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Buying A House In Ireland

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Thinking of buying a house in ireland, they are cheap compared to UK, and we can afford to buy one outright with no mortgage, am i stark raving mad? The economy over there is f**ked, I know, then again so is the economy here, and is only going to get much worse, at least the prices of houses in Ireland are reasonable, a 3 bedroom house with 6 acres of land for 100,000 euro, sounds okay.

Is this a good idea?

What do you recommend?

Are there any pitfalls about buying a house in Ireland I should know about?

Should i stay renting in the uk, or should i spend all my savings on a house in Ireland. Work doesn't matter as i can do the same thing I do in the uk over there as it is mostly through the internet.

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Boy that sounds good. I'd like to know the answer to that myself. Does anyone know the tax situation in Ireland for non-natives? How does that work?

Thinking of buying a house in ireland, they are cheap compared to UK, and we can afford to buy one outright with no mortgage, am i stark raving mad? The economy over there is f**ked, I know, then again so is the economy here, and is only going to get much worse, at least the prices of houses in Ireland are reasonable, a 3 bedroom house with 6 acres of land for 100,000 euro, sounds okay.

Is this a good idea?

What do you recommend?

Are there any pitfalls about buying a house in Ireland I should know about?

Should i stay renting in the uk, or should i spend all my savings on a house in Ireland. Work doesn't matter as i can do the same thing I do in the uk over there as it is mostly through the internet.

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Thinking of buying a house in ireland, they are cheap compared to UK, and we can afford to buy one outright with no mortgage, am i stark raving mad? The economy over there is f**ked, I know, then again so is the economy here, and is only going to get much worse, at least the prices of houses in Ireland are reasonable, a 3 bedroom house with 6 acres of land for 100,000 euro, sounds okay.

Is this a good idea?

What do you recommend?

Are there any pitfalls about buying a house in Ireland I should know about?

Should i stay renting in the uk, or should i spend all my savings on a house in Ireland. Work doesn't matter as i can do the same thing I do in the uk over there as it is mostly through the internet.

Ireland is financially FUBAR. I would wait to see what happens with NAMA etc

They are desperately trying to prevent a firesale in Irish property, but it looks like it could be a losing battle.

Plenty more price falls to come I reckon.

Edited by MOP

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should check out www.daft.ie

check out the counties, some counties are more expensive than others

would post a link, but hpc won't let me?

I lived there for 18 years. There is a reason why some counties are more expensive than others.

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Thinking of buying a house in ireland, they are cheap compared to UK, and we can afford to buy one outright with no mortgage, am i stark raving mad? The economy over there is f**ked, I know, then again so is the economy here, and is only going to get much worse, at least the prices of houses in Ireland are reasonable, a 3 bedroom house with 6 acres of land for 100,000 euro, sounds okay.

Is this a good idea?

What do you recommend?

Are there any pitfalls about buying a house in Ireland I should know about?

Should i stay renting in the uk, or should i spend all my savings on a house in Ireland. Work doesn't matter as i can do the same thing I do in the uk over there as it is mostly through the internet.

Prices in Ireland should be cheaper than UK because, I believe, it is more sparcely populated than UK. But they had a bubble worse that UK, so prices have been grossly inflated. The fall there is not over yet, surely?

Anyway, 100k euro sounds cheap. Why so cheap? Is it on a sink estate with junkies and drug dealers around, or what is the reason? I would do some research on that. I don't know if upmysteet deals with Ireland, or if there is a similar for Ireland.

http://www.upmystreet.com/

Anyway, I would expect prices to fall a lot more still there.

Just a bod's opinion. :blink:

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It's cheap but will get cheaper so if buying is primarily a financial decision then wait.

If not go ahead (if area ok, isn't over a mine shaft etc. etc.).

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Prices in Fuerteventura seem to be taking a tumble recently on rightmove.

its take a while but its starting to happen.

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Am very surprised to hear Irish property described as cheap.

I was in the west of Ireland just last week, and as you do, looked in a few estate agents windows while I was there. I weas shocked at what HPI has done to prices. No idea what selling prices are, but asking prices for small houses with a bit of land were ludicrous -- 300K euro was typical. Derelict properties needing total rebuilding were 150-200K.

Not sure where you would find a house and 6 acres for 100K, but that seems untypical to me.

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Am very surprised to hear Irish property described as cheap.

I was in the west of Ireland just last week, and as you do, looked in a few estate agents windows while I was there. I weas shocked at what HPI has done to prices. No idea what selling prices are, but asking prices for small houses with a bit of land were ludicrous -- 300K euro was typical. Derelict properties needing total rebuilding were 150-200K.

