask as no one can firmly say when exactly are we going to face another financial crash.

Anyone got opinion/views?

Seems a lot for a 3bed semi in Limerick. You could have a look at houses a little bit outside the city with land and see what you can get for your money. You could buy an older house and retrofit and you should get similar bills and have a better built house.

If there was a crash then chances of getting a mortgage would be a lot less. We don't know what will happen in a few years time as it depends on Government policy and Europe. Also bear in mind the ecb rate and interest rates? How your secure are your jobs? You have to look at all these things and that should help you decide.
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03-11-2018, 21:23   #9
masterboy123
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Appreciate your in depth response.

We did consider looking at older houses with C3 energy rating. But cost of a good insulation, renewal of bathroom and kitchen are going to cost in the range of 25k-30k. Plus no structural warranty on older houses. These are the reasons we opted to consider a new built only. Maybe I am wrong.

Our jobs are not permanent ones but there is a stability in the health sector.
Interest rate are in the range of 2.95 to 3.15% variable, LTV 80%.


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Originally Posted by tvjunki View Post
Seems a lot for a 3bed semi in Limerick. You could have a look at houses a little bit outside the city with land and see what you can get for your money. You could buy an older house and retrofit and you should get similar bills and have a better built house.

If there was a crash then chances of getting a mortgage would be a lot less. We don't know what will happen in a few years time as it depends on Government policy and Europe. Also bear in mind the ecb rate and interest rates? How your secure are your jobs? You have to look at all these things and that should help you decide.
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03-11-2018, 21:43   #10
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Originally Posted by masterboy123 View Post
Appreciate your in depth response.

We did consider looking at older houses with C3 energy rating. But cost of a good insulation, renewal of bathroom and kitchen are going to cost in the range of 25k-30k. Plus no structural warranty on older houses. These are the reasons we opted to consider a new built only. Maybe I am wrong.

.
If an older house has stood up for several decades there is not likely to be a structural issue. Buying second hand means things like gardens established, floor coverings and curtains come with the house. Many new houses require a shed or other store to be built. There is also likely to be a more established community in an older estates. Many facilities will have been established such as street lighting etc. Also in newer areas, there is a time lag between the building of houses and other facilities such as shops, schools etc. Buying a new house just to save a few quid on insulation may be a false economy.
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03-11-2018, 22:18   #11
drunkmonkey
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Looking at the prices around limerick, these houses seem like a lot of money, in any downtown they'll take a large haircut. There's loads of big family homes around limerick for a lot less.
Take this for example, https://www.daft.ie/limerick/houses-...erick-1911316/
It's going to cost more to heat but 50k buys a hell of a lot of insulation and oil. The wooden floors would probably cost you 20k to add to the new house.
4ensic15 hit the nail on the head. The way your thinking is a false economy.

The thing about an old house is you can see the cracks, the shiny new house they've yet to appear.
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04-11-2018, 08:23   #12
masterboy123
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The house link you have posted is at an area where there are alot of antisocial activity (thugs throwing eggs, etc) and prone to flooding, that explains it's lower price.

If someone is getting a house in an established community then it's very important to know what kind of activity goes on there at night times. Plus they would know you're new in their area and could be a victim of passive bullying.

Renovating the house may cost less than a new house, but you need to know locals workers who won't charge you excessively to repair floors, furnish a new bathroom, kitchen, etc. Plus the time you need to take off work to sort out things to refurbish an old house. There isn't a structural warranty in an old built.

So overall there are both pros and cons of new vs old built.

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Originally Posted by drunkmonkey View Post
Looking at the prices around limerick, these houses seem like a lot of money, in any downtown they'll take a large haircut. There's loads of big family homes around limerick for a lot less.
Take this for example, https://www.daft.ie/limerick/houses-...erick-1911316/
It's going to cost more to heat but 50k buys a hell of a lot of insulation and oil. The wooden floors would probably cost you 20k to add to the new house.
4ensic15 hit the nail on the head. The way your thinking is a false economy.

The thing about an old house is you can see the cracks, the shiny new house they've yet to appear.
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04-11-2018, 11:05   #13
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I think you've made a lot of assumptions there, has that house ever flooded? As for antisocial behaviour your looking at castletroy there was practically a riot there the other night, the area is packed with students, the last time I stayed in castletroy I was sleeping on a mates couch and some randomer jumped in the window. Also know of another chap who went into the wrong house one night, there was a baby upstairs and he tried to quiten it and get out of there before something went wrong, it didn't end well but nobody harmed.

The house I linked to isn't in dire need of refurbishment, why would you go messing with timber floors, the new house looks like laminate everywhere or else it's all tiles neither of them desirable. Also you've 2 extra rooms which will be handy if you ever decide to rent it.

I think your way over thinking the structural guarantee, the older house doesn't need it as any faults will be apparent by now.

I think for the money there asking the 3 bed is bad value the fixtures in the show house look a bit meh, I very much doubt any of those toilets or kitchen are top quality. It's your money though.

The house i linked to was just an example there's plenty more near where your looking. The cons your seeing I'm not. If the new house was a lot cheaper I'd agree with you.
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04-11-2018, 12:06   #14
Ursus Horribilis
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Quote:
Originally Posted by masterboy123 View Post
If someone is getting a house in an established community then it's very important to know what kind of activity goes on there at night times. Plus they would know you're new in their area and could be a victim of passive bullying.
If you buy into a brand new estate, you don't know yet what the place will be at night. You don't know who's buying the other houses (county council?) and who'll be living in them. With an established community, you'll have a better idea of what the area is like. When I was househunting, someone advised me to see what the kids living in an estate were like.
As for this passive bullying you speak about, I have no idea what this is about.


Quote:
Renovating the house may cost less than a new house, but you need to know locals workers who won't charge you excessively to repair floors, furnish a new bathroom, kitchen, etc. Plus the time you need to take off work to sort out things to refurbish an old house. There isn't a structural warranty in an old built.
There is no guarantee the builder will finish your house properly. I've heard enough stories of shortcuts being taken to trust those guys as far as I'd throw them. As for being at the mercy of "local workers", you'll just do what many other people do. They chat to their friends, colleagues and neighbours and find out who is decent and who isn't.

Would taking a few days off work really hurt if it's saving you thousands of euros? It sounds like you're dying to spend that €280k and the money is burning a hole in your pocket.

The people who've mentioned the old houses and their structures are right. If the house has stood for some years and is well built, you shouldn't have any particular troubles. Every house requires maintenance and you're going to find yourself picking up the phone to ring people to come out and do things to your house.
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04-11-2018, 12:20   #15
nox001
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Originally Posted by 4ensic15 View Post
If an older house has stood up for several decades there is not likely to be a structural issue. Buying second hand means things like gardens established, floor coverings and curtains come with the house. Many new houses require a shed or other store to be built. There is also likely to be a more established community in an older estates. Many facilities will have been established such as street lighting etc. Also in newer areas, there is a time lag between the building of houses and other facilities such as shops, schools etc. Buying a new house just to save a few quid on insulation may be a false economy.
Older houses will likely need lots of work too though if you want to have a modern place to live and older houses tend to be very badly designed with small rooms, badly layed out kitchens, no en-suites, no walk in wardrobes, lack of things like power sockets, Ethernet cabling therouhout etc etc and remedying this (for a person who wants a modern open plan type living space can be very expensive or impossible even.

Personally I find it hard to find any house that has a layout I like old or new (hence why I plan to have my own built) but at least new houses are somewhat better with their interior room design, use of space and general specs and facilities.

Last edited by nox001; 04-11-2018 at 12:46.
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