Just Another Panic Sunday

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‘It has terrified first-time buyers, they are absolutely panicking. Our offices are being besieged by them. They think that if they don’t buy right now, they will never be able to.” The speaker is Keith Lowe, chief executive of one of the country’s biggest estate agents, DNG. The subject is the new mortgage-lending limits proposed by the Central Bank this week – proposals which many property experts are describing as one of the Central Bank’s worst-ever mistakes.

First-time buyer? Maybe it’s time to start panicking (Sarah McCabe, Sunday Independent)

What Goes Up writes:

“This article (above) is surely a sign that it’s time for First Time Buyers to crack each other’s heads open and feast on the goo inside…”

30 thoughts on “Just Another Panic Sunday

  1. Jack O'Neill

    It’s interesting to see the proposed Central Bank’s 20% deposit rate proposal has had on the VIs-they’re running scared that the pyramid scheme might grind to a clattering halt. And just when they’ve dusted off the expensive printing presses left idle after the crash. If people believe their motivations to be honest reportage then it’s game over (again) for the country. Is this all we can do? Sell houses to each other?

  2. rugbylane

    Don’t panic. Wait for the new restrictions to kick in and watch the prices stabilise in an instant. The whole point of the 20% deposit is that it will inhibit excessive lending. If only we had the restriction for the last 15 years, we would never have had a crash.

    1. Jess

      I doubt they’re going to stabilise to the point where anyone on a middle income will have 20% of the house price. Even if they drop to say 200 grand, thats 40 grand you need in a deposit. And without being an aesthetic that lives with his parents I dont think thats plausable

      1. Oscar Wilde

        Indeed. To need twenty thousand from one parent may be regarded as a fortune. To need it from both looks like carelessness.

      2. sheesh

        I’m kind of of the opinion that if you can’t afford 20% deposit, you probably can’t afford the house. Saving for a house should take a few years, and prove you have the available cash for repayments and the discipline to budget.
        (FWIW I’m saving with the aim to buy in 2016, 20% deposit was always my goal)

        1. Jess

          It just doesn’t work. Saving 40 grand while trying to rent in dublin where half of your wages can go on rent and utilities is a non starter for some people.

          I could afford the mortgage payments as I can currently afford the rent. Its the deposit and stamp duty that will stop me, theres a huge difference between the two.

          Lets also not forget the pressure this will put on the rental market. But the politicians and central banker couldnt give two low fibre shits about those who rent

          1. What Goes Up...

            Interest rates that the banks can borrow at are at a historic low.

            There is an inverse relationship between house prices and interest rates.

            At some stage interest rates will rise – and with it peoples mortgage repayments.

            At some stage prices will fall – and with it the amount of deposit required for deposit.

            The 20% deposit isn’t to protect people – it’s to protect the banks by ensuring the first 20% of any loss in house prices is eaten by the borrower.

            So there is a logic behind what the ECB (there is no way the Irish Central Bank came up with this – they are simply doing their master’s bidding) is doing – but you’re not a factor in it, other than to be screwed, one way or another!

        2. Parp

          Even if you put €500 aside every month, it will take you 6.6 years to save €40,000. Good luck trying to do that on a semi decent wage and renting in Dublin.

  3. Adamski

    As a potential first time buyer, I don’t like the decision, but it does make economic sense. If things were left unchanged where would we end up? Back where we were, is where. Just look at the 25% rise of house prices in the Dublin area in just ONE year. The central back had to take action and did. Unpalatable, but necessary.

  4. Disasta

    Think id like to live in the country anyway. Build a green house, grow veg, defecate in the back garden.

    1. Lilly

      I have a friend who is moving to the sticks but has been postponing putting his Dublin house on the market because he was waiting to see how high its price would climb. He’s now going to sell in January as a result of this move by the Central Bank. I see this as a good thing – the idea of people sitting on properties to see how high the market will go is the kind of nonsense that got us into the last mess.

      1. Lilly

        Since heard he now wants to sell ASAP. Seems the panic could be in the vendors’ camp. We can take it the Sindo won’t be reporting that, as they sh*t themselves over the investment property they bought ‘as a pension’.

  5. tomkildare

    Yeer pricing are correct to build once off housing. To build a multi unit building you must buy the Land€€€€ pay development Levies€€€€€ 10% Siocial housing €€€€ build roads and paths€€€€ under ground parking€€€€€ lifts and internal spaces€€€€ playground and green spaces€€€€ solar energy€€€€€ then build costs€€€€€ the selling fees and advertising€€€€ then you sell those properties with 13.5% Vat to take out, then you have to take account borrowing costs of the money you borrow for the development. That all comes to around 250K for a 2 bed outside m50 with very small amount of profit. Why do you think the builders are not building now banks are lending. There is no profit in it at the moment

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