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| Buying a House in Ireland |
For more info on buying a house please select from the sub-category menu on the right.
What to Buy
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The first thing you need to decide is what sort of property do you need. If you’re single it may be a one or two bed-roomed apartment or house with a large enough living space for entertaining friends.
If you’re married with children, the number of children shall determine the size of the house or if you are planning to have more children this shall be a factor. You will probably need a utility room and garden with space for the kids.
If you’re retired a bungalow may suit you with its easy access about the house.
Other considerations might be do you need a garage, would you prefer a bigger bathroom, maybe you would like a bathroom en suite in one or more of the rooms?
Do you want a study room for those of you working from home or maybe a workshop or hobby room. Consider also how much space there is in the attic. Maybe you have the space to convert it into an upstairs room.
There are so many variations and layout plans to different properties that you may be interested in that viewing is the only final recommendation when actually deciding. We recommend that you view as many properties as possible within your price range. Don’t go on price alone as sometimes the price cannot do justice to the real value for money you might be getting until you actually go and see the property in person.
It may be very well decorated and in tune with your requirements in that department or its layout may give a very spacious effect. Only viewing shall determine these factors.
Once you have decided your maximum price range, carefully select as many properties as possible and go and see them, allowing yourself plenty of time to properly view each property independently. Viewing will significantly help you narrow your list down before you make a bid for a property you have decided upon.
You shall also have other options if unsuccessful or you may even prefer to wait until you see what comes onto the property market.
Remember that playing the waiting game, hoping for the right house to come on the market, may be a good idea but you must consider the fact that house prices rise fairly quickly and a house coming on the market in January will have a different price tag coming on the market the following December.
It is a very big step buying a home and careful consideration must be given to all the factors involved, especially if you are purchasing a property to reside in long term. If tackled properly it shall be an exciting experience.
Where to Buy.
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It is very important to note what facilities are located near your intended home – shops, school, church, post-office, banks, bus routes, taxi ranks, rail station, leisure and amenities centres.
Some of these may not be important to you at the time of purchase but very well may be in the future, particularly if you hope to start expanding your family.
The actual location of the property is very important – is it in a nice quiet cul-de-sac, is it in a mature and developed housing estate, what is the resale value of properties in the area in general? Is the local transport system adequate? Are you a distance from the better priced supermarkets and shops? Shall bus fares for children be expensive with two trips to and from school daily or does the school provide these services? Shall your children have the benefit of attending a reputable school of high standard? Is the property overlooked? Who owns the adjacent land? You wouldn’t want a factory looming down over your back garden. Will you always retain the present view?
All these factors should be clarified by you and noted if you are to make the best decision for yourself.
How much to spend.
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It is pointless looking at properties until you have a firm idea of how much you can afford to borrow and also, how much you can afford to repay monthly.
Remember you may have debts your mortgage provider is unaware of when he recommends how much shall possibly be provided. You may be prepared to have a lean time for a few years but don’t leave it too lean – stay within what really is affordable. You really must do your homework first and see what you can afford.
Take a look at our mortgage repayments tables, the various repayments and rates and note how much the repayments monthly per thousand borrowed is. In short, do your maths prior to looking at any property. You shall then know where you stand financially and are ready to view properties within the price bracket you hope to borrow.
Your mortgage lender shall be of great benefit here, letting you know, if there are two of you, the combined borrowing power you can expect with both your salaries combined.
Do not use the yardstick of two-and-a-half times your salary, as some people sometimes do, as your mortgage lender sometimes can be more generous than this, especially if your are in very sound and secure employment. When applying for your mortgage, show him the regular savings you have made over the preceding years and even submit a photocopy of them and ask that they be forwarded with your mortgage application. That is providing they are good enough, of course.
Remember that evidence of good hard, regular savings is a great bonus when applying for a mortgage.
Don’t worry that you haven’t a good savings record with the mortgage company you are seeking the loan from. You may have being saving elsewhere, therefore prove this fact and provide ample evidence that will no doubt help your application. This is especially true if applying for a high mortgage. It stands to reason, the mortgage provider is only concerned with how you will meet repayments. The money is always available for the right people. Why shouldn’t you be one of them.
If you are thinking of buying a home in two or three years then do something very concrete for yourself. Start paying a regular amount of money into an account on a weekly or monthly basis, every week or every month, without fail. This track record of saving shall be very impressive when eventually applying for your mortgage, especially if you have raised the regular amount saved on a number of occasions as time progressed.
Your last years savings shall be the most important in this regard.
If you are single you may find that the amount you can borrow may be much lower than you anticipated. Compare your building societies figures with that of the banks. Note some building socities may have special deals for first time buyers.
Consider factors like you may be able to borrow more from your bank but that the building society repayment figures are lower or vice versa.