Not sure where you would find a house and 6 acres for 100K, but that seems untypical to me.

I was calling the quoted example cheap. I'm sure there is as much general denial there as here.

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Boy that sounds good. I'd like to know the answer to that myself. Does anyone know the tax situation in Ireland for non-natives? How does that work?

If I won the lottery (if I did the lottery!) the chances are I would live in southern Ireland. Lived there for 5 years in the 80's and had a wonderful time with some good people. But everything was more expensive than in the Uk , from food, to clothes to booze. The only thing that was cheaper then was housing and that has now totally changed.

I really don't think it would be possible to buy a standard construction house with land anywhere, be it Cork , Galway or Athlone.

However, interesting from the tax point of view since if you are an "artist" you pay no tax. Hence the reason, I suspect , why Bono stays put and the likes of Ronnie Wood and M Faithful (P artist) moved there, as did Sting and Freddy Forsythe at one time.

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I was calling the quoted example cheap. I'm sure there is as much general denial there as here.

No worries -- I was responding to the OP who said: "Thinking of buying a house in ireland, they are cheap compared to UK".

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Selling prices

Unlike the UK and Northern Ireland, there is no price transparency when selling or buying houses in Ireland. Asking prices bear no relation to actual selling prices which are anecdotally 40% and more down on the peak of 2006. Ghost estates ( http://ghostestates.com/main.php?g2_view=map.ShowMap ) i.e. developments with little to no occupation, dot the countryside, particularly in areas where tax breaks were given (section 23), those houses cannot be sold as there is zero employment growth in those areas and net outflow emigration to urban areas and abroad in search of jobs, there is zero demand. Though there are ghost apartments in Dublin City and outskirts itself (examples: Booterstown wood, the Grange, Northern Cross and many others). Most of theses developments have been taken over by the banks at this stage or the developers are allowed to roll over the interest and payments, while they wait for NAMA (more anon) to come on stream.

The excellent Trees Don't Grow To The Sky ( http://www.treesdontgrowtothesky.com/ ) gives an indication for asking price trends and Irish Property Watch ( http://www.irishpropertywatch.com/ ) if you want to look up the history of asking price drops or rises on a particular property. Ireland does not have a postcode system in place yet.

Daftwatch ( http://daftwatch.thepropertypin.com/ ) will give you an idea of the inventory trend in properties for sale and rent.

The cash buyer has even been rumoured to be making an appearance....

Number of Lenders

Mortgage credit is only given to those with "secure" jobs in the public sector and some professions, any workers involved in construction related activity will not get credit.

Private sector borrowers are only considered if they have a minimum 20% deposit and/or other securities.

The sub-prime sector has collapsed, subprime only started to get going in 2006/2007 when the market collapsed, so it only affects at most 12,000 mortgage borrowers and a lot of these borrowers had the good sense to move their mortage to a main-stream lender once their credit rating was established.

Subprime lender Start mortgages is still hanging in there and feature regularly in the repossessions.

The foreign lenders ACC (Rabobank), KBC (formerly IIB, part of Belgian KBC group), National Irish (Danske bank), Bank of Scotland, Halifax and Ulster bank (RBOS) are all licking their wounds and preparing to exit the Irish market. ACC is not rolling up interest payments like the others and going after the scalps of the developers (proper order too) with a number of significant developers Liam Carroll (€2.8 billion owed to the various banks) and John Kelly being hauled before the courts. Ulster bank are ring fencing ROI mortgages, not sure how they've dealt with developer Sean Dunne, they leant significant amounts ( e.g. €275 million for a 4.84 site - http://www.finance-magazine.com/display_ar...349π=233)

Ulster bank have also closed their First Active (former building society) branches.

I don't believe any of these lenders are doing any significant new mortgage business at this time.

Quarterly statistical data on mortgage lending is here - http://ibf.ie/Articles.asp?article_title=&...category_id=109

The native lenders are zombie banks (Allied Irish bank AIB, Bank of Ireland BOI, Permanent TSB, Irish Nationwide INBS, EBS) and are all carrying significant impairments with Irelands largest banks AIB and BOI availing of government handouts and ECB money to stay operational. Those with major exposure to developers are rolling over loans in the hope they can offload the losses to the taxpayer through NAMA.

Because they are depending on the government, they have not moved on delinquent mortgages, yet! so the number of impaired mortgages is growing as is the unemployment rate. They also have not laid off any significant number of staff, yet! The likelihood is that some of these lenders will be consolidated with other banks.

