Most people in Ireland think of estate agents as selling and letting property only, but we in Global Properties also provide a “Property Buyers Service”.
Last week (Feb. 2019) we sourced and bought a property for an investor, in Cork City, which was €80k under-valued. Yes €80,000 euro under the price of the last property sold in the estate. WOW, and our fee was only €5k.
In today’s fast-paced world, where answers are a Google search away, there are some who may wonder what the benefits of hiring a property professional to help them in their home or investment search are. The truth is, with the addition of more information, comes more confusion. Now more than ever, you need an expert on your side who is going to guide you toward your goal and not let anything get in the way of achieving them
Here are some of the reasons you need a professional in your corner:
There’s more to buying a property than finding a house you like online.
You want someone who has been there before, someone who knows what these actions are, to ensure you achieve your desired outcome.
You Need a Skilled Negotiator
In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of Euros, in the above case. Alternatively, you might just need someone who can keep the deal together until it closes.
What is the property you’re buying worth in today’s market?
There is so much information out there, on the news and on the internet about property sales, prices, and mortgages, rate changes, etc. how do you know what’s going on in your area?
Hiring an agent who has their finger on the pulse of the market will make your buying experience an educated one.
Today’s property market is highly competitive. Having a professional who’s been there, to guide you through the process is a simple step that will give you a huge advantage!
So if you are buying and want an expert sourcing the property for you feel free to contact Con Nagle or Barry Nagle. The initial Consultation is Free.
We’ve been advising people about property in Cork for more than 25 years each.
The dysfunctional housing market has major implications for the Irish economy, our citizens’ wellbeing, the labour market, inward and domestic investment.
We’ve had many government interventions but none have succeeded in taking the housing crisis off the front pages for more than a few days. We continue to have yet another report or another retired civil servant heading up a new quango.
The issue is having a major psychological impact, affecting people’s ability to be productive citizens. It will undoubtedly lead to more tragic homeless deaths, and more families sleeping in Garda stations.
Some €39 million was spent in 2017 on accommodating homeless families in hotels and B&Bs in Dublin. Another €9.9 million was spent on other private emergency accommodation. Almost €50 million in one year. Assuming Local Authorities outside Dublin are spending a similar amount that’s likely to be €100m for short-term temporary fixes.
If this €100 million every year was to be used to pay back interest on a housing bond, the state could borrow €8- €10 billion, assuming a 1pc interest rate, to invest in long term solutions. Ireland can borrow money at record low levels. This would build 30-40,000 housing units at an average cost of €250,000 each.
Whether or not the roof over your head is owned by you, mortgaged to the bank, rented from a landlord or the state itself, it amounts to a place called ‘home’, which temporary accommodation never can do.
Drivers of demand such as net migration, obsolescence, household formation and a strong economy mean that demand for accommodation will continue to rise. Increased supply is the only way to solve the housing affordability problem.
Policy targets and statements of intent are at nought unless the intended output is actually achieved.
Here I propose a 50 point plan for solving our housing crisis. If half of these were implemented we’d be well on our way to doing so.
1 Speed up the Planning System:
2 Zone far more land than is required:
3 Increase Density:
4 Allow Planning where Infrastructure is underway, but not necessarily complete:
5 Allow smaller Apartments in city centers:
6 Speed up Probate:
7 Adjust the Fair Deal Nursing Home Scheme:
8 Quick enactment of exemptions to allow vacant commercial units and over-the-shop premises to be used as residences without planning permission:
9 Implement the Vacant Site Levy:
10 Train Apprentices now:
11 Employ Bricklayers and other trades to build homes:
12 Stop blaming Airbnb:
13 Build long term social houses now:
14 Invest more in good Mental Health and Addiction Services to help Rough Sleepers:
15 Improve the availability of lending for developers:
16 Keep and extend the Help-to-Buy scheme:
17 Increase the Local Property Tax (LPT) to create more efficient use of existing resources:
18 Reduce Development Levies for new home construction:
19 Service more Land immediately:
20 Rebalance Landlord/Tenant obligations (as opposed to rights):
21 Abolish Rental Pressure Zones:
22 Collect better statistics on housing:
23 Reduce Capital Gains Tax:
24 Build on Government land, including semi state property:
25 Stop Excessive Irish Water charges and regulations:
26 Make Planning Permissions last longer:
27 Irish Water to Take on Developer Built Sewage Treatment Plants:
28 Build to rent:
29 Continue to Build Student Accommodation:
30 Push Social Housing efficiencies:
31 Build More Nursing Homes (explore the possibility of providing tax breaks):
32 Set up a Development Bank:
33 Speed up Conveyancing:
34 Speed up Land Registry:
35 Allow Increased Building Site Working hours:
36 Introduce Targeted Tax Breaks:
37 Reduce the myriad of NGOs in Housing/Homeless services:
38 Cost benefit analysis on some onerous Building Regulations:
39 Speed up the maintenance and upgrading of Local Authority properties ensuing faster turnaround of vacant social housing stock:
