I am one of those who have just taken the risk like you are considering and purchased a 4bed terraced. last year it was 275k with nothing provided. this year i got it for 200k with free legal fees all appliances fitted kitchen, carpets, wooden floors, wardrobes all in all over 10k's worth of extras. so it depends really. the builder was trying to sell his last few houses so for me I cant see the price dropping any further. i would say its near or at the bottom of the market for first time buyers anyways. but thats just my experience.
Really and truely its very difficult to work out whether or not it is near the bottom of the decline in prices. Most of us would like to think it is to be honest.
If you are considering taking out a mortgage right now, you should factor in:
- The cost and affordability factor of interest rate increases
- Your job stability
- How much it will benefit you or how much you really want it
People should make up their own minds based on their own circumstances. We could be speculating for months or years whether or not the value of property will increase or decrease. At the end of the day you are buying a house cheaper then last year and you are getting a good deal today. People buy houses to live in, not necessarily to be making money. If you are comfortable with the idea of living in the property for 10 years + you should not be concerning yourself with "timing the markets" as much as you should be concerned with your ability to finance this venture long term.
People renting are in an enviable position in that they can either wait or buy. There is nothing to SUGGEST that house prices will increase in the next 3-5 years or so, but theres nothing to SUGGEST that they will decrease dramatically either.
Comparing rent as dead money is basically a perception that some make and it depends on your circumstances and what happens longterm in the markets with house values and Interest rates. I dont particularly class it as a myth as it is relevant when interest rates are low (cheaper mortgage) and house prices are increasing (cost more to get a mortgage) and its certainly not money you will ever see bear any return.
Irish People generally prefer to own their own houses , where'as on the continent they are just as comfortable renting all their lives. Me personally, I see rent as dead money in that I will never own anything by paying rent. Even if you are only paying small sums of money off your mortgage initially you are still the owner of that property unless you are unable to pay the money back. In most cases the banks would do everything they can to prevent them from having to repossess your house (and they will generally give you time to get back on your feet). A landlord can simply throw you out.
Again, THIS IS SIMPLY MY PERSONAL OPINION, NOT BASING THIS ON PROFESSIONAL ADVICE, I think an arguement can be made either way for renting or buying in the current climate, but once a person weighs up the pro's and con's of both rationally and prudently, then they will make the correct decision for themselves.