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THE HIDDEN COSTS OF BUYING A HOUSE (in Ireland)
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- čas přidán 13. 08. 2024
- *All costs associated with getting & paying for a mortgage - EXPAND FOR TIMECODES*
In this week's episode of my Hidden Costs series, I'm looking at all of the costs associated with getting a mortgage (and paying that mortgage over the years). This is very Ireland specific, because it is the market I am most familiar with, but my UK viewers will probably find that some of the costs overlap... and for anyone else.. it just might be interesting to find out a bit more about the home buying process in Ireland.
And for reference, here's where I got some of the figures i wasn't sure of: www.moneyguidei...
**TIMECODES**
Upfront Costs:
-- Loan Application Fee: 1:19
-- Valuation Report: 2:51
-- Structural Survey: 3:51
-- Stamp Duty: 5:14
-- Solicitor's Fees: 6:02
-- Associated Legal Costs: 6:48
-- Auctioneer's Fees: 8:03
-- The Deposit: 8:59
Ongoing Costs:
-- Mortgage Repayments: 11:54
-- Insurances: 14:10
-- Property Tax: 15:42
***
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A good job ( if you are lucky enough to have one ) no longer guarantees that you can buy a place to live. I spoke to a self employed pharmacist trying to buy a 600k house and wondering if she could afford it. Because the developer rules on the estate that a % of houses were local authority she became aware that someone who didnt even have their junior cert and never worked was being housed on the same estate Like Really ????? no wonder the country is in the state its in
Thanks Elaine! Amazing video! We're still saving money for the deposit, so now we have to keep in mind to save extra for these hidden costs.
Thanks for the message! Glad you liked the video 😊😊😊
Finally,
So happy to see someone create a vid like this! Great job.
Thanks Samantha!!
Who would have thought we would stumble across this little gem of a video :) Hope you're both doing well. Jess & Ross
Our favourite photographers!! ❤️ I hope the video was of help and you’re both doing very well. Also, did not know you had your own channel..!! Excellent work. I have told Ronan about it also 😊
This video is great, thanks Elaine. Trying to buy a house in 2022 and the fear and dread of overpaying and then paying on a monthly basis is worrying. Been trying to buy a house since 2019 and was told by the bank that since I'm self employed in needed 3 years of income. So that pushed me to buying in 2020 which is when it all kicked off and every house in my area got bought up.
Prices are finally falling back to a normal range but they still sell very fast. So trying to get prepared. Thanks for the video. The ongoing costs were really informative.
You're very welcome! I'm glad the video has helped you to get prepared for all the costs associated with house buying. Best of luck with your house search!
Here in the UK there are many costs that don't occur to people particularly for first time buyers. Surveys and searches of all sorts which can raise questions that prompt further investigations (yes really!), planning searches and legal fees which will them prompt indemnities and insurances for issues raised, stamp duty etc. So essentially the same process as in Ireland.
Yes, I had heard the process in the UK is pretty similar. I think ye just have different rules about certain fees (like stamp duty etc.)
Elaine everything you have said applies even here in the states. The names of the fees may be different but many entities have their fingers in the pie. I was lucky enough to get my house towards the end of the 2008 debacle which in my area was very early 2011. After that the prices started going back up fairly rapidly. I don't know about Ireland but one thing that killed many buyers here in the states was the variable rate mortgage. This caused many to lose their homes because their payments went up dramatically. Another thing is property taxes in my area have doubled in the last ten years which affects the affordability of a home for the average person. Something that seems kind of crazy at least for me where I live. My wife and I didn't have a very big down payment when we were a young family so we decided to save our money, be patient and buy when we were truly ready. Seemed like the intelligent choice right. Well maybe not because in my area home prices went up more each year than the amount we were able to save each year. So every year that passed we were further from our goal of buying that house to spend the rest of our lives in. So in a way at least for us the 2008 crises was a bit of a blessing. However now we are an older couple and only our youngest daughter was able to live with us in the new house. So there are so many variables on home purchases for the average person. Either way it is difficult to be a homeowner.