Anglo Irish bank (not to be confused with AIB) was effectively a property lending casino to the developers and has been taken over by the government, with most of the staff currently getting paid to play solitaire.

The taxpayer has already taken significant losses on this bank. There are several investigations ongoing into this bank, with criminal charges to follow when the scapegoats are found, doubtless an attempt at destroying the paper trail to the significant corrupt operators has already taken place.

International Securities Trading Corp (ISTC) which was a specialist lender setup by former Anglo Irish employees that went bust when the credit crunch first started, last I know its debt was trading on the market at 20c-30c in the €.

Politics

We do not know yet who the significant politicians are that have non-performing loans with the banks, this will come out in time. We do know that the planning system has been corrupted, as many local councillors have significant interests in property development and the number of auctioneers sitting on councils is surprisingly high. Most councils were dependent on property development for a significant portion of funding and are now facing bankruptcy unless the taxpayer ponies up the balance.

Taxation is likely to rise significantly in the coming years to try cover interest payments on the debts, and the payoff of the special interest groups such as public sector unions and banks. The reason the banks are being bailed out the politicians needs a mechanism to borrow money from the market (sorry ECB), without any money to give out, they loose their key tool of power.

There is an unwillingness in political circles to cut spending and the budget deficit is likely to be close to €20 billion this year alone, this cannot continue otherwise within 3 years the entire system will collapse.

NAMA ( http://www.thepropertypin.com/viewforum.php?f=50 )

NAMA is a special purpose vehicle (SPV) structure that will buy the development loans from banks (€90 billion) and be sold as bonds to the market or ECB, with losses underwritten by the Irish taxpayer for the next 30 years. The properties will be bought at a discount value that will be decided by hired consultants who make assumptions on the "long term value" of the development by putting their finger in the air and deciding which way the wind is blowing. The loans will not be marked to market as the losses to the Irish banks would mean the Irish taxpayer through the government guarantee would have to underwrite even more money to recapitalise the banks.

http://audioserver.todayfm.com/audio/breakfast/Gift_nama.mp3 [mp3 filw]

The future:

If you are buying a house in Ireland and are a cash buyer, you can probably find what you are looking for, even the German estate agents are starting to sniff around West Cork again for bargains.

It pays to do some research and falls of 60-80% under peak (2006) are likely in some areas of the country.

The outlook is not pretty with unemployment continuing to rise fast and emigration on the up again plus there are significant risks of catastrophic economic collapse, so you should consider the possibility of having to live off grid for a while. If you financially independent, have employment or are not dependant exclusively on the state for your income, then you will probably do well.

Edited by Green Bear

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should check out www.daft.ie

check out the counties, some counties are more expensive than others

would post a link, but hpc won't let me?

Can't you give us a clue which are the cheap bits.

Trawlling through 30 counties is a bit of a drag.

I'm with the other's here. The last time I looked at properties in Ireland I couldn't find anything under about 300K, anywhere!

tim

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The OPs price example is a joke. Much of my family is Irish - and they are selling land at 10,000 per acre - unless you're buying bog that is. Whoever the OP is doesn't have a friggin clue. Do your research first. You really are biscuit brains! Or perhaps you were looking at an old famine cottage in the middle of a bog?

And be warned - cost of living is a shocker - last time I lived there my outgoings were 20-30% more than UK. Now probably more like 30-40%. I didn't like living in an ageing community either. With the young people all moving away to Dublin and beyond. That's started again big-time.

One interesting change in rural areas is they're often really multi-ethnic. Even very poor rural areas - one small rural town I know had 24 different nationalities in the local school. You don't get that in most parts of the UK. But the change from a mono-cultural to multicultural society has been dramatic. Lots of Nigerians and Eastern Europeans. Some primary schools are now teaching Polish to pupils, both North and South of the border. Makes it pretty interesting and a little mind-bending for those of us who have observed the speed of the change.

If I was buying abroad, I'd be tempted to try SE Europe. Perhaps Bulgaria. around 30k will buy you a nice house (away from the coast that is) with good internet. Good food. Good communities. Great for growing your own food. And the summers are reliably excellent.

I'm planning to move to Normandy - not far from London (need to be 'on call' to clients, nicely rural, good land, excellent nosh :-).

Edited by gruffydd

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People are so easily price-conditioned.

My OH bought a 22 acre farm in Co. Clare in the mid-90s for £26,000. Granted the house wasn't up to much.

We nearly went to live there, but everything else is so expensive, & of course the climate is a joke.

There was a constant ad in Exchange & Mart for properties in Sligo for £10,000 until the loon boom.

