Affordable 2 Bed - to buy or not

[FONT=&quot]Hi all,

Having been on the South Dublin Co Co Affordable list for nearly two years was offered a two bed apartment in St Edmunds, Palmerstown for 240k. Market value is reputed to be well over 300k. Have yet to agree MV with council.

Put down refundable deposit.

69 sq.m, two beds, ground floor, 24 hour security, own parking space

These are slightly more expensive than previous affordable developments - from what i hear they separated the list into higher and lower earners. I don't mind been offered the better quality development as could not see myself living in some of the other developments.

Although the location has it's good and bad points it is close to everywhere I know and the apartment itself is a lovely starter home.

First Active mortgage repayments just over €900 a month. Have the option of renting a room for up to €800 a month tax free

I know prices are continually falling and it's a really bad time to buy on the open market but am debating whether they will actually fall to the just under 100k point

South Dublin absorb negative equity and the clawback seems to be based on the market value at the time of sale

Is this a good deal?? I'm in two minds, don't want to jump into something I may live to regret

Sorry for length of post - any advice greatly appreciated!!![/FONT]

Hi Debs,

this does seem a bit expensive to me. I have seen 2 new developments that I can think of with 2 beds going for 249k, one in citywest and one in Clonee. I would be more inclined to go for something without a clawback that I can afford, unless you really want one of these apartments. There have been posts on those particular apartments that you should do a search for.

Deedee

Hi Debs,
Palmerstown is a really nice area - more so than Clonee or CityWest. I know very little about ah - but given the area, just think if you could see yourself in the apartment for atleast 5 -7 years. And if this place is somewhere you could see yourself happliy living - and remember the area would be far better than citywest - then I would go for it...

St Edmunds is in Palmerstown by a quirk of the postal code areas.

http://maps.google.com/maphp?ie=UTF8&ll=53.355341,-6.40769&spn=0.00949,0.018711&t=h&z=16

Don't rely on getting 800 Euros for your spare room. Rents in the area for a room in an apartment share are far lower.

Howitzer said:

St Edmunds is in Palmerstown by a quirk of the postal code areas.

http://maps.google.com/maphp?ie=UTF8&ll=53.355341,-6.40769&spn=0.00949,0.018711&t=h&z=16

Don't rely on getting 800 Euros for your spare room. Rents in the area for a room in an apartment share are far lower.

Click to expand...

[FONT=&quot][/FONT]Thanks I agree - I wouldn't expect to get more than 600 for renting a room. Ideally I'd like not to rent a room - unless circumstances change I won't.

It does give options though that add to the pro side of signing contract.

The area suits me as family home is Lucan, and work in town so brings me closer to town again

Just got the valuation from South Dublin and the bank.

South Dublin 315k
Bank 320k (would have thought bank not going to over value as only borrowing 225k?)

Discount of 25% (bank) Clawback 23% to council. If value decreases just means I have to pay the council less. I can't lose money - if they are only valued at 240k five years from now for example, clawback is 0%

Big issue for me now is the ground floor aspect. The 24 hour security helps and there is a bit of greenery between the windows and walkway, but will have to go back a few times to see if I can see myself living there.

Thanks for the advice, such a headwreck - big decision!!

just beware u are across the road from neilstown/quarryvale. Looked into development myself and didn't buy because of that. Also permanent halting site on the other side of development.

pinkie123 said:

just beware u are across the road from neilstown/quarryvale. Looked into development myself and didn't buy because of that. Also permanent halting site on the other side of development.

Click to expand...

I know pinkie123 - was a bit off putting alright, but overall I think the proximity to Liffey Valley SC and being 20 mins from town swings it as a good first time buy. Close to home and Airport too. The security puts my mind at ease somewhat. Its very hard to tick every box.

Neilstown / Ronanstown not nearly as bad as it used to be. Most of the probelm kid have grown up and Liffey Valley provide huge employment, so the social problems are not as stark as in the eighties.

Also residents of the permanent halting site are not known to be problem makers - it the annual infux (into most areas) of UK based travellers.

Above info based on having a store in Liffey Valley from 1999 to 2007 with annual security reports.

Another consideratin is new Lucan luas line will be very close.