**Warning**Developers offer Interest free loans to attract buyers**

punchestown

The disturbing aspect of this is that it would be just better to slash the price by another 15-20%, which is the kind of subsidy that the interest freeloan over the term of a mortgage involves, but this notion just seems anatema to developers.


http://www.irishtimes.com/newspaper/frontpage/2008/0904/1220372098111.html?digest=1

I hope there is noone foolish enough here to think this is a good offer.

jackal

Indeed, they are really clutching at straws here.

Drop. The. Price.

gazzer

You would want to be a lunatic to take up this offer. So basically you have to repay this money back after 5 years ... where are you going to get it from? If you cant save money for a deposit while you are renting how in gods name are you going to be able to save thousands of pounds when you are forking out for mortgage payments and ludicrously expensive management fees where would you find the cash to save up to repay back the builder?

The only way you could repay back the money is IF the property is worth a hell of a lot more in 5 years time and then you remortgage and pay the developer what he is owed.

Jesus Christ this is one of the most rediculous proposals I have seen in a long long time. What happens if you dont have the money to repay the builder? I presume he gets the house/apartment back and you are out on your ear.

RichMc70

I read this story this morning and nearly choked on me toast.

How the fcuk can anyone even begin to consider such an idea is beyond me. Unless you've been living in the wilds of Borneo for the last 18 months you'd run a mile from any such scheme.

Shows desperation amongst some of the developers, but from a buyers perspective it would just reaffirm the sense in sitting on your hands and waiting whilst the market carries on the slide down that black hole.

gurramok

It's a 100% mortgage in another guise. Luckily, the prices they are offering are well out of reach for most FTB's so hopefully not many will get stung by this con.

Sir Digby Chicken Caesar

https://www.youtube.com/watch?v=KMU0tzLwhbE

those damn developers

Dirk Gently

|-*SxyDubGrrl93*-| wrote: »

https://www.youtube.com/watch?v=KMU0tzLwhbE

those damn developers

Looks like sure let him down.

Keith C

They wont admit publicly that their prices are too high, so they try reel in the last few suckers by making it look like developers are doing byers a favour :rolleyes:
Drop the price to affordable levels in line with what banks are loaning & then you might see market activity.

Hopefully enough people will read these internet sites & avoid all the VI spin!

connundrum

"There are two problems with this market - lack of money and lack of confidence," Mr Grehan says. "If we can provide one, we might be able to help the other. Sales have come to a halt because the banks will only lend 80 per cent and so people are having to come up with 20 per cent deposits. On a €300,000 property that's a €60,000 deposit and people simply do not have that money in savings."

I see no mention of the problem being inflated prices. Maybe one needs to read between the lines somewhat.

No, still can't see it.

SimpleSam06

Aren't there regulations to control these sorts of shenanigans? Financial lending is meant to be a fairly strictly controlled activity.

niceirishfella

This is a baloon payment scheme basically - and you'll be paying for something now which will be 11 to 15% cheaper in the nxt 8 to 12 months ..........such a gimmick........though i think it's unlikely to garner any real interest.

Can you imaging the contract you'd be entering into with a developer on one of these loans and the T&C's .......good god.....

gixerfixer

Sad thing is some people WILL think is a good deal

ZYX

punchestown wrote: »

The disturbing aspect of this is that it would be just better to slash the price by another 15-20%, .

Of course it would not be better for developer to drop price by 15-20%. For one it would cost more but more importantly for developer this way attracts a lot more interest. He has got a load free advertising on the Irish Times, probably on radio as well. Then to top it off Punchestown gives him free advertising here on Boards, already viewed by 200 people at least. He already lowered price by 20% but I never even heard of this development before. By doing this he has now reached an audience of hundreds of thousands (all for free) within a day. It doesn't matter if the vast majority think it is a silly idea. He only has to convince 70 to buy an apartment.

mcdonrob

Ahhh... The good ol'days:
http://www.tribune.ie/archive/article/2004/nov/28/a-site-for-sure-buys-in-dublin/

These guys have only ONE concern... to get the banks off their back.

ronbyrne2005

I'd like some interviewer to ask the developer fella who was on radio all day that if he is so confident prices won't fall further and will rise from price he sells to you at over 5-7years then why doesnt he offer a price guaruntee? I'm sure people would pay 500k for a 2 bed in stillorgan if nominal price in 7 yrs was guaranteed.
Developers keep saying that the banks wont lend and are demanding large deposits but the banks say they have given approval to lots of FTBs but they are'nt buying as they expect prices to fall much further. Any developer worth his salt should slash prices and get as much back as he can ASAP.

Victor

niceirishfella wrote: »

This is a baloon payment scheme basically

You mean a bit like those "interest free" electrical goods that you pay 19% on in years 2-5?