Consider the various time factors on a mortgage – they can range from 15 years to 35, with completely different monthly repayments. It costs a lot more to fully own your home in a shorter span of time but never look at it like that. You own it the day you complete the deal. Note too, for the future, as the years progress the mortgage repayments shall seem less and less as your salary rises and inflation rises. These are not too important issues to concern yourself with. Immediate issues at hand should take precedence.
You are finally ready to look at properties within a certain price bracket.
Always remember too, you may get a better bargain with a cheaper property. The price being asked doesn’t always justify what you actually get. Some sellers are blatantly greedy and seek prices away outside true value and still may manage to sell above what the property is worth.Value for money is important to you. Its your hard earned cash and borrowing power on the line and there are many years of repayments ahead of you. Calculate at the present rate the total amount you shall actually pay in cash over the life span of the mortgage and this figure shall keep you on your toes to be sensible with possibly one of the biggest decisions of your life. Don’t let the figure scare you, just steady your judgement. Your house shall be worth a fair few hundred percent more when you have actually paid for it. Its one of the best investments ever in Ireland today.
Consult one of the experienced agents in our directory and avail of his expertise. He’s there to be of help to you and shall be glad to hear from you. By giving him a call you’ll find out how helpful he can be. Even e-mail contact to various auctioneers in our national directory is a great idea. They may have just what you are looking for or will be glad to know the type of property you are seeking. With such information they can get back to you when they have something for you. A chat with one of our directory listed agents is an important step.
Overall you shall need to know how much you can borrow, how much of your own money you shall need for the deposit, usually about ten percent, how much you shall need for further costs such as solicitors fees, how much will the stamp duty, if any, be, costs of removals and storage if necessary, home insurance and life insurance needed when buying a house. Please consult our “Hidden costs” on the menu of our homwpage.
When you are finally aware of what the upper limit in price range of what you can afford is, our top advice to you is – stick to it!
Loan Approval
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Loan approval is obtained when you have found the property you wish to purchase. By speaking with your mortgage lender you shall have an idea of how much you can borrow prior to selecting a property. However, you can get loan “approval in principle” at the outset. With this the lender tells you how much they are prepared to lend, based on your ncome, your credit record, your employment record etc. The lender will assess your income, other borrowings, employment, age, ability to pay the deposit and the monthly repayments required. He will then tell you how much they are prepared to lend, what the repayments would be and any other requirements they have such as proof of income.
The approval will be subject to the property valuation and survey but you will have much of the groundwork done and shall be in a position to move quickly once you have found a property you’ve made your mind up on.
If there are any problems with your credit history or your employment record now is the time to find out otherwise you may be wasting a lot of your time looking at properties you shall not be able to raise the funds to purchase.
The Approval in Principle is not binding on either you or the lender so you have nothing to lose by getting it at the outset and you may save yourself a great deal of trouble later on. It could be just enough to tip the balance in your favour where there is another buyer competing for the very property you have chosen.
The Irish Property Market is a highly competitive market and it is not just a case of going out and buying what you want. If you have all your financial considerations taken care of and are in a position to purchase immediately, this may be the deciding factor of you obtaining the property as the seller may desire a quick sale. Basically buying a house takes preparation, knowledge, time, considerations, decision making and action. But it’s an experience that reaps the reward of getting the home you desire.
We advise you, if you are searching for that dream home, to use Irish Property Market.com as your internet homebase daily for your househunting and searching as we connect you to everything in the Irish Property Market. It’s all here with just one click. Keep on top of your search daily and be quick off the mark remembering the seller may want a quick sale. It is possible he is losing money the longer the sale goes on.
Log on daily with us and be one of the first to know when a desirable property comes online here or there. By being observant daily you shall indeed be applying yourself truthfully to searching the full market. Don’t forget to check our “Property Journals” and to check in with the Irish Times and Irish Independent property advertisements.
The very best of luck here with your search at the “househunters home”
Finding a Property
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With all the groundwork done and knowing where you stand financially you are now prepared to commence looking for a property. It is advisable to contact the auctioneers and estate agents in our listed “National Directory’ in your chosen area. Don’t just contact one – let them all know the type of property you are looking for. They are the very best within their profession and we want you to deal only with the best. Its your right and you deserve a high quality service as without you they wouldn’t survive.
We at Irish Property Market.com provide for you e-mail connection and full business details of all the experienced agents in your specific area. We also have a listing of those agents who are recommended regarding “new housing” purchase.
Tell them what you want in terms of location, type, number of bedrooms and price but don’t just rely on them solely to inform you of properties that match your criteria. Use our “e-mail alert” system available here on site.
Log on here daily, yes daily, the early bird catches the worm, and connect to the various portals and sites available as well as the property journals and newspaper advertisements, nationally and locally. Keep on top of new properties coming online.
