CompareBuy2Rent.ie is a unique property price calculator that tells first-time-buyers “when to buy?” and “what to pay?”
Derek Brawn, dubbed ‘property whistleblower’ after his successful book “Ireland’s House Party: What the Estate AgentsDon’t Want You to Know”, has today launched a first-time-buyers home price calculator called; CompareBuy2Rent.ie. Updating his view on the market to take account of the new reality of significantly lower prices, Brawn believes buyers should buy now, but at the right price. CompareBuy2Rent.ie allows prospective homebuyers to see the financial consequences of further price drops and interest rate rises, on their wallets.
Commenting on CompareBuy2Rent.ie Derek Brawn says: “the optimal time to buy a house is not the bottom of the market, as is most people’s perception; it is just before the bottom of the market, typically a year before. House prices are only one factor that people should consider when choosing whether to buy a house now or wait for further reductions; the other factors to be considered are the benefits of paying off their mortgage, plus the fact that homeowners receive tax relief on their mortgage interest. People need to consider both these benefits and factor in further house price drops, so that they can buy now – but at the right price.”
For the first time ever, prospective buyers have access to a property calculator that uses the most up-to-date interest rate projections taken from the financial markets (updated daily from NYSE/EuroNEXT), when combined with their own local property forecasts, allows them to compare the costs of buying now, against the costs of continuing to rent and buying at a later date. Moreover, it provides a comparison of what a buyer’s personal net worth would be over a five year period if they buy now, compared to continuing to rent. CompareBuy2Rent.ie calculates every possible scenario, choosing the one that leaves the most money in their pocket.
The implications of continuing to rent a property are much greater that just the cost of the rent alone, even when property prices are dropping. The tax system in Ireland is more beneficial for homeowners due to the tax relief that can be claimed on mortgage interest payments. Renters miss out on this significant tax break, which pays up to one-quarter of the monthly interest costs. They also miss out on the benefit of paying down their loan. The sooner they buy, the sooner they are debt free. After all, mortgage repayment is another way of saying ‘savings’.
Derek Brawn adds: “A big problem with the housing market is the herd mentality. The herd mentality led people to make the mistake of overpaying for houses on the way up. This current mentality will invariably lead people to miss out on opportunities before the housing market eventually turns”.
CompareBuy2Rent is a subscription service that has been devised by Derek Brawn using the latest ECB forecasts and market data. The site is updated on a daily basis ensuring subscribers have access to the very latest information. The cost of a subscription is €4.99 a month with no minimum subscription period.
Registration is available at www.comparebuy2rent.ie.
For a temporary media password to CompareBuy2Rent and for any further information please contact Simon Palmer on 0851 314 761 or email simon@republicpr.ie
Notes to Editors
CompareBuy2Rent.ie does not sell property and no property will be advertised on the site. It remains independent and objective in relation to the property market and will not benefit in any way by advising people to buy property. It seeks only to educate people about buying property and becoming more market savvy. The aim of CompareBuy2Rent.ie is to share market knowledge that professionals in banking, finance, and the property market have had for years.
Case Study Example: 3-Bed Semi-Detached For Sale in Kildare @ €200,000
A first-time-buyer couple have a €20,000 deposit and are currently renting a similar property for €850/month. Allowing for modest rent rises as rates increase (the market consensus forecasts for ECB rates are to rise from 1% to 3%), as well as a likely further 15% decline in home values over the next 5-years, CompareBuy2Rent suggests waiting for three years then buying at €172,000, or alternatively a ‘buy now’ price of €183,000 – a suggested discount of around 8.5% today on the asking price. The difference between the ‘buy now’ discount and expected future price drops is made up by the extra tax-relief plus capital repayments, which most people forget to include, as well as the differential between net mortgage & monthly rent outgoings.
Background to Derek Brawn
Derek Brawn’s book “Ireland’s House Party – What the Estates AgentDon’t Want You to Know” was a groundbreaking because although many commentators warned of the impending property crash, Derek was the first person employed by the industry to come out in public and say so.
Ends
Business, CompareBuy2Rent.ie, House Prices | Simon Palmer | 
03/11/2010 7:33 pm | 
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