Central bank! (18)
saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
will this lead to higher rent and more people leaving Ireland?
opinions please.
I (like I often do, as I'm looking at buying a 2nd home because there isn't much else worthwhile to invest in) checked on rightmove.com and searched under "Ireland"...the prices of homes there is very reasonable (compared to over here)
Even though there are these proposed changes being made, which I saw on the news was coming over to the UK too...due to the lower cost of properties over there, it will not impact you like it will over here (even still its not an ideal situation all round).
On the news they was saying these changes is something they learnt from Norway as it worked there to put the breaks on the spiraling house prices in Norway
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Central Bank of the US. Soon it will die.
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saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
will this lead to higher rent and more people leaving Ireland?
opinions please.
Well, if housing prices increase, then this rule will price a lot of people out of the homeownership market. The more people come over to Ireland to buy investment property, the faster prices will increase, so this will keep the less wealthy people in a dependent rental situation.
I strongly suspect that this is now how things will trickle down though. I bet there will be some riders and exceptions and freedom left to local banks. People can also go to private mortgage lenders that operate independently. So perhaps business will just shift.
As a rule of thumb, real estate values always increase unless there is a serious economic downturn and/stagnation for a long time. Unless you have legal restriction to control rent, rents will naturally increase. You need to see what the renter protection laws are in Ireland. The fact that the ECB changes the lending rules should not affects rents and people who earn a living in Ireland are not likely to leave. Where should they go? Bulgaria? Rumania? and earn a lot less?
No need to worry, imo.
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saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
....yes....go back to the punt.....and get back to normality.......the euro is a washout.....jmo.will this lead to higher rent and more people leaving Ireland?
opinions please.
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saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
will this lead to higher rent and more people leaving Ireland?
opinions please.
How much does an 1800 sq ft ranch home on 1/2 acre lot cost in Ireland?
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galrads: How much does an 1800 sq ft ranch home on 1/2 acre lot cost in Ireland?
...if they find the way to help people to live longer say 200 years ,you might be able to offord it.........
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saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
will this lead to higher rent and more people leaving Ireland?
opinions please.
fewer people will qualify to buy so home prices will decrease but renters will pay more to accommodate them..
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truheart1941: ...if they find the way to help people to live longer say 200 years ,you might be able to offord it.........
Are homes, with any land, expensive in England too? Typically, an 1800 sq ft home on a half acre here is only around $250k USDs.
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galrads: Are homes, with any land, expensive in England too? Typically, an 1800 sq ft home on a half acre here is only around $250k USDs.
yes...around where I live ......about..£500.ooo.to a million..£,s.....not that I live in one.....but that's the going rate.........------ This thread is Archived ------
truheart1941: yes...around where I live ......about..£500.ooo.to a million..£,s.....not that I live in one.....but that's the going rate.........
Thanks for the info. Sounds like I might be able to afford a single room apartment with a window over there.
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saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
will this lead to higher rent and more people leaving Ireland?
opinions please.
Not an area that I know much on but it is something that the Central Bank should have done here in the early 2000's.
Loan to Value of 80% seems a good move. It was the craziness of 100% and 120% mortgages that contributed to the boom-bust.
Loan to Income of 3.5 also seems prudent.
The banks will have wriggle room to to move outside these parameters for between 10 and 20% of their customers depending on which category.
For buy to let/investment properties, the restrictions on LTV will be set at 70%.
Does this mean higher rents? It depends really. The property market is still in a bit of a flux here. There seems to be plenty of cash buyers around. However, the limited competition will lead to a slowing of the rate of price increases. It is a question of whether the cash buyers where looking for the capital gains of a quick flip. This is what was occurring during the boom.
These signals from the Central Bank will get people to think twice about "herd behaviour" and jumping into the market. The prices of houses in Ireland in pretty OK at the moment. It is the rate of increases in the prices that was really bothering people.
Another variable to consider is the signal this will have for the supply side of the market. Houses are 12% more expensive to build now than at the start of the recession. Will this act as a negative signal for builders to build?
There really is too many variables to consider when we are trying to think about future rental increases. It is always comforting to realise though that rental yields and house prices are correlated strongly much of the time.
It is also comforting to know that in the long term, these levels of restrictions do actually correlate to a healthy housing market.
The upcoming budget will also be interesting. What will the government do in relation to the market?
You must remember that if the current rate of price increases continued for the next couple of years until supply came online, then the rental prices would have increased massively too.
