Lots of useful tips at Mayo home-buyers' event

A large crowd gathered in Castlebar last Wednesday for the Bank of Ireland/MyHome.ie 2025 Home-Buying Event. Speakers shared practical tips, advice and valuable information and drew a diverse crowd of first-time buyers, movers, and people considering building their own homes.

The evening featured contributions from Colm Kelly, mortgage advisor with Bank of Ireland in Castlebar and Swinford; Joanne Geary, Managing Director of MyHome.ie; surveyor and auctioneer Frank Cloherty; engineer Michael Rowley; and solicitor Samantha Geraghty.

Colm Kelly began by assuring the audience that he would “try and cut out the jargon” in an area where prospective buyers often feel overwhelmed. He presented fresh figures showing the increasing length of time people are saving before approaching a lender. According to Mr Kelly, 22% of first-time buyers have been saving for five years or more, while 31% have been saving for between two and four years. 

“First-time buyers are saving more than ever,” he said, with the average saver putting aside €550 a month.

However, the rising cost of living is reshaping plans, with Mr Kelly explaining that 49% have delayed plans to buy a home, 38% have changed the type of property they are looking for and 24% have rethought location.

Mr Kelly explained that first-time buyers can typically borrow four times their gross salary, while those moving home or switching mortgage providers are generally approved for three and a half times. He noted that gross income is assessed in detail and can include shift allowances or other regular earnings.

On deposits, he said the rules had been eased for many. 

“First-time buyers and movers, you need to come up with 10%. The bank will give you 90%.” 

Self-builders face a slightly different calculation. 

“The bank will look for 10% deposit, which is fair enough,” Mr Kelly said, “but they’ll also look for 10% contingency on the estimated build price.” 

A gifted or inherited site can usually serve as the first 10%, but cash savings are needed for the contingency. 

“If the cost to build is going to be €300,000, you’re going to have to have €30,000 in savings for your contingency,” he said.

Mr Kelly also encouraged people to make use of the Bank of Ireland’s mortgage saver account. If savers build up funds for six months and later draw down a mortgage, the bank adds a €2,000 bonus. 

“After tax that’s about €1,400,” he told the audience.

Mr Kelly stressed that proving repayment ability is essential. 

“If a mortgage is going to be €1,400 a month, applicants need to show the bank that you’re comfortable saving €1,400.”

Turning to property supply and prices, Joanne Geary of MyHome.ie spoke about the national picture. She said transactions in the first half of the year were up by 2%, with around 22,000 sales taking place, but supply remains limited.

“Last year, Ireland delivered just over 30,000 units for people to live in,” Ms Geary said. “That was below our national target, which is about 34,000 units. And that’s the single reason why property prices are increasing.” 

pic.twitter.com/sjWLQKP5y5

— Western People (@WesternPeople) September 30, 2025

According to Ms Geary, house prices are now running at eight times the average income. 

“The CSO tells us the average income is €51,000 a year,” she said. “The median or average house is now running at eight times that. We’re becoming very stretched in relation to our affordability for housing."

Asking prices in the first six months rose by 7% compared with the same time last year and mortgage approvals are also rising in value.

“The average mortgage approval in April was about €338,000, up 8% in the year,” Ms Geary said.

Ms Geary said the strength of demand was being driven by both demographics and economics.

“There are 12% more people gainfully employed in the country since Covid. We’re now at practical full employment and 77,000 extra people are coming into the country every year that need somewhere to live. And we have 41% of all 18 to 34-year-olds living at home in the box room with mum and dad. That statistic is horrifying. It shows very strong pent-up demand in the economy.” 

Rising rents are adding to the pressure, with 40% of Dublin households now renting. Ms Geary added that 29% of employed adults are still either renting or sharing accommodation.

Turning to Mayo specifically, Ms Geary said the median asking price in the first half of the year was €200,000, up just 1%.

“In many ways, that’s good news because it shows that the market is stabilising,” she said.