Remember we connect you to everything here at Irish Property Market.com – it’s the “househunters home”.
Some agents are not as proficient as others and may not provide a good enough service by informing you of properties coming online. This is why we have a “national directory” and listing of the most experienced agents in the business and can guarantee that the agents in our listing provide a top class service of the highest quality. Get in touch with them.
Make Irish Property Market your homebase in your search, it stands to reason, we connect you to everything and be quick off the mark by staying in touch with us daily. By being attentive daily with us you are staying on top of the property availability and have a great chance of securing the home you desire.
If the seller wants to sell quickly it’s a case of first come first served. There is no site on the net that shall afford you such a chance of connecting first to a property than this one, no matter where that property comes up. Daily observation shall definitely pay off.
You should also drive around your target area as you may come across a property being sold privately and direct on the market or see a property with a sign up but not yet on the net or in the papers. You may even come across a vacant property not on the market that the owner may be tempted to sell with the right offer.
Viewing Properties
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Contact the agent to arrange a viewing time suitable to you. Allow yourself plenty of time to thoroughly view the house. In most instances the agent will accompany you but sometimes it may be arranged that the owner shows you around.
Make sure you have written down, don’t leave it to memory, any questions you may wish to ask. If it is the owner that is showing you around it is an ideal time to inquire about your surroundings, the infrastructure, neighbourhood watch, schools, local delivery services such as oil etc. Always bring a pencil and paper and make notes as you go along. It can be very difficult after a few weeks and having viewed dozens of properties which house had which imperfections and which house had the leaking pipe. Always note any damage to the property and point these out to the owner – they may offer to have things rectified for a leaking pipe shall be expense on you afterwards
Make a note of things that may have to be done with the house immediately and research their cost later. Take your time viewing and physicallyexamine what you see, ie. Flaky paint, dampness etc.
Make sure you are up to date with the heating system. Prior to the appointment ask your agent he request that the heating be turned on prior to the time of viewing. This way you can adequately guage how much heat loss, if any, exists and how warm the house shall be. Find out what type of central heating boiler there is installed, is it modern or a museum piece? Does it work well? Enquire how much oil it takes to heat the house over a winter.
Find out is there a back boiler, a security alarm? Check to see if the windows are PVC, are they double glazed? Don’t assume – check and ask!
Always try to see beyond the furnishing and décor. It can be very easy to be put off by horrible paintwork or drab wallpaper. Remember you’ll be applying your own decorating to your specific tastes.
Layout, size, view, doors, windows, carpets, curtains, blinds, built in wardrobes – note these factors as well as the more important factors of actual location, price value and the surrounding infrastructure.
The living space is very important as is the kitchen area.Are they large enough?
The convenience of en-suite bathrooms is also important particularly with a large family. Go up into the attic and see how much space there is. Once again it is wise to let the agent know beforehand that you wish to inspect the attic also so that a step ladder can be readily available if it doesn’t have drop-down steps. Don’t assume there is loads of room up there for storage.
Check that the garage door locks properly. Keep in the back of your mind how the house shall look after you have decorated and furnished it. That’s what makes it a home.
Last but not least check the roof with a look over. You may spot missing tiles or slates. Another little thing often overlooked, find out about the tv services, is it piped? Are there connections in other rooms? How many phone connections are there? This will be a factor if family members use the internet frequently, or later expenses not too important but good to know.
The key to remember is as little as one thousand can be the difference between buying one house or the other. A thousand pounds is a lot of money when your finances are stretched near their limit. It may be big money you are spending but if you do your sums right you’ll find euros are scraped together to buy the most you can afford and like.
For a couple buying together – always view together as you’ll only have to view the property a second time.
Finally, when you have made your mind up on the property you would like, view it again the day you make your offer. That final look over is important as you shall now be looking at it with eyes of actually living in it.
Making an offer.
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You’ve finally found the property you want and its time to make an offer. The agent shall be able to enlighten you as to what the highest offer is. Now you wonder can you believe it? More than likely but remember a very important fact, the auctioneer is working for the vendor and no matter how much he may seem to be helpful and on your side, his job is to sell the property and to get the best price for his client. Note too h will more than likely tell you the true highest offer as he doesn’t want to scare you off.
Be clear about what your offer really is. If it is subject to conditions, say so. If your offer is for the property, including carpets and curtains, say so otherwise you may find you are asked to pay an additional sum for these later on if you want them.
It is of imperative importance that you are totally clear with the agent about your offer. If it has conditions there is no need to feel foolish asking him to repeat the offerverbally to you for total clarification that he has all information correct. That erases possible misinterpretations.
