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Yesterday: Estate Of The Nation
Bay Meadows in Dublin 15
Via The Irish Times:
A global investment company has been involved in the acquisition of a new development of 112 houses in north Dublin in order to rent them out.
Round Hill Capital is the same company which also bought most of the houses in a Maynooth, Co Kildare, housing estate.
The company, together with SFO Capital Partners, has acquired Bay Meadows in Dublin 15, which it describes as “high-quality suburban family homes”.
Investment firms buy estate of 112 new houses in Dublin to rent out (Irish Times)
Mullen Park estate, Maynooth, county Kildare.
The 170-home estate has had 135 homes bought by Round Hill Capital, a global property investment firm, who will be putting the houses on the rental market, making them unavailable to first-time buyers in Ireland.
The Irish Times reports:
“First-time buyers need to be earning nearly €100,000 a year to secure a mortgage for a new home in Dublin, a report by KBC Bank has indicated.
“The study found that the price of new homes purchased by first-time buyers has “virtually doubled” from about €200,000 to €380,000 since 2012. This has eroded affordability for first-time buyers, it said.
“A first-time buyer or a dual-income first-buyer household availing of a 90 per cent loan-to-mortgage would typically need an income of €98,000 to qualify, the report noted.”
First-time buyers need incomes of €100,000 to buy new homes in Dublin (Eoin Burke-Kennedy, The Irish Times)
Fiona Reddan, in the Irish Times, reports:
“First-time buyers are struggling to get on the first step of the property ladder as a result of a significant increase in the down payment required to fund the property transaction.”
“According to figures from the Banking & Payments Federation Ireland (BPFI), the average deposit needed to buy a property in Dublin has more than doubled to €51,000 as of the end of 2015, a level of savings which may be out of the reach of many.”
“…The new regulations mainly affect those looking to buy property in the larger metropolitan parts of the country, where a deposit of 80 per cent is needed for property purchases for first time buyers on the portion in excess of €220,000.”
Soaring deposits puts houses out of first-time buyers’ reach (The Irish Times)
A cautious twenty per cent down?
The Central Bank will offer some relief for first-time buyers under revised rules on mortgage lending. Prospective home-buyers will have to save bigger deposits under the regulations. Banks will only be able to lend up to a maximum of 80% of a property’s value for most owner-occupiers.
However, they will be able to lend up to 90% of the value of the home to first-time buyers up to a limit of €220,000.
This means that first-time buyers will need a 10% deposit for the first €220,000 of their property’s cost and 20% of whatever is above this limit.
For buy-to-let mortgages, the figure is 70%.
90% loans for first-time buyers under new rules (RTÉ)
‘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…”
Mark Simpson is a BBC reporter for Dublin and Belfast.
Eamonn Farrell/Photocall Ireland