Supply in the county rose by just 2%. Homes in Mayo take an average of 11 weeks to go sale agreed, which is identical to the national figure.

The most affordable counties remain Longford, Leitrim, Mayo, Monaghan and Roscommon, she said, while the strongest price increases this year have been seen in Donegal, Leitrim and Galway.

Ms Geary advised buyers to familiarise themselves with state supports such as the First Home shared equity scheme, the Help to Buy scheme, and the Vacant and Derelict Homes grant, which can provide up to €70,000. MyHome.ie’s website, she added, includes tools such as an affordability calculator and a Buyers' Advice Hub. 

pic.twitter.com/CRwWKqXEZi

— Western People (@WesternPeople) September 30, 2025

“If you’re not familiar with those schemes, you need to get familiar with them. They’re really useful for helping people get on the ladder,” she said.

Auctioneer and surveyor Frank Cloherty gave the audience a local market snapshot. In Castlebar, a new three-bedroom semi-detached house now costs between €375,000 and €400,000. Four-bed semis are commanding between €390,000 and €420,000. Detached houses start at around €480,000 and range up to €800,000. 

“That’s where that market is at the moment,” Mr Cloherty said.

He added that second-hand three-bed semis are selling at around €300,000, while four-beds fetch €325,000. A detached second-hand home is now between €380,000 and €420,000. Apartments, by contrast, are scarce, with most two-bed units priced at €200,000 to €250,000.

Mr Cloherty said that demand increased sharply during Covid as people sold valuable properties elsewhere and returned to Mayo. He warned that small private landlords are continuing to leave the market, which will have knock-on effects on availability and prices.

For buyers, Mr Cloherty stressed the importance of being mortgage-approved before viewing. 

“That’s a game changer,” he said. “When I hear that, I say, right, this is someone who’s clearly doing their business properly.” 

He reminded buyers that in Ireland’s second-hand market, it is “buyer beware". While he personally points out faults, it remains the purchaser’s responsibility to identify defects.

Engineer Michael Rowley also focused on practical precautions. With over 20 years’ experience in design and project management, he urged anyone buying a second-hand home to invest in a structural survey and to have plumbing systems checked. 

“A lot of heating and plumbing systems are maybe coming towards the end of their lifespan. They’re probably one of the most expensive items to replace,” he warned.

In rural homes, Mr Rowley advised checking septic tanks and confirming property boundaries to avoid disputes arising later. He also cautioned that home extensions and conversions may not always have been approved under planning or building regulations, which could present risks.

Mr Rowley explained that new build costs are currently averaging €1,900 per square metre. He warned against accepting PC sums, or prime cost allowances, from contractors. 

“You might have an electrical PC sum of maybe €12,000. By the time everything is done, that might run to €18,000,” he said, underlining the need for a contingency fund.

Solicitor Samantha Geraghty offered legal insights, particularly for those building on family land. She explained that the more valuable the site, the easier it is to secure a mortgage. 

📹 Samantha Geraghty also spoke to the Western People at the event pic.twitter.com/Wy1Knx6koV

— Western People (@WesternPeople) September 30, 2025

“People like to keep the value down on inherited or gifted sites to minimise stamp-duty, but the higher the value, the better, for getting a mortgage.” 

Ms Geraghty also clarified that mortgage payments for self-builds are released in stages, with the first payment often slow to arrive while banks complete checks. Later payments, she said, are usually processed within three to four days.

On buying second-hand houses, Ms Geraghty issued a simple warning: “What you see is what you get. If the shower isn’t working or the handle’s falling off the door, that’s tough. That’s why the survey is the most important money you will spend.” 

The evening closed with a lively question and answer session, underscoring the appetite for clear information and expert guidance in a market defined by shortage, rising costs, and growing demand. For those in the room, the overriding message was to prepare carefully, use the supports available, and seek professional advice before making what is, for most people, the biggest purchase of their lives.