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€100k deposit, €180k budget

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  • 05-12-2014 12:03pm
    #1
    dynamited
    Closed Accounts Posts: 74 ✭✭


    Hi All,

    Sorry i am new to this but have been keeping an eye on things for awhile and i am in need of some advice

    I am looking to buy a house in either of the following areas within the next year

    D10,D12,D15

    I have 100k deposit and the bank are only offering me 78k mortgage,although i am quite happy with that as i don't want to borrow much as i want to live within my means as i plan on being single for a long time

    I currently earn 26k per year but earned alot more a few years ago in previous jobs

    Stats : Male, 26 years old, single , no kids

    Obviously the new CB mortgage lending rules shouldn't affect me (hopefully not) do you think i should try buy within the next 2-3 months or wait until later next year to see if the house prices drop???

    Any advice would be great

    Thanks


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    #2
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    Get approval sorted in writing. If you see a property you like be ready to move. D15 you will get properties in your price range. Have you visited these areas to see whats on offer ?


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    #3
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    handlemaster wrote: »
    Get approval sorted in writing. If you see a property you like be ready to move. D15 you will get properties in your price range. Have you visited these areas to see whats on offer ?

    Yes but alot of the ones i am after are going for 200-210k so i'm hoping maybe the new lending rules may lower sellers expectations in that area of the market


    I have been approved and i'm looking atm , but like i said unfortunately the decent houses are over 200k



    Fingers crossed prices in this end of the market drop within the new year


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    #4
    David900
    Registered Users Posts: 431 ✭✭David900


    A lot of properties around Ballyfermot in that price range too.


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    #5
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    dynamited wrote: »
    Yes but alot of the ones i am after are going for 200-210k so i'm hoping maybe the new lending rules may lower sellers expectations in that area of the market


    I have been approved and i'm looking atm , but like i said unfortunately the decent houses are over 200k



    Fingers crossed prices in this end of the market drop within the new year


    So how much % drop are you hoping for ? If there is an influence with this new deposit requirement it will be an up lift for the properties under 200k and stagnation above. Thats for Dublin.


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    #6
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    handlemaster wrote: »
    So how much % drop are you hoping for ? If there is an influence with this new deposit requirement it will be an up lift for the properties under 200k and stagnation above. Thats for Dublin.

    hoping for a 10-20% drop in the houses that are under 200k


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    #7
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    dynamited wrote: »
    hoping for a 10-20% drop in the houses that are under 200k
    Thats never going to happen. Best make other plans.


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    #8
    Mr.McLovin
    Registered Users Posts: 470 ✭✭Mr.McLovin


    what type of property are you looking for? - house, apartment, 2 3 bed?


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    #9
    David900
    Registered Users Posts: 431 ✭✭David900


    I'm a bit lost, doing a quick search on daft throws up a lot of options within your budget in those post codes.

    What exactly are you looking for? Better value?


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    #10
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    David900 wrote: »
    I'm a bit lost, doing a quick search on daft throws up a lot of options within your budget in those post codes.

    What exactly are you looking for? Better value?




    In a nutshell Yes, i don't think much of these are worth the prices they are looking for


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    #11
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    handlemaster wrote: »
    Thats never going to happen. Best make other plans.



    Well the the new CB lending rules are reported to wipe 50-60 percent of FTB's off the market for the foreseeable future and alot of those properties are FTB territory


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    #12
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    I don't think you are going to see a drop in Dublin prices in the €150-250k price range; if anything, I think the new restriction might drive them up a little because people who were targeting properties in the €250k+ range might be forced to aim for a lower price option.

    Of course I might be wrong.


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    #13
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    P. Breathnach wrote: »
    I don't think you are going to see a drop in Dublin prices in the €150-250k price range; if anything, I think the new restriction might drive them up a little because people who were targeting properties in the €250k+ range might be forced to aim for a lower price option.

    Of course I might be wrong.

    I hope you are friend


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    #14
    David900
    Registered Users Posts: 431 ✭✭David900


    its difficult to predict where prices will be in 6 months with all the moving variables of the CB limits, increasing demand but also the beginning of supply expansion.

