We had an opinion piece on mortgages published in the Irish Examiner yesterday, you can see it by clicking on the image above or here.
Today we will cover some very practical tips which may help you get a better price when you are looking at a property. We suggest you take this list and print it, then as you are looking at a property check the various sections and use it as a rationale for your asking price, there may be things that were overlooked as well, so at worst this will help to ensure you don’t make unnecessary errors in deciding whether or not a certain property is good or not.
1. Is the garden in need of work? – If so you could ask that they either correct it or that you want more money off, a garden is generally a good selling point so if it is not well presented it can be a ‘red light’ telling you to go through the place with a fine toothed comb.
2. Does the fencing/walls need repair? – again, if there are any issues ask that they are remedied or they can discount the price by what it may cost to put the issue …
The charge applies mainly to owners of private rental property and holiday homes. It also applies to vacant residential property unless newly built but unsold (handy if you are a developer, lousy if you are the owner of a newly un-lettable gaff). Liability to pay the charge is assessed by the owners themselves. Ownership of a non-principal private residence on the ‘liability date’ (31st July 2009) determines liability to pay the €200 charge.
Payment is due by 30th September 2009. A €20 per month late payment fee will apply from 1st November in respect of each month for which payment is overdue. This bit is interesting – because normally surcharges and penalties for any unpaid tax are much much lower, this amounts to an ongoing 10% fine for every month – while €20 may not seem excessive, it is certainly (when viewed in percentage terms) extreme. Especially given that there is not much being published …
This is an interesting animated film on the origins of the crisis, it holds with the view that banks were only ever a part of the problem and not necessarily the sole cause. Central banks have a lot to answer for, as does all of society because when you stop saving and instead spend somebody else’s savings it means that eventually, when it comes time to repay your loans that not only is the money not there, but the productivity has likely suffered as well – income based on lending gives the artificial appearance of wealth but it is a mirage.
The falling interest rates are heralded by consumers of Irish mortgage companies as a godsend – well, for the clients of the Irish banks who actually pass on the full rate cuts that is! However, at the same time it creates a rate compression which damages the bank and this is what we will consider in this article.
Banks have two sides to the operation roughly speaking, on one side there is the lending function which we are all aware of, mortgages, car loans, personal loans etc. on the other side is the deposit taking function which provides part of the money they lend out. There is of course the interbank market which supplements (and often surpasses) deposit funds for lending, but to keep things simple we will focus on a world where deposits roughly equal lending.
In Ireland there are several methods of getting a mortgage, you can do it directly with a lender, or via an Intermediary (which is what Irish Mortgage Brokers are). Both lenders and Intermediaries are regulated by the Financial Regulator and they are the ones who set policies and regulations that all financial companies must adhere to.
If you need a mortgage ‘do some research’ would be the first piece of advice anybody should give you. There is nothing that can replace doing your own research, for such a massive undertaking as most mortgages are – the vast majority will make up more than 20% of your net income for quite some time – it is tantamount to irresponsible if you don’t try to familiarise yourself with the process and what it involves.
After that you need to work with a firm that you are happy with, sometimes you might know a person in the industry or maybe you will pick a company out of the Golden Pages but in any case make sure that you are satisfied the person you …