Hi, We going to buy house this year, this video is great very helpful, thank you so much 👍👍👍
Glad it was helpful! Best of luck with buying a house 😊😊
Excellent video, Elaine! I will share this with a first time buyers group as I have always said the same: youre better off over estimating costs than under estimate it.
Oh thank you!! I always overestimate costs for things (even stuff like holidays). It makes you feel good if it comes in under budget then, and if it doesn't.. you're not stuck!
Thank you, Elaine! A brilliant overview!
Thank you! Glad you enjoyed it!
thanks so much for this video! So well presented and edited. Youre fab x
Thank you! 😊😊 I hope you found it helpful xx
Thank you so much for this! I have been looking for a good, easy to understand overview and I have finally found it!
Ah great! Thanks for watching 😊😊
Very informative! I am new here in Ireland and looking forward to purchase a home here for my family soon! More power to your vlogs!
Thank you! Good luck with the house search!
Another headsup as i go through the video and going through a purchase solictor fee including vat these days is around €1,900 to 2100, for an average three bed semi detached house purchase in Dublin
Ireland also has a Booking Deposit, which does not exist in the UK or Germany ... and it seems to be fairly random how much it is, depending on the auctioneer ...
this is brilliant i had no clue there was so many extra fees. Thank you
Thank you! I thought it was just “pay the deposit, pay the solicitor. Done”... alas... no 😂
Elaine , love this, i'm Irish live in NY learned all this first in the 00, i like you're smarts.
Thanks for the comment :)
Good video but honestly almost none of these fees are hidden. Unexpected for some, but not hidden
Excellent!! So many of the questions I've had, you answered! Thank you!! More please!
Thanks Paula! That’s great to hear 😊😊
Amazing thank you so much for sharing! I had also assumed we’d need about 5K extra but ya thanks so much!
No bother at all! Best of luck with the house buying 😊😊
Great video. You probably should mention the house repairs as well. (Compared to renting).
In 30 years im estimating like 30 K.
I’m thinking of doing a video about the ongoing costs of owning a home.. because there are lots! 😂
@@ElainePower That will be awesome. Thank,s
Thank you Elaine, this is very helpful.
You’re welcome!
Brilliant video elaine... simple and clear
Thanks Sarah! 🥰
Thanks so much Elaine, this was so helpful
You're so welcome! Thanks for watching :)
Thanks 👍
Thanks for this info. How about the estate maintenance / service cost monthly? I think that’s one of the hidden cost.
That would be a hidden cost! It doesn’t apply to every type of property, but apartments tend to have management fees.
Really helpful starting to save for a deposit and good to get some advice. Best wishes Lisa
Glad it was helpful, Lisa! Best of luck :)
It costs a small fourtune to buy a house in Ireland my dad is from tipp and he put a offer up for a lovely two bedroom and then they came back to him and told him that the house was sold I felt for him I had his heart set on it xxx
Awww that’s sad! We definitely had our heart broken a few times before we got this house!
Thanks very much. Extremely helpful
You’re welcome!!
nice break down of costs!
Thank you!
Thanks Elaine! Really helpful and cuts out the jargon! We are tying to buy this year so you gave me some additional things to consider in my own spreadsheet haha x
Thanks Niall! Good job on the spreadsheet 😂 I applaud this level of organisation. Now is such a great time to buy too.. KBC, AIB & (I think) Ulster Bank are in a bit of a mortgage rates war at the moment so the fixed rates are really good. Best of luck with it!
Hi Elaine, thanks for this information. Quick question, if I have a house in UK, can I be considered as a first-time buyer in Ireland?
I’ll be honest, I actually don’t know the answer to that. A mortgage broker or bank would be better able to advise, sorry!
Thanks i was looking for this
Such a great video. Really helped
Thank you!
Hi there! Would you know how to register as a property sourcer in ireland? Does it differs from uk? Any idea please
I don’t know, sorry!
Headsup - An average structural survey as of August 2022 is near 600€
Thank you for the updates! I’m sure this video needs a good price revision for 2022
the video is so right bought my 2nd property this yr the extra costs r thousands thers fee for this and that more than 18yrs ago everyone is making money out of you
Veeery Helpful!!! Thanks a lot
Great video I'm starting now to save for a house fingers crossed but I need start now 😭
Best of luck with it! It'll be worth it when you get the keys, I promise! Thanks for watching, also!