    However, it's likely prices will drop significantly in that timeframe.

    Best advice I can give, if you're looking better value, is to buy a property you can add value to.
    Even if prices come back a bit, it would likely provide you with a buffer.


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    #15
    Larbre34
    Registered Users Posts: 23,848 ✭✭✭✭Larbre34


    Sit on it for another year, you are plenty young.

    Why do I think that? We still dont have a functioning market, there are a lot of artificial variables still to be worked out, i.e. the percentage of cash buyers reducing to a more typical level, the deposit and lending ratios for the future yet to implemented. When the market returns to less dysfunctional profile, then you will have a real idea what prices and value are and more predictable appreciation into the future. Whatever else happens next year, the new ratio requirements arent going to trigger a boom in prices


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    #16
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    I recently sold my house, and to be honest didnt get much in my pocket after the mortgage was paid off.
    I am now looking in dublin. I am lucky that I have a bit of a deposit saved.
    I have been talking to banks recently and the money they have been offering me is crazy. I was actually offered more of a mortgage then I was offered in 2008, when I bought my last house.
    My salary hasnt increased much since then, so it was a shock at the amount being offered.

    Like you dynamited I want to live within my means and be able to enjoy my life. And also like you I have been wondering what is in store for the housing market.

    It is insane at the moment. There were 2 couples looking to buy my house and they were cash buyers. They actually told me when I gave them the keys that it was the 4th house they have bought recently as an investment.
    My parents have recently sold their house and they had 8 people looking to buy it, and all cash buyers. My parents have actually put and offer in on a house 2 months ago and havent even been told whether accepted or not. So they pull out of that for another one. The offer was accepted, not it looks like the bank is acting up with the current owners over negative equity. It seems to be a minefield.

    I am inclined to think that this new rules will push the prices of the "affordable houses" into a place where they are out of reach.
    I have actually decided to rent to see what happens. no point jumping the gun....


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    #17
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    Larbre34 wrote: »
    .... the percentage of cash buyers reducing to a more typical level...
    That's an interesting question: what is the typical level? Does anybody know?


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    #18
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    I would like to know the percentage of cash buyers, because from what I have heard recently it is extremely high, and they are hoping prices will rise....


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    #19
    Mrs OBumble
    Registered Users Posts: 25,734 ✭✭✭✭Mrs OBumble


    Keep looking - but don't be pressured to buy until you find something that gives you the right value. If you are happy to wait and for months, maybe even some years, you are likely to find the occasional house comes onto the market at a particularly good price for whatever reason (eg an estate sale, a marriage split where they're keen to get rid of it quickly, etc). Not being in any rush is a good thing.


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    #20
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    P. Breathnach wrote: »
    That's an interesting question: what is the typical level? Does anybody know?

    I don't think there is any enumeration of typical- given we have only recently started releasing mortgage figures (and you have to extrapolate from the Central Bank figures and the Property Price Register- to come up with any figures at all..........

    Over the last 24 months- up to 40% of sales have been 'cash sales' that is- they feature on the property price register- but as gross sales (in numbers of units sold) are 40% lower in the central bank figures- you can extrapolate that these are cash sales.........

    You could sit down and do a complete tally of Property Price Register sales for a 12 month period- and look at the comparable Central Bank figures for mortgages drawn down over the same period- and you'd have a yardstick you could work with?


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    #21
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    The_Conductor wrote: »
    I don't think there is any enumeration of typical- given we have only recently started releasing mortgage figures (and you have to extrapolate from the Central Bank figures and the Property Price Register- to come up with any figures at all..........

    Over the last 24 months- up to 40% of sales have been 'cash sales' that is- they feature on the property price register- but as gross sales (in numbers of units sold) are 40% lower in the central bank figures- you can extrapolate that these are cash sales.........

