By Mark Kirby
For many families, buying a home is the largest financial decision they will ever make, and it remains one of life’s biggest ambitions. Yet one question continues to dominate conversations around kitchen tables, in work canteens, on bar stools, and even in the offices of mortgage providers and estate agents: when is the right time to buy, trade up, or trade down?
With supply limited in the current property market, prices rising, interest rate increases expected, and prospective buyers increasing, it is very easy to become despondent.
To make a long story short, there is no right or wrong answer to the question, ‘Should we buy now or wait for conditions to improve?’ It’s a far more complicated answer than a simple yes or no.
Property experts generally agree there is no perfect moment to enter the market. The decision should be based on a family’s financial circumstances, housing needs, and long-term plans rather than trying to predict future prices. It depends less on market timing and more on personal readiness. Housing markets will rise and fall, interest rates will fluctuate, economic uncertainty will persist, and there will always be another speed bump in the decision-making process.
One of the most important factors is affordability. Before purchasing a home, families should assess whether they can comfortably meet mortgage repayments while maintaining their current standard of living. The Central Bank’s mortgage lending rules require buyers to meet strict borrowing criteria, helping to ensure that homeowners are not overstretched financially.
Mortgage approval should not be viewed as the only measure of affordability. Just because a lender is willing to lend a certain amount does not mean borrowing the maximum is the wisest option. Leaving room within a household budget can provide valuable flexibility if circumstances change. A larger deposit can reduce borrowing costs and improve mortgage options. Buyers who take the time to strengthen their financial position may ultimately secure more favourable terms and experience less stress after moving in.
As financial advisors, we recommend that buyers look beyond the deposit itself. Legal fees, valuation costs, survey expenses, stamp duty, and moving costs can add thousands to the overall purchase. Families should also retain a financial cushion for unexpected expenses after moving in. Owning a home often comes with costs that renters may not anticipate, from replacing the boiler to dealing with the little ones putting a football through the window.
Interest rates are another key factor to consider. Following the turbulent times after the start of the Russian-Ukrainian war, interest rates have settled down over the last two years. Now, due to geopolitics, inflation is creeping up again, and the ECB has started increasing rates. The difference between now and 2022 is that the ECB is starting from a higher base. Higher interest rates increase monthly repayments and reduce borrowing capacity.
However, waiting indefinitely for lower rates may not necessarily benefit buyers if house prices continue to increase during the same period. Also, if you are currently renting, there is a cost to staying put. For example, if your rent is €1,500 per month, that is €18,000 per year that could have gone towards your new home. You are also a year older, so you have one year less on your mortgage term, which increases your monthly payments.
Lifestyle factors are equally important in the decision-making process. A growing family may require more bedrooms, access to schools, outdoor space, or proximity to employment. The growth of remote and hybrid working also encourages some households to look beyond their current area, broadening their housing options. Property professionals often advise buyers to consider whether a house meets their needs for a minimum five to 10 year period. This can help reduce the likelihood of having to move again in a relatively short period of time, avoiding additional costs and housing uncertainty. This timeframe spreads the upfront costs over a longer period while also allowing buyers to benefit from any potential growth in property values.
Children in particular benefit from continuity, and staying in one place allows families to establish stronger connections within local communities.
Prospective buyers should research local trends and examine the Property Price Register in the area where they are purchasing. Are there any future developments planned in the area, such as new transport links, schools, or commercial projects that could influence property values over time? Spend some time in the area, by day and evening, on weekdays and weekends. Get to know the area and talk to locals. Ireland’s persistent housing shortage continues to support demand, which reduces the odds of a sudden drop or fall in house values.
Ultimately, the right time to buy a family home in Ireland is highly personal. It depends on sufficient savings, secure income, realistic and manageable borrowing levels, and confidence that the property will meet a family’s needs for years to come. Buyers who are financially stretched or uncertain about their future needs may benefit from waiting until their situation becomes clearer. There is no perfect moment to purchase; markets and economic forecasts are unpredictable. The only thing that remains constant is your personal circumstances and dreams.
In a market where supply remains limited and demand remains strong, the decision is less about finding the perfect market conditions, when prices are lowest or interest rates are most attractive. It is about whether the purchase supports a family’s financial wellbeing, lifestyle goals, and long-term security. Do you see yourself growing old in this house? While you’re buying a house, can you make it into the home you want it to be? You need the house to work for you, not you working for the house.
If you have any questions please don’t hesitate to contact us on 023 881 0001.
