Brighter Buyer Event

Welcome

MC: Angela Keegan

Managing Director MyHome.ie

Dr. John McCartney

Director of Research

Savills Ireland

Lisa O’Brien

Quantity Surveyor

Hugh Wallace

Architect

Dr. John Mc CartneyDirector of Research

Savills Ireland

Economy & Demographics

0

1

2

3

4

5

6

7

8

Mal

ta

Po

lan

d

Irel

and

Hu

nga

ry

Slo

ven

ia

Latv

ia

Slo

vaki

a

Ro

man

ia

Esto

nia

Cyp

rus

Luxe

mb

ou

rg

Cro

atia

Bu

lgar

ia

Cze

ch R

epu

blic

Lith

uan

ia

Net

her

lan

ds

Spai

n

Gre

ece

Fin

lan

d

Au

stri

a

Den

mar

k

UK

Po

rtu

gal

Swed

en

Fran

ce

Bel

giu

m

Ger

man

y

Ital

y

% C

han

ge y

/y

Q3 2018 GDP Growth

Source: Eurostat

0

0.2

0.4

0.6

0.8

1

1.2

1.4

20

12

20

13

20

14

20

15

20

16

20

17

20

18

% Y

/Y

Population Growth

EU 28 IrelandSource: Eurostat

ESB Connections

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

19

94

Q1

19

94

Q3

19

95

Q1

19

95

Q3

19

96

Q1

19

96

Q3

19

97

Q1

19

97

Q3

19

98

Q1

19

98

Q3

19

99

Q1

19

99

Q3

20

00

Q1

20

00

Q3

20

01

Q1

20

01

Q3

20

02

Q1

20

02

Q3

20

03

Q1

20

03

Q3

20

04

Q1

20

04

Q3

20

05

H1

20

05

Q4

20

06

Q2

20

06

Q4

20

07

Q2

20

07

Q4

20

08

Q2

20

08

Q4

20

09

Q2

20

09

Q4

20

10

Q2

20

10

Q4

20

11

Q2

20

11

Q4

20

12

Q2

20

12

Q4

20

13

Q2

20

13

Q4

20

14

Q2

20

14

Q4

20

15

Q2

20

15

Q4

20

16

Q2

20

16

Q4

20

17

Q2

20

17

Q4

20

18

Q2

20

18

Q4

Acute Undersupply

22,424

30,120

34,205

38,170 37,990 38,730

14,435

18,072

24,000

32,000

34,000 35,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

20

17

20

18

20

19

(f)

20

20

(f)

20

21

(f)

20

22

(f)

Requirement Completions

Property Prices

-25

-20

-15

-10

-5

0

5

10

15

20

25

20

07

M1

2

20

08

M0

3

20

08

M0

6

20

08

M0

9

20

08

M1

2

20

09

M0

3

20

09

M0

6

20

09

M0

9

20

09

M1

2

20

10

M0

3

20

10

M0

6

20

10

M0

9

20

10

M1

2

20

11

M0

3

20

11

M0

6

20

11

M0

9

20

11

M1

2

20

12

M0

3

20

12

M0

6

20

12

M0

9

20

12

M1

2

20

13

M0

3

20

13

M0

6

20

13

M0

9

20

13

M1

2

20

14

M0

3

20

14

M0

6

20

14

M0

9

20

14

M1

2

20

15

M0

3

20

15

M0

6

20

15

M0

9

20

15

M1

2

20

16

M0

3

20

16

M0

6

20

16

M0

9

20

16

M1

2

20

17

M0

3

20

17

M0

6

20

17

M0

9

20

17

M1

2

20

18

M0

3

20

18

M0

6

20

18

M0

9

20

18

M1

2

% C

han

ge Y

/Y

Source: CSO

Looking Ahead

Dwelling CompletionsNow Rising Strongly

0

1,000

2,000

3,000

4,000

5,000

6,000

20

11

Q4

20

12

Q1

20

12

Q2

20

12

Q3

20

12

Q4

20

13

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

14

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

15

Q1

20

15

Q2

20

15

Q3

20

15

Q4

20

16

Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

17

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

18

Q1

20

18

Q2

20

18

Q3

20

18

Q4

Dublin Ex. Dublin

• Very low residential output 2010-2015

• Strong supply response now kicking-in…

• 2017 – Dwelling completions up 45.3%

• 2018 – Up 25.4% (+27.5 GDA)

