Depending on when they bought, there are plenty of non-FTBers who don't know what negative equity is also....I wish we could ban the phrase "property ladder". It's not very reassuring that some first time buyers don't know what negative equity is.
There's already queues outside the few new developments going up. There's also bidding wars over houses that in a state of disrepair. It's nothing to do with the Central Bank regulations or bank lending practices, which are still extremely strict. There's a massive shortage of properties for sale!! The Central Bank slightly relaxing the rules for a few won't solve that problem. House building needs to start up again but developers won't do so while costs are too high for them.
Steven
www.bluewaterfp.ie
Yup, FTB friends of mine queued outside SoCoDu development for two hours recently, to find out that 16 of the 20 houses were already sold, due to people turning up with deposits in cash. Crazy.There's already queues outside the few new developments going up. There's also bidding wars over houses that in a state of disrepair. It's nothing to do with the Central Bank regulations or bank lending practices, which are still extremely strict. There's a massive shortage of properties for sale!! The Central Bank slightly relaxing the rules for a few won't solve that problem. House building needs to start up again but developers won't do so while costs are too high for them.
Steven
www.bluewaterfp.ie
But most who bought 6 to 18 years ago will be in negative equity. Those who bought before then may not be in nagative equity but less likely now to have a growing family and a huge need to move.Depending on when they bought, there are plenty of non-FTBers who don't know what negative equity is also....
But most who bought 6 to 18 years ago will be in negative equity.
But most who bought 6 to 18 years ago will be in negative equity. Those who bought before then may not be in nagative equity but less likely now to have a growing family and a huge need to move.
Doesn't sound right to me. Have you a source for this? I am guessing, without looking it up, that house prices are well ahead of where they were in 1998.
Even if they are not, most people who took out a mortgage 18 years ago, have paid down the mortgage substantially by now.
Brendan
That is a very significant loosening.
FTBs will be able to borrow up to 90% and 5% of them will be able to borrow more than 90%.
20% of SSBs will be able to borrow more than 80%.
Brendan
Unless i am missing something?
I expect that to rise to 3.5 times very soonWell, most FTBs don't actually borrow 3.5 times their gross income - on average they currently borrow 2.8 times their income.
The restrictions to FTB by the CBI have been completely relaxed. Say you have applied for an EBS mortgage. A few months ago you needed 20% deposit. Now what do you need ? EBS will give you 2% back, the Governmnet will indirectly give you 5% and now all you need is 10% deposit ( or could it be 3% ) The banks can also disregard the CBI provisions with regard to a percentage of mortgage applications! This coupled with an undersupply. ( btw the vulture funds must be laughing all the way to the bank ( tax free Cayman type bank ))
We need to put in place a building program for first time buyers ,It was done back in the eighties .We should be working on full planning premission for new estates and making housing sites availabile to small builders or self build for that matter once they meet the required standard.
My mortgage is 13 years old and I'm €100,000 in negative equity.
Most of my repayments were interest for many years so only really bringing down principle amount in last few years.
So how could your one have cost €330k and now be worth €135k?
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