Welcome to the latest edition of DNG Express
Recently the Wall Street Journal ran an article entitled “10 Reasons to Buy a home”, in response to specific negative media sentiment in Time Magazine.
The property market in many parts of the USA has been hit severely and in some cases harder than Ireland. In my opinion the 10 reasons given in the Wall Street Journal article apply to this country and the following is my take on the reasons why:
You can get a good deal - Property prices have virtually halved in Ireland. Similar to America there may still be a little further to go but you’ll never catch the bottom and according the WSJ “it doesn’t really matter so much in the long haul” a comment I would echo.
Mortgages are cheap - As the date of this article a first time buyer can obtain a mortgage through Irish Nationwide Building Society at 3.7% fixed for three years or at a variable rate of 2.9% through the Home Choice Loan. It was not that long ago when mortgage rates where twice the current rate.
You’ll save taxes - Similar to the USA first time buyers buying their home can qualify for attractive mortgage interest relief on their mortgage repayments and there is no capital gains tax when they sell in the future.
It’ll be yours - You can have the kitchen and bathrooms you want - You can move the walls or tear up the garden! You can not do this if you are renting!
You’ll get a better home - Buyers are in a very strong negotiating position and with much lower prices purchasers can buy a home that they would not have been able to afford in the past and in their chosen location.
It offers some protection against inflation - No, it is not perfect, but over the long term property prices have always beaten inflation especially if you are young and looking at staying in your home for 20 or 30 years.
It’s risk capital - No, your home is not stocks and shares but the economy will surprise you and start growing at some time in the future. Sooner or later property prices will rise again too and I bet it will be quicker than what you think!
It’s forced savings - By paying a mortgage which in many cases is higher than your rental cost you are essentially saving for your future. The part of your mortgage payment that goes against principal is not a cost as you are building equity in your home.
There is a lot to choose from - It differs depending on locality in Ireland but there is quite a lot of good property to choose from at the moment. This will change when the market improves but at the moment this means great choice at great prices!
Sooner or later the market will clear - demand and supply will meet - no question of that. The population in Ireland is due to increase dramatically in the next 10 years. In Dublin we estimate that there are 6,000 re-sale homes for sale and maybe another 7,000 to 8,000 new homes empty. Relatively speaking this figure is not big and should clear quite quickly once prices in the new homes market in particular re-align. Whilst some areas of the country do have very high concentrated areas of empty homes they will sort themselves out in time.
Interestingly, I believe that buying a home at the moment will be seen in the future as been opportunistic and wise.
Finally and as always if our agency can be of any assistance to you on any property matter please do not hesitate to contact our local DNG branch.
Keith Lowe FIAVI MIPAV CEO DNG
All prices quoted in this magazine were correct at the time of original artwork implementation. However prices change constantly and there will be price movements upwards and downwards. We recommend that you call the relevant agent before purchasing. No part of this magazine, including photographs may be reproduced in any other publication without prior permission from Douglas Newman Good.
The publisher will institute proceedings in respect of any infringements of copyright. Designed by DNG Marketing. (c) Douglas Newman Good 2010
PAUL NEWMAN
FIAVI MIPAV CHAIRMAN DNG
DNG Express | 3
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104