OH said there were plenty more near the coast if you knew where to look & avoided the tourist areas.

A friend of his bought a beautiful cottage in the south-east (Our Lady's Island) for £250 in 1969.

Ireland was stuffed then & the owner just wanted to emigrate.

That is the norm there. The last decade is the oddity.

Suggest the OP adopts a more historical view

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4. no easy walking ......in the UK we have all those wonderful footpaths etc....not here....and there is that constant worry about what is bog....

I really miss the easy walking although I live in a stunningly beautiful spot with a lake in front of the house and a mountain behind.....I miss not being able to just head off through the hedge and across the field and explore.

Why not? Is it because of the terrain, or are there problems with access? For some reason I had a vague idea that a lot of land in Ireland is kind of fenced-off and you'll find yourself in trouble if you try walking in the wrong place. I could be completely wrong though. What is the story?

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The OPs price example is a joke. Much of my family is Irish - and they are selling land at 10,000 per acre - unless you're buying bog that is. Whoever the OP is doesn't have a friggin clue. Do your research first. You really are biscuit brains! Or perhaps you were looking at an old famine cottage in the middle of a bog?

And be warned - cost of living is a shocker - last time I lived there my outgoings were 20-30% more than UK. Now probably more like 30-40%. I didn't like living in an ageing community either. With the young people all moving away to Dublin and beyond. That's started again big-time.

One interesting change in rural areas is they're often really multi-ethnic. Even very poor rural areas - one small rural town I know had 24 different nationalities in the local school. You don't get that in most parts of the UK. But the change from a mono-cultural to multicultural society has been dramatic. Lots of Nigerians and Eastern Europeans. Some primary schools are now teaching Polish to pupils, both North and South of the border. Makes it pretty interesting and a little mind-bending for those of us who have observed the speed of the change.

If I was buying abroad, I'd be tempted to try SE Europe. Perhaps Bulgaria. around 30k will buy you a nice house (away from the coast that is) with good internet. Good food. Good communities. Great for growing your own food. And the summers are reliably excellent.

I'm planning to move to Normandy - not far from London (need to be 'on call' to clients, nicely rural, good land, excellent nosh :-).

Its a joke is it? I'm afraid not, carpetc**k

Aging community?? What an idiot lol

Your family are selling land are they?, what an ass.

Lets go through the facts again for this particular slow person

15 acres of land, House needs some work though, but its good to go and live in, and its not a bog, and it is 100,000 euros, I would send you a link but i want to keep it to myself at the moment, but to be honest i don't know if i want that much land, plus i would rather have a better house.

I have another one i have my eye on, which is 125,000 euros, with 6 acres land, and a really nice 4 bedroom house which is finished well with heated flooring.

Don't believe me? I couldn't care less. Not really the point of the post in the first place.

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So things to consider if you are considering moving here.....

2. no public services you have to pay to get your bin collected etc

3. food is expensive and current sterling / euro exchange is awful

You made some good points in your post, but...........

When I left there a couple of years ago, I was paying around 400 euro per year for the bin, but you have to bear in mind that there is no Council Tax. Here (uk), I am paying £1,200 per year ! Yes things are more expensive there, but wages are higher (if you have a job of course).

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You made some good points in your post, but...........

When I left there a couple of years ago, I was paying around 400 euro per year for the bin, but you have to bear in mind that there is no Council Tax. Here (uk), I am paying £1,200 per year ! Yes things are more expensive there, but wages are higher (if you have a job of course).

THere is no council tax, although that could change in the new emergency budget that they have in december (i think), the cost over there for food is more expensive, especially booze from supermarkets.

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Guest An Bearin Bui
Thinking of buying a house in ireland, they are cheap compared to UK, and we can afford to buy one outright with no mortgage, am i stark raving mad? The economy over there is f**ked, I know, then again so is the economy here, and is only going to get much worse, at least the prices of houses in Ireland are reasonable, a 3 bedroom house with 6 acres of land for 100,000 euro, sounds okay.

Is this a good idea?

What do you recommend?

Are there any pitfalls about buying a house in Ireland I should know about?

Should i stay renting in the uk, or should i spend all my savings on a house in Ireland. Work doesn't matter as i can do the same thing I do in the uk over there as it is mostly through the internet.

Why choose Ireland? Do you have any family or friends there? If you have no ties somewhere and no local knowledge, you'd be wise to do some research first. It's not as simple as 'cheap housing = utopia'. That mistaken thinking has done for many British hopefuls in Spain, Bulgaria etc in recent years. You need to be prepared to move somewhere with a different culture. Ireland is not just a miniature version of the UK and locals won't appreciate some random person turning up expecting everything to be as it is in Britain and complaining loudly when/if it isn't.

