Money: Buying into the quality of life ...

BUYING a home is a risky business with thousands to be made - or lost - depending on whether you pick an ailing area or housing hotspot.

Latest figures suggest the best bet is to search outside Dublin, where property prices are rising at nearly twice the rate as within the city. Between January and April the cost of houses away from the capital jumped by 7.2 per cent, compared with only 3.9 per cent in it.

But experts warn that what may seem like an ideal location in the current climate could plummet in price over the next few years.

John Higginson, manager of Dublin estate agents Re/Max Dolmen, advises choosing an area with a good infrastructure.

"Many people are looking at developments outside the capital from where they hope to commute into town from, but a lot of them are simply are not family-friendly," he said.

"These areas seem to be hotspots with good-sized houses at relatively low prices and big increases in value, but infrastructure is not keeping up with the population rise.

"Most lack the things vital for a normal life - adequate shopping facilities and schools - and this is going to become a bigger concern as more people move to them.

"Transport is also a problem. If you buy a house in Lucan and work in Dublin you spend two hours a day in the car.""

He predicted that while IRpounds 200,000 could now buy a four- bedroomed semi-detached in Lucan, as the area becomes increasingly crowded in the next five years the price may not rise at all and could easily fall.

By contrast in an area like Drumcondra in North Dublin a three bedroomed house which would now go for IRpounds 200,000 could increase to up to IRpounds 260,000 by 2005.

He recommends areas within walking distance of the city centre as the best place to buy. They are high density so the infrastructure will all be there with transport, shops and schools."

He added: "The location of your home is crucial to quality of life. A house is not just a shell to rest your head, it is a home.""

Mr Higginson's claims are backed up by the recent scramble for former corporation houses in North Dublin.

In Marino, three-bedroomed detached houses are going for over IRpounds 200,000 while in Glasthule people are paying up to IRpounds 140,000 for two-bedroomed homes in need of renovation.

"About four years ago you might have been able to buy that house for IRpounds 70,000," said a spokesman for Jackson Stops and McCabe. "We can never get enough of these houses.""

FINDING THAT HOUSING HOTSPOT

Make sure the area you are buying in has a good infrastructure - good shopping and leisure facilities and quality schools If you are looking to buy in a more rural area and commute to work in a town or city, ensure there are adequate transportlinks. Remember, a house is not just a place to rest your head - the quality of life in the area you buy is all important. It's all about location, location, location.

Copyright 2000 MGN LTD
Provided by ProQuest Information and Learning Company. All rights Reserved.