This article will help guide you through the process from finding your home, to taking a mortgage and all of the costs involved.
The Process of Buying a House in Ireland
You should follow the following steps for buying a house in Ireland. You can find more information from the Irish government website about these tips here.
1. Save for a deposit and set a budget
2. Apply for a mortgage
3. Find a solicitor
4. Start house hunting
5. Make an offer
6. Sale Agreed
7. Completing the purchase
8. Finalize details and move in
Online Resources to help you
The most important information about buying a house is written by the Irish Government and you can find their website called “citizens information” here.
Here is a list of websites that you can use to find available homes for sale:
To be honest most people in Ireland just think of Daft.ie when they think about buying or renting a property online.
Think about what you want and can afford
One of the first steps involved is seeing what type of house you want and can afford. At this stage you might want to have a look at some houses online or even visit some properties to get a better idea of what you want and what is available.
Have a think about these things in the early stage of buying a house:
- The Location: Is the location convenient for your daily needs, such as work, schools, shopping, and transportation.
- Budget: What can you really afford with a bit of wiggle room just in case you find that special place
- Size and layout: Think about the number of bedrooms, bathrooms, and other features that are important to you.
- Condition: Look at the condition of the home and see if you are willing to make repairs or updates, and whether you have the time and budget to do so.
- Features: Think about the features that are important to you in a home, such as a garden, garage, or updated kitchen.
- Future plans: Consider your future plans and how they might impact your decision to buy a home. For example, if you plan to start a family soon, you might want a larger home in a good school district.
- Resale value: Think about the potential resale value of the home and whether it is likely to appreciate in value over time.
Private Treaty Sale and Public Auction
Houses in Ireland are usually sold via Private Treaty Sale or by Public Auction.
Private Treaty Sale is when you deal directly with the seller or the real estate agent acting on behalf of the seller.
Public Auction is when a seller sets a reserve price for a property and allows people to bid on the property.
If you are successful in bidding for the property, you will need to pay a deposit and sign the contract for sale.
The Deposit
The Irish Government has certain schemes to help people get started buying a house.
The deposit on the house that needs to be paid before a mortgage is 10% of the total value for people buying their first home and 20% for people buying their second home.
That means that you need to save €20,000 if your house costs €200,000 and you are buying your first house.
If you are working and paying tax in Ireland, you can also take advantage of the Help-To-Buy scheme which will help you pay your deposit. You can find out more information about Help to Buy here.
Financing the Purchase
If you do not have the total amount of money to buy a house now. You can apply for a mortgage so that a bank will pay for your house and you pay them back over time.
Here is a list of Mortgage providers in Ireland:
If you decide to use a mortgage broker, you can find a full list here.
It is important to note that you can have a fixed rate and a variable rate on your repayments in Ireland.
Fixed rates mean that you pay the same amount every month and a variable rate means that your repayments will change depending on current interest rates. Read more on the government website here.
It is a better idea to have mortgage approval before you go looking at houses because real estate agencies won’t take you seriously without it. You also get a mortgage approval in principle which lets you know the maximum amount you can spend. Your approval in principle will only last a certain amount of time as things may change and the bank may ask you for further proof after 3-6 months.
Find a Solicitor(A Lawyer)
While looking to buy a house in Ireland, it is a great idea to find a solicitor to handle the conveyancing process. Conveyancing refers to the legal work involved in transferring ownership of the property from the seller to you.
It is a good idea to choose a solicitor before you start looking at properties, as the estate agent will need their information once your offer is accepted. Your solicitor will also ensure that the sale of the property is legal and that the seller has the right to sell it and no one else has a claim to ownership.
Solicitor fees can vary widely and may be based on a percentage of the property price or a flat fee. You may also have to pay for phone calls, postage, search fees, and registering deeds. It is a good idea to ask several solicitors for written quotes and details about their professional fees and other charges.
You can find a list of solicitors in Ireland from the Law Society here.
Additional Costs in buying a house
Here are some of the additional costs involved in buying a house in Ireland
- Stamp duty
- Solicitor’s fees
- Surveyor’s fees
- Valuation fees
- Mortgage protection +Buildings insurance
- Booking deposit(refundable)
The Stamp duty is usually around 1% of the property price up to €1 million and 2% after that.
Solicitor fees vary depending on the solicitor you choose.
Then also, you might need a structural survey which costs about €500, depending on how much detail you want from the surveyor, the engineer.
You may also need a valuation for your mortgage lender which costs between €150-€250.
Mortgage protection is for when you can’t pay off your mortgage and you will also need insurance for the buildings.
House Hunting
The next step when you have mortgage approval is to go and find a house. This is where you get to go and look at all the houses and see what’s out there and see what’s within your budget.
Make sure you stick to your budget when looking at houses. There is no point looking at houses that are too expensive and then you can’t afford the mortgage repayments.
You can use a real estate agent which you can find a list here or start by having a look at the websites listed above.
Making an Offer
Once you find a house that you like, you can make an offer and you can show your offer of a mortgage in principle.
You should bring the letter from the bank and give a copy to the seller and the real estate agent as they will be much more likely to accept your offer if you have proof of funds.