40 Reduce VAT on construction of homes (for a limited period):
41 Allow Credit Unions to provide mortgages:
42 Unlock the power of Credit Unions reserves to build homes:
43 Reduce the number of car parking spaces required in urban residential developments:
44 Reconfigure the tax system in relation to Residential Investors:
45 Increase regional investment to counter balance Dublin:
46 Stop prioritsing FTBs- second time buyers, needing to move are in crisis also.
47 Introduce Better Assessment of Need under HAP:
48 Stop the State competing for second hand homes:
Con Nagle has a Master’s Degree in Economics, and 25 years’ experience buying, selling and letting new and second hand residential properties.
He is also the author of ‘Selling your Home’, and a director of Global Properties Ltd, estate agents in Cork, and member of IPAV, TEGoVA and the SCSI.
An amazing statistic for you. You can save €395 p.m. by buying this three bedroomed home rather than renting in the same development.
At present, we in Global Properties are offering for sale a three bedroomed semi-detached home minutes from shops, bars, restaurants, the South Link, public transport, the Regional Park, etc. at 77 An Caislean in Ballincollig. It is in turnkey condition, so ready to move immediately.
I was looking at www.daft.ie last night and there was another three bedroomed house available in this development, this time for rent at €1,400 per month. It got me thinking, would somebody be better off renting or buying.
So here are the stats;
We are selling this three bed unit with an asking price of €265,000.
Assuming that a purchaser gets 90% finance (€238,500) over 30 years, the monthly mortgage payments are as low as €1,005.53 for an EBS mortgage.
The financials: Monthly:
Rent for three bed house in An Caislean €1,400 (source: daft.ie)
Monthly mortgage repayments €1,005
Savings when buying over renting €395
Wow, there you have it. If you can get a mortgage, you can save €395 per month, by buying from Global Properties Ltd. in An Caislean, rather than renting in the same development.
While owning a property does not come without costs, it has many advantages also.
Note: Global Properties are not financial advisors/ mortgage brokers, and are just commenting on same and not giving financial advice. Mortgage rate is via EBS. Contact Daniel.firstname.lastname@example.org Or 021-4873610 for advice on the best mortgage for you.
Almost everybody under 50 years of age has a mortgage on their home, as the most common length of a mortgage is a 25 or 30-year term. If the thought of paying for your home over the course of 30-years seems daunting, here are some easy ways to shorten that term which will actually end up saving you money over the life of your mortgage.
Any additional payments to the principal amount (the original sum of money borrowed in a loan), helps to cut down the amount of interest that you will pay over the life of your loan and can also help to shave years off the loan as well.
When you make ‘extra’ payments toward your mortgage, the key is to let your lender/bank know that you want the extra funds to go toward your principal balance as they might not automatically do this for you.
You don’t have to double your mortgage payment to make a big difference either!
If you have a 30-year mortgage on an average priced home (€250,000) with a 5% interest rate, you’ll be responsible for a €1,342.05 monthly principal and interest payment. Over the course of the loan, if you pay your exact monthly payment, you will have paid €233,133.89 in interest alone!
Paying a little extra can pay off big
Benefit: In the example above, adding €111.84 to your monthly mortgage payment might not seem like a lot, but each year you will have paid one extra month’s worth of payments which will shorten the term of your loan by 4 years and 8 months, all while saving you €42,000 in interest!
Benefit: Fifty euro might not seem like enough to make a difference on the term of your loan, but that small amount will save you over €21,000 in interest and will take over 2 years off the end of your loan. Twenty-eight years from now, you’ll be happy to pay off your loan that much sooner!
Benefit: If you find yourself with a little extra money after a yearly bonus, or from an investment or inheritance, paying that money towards the principal can cut your costs. This option, however, is less predictable than the extra monthly payments.
