Brendan Burgess
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[broken link removed] has told the [broken link removed] that borrowers should be required to have a deposit of just 10 per cent if looking for a mortgage of up to €500,000, in a submission to the regulator about proposed new limits on lending.
[broken link removed], meanwhile, has urged the regulator to retain the current informal regime where customers can borrow up to 90 per cent of the purchase price of their property unless evidence emerges that prices are running ahead of the long-term average.
The [broken link removed] (IMHO) has argued that first-time buyers should be excluded from the new rules.
The Green Party said it favours the Central Bank’s proposed changes but cautioned that it must be part of a package of reforms to the housing and rental market.
Now the IPAV says moves would push up rents further. Rents had already gone up 20pc in the past two months, the auctioneers said.
Pat Davitt of the IPAV called on Nama and banks to stop selling property portfolios and repossessed in blocks of units.
"The sale of these blocks of apartments will only give their foreign owners the opportunity to increase rents as they have done in the past two months by at least 20pc."
Hi Delboy
I wonder how many were sent to the Taoiseach or the CB in favour?
If you know of any submissions in favour, let me know. I will compile them and send them to the media and the politicians.
Brendan
It makes no sense!!!!!!!!
"Dear Taoiseach,
"I am writing to you because of the 20pc deposit that the banks will be looking for in January for people to buy a home.
"My husband and I are youth workers.
"We work very hard and have been doing our very best to save 10pc, plus legal fees plus costs to buy basics for our house.
"Now with this new rule coming in, how can we possibly rent and save this amount?
"My husband and I put a bid on a house on Monday at €173,000.
"There was eight people bidding.
"Yesterday, the bid reached €199,000 and we had to drop out.
"It had gone way over the original value and our budget.
"This broke our hearts.
"We had loved this house since the minute we walked into it and now it's gone.
"Everyone is panicking because they are thinking how can we do this come next year?
"We already have a wonderful boy aged two, and would love in the future to have another child.
"But we honestly can't afford to.
"We are doing our very best to put every penny away but we have to live too. We have to have fun.
"We have to treat ourselves and buy something new and remind ourselves about what's good about being alive.
"Do you realise how much pressure this is putting on people's lives?
"Do you realise that my husband feels so guilty that he cannot provide enough for us as a family that he thinks we may be renting for the rest of our lives?
"And to be honest, I could get over that.
"But we want to build a home for our child - we have already been uprooted twice because we are renting.
"I think as I have gone on, I have clearly expressed how annoyed and frustrated I am with what is happening in Ireland.
"Most of all, I am sad and hurt.
"I am not blaming you. This is not an angry woman having a rant or being aggressive towards you.
"It's a woman who is scared at what the future holds for her family.
"I do believe and trust that you are the ones who can make a difference.
"Please help us save this country.
"Save the people and give them something to smile about."
Morning Ireland reading out letters sent from people to the Taoiseach imploring him to force the CB to not bring in these rules...of course all the letters read out want the rules done away with. None read out that were in favour.
Some of those writing in .
Some of those writing in were recently outbid on houses and feel prices are going out of their reach....and so they obviously want to borrow way more than they planned, rather than save more or wait for house prices to come down to a normal level.
It MUST be left as a 'blunt instrument' as you call it. You and I both know if this gets watered down (in the way that you mention or otherwise), it will be fudged and not strictly adhered to. That's all part of the country we live in and the way things get done here.An LTv limit is initself a blunt instrument unless it is refined to a requirement that the amount must be backed by a regular savings record. Even in that event it does directly impact against the renters who cannot afford both to save for a deposit and pay the rent.
44brendan said:Why should these people be penalised. I.e. Should those people who have a good track record in paying a 1,500 monthly rent in Dublin be disbarred from taking out a mortgage at sa 1,200 a month purely because they don't have the additional capacity to save for the deposit. Why does this appear to make sense to so many intelligent people??
44brendan said:Howver LTV limits have no direct corelation with affordability as I have previously mentioned. I would love to hear some arguements to the contrary!
Government policy for this particular administration has been centred on rising property prices being a positive thing. The CGT exemption is symptomatic of that. I think it's fair to say that it has encouraged investors into the market - meaning your typical FTB'er has had to compete with said investor.Serotoninsid you mentioned the CGT exemption, not sure I get your point, it as in any case nothing to do with FTB's. For many would be landlords, and despite prices being low, or relatively low in Dublin, it's not enough of an incentive for investors to buy due to a) those burnt in the boom, b) those trapped as reluctant landlords c) those landlords who thought it was an easy option and got a rude awakening. Actually I wouldn't be a bit surprised if some of the 2013/4 purchasers are buying properties and leaving them empty for the next few years. Has anybody looked into that - I contemplated it myself.
IMHO have said today they want ftb's exempted. So that's all the mortgage brokers against it then!!!
Why on earth did it take the property market skyrocketing in Dublin before Honohan acted, what were he and his staff doing in the last five to ten years.
Even in that event it does directly impact against the renters who cannot afford both to save for a deposit and pay the rent.
Why should these people be penalised. I.e. Should those people who have a good track record in paying a 1,500 monthly rent in Dublin be disbarred from taking out a mortgage at sa 1,200 a month purely because they don't have the additional capacity to save for the deposit.
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