Top 10 Tips for First Time Property Buyers in Ireland

It’s a big step and a formidable one too, not just because of the price or budget but because of the regulations and complexities involved. That’s why you are probably looking for Property Solicitors in Midleton or elsewhere in Ireland. However, buying a house for the first time doesn’t have to be as daunting as it is made out to be. True, there’s a lot to consider, but with a little planning and these ten tips for first-time property buyers in Ireland, it should be simple enough.

So here goes:

1. Determine your Budget

It’s always a good idea to set a budget and stick to it. After all, you are investing your hard-earned money. Many people begin saving up early and earmark investible assets specifically for certain purposes such as buying a house. Still, few have the resources to pay the entire price upfront. So, as a first step let’s put that thought to rest. Get an estimate for the kind of house you want and what it would cost. Then add in the various overheads like stamp duty and taxes. Next, look at the various financing options for the amount over and above what you have.

2. Overheads when Buying Property in Ireland

It’s kind of hard to determine the overhead costs of buying a house because they’re usually expressed as a percentage of the value of the property. You can however consider 15 to 20% of the property value as a good guesstimate of overheads. Here’s a quick rundown of the possible overheads:

You’ll need to put down at least 10% of the property value as a deposit.
As per Ireland laws, the required stamp duty for residential property valued below €1 million is 1%. Anything over and above this would be charged at 2%.
VAT is deductible from the price of newly constructed properties.
A structural survey can cost you anywhere between €300 to €500.
If you opt for a mortgage you’ll likely need to pay for a mortgage protection policy.

While these requirements are subject to change, any good property solicitors in Cork can help you with the latest numbers.

Apart from these fixed costs, there are also some recurring costs to consider, such as the EMI for the mortgage, home insurance, maintenance costs, and so on. You should factor these in early on.

3. House Hunting

Take your time with the next step – finding the perfect adobe for you and your family. Shop around not only for the perfect home but at the best price. Apart from the space within the home, some of the more important but easily overlooked factors to consider when buying a house include:

Connectivity
Neighbourhood
Security
Potential for value appreciation

Within the house, of course, you’ll consider things like size, layout, and if you are superstitious, things like the house or street numbers.

4. Get a Survey

Once you have zeroed down a few houses you like, it’s advisable to have a structural survey conducted. It’s not a legal requirement, but your mortgage provider will most likely ask for one anyway. So, go ahead and get the mortgage valuation report ahead of time. Besides, the report will serve a few other purposes too. For one, with a mortgage valuation report in hand, you can negotiate the value of the property better. Second, it will save time in processing your loan. Third, and most importantly, any flaws and anomalies in the property will come to light.

5. Close the Deal

This is a two-step process. First, you’ll express your interest and make an offer to the homeowner. When making the offer, remember that most of the above-mentioned overheads will be computed basis this agreed price.

Some people prefer to survey this stage rather than after shortlisting a few properties so that’s something to think about. Both have their pros and cons. For instance, what if you elect to do it at the time of making an offer and the report reveals some serious issues in the property? You’ll have to go to the drawing board so to speak.

At this stage, it is advisable to consult a solicitor for buying a house in Cork and most other cities in Ireland.

6. MoU

Property is a big investment and you’ll need time to liquidate your assets. Loan disbursement can also take time. To ease the minds of both parties, property buyers and sellers in Ireland usually enter into a Memorandum of Understanding (MoU) where they lay down the terms of payment agreed upon. Typically, an MoU will mention the agreed price of the property, the terms of payment, the period over which the buyer must make full payment to the seller, and what would happen if either party backs out of the agreement.

While an MoU is technically not a legal document, and you don’t need a conveyancing solicitor in Cork to draft it, it is an important document and must be drafted with care. In case of dispute, it serves as proof of understanding between the parties. It may also be considered legally binding under certain circumstances.

7. Financing Options

Apart from mortgages, the government also supports first-time home buyers in Ireland through their First Time Buyer, Help to Buy, and Help to Build schemes. There are also a few other financing options such as Right to Buy and Rent to Buy, which you might want to explore. You can talk to property solicitors in Cork, Middleton, Dublin, or wherever you live to understand the different options and help you with the process.

8. Completing the Purchase

Having signed the MoU and explored financing options, it’s time to get your finances in place. Liquidate the assets you have earmarked for this purchase. Put in your loan or grant applications along with all the necessary documentation. The sale deed will be drafted once the entire payment has been completed. You’ll need to consult conveyancing solicitors near you to draft and execute the sale deed, but before that, you have to make the full payment.

9. Making the Payment

Now that you have made your decision, it’s time to put in your loan application. Put together all the documents your bank or mortgage company asked for. Lenders are always concerned about loan repayment. Therefore, they will either ask you for some collateral against the loan. In the case of property deals, the property itself can serve as collateral. Some lenders insist on mortgage insurance. This is an insurance policy with a diminishing sum assured. As you pay each EMI, the claim amount reduces proportionately. This is an additional assurance to the lender that his loan will be repaid, if not by you then by the insurance company.

It is a good idea to scout for mortgage options early on. Some conscientious conveyancing solicitors in Ireland offer this as an additional service. They’ll help you shortlist a few mortgage options while you scout for houses.

10. Choose a solicitor

The last and final step is preparing the conveyance deed or the sale deed. For this, you’ll need to connect with property solicitors in Ireland. Just type conveyancing solicitors near me into your browser and you should find one. Walsh and Partners are among the best conveyancing solicitors in Cork and Midleton. We help home buyers not only with the preparation of conveyance deeds and payment of stamp duty, but also with sourcing finances, understanding structural survey reports, and more.