It's neither clear nor indisputable. Making NO other assumptions, you have presented a situation where the buyer will need to obtain a 94.5% LTV mortage due to the loss of the equity in their first property. If they had not lost equity in that property they would only need to request a 90% LTV mortage to trade up. One of these will clearly be easier to obtain than the other. That is an undisputable fact.It is a clear indisputable fact that the OP would be financially better off subject to my warnings.
The point is moot if you are unable to get a mortgage in the first place. The chance of hitting negative equity or requiring a high LTV mortgage to trade up increases greatly as the price of your starter house goes down.Cheaper houses mean you pay less if you are buying.
You're going way off topic here. Did I say anything to contradict this?I don't think you or I agree on anything. The reality of the Irish market is that it is seriously perverted and balanced on a mountain of debt. It serves noones interest to pretend that the extreme gearing as practiced in recent years is nothing more than abnormal and courting disaster.
You're absolutely right xb_deai. I know that 40 year mortgages are common in Spain and it's even possible to get a 50 year one, if you're young enough. I'm guessing that Camry 'chose' the 25 year term to be the industry standard as they thought it would back up the argument they were making.Not in Japan where there are 100 year mortages also in Switzerland and these are only countries where I know people who have purchased with such mortages so Im sure there are many similar examples in the world.
that's pretty inconsistent logic. In the same way the OP is €10k worse off by not delaying his purchase, the person in your example is €100k worse off than last year for not selling.
The alternative arguement is that at the point of purchase the OP paid €310k to live in a house. The OPs position has not changed in that regard. When you're talking about buying a house to live in rather than as a tradeable asset then you should not worry about any gains/losses on paper. Selling may not occur for years and who knows what way prices will go in the future
Is the house you paid deposit on in the same development as the houses now selling for a lower price? My understanding is that if the developer drops the price having sold some houses at a higher price the first buyers are entitled to a refund of the difference. ask the agent who sold the houses or a solicitor.
Comparison with other purchases makes no sense whatever.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?