So my opinion is that this will help the market. There will be short run adjustment but they will be smoothed out.
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saoirse10: new Central Bank rules to be implemented next January, insisting that banks only give out a tiny number of mortgages where the buyers have a deposit of less than 20pc of the value of the property.mortgages should only be approved if the income is 70,000.
will this lead to higher rent and more people leaving Ireland?
opinions please.
So it sounds like the Central Bank is tightening up the requirements to buying a house. That's good because fast and loose fiscal policy by banks is what brought the global economy to it's knees. Federal reserves in the US and other countries have been putting Billions into the banking system to try to encourage economic growth but these slimy banks aren't lending it out but hoarding it hence the economy isn't recovering as it should because all that money is stashed in bank vaults and not finding its way into circulation.will this lead to higher rent and more people leaving Ireland?
opinions please.
The central bank is trying to change the way mortgage business is being done but they are basically failing the task.
If home buyers can't come up with at least 20% down payment, they shouldn't buy a house anyway. 0% down is what killed the economy last time. People with no skin in the game usually just walk away when the going gets rough leaving the bank holding the bag.
I don't see how this change would have any effect on the rental market. Might actually help it.
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galrads: Are homes, with any land, expensive in England too? Typically, an 1800 sq ft home on a half acre here is only around $250k USDs.
... because only 1000 people live in Ohio
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ooby_dooby: So it sounds like the Central Bank is tightening up the requirements to buying a house. That's good because fast and loose fiscal policy by banks is what brought the global economy to it's knees. Federal reserves in the US and other countries have been putting Billions into the banking system to try to encourage economic growth but these slimy banks aren't lending it out but hoarding it hence the economy isn't recovering as it should because all that money is stashed in bank vaults and not finding its way into circulation.
The central bank is trying to change the way mortgage business is being done but they are basically failing the task.
If home buyers can't come up with at least 20% down payment, they shouldn't buy a house anyway. 0% down is what killed the economy last time. People with no skin in the game usually just walk away when the going gets rough leaving the bank holding the bag.
I don't see how this change would have any effect on the rental market. Might actually help it.
The central bank is trying to change the way mortgage business is being done but they are basically failing the task.
If home buyers can't come up with at least 20% down payment, they shouldn't buy a house anyway. 0% down is what killed the economy last time. People with no skin in the game usually just walk away when the going gets rough leaving the bank holding the bag.
I don't see how this change would have any effect on the rental market. Might actually help it.
The banks aren't the only guilty ones. The "lawmakers" write collossal garbage into law. They should never let lawyers make laws about banking and finance... and that wasn't the reason the economy got killed. It was a contributing factor.
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galrads: Thanks for the info. Sounds like I might be able to afford a single room apartment with a window over there.
You right,m you would get a much more bigger property in the US than over here for the same price.
The prices of houses in the UK has spired out of control.
I do see a few houses (where their back garden backs on to a road) that have built a small ground floor studio at their end of their garden....to get a rental income.
Many loft conversions are taking place too. I have one myself...there is a Swedish student renting it currently.
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Nidifugous: ... because only 1000 people live in Ohio
we wouldn't have our high rate of road-rage incidents if that was the case.------ This thread is Archived ------
now getting back on topic..
forget about tryin to 'get a deal'
from the banks.. save your money
buy your own small hut fix it up
sell it... buy a bigger hut fix it up
buy a house fix it up on and on..
till you get an estate...
"if you have to have somethin to do".
myself... I live in an all terrain rv
and everythin ah own is all terrain..
have been threatened by two major banks
one because I caught em double dippin
into my money...
one showed up at work some time back
sayin it was THEIR money...
so decided to them at their own game...I would suggest
to you... just stay out of the big banks...
i deal with a small farm bank has good assets
and they don't steal...
forget about tryin to 'get a deal'
from the banks.. save your money
buy your own small hut fix it up
sell it... buy a bigger hut fix it up
buy a house fix it up on and on..
till you get an estate...
"if you have to have somethin to do".
myself... I live in an all terrain rv
and everythin ah own is all terrain..
have been threatened by two major banks
one because I caught em double dippin
into my money...
one showed up at work some time back
sayin it was THEIR money...
so decided to them at their own game...I would suggest
to you... just stay out of the big banks...
i deal with a small farm bank has good assets
and they don't steal...
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will this lead to higher rent and more people leaving Ireland?
opinions please.