Affordable Home Schemes

With the current housing crisis in the midst of the country, many plans have been developed to get the country out of its current slump. Some merely get laughed at, while others are well on their way to implementation within the housing market. It is likely that before long these effects will take a toll in the market and we will begin to see some upward movement in home buyer confidence.

The government has been quick to release multiple initiatives set out with the goal to turn the crisis around and allow the market to begin looking up. The Home Loan Scheme recently announced by the government is designed with the strategic plan to provide low-cost mortgages to first time home buyers.

With the first announcement of such a plan, many home buyers are thinking; is this too good to be true? As they have been waiting for an extended period of time for some light to be shed on the crisis that allows them to finally move into the homeowner sector.

The Rebuilding Ireland Home Loan …

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McWilliams Ireland: Are we in a property bubble? (2nd November 2017)

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.

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Irish Mortgage Brokers press coverage on Budget 2018

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”.

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Q102 Drive at 5 features Irish Mortgage Brokers, Wednesday 26th April

Scott and Venetia had us on their show to discuss the property market and to go through some of the things that are affecting it.

They also found out how much he paid for his last haircut and a few other unusual things that you don’t normally hear on radio!

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Today FM, Irish Mortgage Brokers feature on ‘The Last Word’ with Matt Cooper

We were pleased to be part of a discussion with Matt Cooper (Today FM) and Kevin Doyle (political editor at The Independent) on the topic of housing on The Last Word.

The analysis we provided was to make the point that help to buy cannot possibly be behind house price increases across the nation. We also made the point that prices would have risen even without it and that you need to look at the secular trend not just the short term ones.

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Generation Rent? Try generation Broke

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 …

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Making sense of ‘help to buy’

Yesterday Revenue announced the details of the new ‘help to buy’ scheme. It is designed to make buying a home more realistic for first time buyers and to increase the supply of new homes. Whether it’s a good or bad idea is beside the point, what most people want to know is how it works so here’s the breakdown.

It’s a scheme to allow first time buyers buying a new home to get a rebate of up to 5% of the purchase price or contract price (whichever is the lower) from income tax and DIRT tax paid in the past four tax years to a maximum of €20,000. The property must cost less than €500,000 or 600k for retrospective applications, the size of the loan versus the value of the property must also be 70% or more.

So, for every €100,000 of value you must be borrowing at least €70,000 the idea being that very cash rich buyers don’t need this help. It started on the 19th of July 2016 and goes until the 31 Dec 2019.

Now that it’s …

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Central Bank rule changes discussed on Today FM’s ‘The Last Word’

We were part of a panel discussion with Matt Cooper on the ‘The Last Word’ the day the Central Bank rule changes were announced.

The panel consisted of Charlie Weston from the Irish Independent, Brendan Burgess from AskAboutMoney.com and Karl Deeter of Irish Mortgage Brokers.

There were differing views where the for/against was clearly laid out and the concerns about whether it’s a good idea.

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