Will the proposed limits cause a spike in prices, and then a fall?

Seery

Registered User
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Just heard the news. Not sure how it will affect me to be honest so I'd love to hear people's thoughts.

I'm currently bidding on a property in Dublin City. Around €260k at the moment. As it stands we have decent savings and a decent combined income as well. We could afford a more expensive house to be honest, but this house suits our needs and we like the location etc.

If these new rules were implemented we could still afford to buy this house as we would have over 20% deposit and would get finance on the rest based on our combined income.

My interpretation of the current situation is that many people who are currently in the bidding process or are considering buying will now panic and rush to close before the end of the year.

Am I better off holding off until the rules come in as it might cool the market a bit and the whole bidding process as well. I'm concerned that we could end up paying too much for this house as we do like it and the other bidders might panic and bid over the odds too in order to buy before the end of year.

It's a tough one. I like the house. These houses don't come up too often, as we've been in the market for months now. It would be a shame to wait and see. Is it likely we'll see a panic now, followed by a drop in prices in the new year? Surely somebody has a crystal ball out there?! :)
 
Seery. I do not think the Central Bank proposalwill affect you. As I understand it this is a proposal by the Central Bank which will not come into effect until the 1st of January next at the earliest. The banks have until mid Dec to make their views known on this. It probably will be watered down a bit before it is implemented and will be open to interpretation by the lending institutions.
There is still time for people who intend to purchase in the near term to have mortgage approval got before this Central Bank proposal comes into effect. I just have the feeling that it will not be as severe as people fear. It might be no harm if something could be done to slow down the rapid price rises in some areas of the market.
I know it is mainly caused by a supply issue. It is difficult to interfere with market forces and remain fair to everyone.
 
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