Elaine this is very good!
Thanks Sean!
Excellent Video 👏🏾👏🏾👏🏾
Looking into buying my first house in Ireland
Informative.
Thankyou for the video! I'm looking to buy in Dublin, but I'm worried there's going to be a market crash? What do you think is going to happen?
Thanks for watching! It’s pretty impossible to predict and I’m not an economist so I’m not even going to try to. There’s a great financial advisor on Instagram (Eoin McGee) who sometimes covers the topic. He reckons that anyone who says they know what’s going to happen with the markets is either guessing or lying!
Then is the fact that if you want to move after 5 years even do you payed 48 K to the bank only 15k was payed from the house. 33 k you payed interest. Its in the contract. 😁
This was really helpful thank you so much. Currently looking to purchase in the next month or so! What would you say is a good amount to keep in your bank once you pay all your deposit, legal fees etc. Is it a bad idea to put all your savings into getting into the house?
As I’m not a financial advisor, I can’t give you advice, just share my own experience.. but if it was me, I wouldn’t put all my savings into the house. For us we needed to buy furniture, we had renovations to do, our dishwasher broke pretty early on and we had to get that replaced etc. Things will always crop up! And I also keep savings for emergencies (redundancy, illness etc) so I needed to hold some money back for that!
Great video! Do you recommend a company for the structural survey?
I don't. But there should be some info on the Chartered Surveyors website: scsi.ie/
I would like a video about about your thoughts on fixed vs variable rates 🙂
Hey! I'm not a personal finance expert, so I don't tend to comment on stuff like that. Our mortgage advisor did say to us though to never try to speculate and guess the market, and pick between them based on what suits you and your circumstances at a given time.. which I think is pretty good advice!
Great vid....do u know anything about what's involved in renting out a spare room?? Prob have to register as a landlord and pay tax I'm guessing
You can rent a room and be exempt from tax, provided the amount you make is no more than €14k, I think! More details here: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx 😊
Hi Elaine, good video and it was well detailed. Do you think it is possible to deposit more than 10% as a first house buyer? Thanks
Do you mean that if for example the house was €250,000 but instead of having €25,000 you had €50,000 for a deposit? Yes! You can pay a bigger deposit if you have it.. it means less to pay back. We had extra savings but decided not to put them towards the cost of the house.. instead we used the money to renovate and buy furniture.
Interesting video. It seems that a lot of the practices in Ireland are similar to the United States. What you called an Auctioneer, sounds like what we call a Realtor or Real Estate Agent. Here in the US, sellers can sell their houses without using a Realtor (Auctioneer), is that allowed in Ireland?
Also, here in the US and I believe in Canada, there is another upfront item called Title Insurance. It is basically a policy that covers both the buyer and lender if some legal problem arises over the ownership of the property. An example could be when two or more siblings inherit a house and then one of them sells it without getting the other's approval/signature and pockets the money. The Title Insurance will protect the buyer and lender if the other sibling(s) sue and regain possession of the property.
Lenders in the US are required to inform you of your first year's payment schedule, breaking out how much is going towards principal, interest, property taxes and insurance. Here, lenders typically collect for property insurance and property (local real estate) taxes and then disburse to the appropriate party when due. Of course, once you pay off your mortgage, you need to remember to make those payments on your own.
Amazing video, and useful info. I was wondering if you really need a broker in order to get a mortgage or if we can just do it all by ourselves
You can just go to banks directly. We wanted to go with one bank due to their interest rate at the time.. so we contacted a mortgage advisor in our area. But if you have a tricky case or you don’t know what bank to go to, a broker is a good idea!
Great info thanks a lot,do we pay any vat on buying first time house?
Hey! If you buy a new house from a builder or developer, you will be charged VAT at 13.5%. But for second hand properties you don’t have to pay VAT. You do have to pay Stamp Duty on all though.
@@ElainePower thank you so much thats a great relief.
Thanks
Exactly what I was looking for, great video!
