HOUSE HUNTING
House-hunting for many people is a stressful, time-consuming chore; a time of serious planning, head scratching and the shadow of heavy financial commitments. It's also quite a buzz! What begins as curiosity quickly becomes an interest then a major pastime and finally an obsession. As time passes your instincts sharpen and you become more realistic about prices, confident at dealing with professionals and recognising good value when you find it.
In previous years you first sighted a house then went looking for the finance; today you get your "Pre-Loan Approval" first, then go house hunting. But some institutions can use the Approval Form as a means of encouraging you to borrow and spend a high proportion of your earnings on property, while they reap the rewards. It pays to stay cynical and wise.
You must first clarify your needs and requirements in respect of:
The right location; How much you can afford; Your present and future requirements.
Unless you are in love with rural isolation, the proximity of shops, schools, churches, bus routes, post-office, health centres etc., must be considered.
Distance, Travel, Time
Given the high cost of private and public transport the location of your employment is of importance. Travel means time. If you spend 1.1/2 travelling five days a week this is 32.1/2 hours monthly or 392 hours annually (2 weeks, 2 days!). Look at your travel expenses:
Distance from home; No. of journeys per week; Other trips in miles; fuel, wear-and-tear, servicing, depreciating vehicle value. They are part and parcel of the real cost of any house. Your final decision will be the result of many decisions - your work, your future, your children and friends, social life, leisure, etc. Thinking about these things honestly will usually involve sacrifices of some kind.
SMALLER V. LARGER HOMES
Smaller houses are easier to run, economical to heat, involve less maintainenance - a larger house allows for a growing family, working from home, sharing or sub-letting in the early years, and could accommodate a "granny flat".
It is important you budget below what you can afford, to allow for future increases in interest rates. If it's your first house don't think it will be your last. Irish people move at least 3 times in their lifetime. Consider seriously the sale-ability and future re-sale value of the houses.
Next consider the advantages of buying a new or a mature house.
New houses take time to settle, to dry out and to take on a more mature look. Residents may face uneven, unlit roads, gardens of brick and rubble and noise of continuing construction.
An advantage is the amount of influence you have over the finished product - for example exterior designs, types of bedrooms, flooring, heating, lights, sockets, etc.
The Payment of the Contract may require stage-payments. The lending agency may not hand over the mortgage amount until the house is fully completed, requiring a Bridging Loan to make these payments.
Deposit on a new house is paid to the builder/developer, not to the solicitor. Ask your solicitor to examine the terms of the Sale Contract before proceeding.
A "C.R.V." or a Certificate of Reasonable Value is issued by the Dept. of Environment in respect of all new houses for sale. Without this a first-time buyer for a grant-type house will not qualify for the grant or mortgage subsidy.
MATURE HOUSES
The advantages of buying a mature house is that they often better located, better serviced, and may have hidden advantages. These benefits can often outweigh the financial incentives given to first time buyers. Mature house are often located within settled communities, convenient to shops, schools, etc., have well established gardens, lawns, trees, shrubs; and are close to amenities; many second-hand houses are offered for sale with their carpets, curtains and some furniture included. Some homes may include extensions or conversions, such as double glazing, driveways, garage conversions.
Check whether planning permission was required or obtained.
Mature houses do not qualify for any special buyer's grants; the house is not protected by a 6-year guarantee, unless the house is less than 6 years old. Many houses built before the mid-1970's lack constructional standards set by new building regulations such as requirements for the structure itself, roof and wall insulation, and ventilation. The cost to upgrade older homes and rectify defects can cost many £000's. Electrical wiring systems may be outdated, unsafe for use with modern domestic appliances and equipment and may need re-decorating.
Look for defects like: peeling paint, loose fittings, stuck doors, warped windows, falling plaster, electrical wiring, plumbing, serious structural defects like wet-rot, rising damp, dry-rot, etc.
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