And where have you seen houses advertised at 100k??? Houses in Ireland are still very expensive (Dublin average is about 300k, although falling) so if you have seen such places advertised, I'd imagine it's the back of beyond. If it's these houses you're referring to, then don't even think about it. You'll be in a ghost estate and the only person living there - if you fancy having a housing estate all to yourself in a rural Irish backwater close to the Northern Irish Border (i.e. could get dangerous if the Troubles ever flare up again) then it might be an option...

You should read some local information before you think about this further:

The Property Pin

The Irish Times

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Guest An Bearin Bui
People have said for a long time that the only difference between Ireland and Iceland is one letter and 6 months...but I think whoever coined that phrase forgot how resourceful Iceland is and that Ireland was virtually 3rd world just 15 years ago and that was when it was still possible to make a living out of farming!

Those are some pretty offensive, ignorant opinions for someone who claims to live in the country. Do your local friends and neighbours (if you have any or bother to talk to Irish people) know you think they're a backward bunch of third world-ers? Nice, I hope I would have the good manners to be a bit more respectful of people whose country I'm a guest in.

Where did you get the idea that Ireland was a third world country in 1994??? Were you even in the country then? The standard of living was pretty much the same as the UK except unemployment was higher due to a lack of industrial concentration. Would you term Greece or Spain third world in 1994? As for Irish people being less resourceful than Icelanders, is this based on some racist classification of people according to how blue-eyed or blonde they are?? What are you talking about exactly?

My advice is: speak to some locals during your stay and try to eduate yourself and show some respect for where you live. If your neighbours and friends knew your attitudes, you wouldn't be welcomed. Irish people invented the boycott you know so if I were you I would be more careful in how I use my language.

Edited by An Bearin Bui

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Those are some pretty offensive, ignorant opinions for someone who claims to live in the country. Do your local friends and neighbours (if you have any or bother to talk to Irish people) know you think they're a backward bunch of third world-ers? Nice, I hope I would have the good manners to be a bit more respectful of people whose country I'm a guest in.

Where did you get the idea that Ireland was a third world country in 1994??? Were you even in the country then? The standard of living was pretty much the same as the UK except unemployment was higher due to a lack of industrial concentration. Would you term Greece or Spain third world in 1994? As for Irish people being less resourceful than Icelanders, is this based on some racist classification of people according to how blue-eyed or blonde they are?? What are you talking about exactly?

My advice is: speak to some locals during your stay and try to eduate yourself and show some respect for where you live. If your neighbours and friends knew your attitudes, you wouldn't be welcomed. Irish people invented the boycott you know so if I were you I would be more careful in how I use my language.

I agree,

and yes i have lived in Ireland for a while back in 1994, seemed pretty cool back then, and I have been back there many times since, and also have family and friends over there, the properties I have mentioned are all on www.daft.ie

the cheap ones are all out in the sticks and not really near big towns etc. Maybe thats why there so cheap. I will be checking out a number of them in the 2 weeks time.

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Why choose Ireland? Do you have any family or friends there? If you have no ties somewhere and no local knowledge, you'd be wise to do some research first. It's not as simple as 'cheap housing = utopia'. That mistaken thinking has done for many British hopefuls in Spain, Bulgaria etc in recent years. You need to be prepared to move somewhere with a different culture. Ireland is not just a miniature version of the UK and locals won't appreciate some random person turning up expecting everything to be as it is in Britain and complaining loudly when/if it isn't.

And where have you seen houses advertised at 100k??? Houses in Ireland are still very expensive (Dublin average is about 300k, although falling) so if you have seen such places advertised, I'd imagine it's the back of beyond. If it's these houses you're referring to, then don't even think about it. You'll be in a ghost estate and the only person living there - if you fancy having a housing estate all to yourself in a rural Irish backwater close to the Northern Irish Border (i.e. could get dangerous if the Troubles ever flare up again) then it might be an option...

You should read some local information before you think about this further:

The Property Pin

The Irish Times

These houses I'm looking at are not on ghost estates, these are cottages, houses etc in the country with land. Theres plenty of them from 100,000 - 160,000, the one i have my eye on, is a 4 bedroom house, finished well with heated flooring, with 6 acres land for 125,000, it is not on an estate, and i will be checking that one out in 2 weeks time, there is another with 4 bedrooms and 15 acres for 100,000, but the house looks like it needs a lot of work, and the rooms are small and i don't wnat that much land, could be more hassle than its worth.

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