Newstalk: Breakfast show speaks to Irish Mortgage Brokers

We were pleased to feature on Newstalk’s ‘Breakfast Show’ this week, to our surprise we became an association! To clarify, that was just a title oversight by the presenter, we are still our plain old regular selves working as brokers.

The piece was questioning the validity or need for first time buyer type grants and what it could mean for both buyers and the industry.

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Savings of €635 a year to be made in Mortgage Protection

We were mentioned in an article by Charlie Weston writing in the Independent about mortgage protection. The point was raised (figures supplied by the Competition and Consumer Protection Commission) that savings of up to €635 were possible.

The parts mentioning Irish Mortgage Brokers are what follows next: It’s normally done on a “joint life, first event” basis which means that if two people take out the policy and die simultaneously it only pays out once and the sum is usually engineered to cover only the balance of the loan.

It does this because it’s created as a “decreasing-term” policy, which means the amount it pays out decreases over time, the same as your mortgage does as you pay it.

It has a set term, in line with the mortgage term, according to Karl Deeter of Irish Mortgage Brokers.

So if you take out a mortgage for €250,000 over 25 years then this policy should track it fairly closely, so that if the policy holder or holders die the mortgage is cleared.

Typically, it’s the cheapest type of life …

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Is equality about money or rights?

In this piece which appeared originally in the Sunday Business Post on the 8th of May 2016, Karl Deeter questions the conventional wisdom of calls for a right to housing (or housing equality) being about ‘rights’ and that it is perhaps more about money and governance.

The script after this text in italics is the text of the article that was published.

When we hear people talk about inequality or social issues like housing, is it about money and process or is it about rights? This may seem obvious at first, but when you start to look into it, often it’s not so simple.

It’s obvious that a person with no place to call home isn’t equal to those who have such a place (be it rented or owned) and civil society generally accepts that this implies a certain level of duty on the rest of us.

Usually the state helps to equalise this situation by making the provision of a place to call home possible, be it social housing or emergency accommodation. This would lead to the assumption that …

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Irish Times article by John McCartney, Lorcan Sirr & Karl Deeter

The Irish Times carried an article by John McCartney (Savills), Lorcan Sirr (DIT Bolton St) and Karl Deeter (Irish Mortgage Brokers) about the issues surrounding a shift away from a home ownership model.

Our point isn’t that there is a definitive ‘right or wrong’ way to provide housing, obviously our market has massive issues at present, but the larger question is the long run effects and how a lack of household savings can turn a property crisis into a pension crisis of sorts.

That is why we need to find new solutions for more than just housing.

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The Edmund Honohan plan, in a nutshell, it’s bad policy

Last night on Claire Byrne Live the Master of the High Court, Edmund Honohan said that the constitution didn’t stand in the way of the state being able to pursue certain social agendas when it came to property and property rights.

This hinged on the back of an article in which the Minister with responsibility for housing Alan Kelly apparently said that the constitution blocked his ability to resolve our housing crisis, Honohan rebutted this with an open letter in the Sunday Independent.

What follows is an extract of the letter: Consequently, if the Oireachtas is of the view that the State should itself (or its local authorities) provide public housing “in the Common Good”, the State can (and probably, legally, should) decide not to wait the two/three years needed to build social housing but instead to immediately acquire houses now in private hands.

If the owners of these refuse to sell, acquisition can be by compulsory purchase with full compensation assessed by the arbitrator.

It so happens that there is a stock of such housing which has …

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Newstalk: Talking Point on housing, Saturday 9th April 2016

This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.

Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.

 

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Newstalk: Pat Kenny talks to Karl Deeter & Tom Parlon, 7th March 2016

Pat Kenny had Karl Deeter from Irish Mortgage Brokers on his show in studio and Tom Parlon on to discuss the current state of play in the Irish property market and to analyse why there wasn’t more construction and what the issues were given that there is a shortage of homes in the capital.

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RTE News at 6 features Irish Mortgage Brokers

We were asked for a comment on the Central Bank switching report by RTE News at 6. We believe it is telling us what many already intuitively know, that by being assertive and moving away from lenders who charge more that people will ultimately save money.

There is a counterbalancing argument about the savings being estimated over the life of the loan, but equally, the report doesn’t factor in switching contributions which could sway it back in favour of moving from expensive providers to lower cost lenders.

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Prudence puts you deeper in debt… Nice work by the Central Bank

The news that higher loan to values will have to be limited is being mistakenly applauded by many financial commentators, almost none of whom work in credit. Towards the end of the post we demonstrate that you can actually be worse off by being forced to wait and put down a larger deposit than if you acted normally and bought today with a 10% deposit.

That’s why taking a look at the numbers beneath and how it will affect mortgages is important. First time buyers are typically the younger end of the house owning spectrum, they largely chose to stay out of the market during the financial crisis, a good choice, very rational.

That is why the people renting rose so much between 2006 and 2011. A total of 474,788 households were in rented accommodation in 2011, a considerable rise of 47 per cent from 323,007 in 2006.

It created a build up of non-owners who want in, but who are not the main driver of property price increases …

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Compound interest

This video explains the upside and downside of compound interest. This is one of the fundamental lessons in understanding money, and although it’s ‘back to basics’ there is nothing wrong with repeating the primary lessons to aid retention.

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