House prices going to the moon. This only ends badly. Strap in everyone. Banks, builders and developers having a party now no doubt. Everyone else? Congrats, you can now take on more expensive debt and pay 14% more for the same property.
Big one I didn’t expect was second time buyers only needing a 10% deposit from next year
They’ve reduced the second home deposit from 20% to 10
That’s probably a bigger change than the 3.5 to 4 times salary
Either way this is going to increase prices at a time when they were beginning to slow
It should be measured on disposable income rather than some arbitrary income multiplier.
This just pushes the bottom up. If you struggled to afford a house with x3.5 your salary you’ll still struggle now with x4 because everyone moves up the ladder.
Removing the 20% for second time buyers means more prices go up too.
Banks rely on mortgages are their bread and butter. If people can’t afford houses they don’t make money. This is the last squeeze before an impending recession.
I thought something had to give but I thought they’d do something to tackle construction costs not just let people borrow more money.
Every policy that FF / FG have made increase house prices. Nothing is done to increase supply of houses. If your young and getting locked out of the market, this is only going to make things worse.
The only positive to this is that it may encourage developers to build more houses with the prospect of larger profits.
This will only increase the price buyers ask for their houses. But the real problems are the lack of supply of housing and the high cost of materials and building, the lack of supply is down to years of under delivery. The lending rules are strict anyway but most people are waiting till they are in a relationship before buying as cost are already so high. It feels like another kick in the teeth for the younger generations, they can borrow more when internet rates are higher and enrich the older generations who already have the property. If I was leaving college now, I would just leave Ireland even though there are lots of opportunities in the field I work in here.
Ah, sure, what’s the worst that could happen!?
I see a lot of people saying that house prices will go up because of this…is that all houses or more so new-builds?
Oh yay, still can’t afford a house
Making it easier to buy a second home is exactly what is NOT needed. At a time like this, first-time buyers need.to be the priority.
Absolutely no one, except the central bank and government, thinks this is a good idea.
As the ecb increases rates to cool inflation the icb is increasing borrowing limits which will lead to riskier and higher borrowing
Trying to pump the housing market to keep the price from crashing due to rising interest rates, what a country
Ffs this housing market is fucked
right as house prices were slowing and looked like they might become affordable, the bank steps in to allow people buy at the inflated prices.
Not much has changed about Ireland since the 00s. Still a cozy club of bankers, politicians and property developers working together to make as much money as they can off ordinary folk.
It’s easy for me to say this as I have my own house buying at 3.5X on both counts within the past 5 years but I don’t think I’d be financially ok on a mortgage at 4.5X particularly with the current interest rates being hiked. I think 3.5X was a good protection to have in place for people. I do think 10% but and the adjustments for second time buyers definitely positive. Many 2nd time buyers bought so very small properties just to get on the ladder. When we were moving, first time buyers had to have a deposit of €50K plus whatever benefits they got for new builds Vs €100K for second time buyers.
Either way housing market is going to be fucked for a while. I’d expect a spike in prices but then to plummet again.
Looks to me that the building industry has the ear of the central bank. What will be the result of this? Higher house prices! Who benefits from this? Not any young person trying to buy a home.
There’s a couple of different issues here,
I hate to say it because it will upset some people but the interest rate rises we have seen of late are not nearly high enough. Real-world inflation is arguably above 8% or so. The tiny face-saving rate increases will do little to slow down.
Then there is the issue of housing, there isn’t the supply, it’s way too hard to get planning permission, building costs have skyrocketed et cetera. That is the supply side of the creation, on the demand side, we have one of the youngest populations in the EU. They are looking to get their own homes. So there is demand from them as one would expect, but the government are facilitating 20,000 to 50,000 (depending on who you listen to) migrants coming here every month.
They are going to need someone to live! And councils and local authorities are buying up everything to facilitate their quotas. They are in direct price competition with young first-time buyers and pretty much have unlimited funds.
I don’t care if it sounds racist, discriminatory, nativist or what ever buzzword the open borders crowd have come up with this week. I mean where and when is it going to end? This state cannot accommodate everyone.
In my opinion, the Irish government should serve the interests of the Irish people that elected them first and foremost. help others afterword’s, by all means, but not at the expense of impoverishing our population.
Should they build more houses…. Absolutely. But this has been given lip service for ages. The government has no builders, seemingly they can do fuck all.
People mention that in the 60s and 70s they built lords of the states. There is a big difference between the 2 up 2 down houses of the past with the little or no installation and single glazed windows and a modern house now. Back then there was very little bureaucracy and red tape and building costs were very cheap, not the story now…..
​
post addon.
Just to clarify, I am not condoning this situation. I think some of the ECB, and governmental choices in what actions they take and refuse to take is making the situation even worse.
However, the problems with housing, rates and inflation, et cetera and difficult to analyse, summarise and supply ideas for partial solutions to in a relatively short post online.
Needless to say, the problems are a lot more complicated than some people choose to present them.
Why is the head of this English? Look at what they are doing over there, surly if he was good he would be over there working for more money..
