What is the difference between Fixed and Variable Rate Mortgages?

The two most common types of mortgage are fixed-rate mortgages and variable-rate mortgages. Although there are many options among these two types in Ireland, the first step in searching for a mortgage is identifying which of the two primary loan type best meets your requirements. Most people seeking to own homes usually find themselves torn between taking fixed or variable loans. A fixed-rate mortgage has a fixed interest rate that does not alter during the loan period. Most individuals see Variable Rate Mortgages as being too much complex than the Fixed Rate Mortgages because the interest rate charged initially on Variable Rate Mortgages (VRMs) is usually set under the rates that are being charged in the market. The amount of deposit and interest paid each month for Fixed-Rate Mortgages may vary; the overall payment stays consistent, making budgeting for homeowners simple.

The primary benefit of a fixed-rate loan is that it protects the borrower against a significant and unexpected rise in mortgage repayments if interest rates climb. Fixed-rate mortgages are simple to comprehend and differ little from one lender …

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Looking to buy a home? Here are 5 things to avoid

Thanks to the internet, the buying of property is now an easy process in Ireland. There is plenty of information that is available for you whenever you wish to undertake a research on the process of buying a home. Despite this being the case, many people in Ireland fall into common traps. This posts aims to highlight five major things to avoid so that you can purchase your next property in a stress-free manner.

Ignoring the math

Without a doubt, the most important step to take when considering to buy a home is working out exactly the amount of money you will have to spend to purchase it. While this can be very obvious, a majority of people do not often work out the amount of money they would need to spend, and this leave many of them facing serious financial shocks later down the line. One of the most common mistakes is concentrating only on both the deposit and the purchase price without knowing that there are other fees like survey fees, solicitor’s fee, and Stamp Duty. The …

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Top 5 Cities to invest in Ireland 2021

Investing in property is one of the biggest decision you will ever make in life. Location is perhaps the most significant factor to take into consideration. As an investment, property in a good location will continue to be an asset regardless of the future fluctuations in the real estate market.  In Ireland, there are 5 cities which guarantee that your property continues to be profitable investments because of a good flow of tenants, low maintenance costs, high capital appreciation, and the good rental yield.

Dublin

Of course, Dublin is first in the list. The city is at the top of the list when it comes to best places to purchase property according to the Emerging Trends in Real Estate Reports of 2020. The city’s real estate market is powerful in terms of both development prospects and investment potential. The city comes third after Berlin and Lisbon as the best place to invest in the whole of Europe. The growth of technology in the city is attracting tech giants like Facebook and Google, whose growing number of employees prefer to …

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Methods to start growing money 101

Everybody wants their money to increase. But let’s think about the most fundamental question – what’s it to be rich in Ireland? Before we get to the ‘how to’, do you drive a BMW or have luxury cruises and eat at the high-end restaurants? Well, this is only the icing on the cake. It’s enough money to be truly prosperous, to assure a financial future. How can we become rich if we cut to the chase? Have you ever wondered what is common to the rich? It’s their approach to money and, of course, a little luck. Wealthy individuals invest in the long-term and are not dismissed by transitory upheavals and falling. 

The first best way to grow money is avoiding debt. Debt is like marsh for many individuals and therefore, it should be avoided because it gets them stuck as they get deeper. Build a habit that you won’t accept extra debt no matter what. Probably the most significant impediment to being affluent for most of us. When you want to invest, prioritize two things; pay off your …

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Why are Mortgage Interest Rates so High in Ireland?

Recent reports from the Central Bank of Ireland indicate that mortgage holders in Ireland are still paying much higher interest rates as compared to most of their  neighbors in Europe. Therefore, why are people in Ireland paying high mortgage rates and is there a way to reduce it? Currently the  interest rate for a first-time buyer is at 2.79 percent, which means that it is now the highest in all of the 19 countries in Europe together with Greece. Despite the fact that the interest rates have dropped by 0.11 percent as compared to last year, they are still way more than what is being charged in other places in Europe where the average rate is as little as 1.31 percent. 

