David McWilliams’s show ‘Ireland’ looked at the issue of property prices here and asked if we are in a ‘bubble’. He spoke to Karl Deeter from Irish Mortgage Brokers about this who made two points. The first was that we are too late to change the outcome of the property cycle, the second was that the biggest land hoarders in the state is the state itself and that Government should release land to flood the land market and drive down the primary costs of construction.
Cormac Ó hEadhra had Karl Deeter from Irish Mortgage Brokers on his show along with Joan Burton (Labour TD), Michael O’Regan (Irish Times), Carol Nolan (Sinn Fein TD), Colm Burke (Fine Gael Senator).
The discussion focused largely on the tracker mortgage scandal and also covered the stand-off in Stormont.
We had a lot of press covering budget 2018, our contributions are listed below:
Here is a piece from The Irish Sun. “You literally couldn’t hope for a better small country to do lobbying in because we managed to give nothing to anybody, everything to somebody, nobody is happy about it and everybody knows it was a fiscal version of the most average-looking horse in the glue factory”.
The Irish Independent also featured an article by Karl Deeter: It would take a special type of fool to fall for anything you hear in the Budget as being “in your favour”.
Pat Kenny had Irish Mortgage Brokers on the show to discuss NAMA, their role in building new housing and to consider some of the positives and negatives of this approach.
You can find an article at this link which mentions Karl Deeter, apart of Irish Mortgage Brokers – Bank accused of ‘gouging’ loyal customers cuts its fixed rates on June 15 2017. Article by Charlie Weston in the Independent.
Permanent TSB, a state-rescued bank, has been increasingly cutting fixed rates in response to being accused of manipulating their clients. The bank has lowered it’s two-year fixed mortgages from 7.25% to 4.20% and three-year fixed mortgages from 8.75% to 4.20%. They have almost halved both of their fixed rate mortgages but the variable rate at the bank has remained the same.
The Central Bank has noticed an increase of fixed variable rates compared to variable for both new borrowers and existing ones. Therefore, banks have been reducing fixed rates to increase competition amongst other banks. This will prevent clients to switching to other banks for better deals.
The bank also extended a 2% cashback on all new mortgage drawdowns, supposed to end this month but got extended to the end of the year.
Karl Deeter was mentioned accusing the bank …
Financial adviser Karl Deeter told the conference his research puts the non-engagement rate at closer to 80 per cent.
Mr Deeter said the courts are “predisposed” towards borrowers, and that people are given many chances before they lose their homes.
“There’s three magic rules if you want to lose your home: pay zero for a long period of time, don’t engage with your lender – and then don’t show up to court,” he said.
“These three inputs were central to virtually every case of possession we saw.”
Mr Deeter said that according to his research, more than 90 per cent of distressed borrowers who engaged with their lender were able to work out some sort of deal to avoid repossession.
We were really pleased to take part in a piece on RTE Radio 1’s ‘History Show with Myles Dungan’. The topic was historic property cycles and how the most recent crash was big news to most of us, but was far from the most enduring (which lasted about a century).
Karl Deeter of Irish Mortgage Brokers was on with Frank Quinn from the Blackrock Further Education Institute, the piece was based on their paper which had been presented to the Statistical and Social Inquiry Society of Ireland last October (David Duffy formerly of the ESRI and now of Property Ireland was also an author on the technical paper).
Matt Cooper had several guests in to discuss the new proposal for 800 sites owned by the government to be released in order to provide new housing.
There was Jim Bainam from the Department of Housing, Karl Deeter from Irish Mortgage Brokers and Sinn Fein TD Eoin O’Brionn.
There were differences of opinion in terms of the ‘how’ regarding the sites, in terms of ‘how they are delivered’ via housing bodies, local authorities or privately, but all of the panellists were positive about a move to increase housing supply.
The main thing to remember in our view, is that it doesn’t really matter who builds what because the local authority remain the tax authority on all housing so they can get the housing with no capital outlay and then capture the property tax in future years if a private developer does it.
We were mentioned in the Independent today in a story relating to the Central Bank, it hinged upon the fact that they had a ‘whistleblower’ line for people wanting to report financial wrongdoing and it wasn’t operating correctly which means they couldn’t take a call.
The story quoted us as follows: Compliance officer with Irish Mortgage Brokers Karl Deeter said it was not good enough that the whistleblower phone line was not being answered and emails not getting a response.
“Imagine if you called 999 to report a crime and no one answered. What would you think of our police service?” he said. A Central Bank spokesman claimed the problem had been rectified after the situation was raised with it by the Irish Independent.
It bothers me when people promote long-term renting as a better choice than home ownership because it belies some basic facts.
When I was studying accounting, I was taught to be accurate. When I was learning about financial advice, I was taught to be prudent. Yet both of these concerns are often cast aside when debating the benefits of buying versus renting.
Nationally we are at an important juncture. It’s acknowledged that huge numbers of people won’t be able to afford to buy a home. If this proves to be true, many will also be locked out of one of life’s most wealth-creating activities.
The first problem is the nature of the comparison. If rent is €1,300 a month and a mortgage costs €1,500, then it’s cheaper to rent, right? Well . . . no it isn’t. The outlay is less, but the actual cost of the provision of occupancy is the rent versus the interest portion of the mortgage, not the entire payment. I will explain that point.
People often say rent is dead money. To be fair, so …