Strong indications that now is the right time to buy a home, rather than continuing to rent, were expressed by a number of expert speakers at a property information evening held in Claremorris last week.
Some 150 people attended the event in the McWilliam Park Hotel entitled "Buying Your Home - Made Simple" which confirmed to the organisers that there is now a growing appetite for first time buyers to secure a new home. The key factors to why buy now are value for money, increased consumer confidence, and mortgage availability.
Jimmy Flynn, president of the Claremorris Chamber of Commerce, welcomed everyone to the free event and he outlined the great attributes that Claremorris has as a base for new home owners. He detailed the town's excellent infrastructure, facilities, and amenities as giving it an edge over other locations, and in particular stressed that when the new N17 road is eventually completed, Claremorris will be only 25 minutes from Galway city.
Colm Casey of Casey Auctioneers added that the fear that perspective buyers have had about negative equity is over. “There is very good value out there for people and it makes more financial sense to now buy rather than rent.”
John Byrne, branch manager of the Ulster Bank in Claremorris, told the meeting that Ulster Bank is actively looking to do mortgage business in the county. He explained in very clear and simple terms what the bank requires from individuals or couples looking to make a mortgage application, and he said the process is simplified and speedy “once you find a property that meets your needs and suits your budget”.
He explained that the average house price in the Claremorris area is €95,000 and on that basis gave a simple example of how much a mortgage now costs. Mr Byrne said that once an applicant can come up with 10 per cent of the purchase price (€9,500 ), the bank will provide the balance of €85,000. He said that a single applicant earning a gross minimum salary of €24,000 a year would meet the qualifying criteria. As a result, the €85,000 mortgage repayable over 35 years on a standard variable interest rate would cost €412.61 per month or €95.21 weekly.
Gerard Hanley of Hanley Auctioneers said that among the large crowd gathered he was pleased to see so many renters in the room - clients of his who have been renting properties on his books over the past few years. “A lot of you are looking to buy in the coming months as you get engaged, married, and are looking for a new family home. Now is a very good time to buy with value for money being the key.”
Cheaper to buy than build
Colm Casey said that it is now cheaper for people to buy a home rather than build one, as the prices of second hand homes have now reached very realistic and affordable levels. “You couldn't build a home for what they are now currently selling at. While this isn't sustainable going forward, it does show the excellent value out there.”
Eugene Waldron of Waldron Architects made a presentation loaded with key information on building your new home. In addition, he advised clients on what to look out for when purchasing a second hand property - in particular, it is prudent to obtain a survey on the condition of the house and this also provides peace of mind.
Mr Waldron spoke about obtaining planning permission and issues arising as well as the building restrictions that are currently in place within the Claremorris urban pressure area.
John Geary of JV Geary Solicitors, Castlebar, explained how the property legal process works and what people should expect and look out for. He spoke about land transfers from parent to son or daughter, the tax and cost implications, and the recent change in the law on such transactions.
Mr Geary outlined the solicitor's role in the mortgage process as well as common issues and problems that can arise in conveyancing. He also advised non-married couples that when purchasing a home a co-ownership agreement between the parties can be of great assistance if the unfortunate situation of a split arises down the road. The importance of making a will was also stressed.
All speakers fielded questions from the audience which further indicated the appetite and interest out there for buying property at the moment.