Usually your offer shall be subject to survey and contract. This means that if the survey turns up a problem which you didn’t know about you can then revise or withdraw your offer.
There is no binding obligation on either side until contracts are exchanged, but it is best to be clear from the outset.
You may be asked to provide a booking deposit at this stage, usually a few thousand euros. This is an indication that you are serious and is refundable in full if the sale does not proceed to exchange of contracts for any reason. Note this, even at this stage the vendor is not obliged to sell to you at an agreed price or any price. This is a fact not widely known. They can accept another offer or increase the price at will. This procedure is known as ‘gazumping’ and is an unsavoury but existing practice in a rising Irish Property Market.
We would advise you when making your offer, not to make it too high above a known highest bid. Don’t top the bid with 3,000 trying to scare your opposition off. One thousand or even 500 above a known highest bid may secure you a new home. At least you know you have the highest bid and are in a leading position. People buying houses make firm offers, they don’t pussyfoot around if they really want a property.
Your Solicitor.
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If you haven’t a solicitor, now is the time to appoint one to act on your behalf. Never ever consider dispensing with the services of a solicitor, even if or probably especially if purchasing from a family member or relative. Here at Irish Property Market.com check our list of very experienced and highly professional solicitors. Shop around and compare service fees. Don’t just take the first one that comes along, no matter how good or reputable. Another solicitor may do what is in essence very straightforward work for a slight degree of percentage of the sale less and this may save you five-hundred euros or more. That’s five hundred more towards your new home.
Our list of solicitors are the best in the property business, they specialize in this field, and no matter which one you choose, you shall have top class professional service. That’s important.
You should instruct your solicitor to check the title to the property and any planning issues that effect the property etc.
The Survey
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If you are purchasing with a mortgage, your lender will insist on a survey, usually by one of their approved surveyors. You pay for this survey, generally E200 to E250 including VAT, and you should get a copy of it. If you don’t receive a copy of your survey – ask for it.
This survey is solely for the lenders benefit and is designed purely to assure the lender that the property is worth what they are lending, not necessarily what you are paying.
It is a very superficial survey and you are well advised, particularly with older properties, to commission your own, more detailed survey.
Check our list of building surveyors for this professional service. Your survey should point out any significant defects to the property and give you an idea of what it might cost to put them right.
If there are specific things you wish your surveyor to look at, tell him. You might be able to negotiate a reduction in price if significant defects are found by this survey. Usually, in todays market, don’t bet on it.
The Mortgage Offer
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When you finally obtain a satisfactory valuation report from the surveyor, the lender will then contact you with a loan offer. This shall contain details of the amount they are prepared to lend on this property, or how many years of a mortgage, the interest rate and what the current monthly repayments are.
Please note that if it is not a fixed rate mortgage these monthly repayments may rise or fall over the future span of your mortgage.
The mortgage offer is an important document as you are entering into a long term commitment for a great deal of money. Please read it carefully and make sure you understand it.
If you have any concerns or are unclear as to any aspect of it talk to your solicitor about it until you fully understand your future commitment.
It’s very important at this time to make up your mind as to whether you shall want a fixed rate mortgage or not. A fixed rate mortgage shall be more expensive but you have the added security that your repayments cannot rise over the term to which the fixed rate is applicable. You shall always know where you stand with a fixed rate mortgage but it’s a gamble as normal rates will be much less and may in fact fall even further.
If mortgage rates fall and you are on a fixed rate you shall not receive the benefit of reduced monthly repayments. On the other hand if they rise this will not effect you in this case.
Exchanging Contracts
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Your solicitor shall set a date with you and the sellers solicitor for the exchanging of contracts.Usually this shall be completed at your solicitors office.
At this stage your solicitor should have satisfied himself that all legal requirements are in order, any planning issues that might effect the property, the sellers title to the property etc.
Then your solicitor will agree a completion date with you and the sellers solicitor. This is the date on which the sale will be finalised. You shall also be required to pay the balance of the deposit, which is usually 10% of the purchase price of the property less the booking deposit which you shall have already paid.
Once contracts are exchanged the agreement is binding on both parties and, if either party fails to complete the transaction, they can be held legally liable.
In your case, this means that if you fail to complete you shall forfeit your deposit. If the seller fails to complete you shall get your deposit back and
Can sue the seller for any loss you may have incurred –loss of interest for starters.
Completion of the Deal
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The day of ownership has arrived.Your solicitor should have received the cash advance from your mortgage lender and the keys to the property.
You will attend your solicitors office with a draft for the balance of the purchase price.
Your solicitor will hand over the full purchase price to the sellers solicitor and will hand you the keys and his bill. You have now purchased your house and are free to move in immediately. The property is yours.
Your househunting is over and all it entailed. We only hope that we, at Irish Property Market.com were of assistance to you.
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