    You could sit down and do a complete tally of Property Price Register sales for a 12 month period- and look at the comparable Central Bank figures for mortgages drawn down over the same period- and you'd have a yardstick you could work with?
    I recognise all of this, but what piques my interest is what happened, say, 20 years ago. There were cash buyers back then (I know some). I think it very unlikely that they represented anything like 40% of the market, but I'd like to know if they represented 5%, or 10%, or 20%.

    There is a view that cash buyers distort the market, There is also a view that there is a large, but finite, number of cash-rich people who will sometime soon have spent their money, after which the market will settle down to "normal" patterns.

    I don't think we have the data to underpin any theories about what "normal" market activity actually is.


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    #22
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    I've noticed they have started to drop since the CO mortgage lending rules were announced and I'm starting to get harassed by estate agents with replies in regard to enquires I made about certain properties


    whereas just a few months ago I wouldn't hear a thing back from them


    looks like they're getting desperate


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    #23
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    Ok Folks,


    Viewing a place for 190k on Wednesday, if i like it i will put an offer of 180k in



    Mortgage over 35 years will work out @ 344 per month but obviously will rise as interest rates are so slow atm



    Hoping i'm doing the right thing as i have been saving for the past 10 years ( Last 18 months i have been in frugal mode and sacrificed alot)


    Fingers crossed


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    #24
    irish gent
    Registered Users Posts: 240 ✭✭irish gent


    best of luck in the house hunting .


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    #25
    hadoken13
    Registered Users Posts: 630 ✭✭✭hadoken13


    The_Conductor wrote: »
    I don't think there is any enumeration of typical- given we have only recently started releasing mortgage figures (and you have to extrapolate from the Central Bank figures and the Property Price Register- to come up with any figures at all..........

    Over the last 24 months- up to 40% of sales have been 'cash sales' that is- they feature on the property price register- but as gross sales (in numbers of units sold) are 40% lower in the central bank figures- you can extrapolate that these are cash sales.........


    From my understanding it's not just cash sales that appear on the property price register. Is there an identifier that distinguishes cash sales on the register?


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    #26
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    dynamited wrote: »
    ...
    Viewing a place for 190k on Wednesday, if i like it i will put an offer of 180k in ...
    I hope things go well for you.

    It's impossible to judge in advance if an offer below asking price might succeed. In some cases, the asking price is set at an optimistic level (from the seller's point of view) and you have a real chance of getting it for less. In other cases, you might need to match or exceed asking price.

    It's not just you and the seller: much depends on whether or not there are other people who like the place and can fund the purchase. Ultimately, the price is made by would-be buyers.

    It's not unusual to find people spending months, sometimes more than a year, viewing places and making offers on some of them before they get a deal that suits them.


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    #27
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    hadoken13 wrote: »
    From my understanding it's not just cash sales that appear on the property price register. Is there an identifier that distinguishes cash sales on the register?
    All sales should appear on the register. There is no way of identifying cash sales.

    Figures are separately published showing the number of mortgages arranged. There are fewer mortgages than sales, so the difference is put down to cash sales.

    [Crude summary.]


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    #28
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    dynamited wrote: »
    I've noticed they have started to drop since the CO mortgage lending rules were announced and I'm starting to get harassed by estate agents with replies in regard to enquires I made about certain properties


    whereas just a few months ago I wouldn't hear a thing back from them


    looks like they're getting desperate

    what areas are these in ?


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    #29
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    dynamited wrote: »
    Ok Folks,


    Viewing a place for 190k on Wednesday, if i like it i will put an offer of 180k in



    Mortgage over 35 years will work out @ 344 per month but obviously will rise as interest rates are so slow atm





    best of luck. its great to see someone actually saving and making first world sacrifices to buy and not expecting someone else to pick up the bill


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    #30
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    handlemaster wrote: »
    what areas are these in ?

    Lower end of the Market


    Clonsilla, Lucan etc


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    #31
    zl1whqvjs75cdy
    Closed Accounts Posts: 4,042 ✭✭✭zl1whqvjs75cdy


    IS 35 years a long time for a mortgage? Still renting but trying to educate myself on these things to make the jump in a few years time/


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