Should I buy or keep saving?

Greta said:
I wrote that I think that it's a good idea to buy a property that will be available to OP, that is, it's my personal opinion, I don't need to "have evidence" to prove an opinion, do I?

As to the advice to "go ahead and buy" if OP can secure a mortgage now, I was being a bit ironic, considering the fact that he seems to be ignoring the fact that it's extremely difficult or impossible to get a mortgage while he is abroad!

Really what he needs to do is find out IF he can buy now (i.e. IF he can get a mortgage), then take it from there, hence my advice to go find a mortgage first:) It's pointless wondering about to buy or not to buy if he just can't buy (at least not for a while, until he saves enough to buy outright).
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The fact
that it's extremely difficult or impossible to get a mortgage while he is abroad!
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is really not important
Even if he could secure a mortgage in those conditions now; he still would be crazy to buy in his circumstances.
 
lionstour said:
The fact
is really not important
Even if he could secure a mortgage in those conditions now; he still would be crazy to buy in his circumstances.
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Well, I think this fact - that he'll be unable to get a mortgage - is very important, as it's a FACT, not just an opinion, in that it makes the whole discussion - to buy now or not to buy - pointless, as he CAN'T buy now, whether it's crazy or not. Period.
 
Greta said:
Well, I think this fact - that he'll be unable to get a mortgage - is very important, as it's a FACT, not just an opinion, in that it makes the whole discussion - to buy now or not to buy - pointless, as he CAN'T buy now, whether it's crazy or not. Period.
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Earlier you advised him to go ahead and buy. Buying now in his circumstances would be madness. That is the only fact.
 
lionstour said:
Earlier you advised him to go ahead and buy. Buying now in his circumstances would be madness. That is the only fact.
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I have already explained to you what I meant, obviously you don't get it, so I don't see any point explaining further, let's just drop it and remain each with our own opinion and facts:)
 
lionstour said:
A terrible piece of advice given his circumstances
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That is purely speculation on your behalf.
There is no "evidence" as your assumptions are based on your prediction of the future.

Any decision by the OP carries risk.
You think the risk is unwarranted. Greta and I think it might be worth considering....however we feel he is unlikely to secure the necessary mortgage so it is a theorectical debate.

Just because we have had a terrible property crash AND remain very financially unstable does not mean that cash rich buyers should not consider investing in property as long as they understand ALL the risks.
 
Complainer said:
I think you should leave your sister out of the equation. Do your sums on the assumption that you'll be renting the property on the open market, with 1 or 2 vacant months each year, and a property agent to pay to look after the property.

Your sister has her own life to live, and may well have a relationship change or a job change or have a child on a schedule that doesn't suit your rental arrangements. Family and business don't mix well.
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Exactly what I was thinking. Your sister will be your tenant and as such can leave the property if her circumstances change. So you may find yourself renting it to strangers at some stage. Would you be ok with this?

Also, you're 26, while you might think now that you know you'll settle in Douglas, assuming you return to Ireland, this may change. Imagine you meet a lovely girl from Galway, fall in love, get married but she is hell bent on living where she grew up?

It is admirable that you want to use your good fortune and financial situation to also help your sister but you should consider how you would manage the set up it circumstances changed for you or her.
 
No alarm bells will sound when property prices hit the bottom, its up to the individual to make up their own minds.
Considering the price of some properties are priced below the cost of materials and labour to build excluding site costs. and the price of materials is only going up (in the last month kingspan up 10% concrete7% and all metals soaring [China] )
I think the origional poster should buy on todays prices rental yields are over 10%.
 
Again all points appreciated.

I wouldn't mind if I had to rent out to strangers, sure strangers will have lived in the house previously unless I purchase a new one.

It sounds pretty inviting considering some of the points that theoptimist has stated.

I am going to start making regular savings into my BOI account and in around a year I will reassess the situation, I suppose as I am under no pressure to purchase I should wait for the ideal situation, price etc.

It is interesting to see peoples different opinions on the matter but all information and opinions are greatly appreciated.

It seems that my main problem is getting approved for a mortgage but hopefully having around 30% of the house value they will consider me.

Kind Regards,

Allen
 
Mommah said:
That is purely speculation on your behalf.
There is no "evidence" as your assumptions are based on your prediction of the future.
  • Increasing interest rates.
  • Lack of Avalibility of mortgage credit
  • 15% unemployment
  • Recent daft report which highlighted the likelyhood of further property reductions
  • POtential for further reductions in Rent due to changes in rent allowence
  • Potential of Geeek default and implications for ireland
  • The poster is living in another country
  • The poster wants to rent to his sister
Thats my evidence.
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allenk said:
I am going to start making regular savings into my BOI account and in around a year I will reassess the situation,
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Just FYI, many Irish people are going to great lenghts to move their savings away from Irish banks, and there's yourself, sending it all back home.

You might like to think about reducing your risk by keeping some of your savings in safer institutions or countries.
 
Complainer,

Funnilly enough I was just talking to one of my managers today who just recently opened an Australian Bank Account which is offering just over 6% interest on its savings account. I am going to look into it tomorrow and see can I open one if I am not a resident and without a working visa. Looks pretty attractive to me and every bank seems to offer similar rates. I will be in Australia every 6 weeks so it might just be possible.

I am putting regular savings into by BOI account so I might have a chance of getting a mortgage down the road. The money going in will not be massive so If it does go pearr shaped in Ireland then I won't lose everything I have.

Lionstour,

I know your not my personal financial advisor but do you think I should do with my money?
 
I have to agree with Lionstour.
You would be insane to invest in a house here. I get really annoyed when I hear the phrase " house prices are x% down from the peak of the boom" which really translates that prices are down from the pinacle of insanity. Prices should never be compared to the peak, they should be compared to the actual value of the property or show the price it was originally paid for THEN and only then will you see if you are getting a bargain....or use the 2.5/3 times your salary ratio as a rule of thumb. No offence allenk but you are doing well where you are. You are where most of us young people would like to be! The grass aint any greener here, its turning to hay and by the time the greeks default who knows what will happen.
I dont give advice,,.. but if I was in your situation, I'd sit tight and keep my eye on things. When you can, buy outright dont give those banks anything and dont secure any loan on your prized posession, your home.
 
lionstour said:
Where are rental yields over 10% IN the location the OP wants to buy? Can you give an example?
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Some areas of clondalkin, decent houses 130k or 140k.
Monthly rent for family 1050.
Roughly 9% to 10%.
Considering buying one myself as i know if i had a site here for nothing i could not build a house for this money.
THis just an example there are plenty other areas.
 
theoptomist said:
Some areas of clondalkin, decent houses 130k or 140k.
Monthly rent for family 1050.
Roughly 9% to 10%.
Considering buying one myself as i know if i had a site here for nothing i could not build a house for this money.
THis just an example there are plenty other areas.
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Thats great; just 140 miles away from Dogulas Co Cork.

And I would question your numbers on clondalkin. A lot of properties for rent there and I doubt there is that much demand,
 
theoptomist said:
Considering buying one myself as i know if i had a site here for nothing i could not build a house for this money.
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I hope i'm not steering this off in another direction (i'm pretty sure i'm not as it's related to the general theme of the thread thus far) but would this be a general consensus? ie. 130-140 would be the build cost for a typical 3 bed semi (assuming this is what theoptimist was referring to)??
 
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