Sale Agreed/After the Sale
If the seller accepts your offer you will go into a stage called “Sale Agreed”. The property will not be on the market for the next 3-4 weeks as you wait for the transaction to be finalized.
Here is what happens after your offer has been accepted:
Current State of the Irish property market(2023)
You can find information on the current state of the Irish property market here. In general, prices have been falling or staying the same after many years of strong growth in prices.
It is important to note that the Irish property market is quite volatile with prices rising rapidly and then falling rapidly due to the fact that Ireland is affected by the global economy because it is a small open economy.
That means it pays off to pay attention to the cyclical trends of house prices and most people would agree that houses are currently at high prices due to strong demand and under supply.
Other F.A.Q’s
How much does it cost to buy a property in Ireland?
The cost of buying a property in Ireland will vary depending on a number of factors, such as the location, size, and condition of the property, as well as the state of the housing market.The median cost of a house in Ireland in 2023 is €285,000 but it depends on where you are buying a house, in Dublin, for example, that would be a cheap house.
It is important to budget for various costs associated with buying a property, including the purchase price, stamp duty (a tax on the transfer of property), legal fees, and any necessary repairs or renovations. It may also be necessary to budget for ongoing costs such as property taxes, insurance, and maintenance.
How do I find a property to buy in Ireland?
There are several ways to find properties for sale in Ireland, including searching online listings which we listed above, contacting a real estate agent, or looking for properties that are for sale by owner. It can also be helpful to attend open houses or property viewings to get a sense of the market and to see properties in person.
How do I finance the purchase of a property in Ireland?
There are several options for financing the purchase of a property in Ireland, including taking out a mortgage, using cash savings, or using a combination of both. It is important to research and compare different mortgage options and to consider factors such as the interest rate, loan term, and fees. It may also be helpful to seek advice from a financial advisor or mortgage broker.
How do I make an offer on a property in Ireland?
To make an offer on a property in Ireland, it is usually necessary to complete a contract of sale and to provide a deposit. The contract of sale should include details such as the purchase price, any special conditions, and the dates for completing the sale. It is important to have the contract reviewed by a lawyer(called a solicitor in Ireland) before signing it.
What is the process for closing the sale of a property in Ireland?
The process for closing the sale of a property in Ireland typically involves transferring ownership of the property from the seller to the buyer, paying any outstanding fees or taxes, and obtaining any necessary documents. This process is often handled by a solicitor.
Are there any additional costs or fees associated with buying a property in Ireland?
Yes, there are a number of additional costs and fees that may be associated with buying a property in Ireland. These may include stamp duty (a tax on the transfer of property), legal fees, survey fees, and any necessary repairs or renovations.We listed these fees above.
How do I go about selling a property in Ireland?
To sell a property in Ireland, it is usually necessary to list the property for sale and to advertise it to potential buyers. This can be done through a real estate agent, online listings, or by marketing the property directly to potential buyers.
It is important to set a competitive price and to consider factors such as the condition of the property and the state of the housing market. You can find more information from the Irish government website here.
Can I buy a property in Ireland if I am not a resident or citizen of Ireland?
Yes, it is possible to buy a property in Ireland even if you are not a resident or citizen of Ireland. However, you may be subject to certain restrictions or requirements, such as obtaining permission from the Irish government to purchase the property.
It is important to note that owning a property in Ireland does not automatically give you the right to live in Ireland.
What are the tax implications of buying a property in Ireland?
The tax implications of buying a property in Ireland will depend on your individual circumstances, such as your residency status and the purpose of the property. It is important to research and understand any applicable taxes, such as stamp duty (a tax on the transfer of property and usually 1% of the sale value) and property tax, and to budget for them accordingly. It is a good idea to seek advice from a tax professional or lawyer.
What is the average mortgage payment in Ireland?
The average mortgage payment in Ireland is around €1,000 per month. You can read more about mortgage payments around Ireland here as that figure will change dramatically depending on your circumstances and where you decide to buy your house in Ireland.
Will house prices fall in 2023 Ireland?
It is impossible to predict what will happen to house prices in Ireland however the Irish economy has been performing very well for many years now and is nicely diversified between sectors such as Pharmaceuticals, Technology and Manufacturing.
Many people are predicting a global slowdown in the economy and that might affect the prices of houses in Ireland as banks tighten the amount they are lending. On the other hand, there just aren’t enough houses being built in Ireland which suggests that prices will remain high.
Where in Ireland is the cheapest to buy a house?
The areas of the midwest of Ireland are the cheapest places to buy a house. Longford is the cheapest county with a median house price at €140,000 for a four bedroom semi-detached house. Mayo, Roscommon and Leitrim are also cheap places to buy houses in Ireland.
How much is a 200k/300k mortgage per month in Ireland?
This can depend on many factors including if you are buying with a partner, your age, your income and the type of mortgage you get but a €200,000 mortgage will usually result in a payment of around €1,000 per month. A €300,000 mortgage will likely result in a payment of around €1,500 per month over 20 years.
What is the nicest part of Ireland to live in?
The nicest part of Ireland largely depends on your own tastes. In my opinion, Wicklow, Kerry and Donegal are the most beautiful counties in Ireland but the weather is definitely better on the East coast of Ireland. Have a look at our moving to Ireland post for more information.
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