Affordable Home Schemes

With the current housing crisis in the midst of the country, many plans have been developed to get the country out of its current slump. Some merely get laughed at, while others are well on their way to implementation within the housing market. It is likely that before long these effects will take a toll in the market and we will begin to see some upward movement in home buyer confidence.

The government has been quick to release multiple initiatives set out with the goal to turn the crisis around and allow the market to begin looking up. The Home Loan Scheme recently announced by the government is designed with the strategic plan to provide low-cost mortgages to first time home buyers.

With the first announcement of such a plan, many home buyers are thinking; is this too good to be true? As they have been waiting for an extended period of time for some light to be shed on the crisis that allows them to finally move into the homeowner sector.

The Rebuilding Ireland Home Loan …

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The Slow Fall of Housing Prices

With the rising prices in the Ireland housing market continuing on their steep journey up, buyers in the market are slowly being priced out.

That is, they simply cannot afford to purchase homes anymore and are becoming less and less driven to continue their search.

With unrealistic prices seen all around the board and most steeply in the Dublin area, where housing demand is the highest, buyers are beginning to call off their hunt for homes.

What about the future?

How long will these buyers that choose to wait, be waiting, until they can comfortably afford their dream home?

With housing prices being upwards of 11.4 times more than the typical buyer’s disposable income in 2017, with an expected increase to be reported in 2018, it is likely it will be years before homebuyers are able to comfortably afford homes in the Dublin market.

It is likely that they will begin to look in the neighboring areas where prices are less competitive and there is less demand.

If, and when, housing price inflation regulates, it is possible there will be …

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Second Quarter Predictions

With the Ireland housing crisis still well underway, there are little signs of recovery for a long while, making the current state of the housing market to become the new normal.

The Irish population has begun to accept what it is and proceeding with their life as with an “oh well” attitude. The new normal is here and taking over the Irish community.

With signs of the housing prices to possibly be slowing on their steep upward journey, consumers may begin to come back into the housing market as more active buyers than the market has seen in recent trends.

The second quarter of 2018 brought on some surprising numbers as the overall rates were finally evaluated and ready for assessment.

House prices rose nationally by 2.7pc with an average house price of 254,000 euro, or, 5.6 pc higher than the previous year.

These prices and statistics representing the nation as a whole. However, Dublin alone typically has a large impact on these reports.

In just Dublin, prices rose 1.8pc from March to June….an insignificant rise in just a four-month …

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Is the Housing Market Really Recovering?

The Irish property and housing market have been working to recover since 2012, solely funded byways of international capital.

That’s nearly 6 years of borrowing to achieve a market that remains in the midst of a crisis.

Foreign investors have for long been a very prominent component in the market as they have achieved multiple ways of investing in properties and homes in which provided for a strong return.

International investors have been tracked as using a strategy in which all of their funds went to purchasing the most inexpensive properties in the cities of Ireland and reselling them at extremely high prices to buyers.

This is a smart way for investors to get the highest return possible and make the most out of their investment contributions.

Some investors have begun in the flipping business in which they would sometimes reconstruct entire office blocks for re-selling. By doing this they as said above, are able to buy for extremely low prices and make a large profit margin when reselling.

The latest development in the …

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Buy-To-Let Homes in Arrears

Why have recent reports been showing an increase in the number of mortgages being in arrears? More specifically the interest-only mortgages? And furthermore specifically, those on buy-to-let homes?

Interest only mortgages are typically mortgages that are seen to be taken by investors searching for a more affordable option to the standard mortgage scheme.

So, why has it been found that those who hold interest-only mortgages are more likely to be in arrears today?

In a recent study by the Central Bank, it was found that this is the case for investors on an interest-only mortgage deal for buy-to-let homes.

The surplus in interest-only mortgages that we are seeing today was initiated by buyers of high end and expensive properties during the last housing boom.

It is predicted now, that we will see a strong increase in the amount of homeowner to go into arrears as nearly a third of the interest-only mortgages have plans to make the switch to paying a traditional capital and interest mortgage from present 2018 to 2022.