Leading IndicatorsSupply to Increase Further…

Sources: CSO, DHPLG

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

20

14

Q2

20

14

Q3

20

14

Q4

20

15

Q1

20

15

Q2

20

15

Q3

20

15

Q4

20

16

Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

17

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

18

Q1

20

18

Q2

20

18

Q3

No

. of

Un

its

Co

mm

ence

d

Quarterly Commencement Notices

Greater Dublin Area National ex. GDA

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

20

11

Q1

20

11

Q3

20

12

Q1

20

12

Q3

20

13

Q1

20

13

Q3

20

14

Q1

20

14

Q3

20

15

Q1

20

15

Q3

20

16

Q1

20

16

Q3

20

17

Q1

20

17

Q3

20

18

Q1

20

18

Q3

4q

ma

Dublin Apartment PPs and Completions

Completions Planning Permissions

70

80

90

100

110

120

130

140

150

20

13

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

14

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

15

Q1

20

15

Q2

20

15

Q3

20

15

Q4

20

16

Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

17

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

18

Q1

20

18

Q2

20

18

Q3

20

18

Q4

(00

0s)

Construction Employment

Market Becoming More Balanced

22,424

30,120

34,205

38,170 37,990 38,730

14,435

18,072

24,000

32,000

34,000 35,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

20

17

20

18

20

19

(f)

20

20

(f)

20

21

(f)

20

22

(f)

Requirement Completions

Cork Market

Dwelling Units Sold

0

10000

20000

30000

40000

50000

60000

70000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Cork Total Ex. Cork

Source: CSO

Who Was Buying in Cork In 2018?

FTBs24%

Movers44%

Small Investor19%

Corporate13%

Source: CSO

Trend in FTBs

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: CSOFirst-time buyers Other buyers

How Are Buyers Financed?

Cash-Only Deals (National)

56

47

76

61

5754

68

5557

53

66

56 5553

63

56

51 51

60

5048

5154

4946

0

10

20

30

40

50

60

70

80

Q3

20

12

Q4

20

12

Q1

20

13

Q2

20

13

Q3

20

13

Q4

20

13

Q1

20

14

Q2

20

14

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Q3

20

15

Q4

20

15

Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

16

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

17

Q1

20

18

Q2

20

18

Q3

20

18

%

Source: CSO, BPFI, Savills Research

Financing of Cork Residential Transactions

0

10

20

30

40

50

60

70

80

90

100

FTB Investor Relocation Trading Up Trading Down Second Home

%

Source: Savills Research Cash % Mortgage %

New Vs Second Hand

Cork Housing Completions

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2010 2012 2013 2014 2015 2016 2017 2018

New Vs Second Hand - Cork

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Cork New Cork SH

Source: CSO

Thank You

@JPMMcCartney

Angela KeeganManaging Director

MyHome.ie

Tips to help you on your Home Buying journey

Talk to your Bank or Lending Provider first

• Understand what you need to do to fulfil the lending criteria

• How much can you potentially borrow

• Different mortgage options available to you

Watch your spending

• Banks will look for ‘clean’ current & savings accounts

• Avoid dipping into your savings

• Curb spending

New or Second hand

• Help to buy scheme is designed to assist First Time Buyers with the deposit required to purchase a new or a self build

• 5% of the purchase value capped at €20k

Be realistic about what you can afford

• Make a list of what’s important to you e.g Garage, garden etc

• Put items in order as buying a home usually involves some sort of compromise

Location - Think of the Future You

• Be mindful of future requirements

• Choose the ‘right’ amenities

Be the first to know when a property comes to the market

• Sign up for Property alerts on MyHome.ie

• Register your interest with local Estate Agents

• Set realistic limits

Count the cost

• Consider all the fees

• Check out Management fees

€

Ask the experts and listen

• Choose the right type of mortgage for you

• Use the services – Mobile Mortgage managers

• Don’t cut corners when it comes to a structural survey

Get to know the neighbourhood

• Walk and Talk!

• Check out the local development plans

Lisa O’Brien Quantity Surveyor

Overview

Desk top Due Diligence

What to do Pre-Launch of a new development

What to expect on the launch day

Viewing the Show House

The importance of The Snag List

The Snag list inspection

Do’s and Don’ts when moving in

Additional costs over and about the purchase price

Buying a 2nd hand home

Grants and Offers available

Desk Top Due Diligence

Location – Amenities, Facilities, Schools, Creches, Social Clubs

Access/Transport Links - Bus Routes, Trains, Primary Roads

Access in and out of the development

Anti-Social Behaviour/Nuisances

Developer/Builder – Duedil check, previous developments

Local Development Plan/Planning department for future development

Current market values of similar properties in the area – Resale and Rental

Pre-Launch

• Register your interest with estate agents

• Print off brochures and house plans – review each house type – select

preferred/affordable

• Print off the site map - Mark the orientation of site (N,S,E,W) Mark your preferred

houses relevant to house type and budget

• Drive around the development – observe existing finishes of houses, roads, kerbs

• Locate play areas/green areas for children

• Locate parking – front or rear to houses

• Ring sales agent and enquire about the booking deposit – how much, who to, does

it have to be paid on launch day

Launch Day

• Arrive early

• Locate sales office and agent

• Confirm cost

• Appliances

• Parking

• Property Maintenance Company

• Service provider for broadband

• Finishes Allowances

• Confirm standard finishes

Viewing The Show House

Room proportions – bring a measuring tape

Standard of finishes – painting, tiling etc.

