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Buying Versus Renting

February 6, 2019 #

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.daly@mail.ebs.ie Or 021-4873610 for advice on the best mortgage for you.

 

 

Save thousands of euro in interest on your mortgage.

January 29, 2019 #

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

 

  1. Pay an additional 1/12thof your mortgage payment every month

 

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!

 

  1. Pay an additional 50 per month towards your mortgage

 

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!

 

  1. Make one-time lump sum payments when you can

 

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.

6 good reasons to buy a home in 2019

January 24, 2019 #

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;

  1. Capital Appreciation.

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.

  1. Equity.

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.

  1. Savings.

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”.

  1. Predictability.

Unlike rent, you can fix your mortgage repayments for up to 10 years, so that your payments don’t rise over the years.

  1. Freedom.

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.

  1. Stability.

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.

Summary of 2019 -House Prices increase. Rents increase. Housing shortfall persists.

January 15, 2019 #

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.

 

The #1 Reason to List Your House Today!

January 9, 2019 #

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”.

Bottom Line
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.