This week, I had the pleasure of meeting Paul Merriman, the CEO of AskPaul and Fairstone, and being invited on his show. I'd like to share some of the key points we discussed during our chat.

Meeting Paul Merriman

For those who don't know, Paul Merriman has achieved incredible success with his financial advisory business. He revolutionised how financial products are communicated, moving away from long-winded industry jargon to practical, digestible information. This innovative approach led to rapid growth, culminating in his company being acquired. Now, Paul is the CEO of Fairstone, where he continues to drive value and remain true to his vision.

Special Shoutout to Thomas Arnold of Fearless Media who organised the media and production yesterday at Dublin City FM. I have followed him for some time and love his attitude, drive and he is clearly amazing at what he does. Check out his Linkedin for more and watch this space for his upcoming documentary on his foray into boxing called “Cornered”.

Key Topics We Discussed

The Market

We discussed the memories of the past financial crash, a topic still fresh in many people's minds. The previous crash was driven by extreme credit practices, such as 100%+ mortgages and amateurs dabbling in property development without proper planning. 

Today’s market is different.

Lack of Supply

We delved into the first-time buyer segment, particularly for properties priced between €200,000 and €550,000. This segment is highly competitive, divisive, and often frustrating for many buyers. These buyers are eager and motivated but sometimes lack clear direction in their search. We discussed the importance of having a clear plan and knowing what to avoid when searching for a property.

The property market is always changing, but the severe lack of supply and high demand at the sub -€600,000 level is not going to change any time soon.

This creates a challenging environment for buyers.

Renting in Gaeltacht:

As Elusive as Fairy Dust

Some Property Rental Eye Candy

Audience Questions

Should I bid on a house before I have approval?

The answer is a resounding no. Bidding without mortgage approval will only lead to frustration for you and other buyers who are ready to go. Enthusiasm is great, but you need to have your financial arrangements in order first. Use an online calculator to get an idea of what you can borrow, but remember, it's just an estimate. You may end up with more or less than you anticipated.

Lesson: Spend time planning and preparing for your mortgage.

 You'll be better prepared and more confident in your search.

Can I buy out the leasehold on a property?

What are they:

- Leasehold Title: You own the property for a set period, as outlined in the lease agreement, but the land remains owned by the freeholder.

- Freehold Title: You own both the property and the land outright, with no time limit.

The answer to whether you can buy out the leasehold depends on several factors, and it's essential to consult your solicitor. Some properties have long leaseholds, like the Guinness Storehouse's 999-year lease, while others may be 100 years or less. It can be possible to buy out the leasehold, but you need professional advice to understand your options and the process.

Another aspect is ground rent. In areas like Rathmines in Dublin, ground rent is common. This is an annual fee paid by the building owner to the landowner. Sometimes, people buy out the ground rent to fully own both the building and the land.

What should I do if something doesn't feel right when bidding?

Paul and I discussed the importance of ensuring an agent is fully licensed. Licensed agents must keep records, maintain accounts, and meet professional development standards. When bidding, ask the agent to confirm the status in an email. This way, you have a record to review later. A good agent will be transparent about the sale circumstances and keep a log of bids.

Also, trust your gut feeling. If something feels off about the house, the area, or the situation, listen to that instinct.

 Ignoring your gut can lead to regrets later.

Random Real Estate Trivia

In the Netherlands, there is a town called Baarle-Hertog/Baarle-Nassau which is one of the most complex and fragmented municipalities in the world. This town is divided into Belgian (Baarle-Hertog) and Dutch (Baarle-Nassau) territories, creating a patchwork of 26 separate pieces of land that form intricate international borders. Some houses and properties in the town are divided between the two countries, with the border running through them, leading to situations where different rooms in the same house can be in different countries!

​​To help tourists and residents distinguish between the two countries, the border in Baarle-Hertog/Baarle-Nassau is marked on all streets with iron pins. This makes it easy to see whether you are in Belgium or the Netherlands at any given moment. Additionally, the house numbers differ in style between the two countries, often accompanied by the respective national flag, making it clear which country each part of the town belongs to.

My conversation with Paul Merriman highlighted several crucial aspects of the property market and buying process. The market's competitive nature, the importance of preparation, understanding leasehold and freehold titles, and trusting your instincts are key takeaways for anyone navigating the real estate landscape.

Stay informed, be prepared, and trust yourself to make the best decisions for your property journey.

P.S. As a subscriber if you have friends or family who are feeling lost in their property journey they can book a 30 minute session with me to help them get clear (no sales pitch, just guidance & an impartial ear).

They can book it here.

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Andrew

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