Storage – under stairs, attic

Bin Storage – front/rear

Potential to extend – rear/side; attic

Take photos of interior

Check your phone coverage in each room

5kDeposit • 21 days

• 25kContract signing

21 days final

payment

Notification of

completion

The Snag List

Snag list Notification of

completion

Architect, Engineer, Building SurveyorHire a professional to complete snag

Practical completion – ask for water, electricity, heating on, drainage

Ensure house is ready for snagging

Step ladder, bulb, radio, 6ft spirit level, torch, bucket, screwdriver and hammerEquipment to snag

The Inspection

• On arrival – turn all on • Drainage

• Electrical

• Heating/Plumbing

• Ventilation

• Attic

• Windows and Doors

• Floors

• Internal finishes – plastering, painting, joinery, tiling

• External Inspection

The Inspection

Drainage Electrical Electrical

Heating/Plumbing Heating

The Inspection

Ventilation Ventilation Attic

Windows and Doors Floors Internal finishes

Moving In

• Know where the isolation valves are for water,

electricity and gas

• O&M manual (operations and maintenance) –

check that all documentation and manuals are

available for all equipment

• Ask for a heating demo

• Register the warranties for your appliances

• Obtain your BER cert

• Check your meter readings for gas and electricity

• Turn all on – appliances, showers etc

• Don’t turn heat on full blast – 16 degrees gradually

Additional Costs

Solicitors Cost Valuation Cost Life Insurance House Insurance

Snag List Flooring

Alarm

Typically Wired For Alarm

Furniture and Soft Furnishings

Blinds, Curtains, Kitchen Utensils Etc

Second Hand Homes

• Price on sales brochure is “Guide Price”

• Place an offer for consideration by the vendor; the offer has to be documented by the Sales Agent

• Vital to look at the value of other properties in the locality

• BIDDING CAN GET EMOTIONAL

• Vendor accepts the offer and a booking deposit is paid

• Sales Agent will request your mortgage approval offer before it goes “sale agreed”

• Forward on Solicitors details to the Agent

• Sales Agent Issues Sales Advice Notice and booking deposit receipt

• Your Solicitor will then contact the vendors solicitors requesting the Contract documents

Site Characteristics

Orientation of the house; potential to extend

Condition of property:

• STRUCTURAL SURVEY RECOMMENDED!!!!

Energy Rating

• BER Cert will be issued

• 1980s - D1

• 1990s - C2

• 2000 - C1

• 2008 – B

Upgrade Costs

• Feasibility study

• Local builder (heating, electrics, windows and insulation)

Site Characteristics

• Position of house on site (bottom of hill)

• Is the land well drained? (flooding issues)

• Services in the area (water, ESB, drainage)

• Over head cables, drainage runs, manholes

Septic Tanks

• Sewage treatment

• Environmental engineer

Teelin Cottage

Teelin Cottage

Teelin Cottage

Teelin Cottage

Teelin Cottage

Grants and Offers

Help To Buy Incentive

•First Time Buyers Scheme

•5% Of Cost Of Purchase Up To 20k

•Revenue.ie

Mortgage Interest Rates

•Low To First Time Buyers

Service Providers

•Check If Bundle Offers/Offers For First Time Buyers

Home Renovation Incentive (HRI)

•Tax relief for homeowners and landlords

•Claimed as a tax credit on the cost of repairs, renovations and improvement work

SEAI – Deep Retro Fit

•Insulation Grants; Heating Control Grants; Solar Electricity Grants; Solar Water Heating Grants; Heat Pump Systems

•www.seai.ie

The Living City Initiative (LCI)

•Is a tax incentive scheme for Special Regeneration Areas (SRA) in Cork, Dublin, Galway, Kilkenny, Limerick & Waterford;

•tax relief refurbishing or converting residential or commercial properties

•ends May 2020

Hugh WallaceArchitect

An Evening With Hugh

Wallace

Design

CostQuality

We hope that you now feel like a Brighter Buyer

Any Questions?Contact us!

(021) 427 1371

cork@Savills.ie @Savills.ireland @Savillsireland Savills Ireland@Savills.ireland

Thank you!