If you have higher interest debts, like credit cards or a car loan, consider using any extra funds you have to pay those debts down before applying that money towards your mortgage. Also, if you do not plan on staying in your home for more than 10 years, paying extra toward your mortgage might not make great sense.
The bottom line
If you’re wondering what strategies would work best for you to shorten the term of your loan, consult an independent mortgage advisor who can answer your questions or connect us and we will recommend an independent advisor, who may well save you thousands of Euro.
Global Properties have been giving property related advice since 1972. Call us if you want to buy, sell, let or value a property.
January is the time of year that many people look at their lives and make plans for the year ahead. If you are thinking about your housing needs, we attach 6 reasons to buy a home;
Historically, residential property has had a long-term, growth in value. In fact, homes in Ireland have increased in value by an average of in excess of 7% p.a. since the early 1970s. The recent housing crisis has caused some to question the long-term value of housing, but even in the most recent 10 years, which included the worst recession ever in Ireland, housing, values are now back to near their peak. With employment continuing to grow, the old axiom “where there is jobs, people need houses” is very true.
Money paid for rent is money that you’ll never ever see again, but as mortgage repayments are part capital, part interest, it lets you build equity in your home.
Building equity in your home is a ready-made savings plan. And when you sell, your gain is tax free. This is very handy, if you are looking to trade-up, as without the capital saved from a first home, very few people could afford a “family home”.
Unlike rent, you can fix your mortgage repayments for up to 10 years, so that your payments don’t rise over the years.
The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to you and your lifestyle.
Remaining in one location for a couple of years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.
Call us in Global Properties now, and we will help you to move on with your plans. At Global properties we sell property fast, efficiently and hassle free.
The dominant feature of the Irish property market last year remained the shortage in supply of homes in all sectors (purchase and rental, large and small, houses and apartments), however, over the course of 2018, there was some improvement in house building activity.
Comparing the first three quarters of 2018 to the same period of 2017 shows that new supply increased at a rate of 28%. New housing completions for 2018 may total around 18,500, up circa 4,000 units from the 2017 figure of 14,435.
Forward looking indicators, such as housing starts, suggest that the improving dynamic in supply will continue. New housing commencements were up almost 25% in October on a year-to-date basis, with the 12-month running total rising to over 21,000 units. Planning permissions surged over the past year and were up by almost 70% year-on-year in the third quarter of 2018. It is important that this soon translates into an acceleration in the pace of growth in house building activity. In this regard, registration figures, which are seen as reflective of developer activity, have started to pick up again after having spent much of 2018 behind their 2017 levels.
Residential property prices continue to rise at a strong pace. However, there has been a noticeable slowdown in the rate of increase since the spring. Nationally, according to the latest CSO data, house prices rose by 8.4% year-on-year in October.
Outside the capital, prices rose by 10.6% year-on-year in October versus their recent high of 15.2% back in June. The deceleration in house price inflation largely reflects the impact of the central bank’s mortgage lending rules, which were tightened again in 2018.
These tighter mortgage lending rules will remain in place in 2019, suggesting that the pace of growth in house prices will stay in single digits this year. The relatively restrictive loan-to-income ratio of 3.5 times may also be serving as a constraint on the pace of growth. However, with the housing market still defined by an on-going shortfall in supply, prices are likely to continue rising in 2019.
The challenge facing the house building sector is to ensure that the surge in planning permissions over the last year quickly translates into sharply higher levels of house building activity. Housing output needs to double from its 2018 levels to meet annual demand and indeed, rise well above this level to meet the pent-up demand in the sector from the years of under-supply. It could be well into the next decade before supply and demand come close to balance, unless the pace of growth in house building accelerates from here.
We in Global Properties have New Homes for sale in Macroom and a number of other developments in the pipeline in Cork City, and surrounds.
Feel free to contact Con Nagle or Barry Nagle with any property related query in 2019. We’ve been advising people about property in Cork for more than 25 years each.
Many people believe that selling their house during “the spring buyers’ market” is the best thing to do. Their reasoning is that there will be more buyers than there are during the winter months and, therefore, their house will sell quicker and for a higher price.
Historically, this made sense. However, today’s real estate market is not following the rules of the past. Buyers inquiries are greater now than it was during any time over the last 10 years. “There are more buyers out now than at any other time in the last five years”.
If you are waiting for spring to list your home because you think that’s when the buyers will be out in force, perhaps you should reconsider. Buyers are out right now!
Call us in Global Properties now, and we will sell your property fast, efficiently, hassle free, and for a good price.