First Time Buyers can't catch a break

First time buyers are being told ‘now is the time to buy’ in the papers. I think it’s time to spell out a few home truths for the prospective buyer just so that they are 100% sure of what they are getting into. Buying a home is fundamentally a good thing, doing so without knowing the facts however is not.

Firstly, property is in a downward market at the moment, that’s not opinion, its a fact. You can dress it up as a ‘re-adjustment’ a ‘balancing out’ or an ‘inter-cusp reductionary period’, heck, call it ‘my granny’ for all I care, it’s still down, plain and simple. So if you put an offer on a property and an Estate Agent tells you ‘you have to sign soon or you’ll lose the place!’, then lose it (unless they accepted an offer so low you have to snap at it!) no guilt, no apologies, and don’t you dare pay full asking price! The current Irish property market favours the buyer not the seller. I would even advise our clients to offer below …

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First Time Buyers can’t catch a break

First time buyers are being told ‘now is the time to buy’ in the papers. I think it’s time to spell out a few home truths for the prospective buyer just so that they are 100% sure of what they are getting into. Buying a home is fundamentally a good thing, doing so without knowing the facts however is not.

Firstly, property is in a downward market at the moment, that’s not opinion, its a fact. You can dress it up as a ‘re-adjustment’ a ‘balancing out’ or an ‘inter-cusp reductionary period’, heck, call it ‘my granny’ for all I care, it’s still down, plain and simple. So if you put an offer on a property and an Estate Agent tells you ‘you have to sign soon or you’ll lose the place!’, then lose it (unless they accepted an offer so low you have to snap at it!) no guilt, no apologies, and don’t you dare pay full asking price! The current Irish property market favours the buyer not the seller. I would even advise our clients to offer below …

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US fed will inject $200 billion in cash in an effort to end the credit crunch

The United States Federal Reserve have announced that they will give a $200 billion dollar cash injection to ease the tensions in the credit market that are threatening to stall the wider US economy. They will buy mortgage backed security in return for cash and that will hopefully free up the credit markets and lending. Does that mean the Fed is taking on the risk the banks created? In a nutshell, yes, it does mean that, they are going to accept mortgage backed bonds from banks that were finding it hard to raise cash through the normal channels. So these institutions are not good enough for the market but they’ll do for the Fed.

The banks and financial institutions have taken a beating due to the credit crunch but it seems now that the fed is willing to stand up and be hit on behalf of the banks, so its like a guy who steps in to break up a fight and he turns out to be …

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Learn about Mortgages

If you want to learn about mortgages there are a few places to start.

Firstly you can take a course such as the ‘Mortgage Diploma’ offered by the LIA (Life Insurance Association – www.lia.ie) and that covers the subject in the fashion you would expect from a textbook, I personally feel that it is a good grounding but nothing can substitute experience.

Speaking to a person with several years of experience will enable you to get an insight into the working elements of mortgages and the things that separate good mortgages from bad ones, all mortgages were not created equal!

The people with experience are Mortgage Brokers, Bankers, Financial Advisors, Accountants and Solicitors. That is not an exhaustive list but it does cover the main industry players and if you want to get a good grounding spending some time with any of these people will go a long way towards educating you about mortgages.

The elements that define mortgages (if we are to take the main things) are LTV (that stands for ‘Loan to Value’), Rate, Term, and of course …

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People queueing to buy while 310 million is wiped off the property market

according to Irish Property Watch €310 million euro was the total amount that prices on the popular property website Daft were reduced by in from last March until this February. This looks at properties listed in the 26 counties and then the total amounts that the asking prices were decreased by and then adds them all up, in percentages the average was -7.6%

However there are a few things to bear in mind, firstly, The market is probably getting used to the idea of more realistic asking prices, the market has without doubt slowed down in the last 12 months and there probably is tendency of people who are listing their property for the first time since the slowdown began to price optimistically and then after an initial period to price more realistically or ‘price to sell’.

To the Bears this may be a sign that prices are falling at a spectacular rate, and that might be true, it could also mean that prices are simply coming in line with …

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The best mortgage rates & How to get them.

What are the best mortgage rates? Good question. The best rates or the best ‘rate’ are kind of a subjective thing because they depend on your personal situation.

For instance, the best ‘rate’ at the moment might be the Bank of Scotland Tracker at 4.55% but that may as well be pie in the sky if you are a first time buyer. Why? Simple, its because there is an LTV restriction on that of 50%. Which means that if you are buying a house for €400,000 you can get this rate only if your mortgage is €200,000 or less.

So What’s the point in communicating to a First Time Buyer the ‘best mortgage rate’ if its one that they are not really likely to qualify for? Naturally a broker will jump at this rate on behalf of their client if they are anywhere near qualifying for it however the percentage of First Time Buyers putting down a 50% deposit is surely quite small.

So in answer to the question I always here of ‘What is the best rate’ or ‘what …

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The best mortgage rates & How to get them.

What are the best mortgage rates? Good question. The best rates or the best ‘rate’ are kind of a subjective thing because they depend on your personal situation.

For instance, the best ‘rate’ at the moment might be the Bank of Scotland Tracker at 4.55% but that may as well be pie in the sky if you are a first time buyer. Why? Simple, its because there is an LTV restriction on that of 50%. Which means that if you are buying a house for €400,000 you can get this rate only if your mortgage is €200,000 or less.

So What’s the point in communicating to a First Time Buyer the ‘best mortgage rate’ if its one that they are not really likely to qualify for? Naturally a broker will jump at this rate on behalf of their client if they are anywhere near qualifying for it however the percentage of First Time Buyers putting down a 50% deposit is surely quite small.

So in answer to the question I always here of ‘What is the best rate’ or ‘what …

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You Can't catch me, I'm the Lynngerbread Man

Banks Chase Lynn’s Foreign Assets. I want to start by saying this is a classic example of throwing good money after bad if you ask me (not that anybody sought my opinion or anything).

Why? There are a few things to consider, and first and foremost I would say that currently banks need to concentrate on getting profitable and doing what they do best which is make money, because there is a financial sector crisis going on and initiating litigation abroad will simply dilute their efforts and get them in the papers for all the wrong reasons. what does a shareholder or mortgage holder from one of these institutions think when their bank is only mentioned in the press because they got ripped off? Its a PR nightmare, damned if you do damned if you don’t.

They are (apparently) chasing properties in Luxembourg, Portugal and Bulgaria. The latter country being a hotbed of corruption. I know a Dublin based solicitor who won a family law case awarding custody to the mother (based in Ireland) from the father (who had …

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You Can’t catch me, I’m the Lynngerbread Man

Banks Chase Lynn’s Foreign Assets. I want to start by saying this is a classic example of throwing good money after bad if you ask me (not that anybody sought my opinion or anything).

Why? There are a few things to consider, and first and foremost I would say that currently banks need to concentrate on getting profitable and doing what they do best which is make money, because there is a financial sector crisis going on and initiating litigation abroad will simply dilute their efforts and get them in the papers for all the wrong reasons. what does a shareholder or mortgage holder from one of these institutions think when their bank is only mentioned in the press because they got ripped off? Its a PR nightmare, damned if you do damned if you don’t.

They are (apparently) chasing properties in Luxembourg, Portugal and Bulgaria. The latter country being a hotbed of corruption. I know a Dublin based solicitor who won a family law case awarding custody to the mother (based in Ireland) from the father (who had …

Read More