In a report by the Banking and Payment Federation of Ireland (BPFI), the mortgage for a first-time-buyer in Ireland is approximately €225,000. Basically, this means that someone who borrows this amount with the hopes of repaying it in 30 years ends up paying an extra of €167 per month and over €2,000 annually as compared to other countries …

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Dublin, Ireland the next tech city?

Cities are formed by their socioeconomic environments, and therefore, external developments of all sizes heavily impact them. The urban effects of deindustrialization and global economic restructuring are well documented.  From the Industrial Revolution to the 21st Century, urban transitions mirror societal changes. This is seen in North American and European cities, and in less-developed nations where massive industrialization is currently taking place. Dublin is symbolic of urban economic reform since it has seen substantial changes in recent years making it the next tech city.

Ireland was one of Europe’s wealthiest nations from the mid-1990s until 2007, when the global financial crisis struck, with the country’s GDP almost twice the European standards. The economic expansion was fueled by the convergence of several intrinsic and extrinsic factors. Also, a sequence of pro-growth government legislative proposals, such as the provision of efficient monetary rewards to attract more foreign investment, particularly from North American sophisticated production company and service companies, and, for the first time in Irish history, massive net immigration was witnessed. The most remarkable effects have been felt in the Greater Dublin …

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Want to switch mortgages in Ireland?

By switching your mortgage, you can save a lot of money. Mortgage is most likely to be the biggest household expense for many years, so this bill is one that most people do not want to overpay on. Therefore, just like any other bill, you should always opt to switch your mortgage every few years so that you can be sure that you are not overpaying.

Without a doubt, you could save a lot by switching mortgages. If you have a mortgage with a balance of €250,000 and are currently paying 4.5 percent standard variable rate, and have a minimum of 20 percent equity in your home, you could save approximately €300 each month by switching to the most affordable on the market. This translates to a lot of savings. Despite the fact that there are certain upfront costs linked to switching providers, banks can offer cashback to the individuals who switch. 

Every financial institution has its unique set of criteria for allowing its customers to switch their mortgage. In the event that your financial situation has changed negatively since …

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What will the Local Property Tax changes mean for you?

On 2 June 2021, Finance Minister Paschal Donohoe confirmed the details of the Local Property Tax (LPT) changes. Once the changes go into effect on 1 November, the government estimates that just over a third (36 percent) of property owners will see an increase on their bill, just over half (53 percent) will see no change at all, and 11 percent will see their tax payments reduced.

First off, what is the Local Property Tax? The Local Property Tax was introduced in 2013, and it is an annual charge on all residential properties in the State. Basically, if you own a residential property, you will have to pay this tax. The charges are currently based on self-assessed valuations carried out in 2013. The amount you pay is based on the valuation of your property, and there are 20 different LPT bands, with the lowest two having fixed rate charges of €90 and €225. The problem with these valuations is that property prices have surged since 2013, while the valuations of property for LPT purposes have not changed since 1 May 2013. …

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Is state intervention required to stop ‘cuckoo’ funds from buying homes?

We spoke to Newstalk about the idea of whether the state needs to intervene to stop ‘cuckoo’ funds from buying up homes. This is because the sale of a housing estate became a national press story due to a fund coming in to buy it up.

It is understandable that people are upset, there are buyers who had set their hopes on living in those properties, but that emotion can’t eradicate the fact that renters are people too and they also need homes, family homes. Or that there are people who may not want to buy or can’t afford to who need family homes.

These things all need to be considered and it isn’t as simple as saying it’s universally good or bad, the clip will help to make this clear.

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5 Things to Consider when Viewing a House in Ireland

As a first time buyer, viewing houses can be exhausting. There are countless things to consider, such as the layout of the home, the location and nearby schools, and much, much more. This can be a bit overwhelming when viewing open houses, as there is so much to observe you might miss some key details about the property. In this article, we will discuss 5 key things to observe and be aware of when viewing houses, so your dream home doesn’t turn into a nightmare.

1.How long has the property been on the market?

The first question you should ask the estate agent is how long the property has been on the market. If a property has been on the market for more than a few months and still isn’t selling, there’s usually a reason why. While this could come down to a number of things, from price to hidden structural issues to low demand, this is a good gauge of potential red flags.

2. Account for renovation

Many people make the mistake of buying houses that appear to be …

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