22 comments
House prices going to the moon. This only ends badly. Strap in everyone. Banks, builders and developers having a party now no doubt. Everyone else? Congrats, you can now take on more expensive debt and pay 14% more for the same property.
Big one I didn’t expect was second time buyers only needing a 10% deposit from next year
They’ve reduced the second home deposit from 20% to 10
That’s probably a bigger change than the 3.5 to 4 times salary
Either way this is going to increase prices at a time when they were beginning to slow
It should be measured on disposable income rather than some arbitrary income multiplier.
This just pushes the bottom up. If you struggled to afford a house with x3.5 your salary you’ll still struggle now with x4 because everyone moves up the ladder.
Removing the 20% for second time buyers means more prices go up too.
Banks rely on mortgages are their bread and butter. If people can’t afford houses they don’t make money. This is the last squeeze before an impending recession.
I thought something had to give but I thought they’d do something to tackle construction costs not just let people borrow more money.
Every policy that FF / FG have made increase house prices. Nothing is done to increase supply of houses. If your young and getting locked out of the market, this is only going to make things worse.
The only positive to this is that it may encourage developers to build more houses with the prospect of larger profits.
This will only increase the price buyers ask for their houses. But the real problems are the lack of supply of housing and the high cost of materials and building, the lack of supply is down to years of under delivery. The lending rules are strict anyway but most people are waiting till they are in a relationship before buying as cost are already so high. It feels like another kick in the teeth for the younger generations, they can borrow more when internet rates are higher and enrich the older generations who already have the property. If I was leaving college now, I would just leave Ireland even though there are lots of opportunities in the field I work in here.
Ah, sure, what’s the worst that could happen!?
I see a lot of people saying that house prices will go up because of this…is that all houses or more so new-builds?
Oh yay, still can’t afford a house
Making it easier to buy a second home is exactly what is NOT needed. At a time like this, first-time buyers need.to be the priority.
Absolutely no one, except the central bank and government, thinks this is a good idea.
As the ecb increases rates to cool inflation the icb is increasing borrowing limits which will lead to riskier and higher borrowing
Trying to pump the housing market to keep the price from crashing due to rising interest rates, what a country
Ffs this housing market is fucked
right as house prices were slowing and looked like they might become affordable, the bank steps in to allow people buy at the inflated prices.
Not much has changed about Ireland since the 00s. Still a cozy club of bankers, politicians and property developers working together to make as much money as they can off ordinary folk.
It’s easy for me to say this as I have my own house buying at 3.5X on both counts within the past 5 years but I don’t think I’d be financially ok on a mortgage at 4.5X particularly with the current interest rates being hiked. I think 3.5X was a good protection to have in place for people. I do think 10% but and the adjustments for second time buyers definitely positive. Many 2nd time buyers bought so very small properties just to get on the ladder. When we were moving, first time buyers had to have a deposit of €50K plus whatever benefits they got for new builds Vs €100K for second time buyers.
Either way housing market is going to be fucked for a while. I’d expect a spike in prices but then to plummet again.
Looks to me that the building industry has the ear of the central bank. What will be the result of this? Higher house prices! Who benefits from this? Not any young person trying to buy a home.
There’s a couple of different issues here,
I hate to say it because it will upset some people but the interest rate rises we have seen of late are not nearly high enough. Real-world inflation is arguably above 8% or so. The tiny face-saving rate increases will do little to slow down.
Then there is the issue of housing, there isn’t the supply, it’s way too hard to get planning permission, building costs have skyrocketed et cetera. That is the supply side of the creation, on the demand side, we have one of the youngest populations in the EU. They are looking to get their own homes. So there is demand from them as one would expect, but the government are facilitating 20,000 to 50,000 (depending on who you listen to) migrants coming here every month.
They are going to need someone to live! And councils and local authorities are buying up everything to facilitate their quotas. They are in direct price competition with young first-time buyers and pretty much have unlimited funds.
I don’t care if it sounds racist, discriminatory, nativist or what ever buzzword the open borders crowd have come up with this week. I mean where and when is it going to end? This state cannot accommodate everyone.
In my opinion, the Irish government should serve the interests of the Irish people that elected them first and foremost. help others afterword’s, by all means, but not at the expense of impoverishing our population.
Should they build more houses…. Absolutely. But this has been given lip service for ages. The government has no builders, seemingly they can do fuck all.
People mention that in the 60s and 70s they built lords of the states. There is a big difference between the 2 up 2 down houses of the past with the little or no installation and single glazed windows and a modern house now. Back then there was very little bureaucracy and red tape and building costs were very cheap, not the story now…..
​
post addon.
Just to clarify, I am not condoning this situation. I think some of the ECB, and governmental choices in what actions they take and refuse to take is making the situation even worse.
However, the problems with housing, rates and inflation, et cetera and difficult to analyse, summarise and supply ideas for partial solutions to in a relatively short post online.
Needless to say, the problems are a lot more complicated than some people choose to present them.
Why is the head of this English? Look at what they are doing over there, surly if he was good he would be over there working for more money..