It is not of a …

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What the Numbers Mean for those Looking to Buy

Ireland as a whole is eagerly waiting for each month to come, and new statistics to be published. Statistics in regards to the housing market and what can be expected by the next months’ forecasts.

It is with eager thoughts that positive reports mean future gains and future gains mean economic development and of course, citizens of Ireland to get into their homes.

A country with many living in a distressed state as they give up their dreams of home ownership or settle for someplace they simply don’t want, these reports sit a little heavy.

With every new reported couple/persons in the home buyer cluster there comes a story as to why they aren’t following their initial plans.

Maybe they can’t afford their dream home, the supply of homes isn’t available in their price range, or they gave up after years of looking to move into a one bedroom apartment, costing the same amount as a small home. The overlapping theme, unfulfilled.

Most individuals are hoping for the stats to tell them that the country is …

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How the Mortgage Market can Return to Normal Levels

Last week the Institute of Banking held a forum on behalf of the Irish Mortgage market in which Deputy Governor Ed Sibley delivered a speech addressing much of what is prevalent in the country today.

It began by briefing the current housing situation in Ireland. Simply put, it’s dreadful. As many are on the pursuit of suitable housing the “toxic legacies of the financial crisis” are proceeding to cause mayhem throughout the nation.

The forum started by discussing the role of the central bank. The central bank plays a much greater part in the overall mortgage market than one may think.

It is up to the central bank to ensure that “the economic and social good of mortgage provision is prudent, sustainable, and that the best interests of consumers are protected. “

The central bank has had to take extensive interventionist movements in the Irish mortgage market since the financial crisis as Ireland typically experiences extreme economic and human hardships when these certain risks arise.

In order for the mortgage market to function properly, consumers …

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The Mortgage Rate War

Good news is underway for those looking to enter the housing market, but find borrowing rates to be making it too expensive.

There’s a mortgage rate war.

Though this term sounds less than appealing, it is a war in favor of getting lower rates to borrowers and moving more first time buyers into the housing market.

As discussed in a previous posting, Ulster bank recently announced dramatic cuts in their variable and fixed mortgage rates.

The question racking everyone’s brain after such an announcement was, will other banks fall in line to stay competitive in the market?

Ulster caused increased competition in the market and even more so, posed a threat to the other banks.

These other banks were beginning to notice that in order to stay competitive they only had one choice…

To get to Ulster Bank levels or face the result that they may lose all new entrants into the market as well as some of the old.

Shortly after the announcement of Ulster Bank to reduce their mortgage rates, followed KBC …

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Current House Price Report

Recently released at the beginning of July 2018 was the housing price report for Q2. Though little differences appear on the surface, there are few small signs signaling a positive overall change in the market.

Home sale prices are currently up when compared to those of just three months to a year previous. This statistic is proven accurate for nearly all parts of the country, that is, with Donegal being an exception. Donegal typically is the outlier of the counties as Brexit is being found to have a strong impact on their housing market.

Because the housing market is still showing sign of increased demand coinciding with a weak development of new homes, it is predicted that the prices will continue to grow. However, with this most recent report from draft.ie, we see that the overall trend may be slowly changing as prices are only 5.6% higher than the current 0% inflation, being the lowest rate of inflation reported in nearly four years.

The last time Ireland has seen a similar situation to the one currently facing the economy was …

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Will Ulster Bank Dominate the Housing Market

Recently, Ulster Bank, a major mortgage lending bank, announced a drastic interest rate cut down to a 2.3% fixed rate for two years. Essentially blowing their competitors out of the water.

Against all other players in the market, the Ulster Bank is offering the lowest rate of all.

Ulster’s closest competitors, being the center at Haven Mortgages with a fixed rate set at 2.8%. All other banks showing rates setting at 3% – 3.2%.

The lingering question after this announcement by Ulster is, will we be seeing a shift in other banks to lower their rates as well?

This is an important question for the borrowers as well as the lenders for it impacts the business trend between banks.

If the competing banks believe they need to to stay competitive then it is likely that we will, however, if they have the advantage to keep them ahead of their competitors then they will have no need.

It is hard to say for sure if the other banks will follow in suit and lower their interest rates but that is genuinely …

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