Is building when living abroad doable?
Q I have the opportunity to buy a site in Clare with the intention of building a holiday/retirement property. There is no planning permission but it should not be a problem as permission was granted some years ago but it has expired. I live in the US and will get my architect here to design the property. Does that sound doable?
A A piece of land should only be called a site if it has planning permission. Otherwise what you’re talking about is a field. Never buy on the assumption you will get planning permission. Your best option is to agree to buy subject to gaining planning permission. Don’t assume that, just because a piece of land got planning in the past, it will again. For example, the objectives of the local authority for the area may have changed; the previous house style might not be the one you wanted; it might have been granted for a permanent residence not a holiday home, etc.
There are many variables. Using an architect who is not local is fine but, in practical terms, he or she might not be so familiar with our planning system, building regulations, etc. It might be an idea for your architect to establish a relationship with a local architect who can apply for your planning permission and be on the ground to see the build through to completion. A local planning permission specialist can be found through www.irishplanninginstitute.ie and a local architect through www.riai.ie.
With interest rates cut, is it time to buy?
Q Is the new interest rate cut a good deal for first-time buyers or it is just hype? A development I looked at has dropped by close to €100,000, so I can buy a two-bedroom apartment (now €210,000) instead of the one-bed I thought I could only afford. I am renting and will have to renew my lease in a month’s time so it all seems to fit timewise. Is it really the time to buy?
A There have always been introductory offers for first-time buyers and this new one, 2.45 per cent for one year from both Bank of Ireland and AIB, is just another one. Never feel pressurised into buying no matter how tempting the rate or the price drop. Has your lender agreed to lend to you for this particular property? Lenders are nervous about apartments. And for the amount you need? Up to five times your income is fairly standard but, if you work in a vulnerable sector (construction or retail), the lender might not be keen to lend to you all, despite this week’s interest cut hype. A year passes fast and then you will be transferred to the standard interest rate so you need to know what your repayments might be if you had to pay two or 3 per cent more than the introductory rate. It’s great for you that this apartment has dropped in price but, as you will almost certainly know from Christmas sale disasters (those shoes that were such a bargain but never quite fitted?), a bargain is only a bargain if it’s absolutely right for you. You sound pressurised by this lease-signing deadline. Instead, negotiate a shorter lease with your landlord – it’s a renters’ market – and give yourself more time to think things through.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. This column is a readers’ service and is not intended to replace professional advice.
