Should I buy a run down house now or should I wait?

motorguy

tara747 wrote: »

If you see something you like, by all means buy it.

But don't panic-buy or think that prices are going to go up... all the indications (local and global) are pointing in the opposite direction. The economy is in for a bumpy ride here - welfare cuts, public sector job cuts, spending cuts, huge public and private debt levels etc.

This IMF report makes scary reading:

http://www.theguardian.com/business/2015/oct/07/next-financial-crash-is-coming-imf-global-stability-report

You do know the market has been trending upwards for at least three years now, right?

Maybe its time to stop looking for signs its going to continue to drop, given it hasnt?

Dannyboyni

Just a quick update from myself.

Any estate agents I have been speaking to have told me that prices are due to rise sharply in Northern Ireland this year to keep in line with the rest of the UK.

I have decided that I would be better off buying a semi detached house. The house style I am after is red brick with period features inside and I have found a house which matches those criteria in an area I like. The kitchen would need taken out and a new bigger kitchen put in.

I have a loan to value of 41%.

Ideally I would wait one year and save up more money to provide better security for myself as my self employment is not very secure.

I am currently living with parents and work from home.

What I may do is just buy the house and not step inside of it for a full year, that way the only money I would be wasting would be the combined rates and mortgage interest of around £1800 for the year.

I am just annoyed that I would have a property sitting empty for a year with no way to make money from it. But I would also be annoyed if I waited a year and a similar property came on the market at 10% more because prices have risen.

motorguy

Dannyboyni wrote: »

I have decided that I would be better off buying a semi detached house. The house style I am after is red brick with period features inside and I have found a house which matches those criteria in an area I like. The kitchen would need taken out and a new bigger kitchen put in.

I have a loan to value of 41%.

If you're looking for a red brick house with period features then i really really wouldnt be trying to retro fit underfloor heating. Period radiators are going to be more in keeping with the house.

Also, it you have such a low LTV why not put less of a deposit down and use some of that cash to start work on the house?

qwert_yuiop

The

Dannyboyni wrote: »

Just a quick update from myself.

Any estate agents I have been speaking to have told me that prices are due to rise sharply in Northern Ireland this year to keep in line with the rest of the UK.
.

Oh dear. When did a barber ever tell you that you didn't need a haircut? Sorry - that makes no more sense than telling you GB needs a crash to bring it into line with here. That probably makes more sense.

Do you have to pay rates on an empty house? You certainly didn't have to up to last year.

ballyblack

Do you have to pay rates on an empty house? You certainly didn't have to up to last year.

yes! rates are payable

Old_Git

buying a run down house is a good idea provided it is mortgageable .
Some sell cheaply because they are not mortgageable.

Mistral001

Dannyboyni wrote: »

Just a quick update from myself.

Any estate agents I have been speaking to have told me that prices are due to rise sharply in Northern Ireland this year to keep in line with the rest of the UK.
.

Has there ever been a time in the last 5 or 6 years when estate agents have not said that? Trust your own judgement and as others have said buy when you want.

Mistral001

Old_Git wrote: »

buying a run down house is a good idea provided it is mortgageable .
Some sell cheaply because they are not mortgageable.

Good point, but the OP is in the fortunate position of only needing a 41% mortgage, which I assume is 41% of the total cost of purchasing and renovation.

qwert_yuiop

According to the daily telegraph, NI house prices rose by a stunning 2.9% in the year to August. Interestingly, Scotland's sank by 0.9%, so there's something for your estate agent who believes our market should behave like the gb one.

waltsalt

I think he was suggesting house prices would rise to (try to) keep in line with average GB house prices. Which is probably true. Houses here are cheap compared to ones on the mainland.

So prices will go up. If it happens in a slow but steady and controllable way then they'll keep creeping up until there is a closer parity (this may take many years). If it happens too fast...........well, we all know what happens then.

Just remember, in general people are idiots. They will not spend what they can afford, just what they are told they can afford.