Buying a small property in Ireland

whitesatin

For a long time we have wanted to own a small house in Ireland as we have roots there and go over often to visit relatives. The idea would be that family as well as ourselves could use it for holidays. We are both retired and would spend an increasing amount of time there, hopefully.

My question is, is it the wrong time to buy at the moment, given the uncertainty of the market?

We are not concerned about making an eventual profit but would prefer not to make a loss if possible.

Also, if we do, should we use savings or get a loan secured on our home here (owned outright). I am not too concerned about leaving a nest egg for my children as they are ok as they are.

geoffky

Prices are already down 50% and no sign of the falls stopping...I would wait and wait and wait.

leftieM

The Irish market has been falling since 2007 and will continue to fall so you will not be buying at the bottom. Their prices are back to 2001 levels and are projected to fall further. If I were you I'd look at a hard negotiation as a cash buyer. There are lots of desperate people with holiday homes they want to off-load. Take advantage of your financial clout.

jimbog

I've been looking at buying in Ireland over the last couple of years too (having roots in Mayo) - the fall in prices is truly shocking. One bungalow a few years ago sold for 320K and is now at 150K - and is still on the market (if I was going to put an offer in for that particular house would give a cash offer of 120K).

Like you, it's about having your own place in the olde country rather than making a profit. As I see it it is about being able to get the house of your dreams where a few years ago it was out of your range.

If you're in the UK it might be good to keep a close eye on the Euro / sterling exchange rate. Will the euro collapse against sterling???Who knows

1DOLLHAIR

Go to Daft.ie best place to look.

Clearlier

As ever a lot depends on where you are planning to buy. There'll be an argument about where the bottom is until the bottom is actually reached. IMO in the long term a well located (roads, shops, parks etc.) property probably won't go much lower than where prices are at now but in the short term it's anybody's guess.

Judging the value of something that hasn't got much obviously going for it is very difficult. There are a number of housing estates in remote locations that will eventually simply be knocked down, it would obviously be insanity to buy there. The ones in between those and the well located ones are where you can get a huge bargain but you do need to be careful. I would avoid a new housing estate that hasn't sold all of its houses yet however tempting the "buy one, get one free" (I kid you not) offer sounds. Take a good look at the area and work out how many of the houses are actually occupied.

Overall I can't imagine that you'd do too badly by holding off, on the other hand life has to be lived too and if buying a house would add a lot to your enjoyment of life then go for it.

You'll almost certainly need to fund the purchase via your UK bank be that through savings or borrowing on your own home. Aside from the negative sentiment in the market one of the biggest issues in Ireland is that the banks have no money although some recent ECB moves may improve the situation slightly. I read recently that mortgage lending is currently running at 6% of peak lending:eek:.

If you're backwards and forwards to relatives a lot then you're probably already aware of the property websites given the obsessive nature of my countrymen's relationship to property but just in case, you should also check out myhome.ie which is typically a bit more comprehensive and accessible that daft.ie which was originally a site for rentals although the majority of properties are listed on both.

Good luck whatever you do!

Lit_Up

Clearlier wrote: »

I would avoid a new housing estate that hasn't sold all of its houses yet however tempting the "buy one, get one free" (I kid you not) offer sounds.

Yikes. Never heard of that in property... they must be well and truly fukced

geoffky

And they all said prices could not fall..Remind you of anywhere?