Ah great! Thanks for the comment 😀
Hi can you make a video regarding if we are going to have an housing crisis after this pandemic just your thoughts.
Thanks for the message! I’m not a financial expert or an economist, so I wouldn’t be in a position to comment. I do think it would be fairly hard to predict anything right now.
I love your accent. It's a split between British and American. I guess a lot of Irish settled in America. Very helpful.
thanks
That was great thank you!!
You are so welcome!
Great video!
Thank you!
Wow there some cheap Solicitors your going to! In fairness you couldn’t do it yourself, it can be massively complex so I think I’d sooner leave it to the professionalism and training of a Solicitor. Thanks! PS - Auctioneers are total gangsters! They do very little in this whole process! I was surprised that they do so little yet charge so much🤨
Hi Elaine, I was wondering how did you plan to organise the structural survey, was it during your viewing of the house or did you arrange a date with the sellers and the expert?
Once we went sale agreed we contacted the auctioneers and asked when we could do a survey. They confirmed a date and we got our surveyor out to the house.
Because we couldn't see any major issues when we went to view it, we just placed our bid and paid the deposit first. Nothing is legal until the conveyancing goes through, so I'm almost sure you can pull out of the sale if they survey through up some massive issues.
But equally we viewed our house twice during the bidding process so you probably could get a survey done before going sale agreed too? It just might be a waste of money if your bid isn't accepted.
I'd contact the auctioneer (or seller if going direct) when you're at that point.
@@ElainePower Thank you, great video 💯
This was such a helpful video! Thanks for sharing!
Thanks for watching! Glad you found it helpful
Will there be any management fees if the house is in some sort of society
I would only know of management fees in an apartment block that has a management company.. is that what you mean?
Great video Elaine! Thanks a lot for sharing - do all these payments apply to a Buy to Let house as well?
I presume so! There might be extra costs associated with Buy to Let, and also in Ireland the central bank lending rules are different for buy to let properties.
Yeah i like your video, thank you
Thank you!
New subscriber! I need to buy a house!!
Thank you!
@@ElainePower You're welcome! I hope you will come visit my channel maybe give me a few tips!
WITH MICA AND PRYITE YOU NEED AN INSPECTION ALSO RISING DAMP
Who determines property value?
I'm coming into some money and I own my land with deeds. I'm going to live in a tiny house with utility buildings
Property value is determined by various factors within the market... but if you’re looking to actually get a valuation done you can contact any valuers in your area (estate agents are often also able to do valuations). When we were getting our mortgage, the bank sent someone to value to property. If they determined what we were paying was too high, they could have decided not to give us the mortgage. Hope this helps!
If am not from Ireland, can l buy a house?
Yes. You may have a different set of hoops to jump through though before purchasing.
Stay fixed!
Thank’s mill awesome 🤩 you’ve shine the light hhhh
You’re welcome!
I’ve been looking for a broker they seams to me hard to contact how can find a decent one please if any one that you recommend don’t hesitate to link me only if u r ok with that thank you So much
We didn’t go with a broker, we just went straight to our bank, because they had the best rates at the time we were looking. Not sure how to get in contact with them, but they’re definitely worth it to get good value!
Million dollar accent 😉👍🏻
you can't buy a house without a solicitor, it is a legal requirement.
Oh interesting, thanks for letting me know!
Is there even a rent to own scheme here in ireland ☹️
Nope, unfortunately there isn’t!
Ireland is the worst country to buy house
Anyway helpful video thanks
No your mistaken
Bought my house in 2011 why am 1 watching this???
To see if you got ripped off?
No no the problem i have is all this imaginary wealth that i can't spend..but the gobshement like to tax people on anyway.
Why don’t they teach this in school, regardless of subjects studied, like a life class 101 😂
some kind of home economics
Lol! Yes!! I learned a bit about money and finance through Economics, but not practical stuff like “how to get a mortgage” “what APR means” 😂 there are a few Irish financial advisors who are good for this stuff.
Eoin McGee - has Instagram, does media & just wrote a book.
John Lowe - writes a book every year on how to do stuff like this! He updates it with the current tax etc.
Very handy!