To Buy Or Not To Buy

C

chefcorm

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Hi, I currently work for a financial institute for a couple of years now and i have been approved a mortgage for 250k max. This is a 100% 35 year mortgage. I get a commercial rate of 3.2% up to 190,460 and the other 60,540 is at the market rate, around 5.5%apr. I have been looking at properties in the city centre, mainly 1 bed apartments. I intend living in this property for a couple of years then renting it out after that. My Question is, would i be mad to buy a one bed or do you reckon the property market will fall so much that i could afford a 2/3 bed house or apartment in the city centre, within the next 6 months?
 
Would you not consider a place a little further out along the DART line? I am sure that both in the city centre and a little further out, you will be able to pick up a 2 bed for that price in the not too distant future....I was monitoring prices of apartments in our area (Dublin 13) only 3 months ago and there is a big oversupply....apartments that were being sold off plan for 320 000 (but could get a special deal on for 305 000 according to a local mortgage broker?!), are now being marketed for around 290 000. That is only in 3 months. Who is to say where these prices will be by Christmas?! I personally would not consider a 1-bed....it severely limits your options and a little extra space is always useful. Even though there are a lot of 2 beds on the market (for both renting and buying), I still believe they are a better option, as they facilitate singles, couples and even a couple with a small child.
 
You would be absolutely crazy to buy anything right now.

Anyone who doesn't think the Irish property market is going to fall significantly is either deluded or lying IMO.
 
Can you afford the repayments? What if interest rates rise, do you really think a 35 year mortgage is a good idea, ditto a 100% mortgage. Isn't there some BIK on the low interest rate mortgage. As far as I know we're not allowed to discuss property prices so can't offer an opinion on that but I recommend you do some research - economists/newspapers etc.
 
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