Mortgage relief question

brian2614

Just looking for some people's views on my situation.

Basically I am ready to buy a house.The question is to hold out a bit longer till next year and risk losing the mortgage relief or buy now.
I live in Waterford and seen house prices fall a good bit but I think there is more to come.

Would anyone think that the mortgage relief will be extended seen as the threat to get rid this year hasn't kicked off a buying frenzy???

kdowling

Just do the maths op.
for a €300,000 at interest rate of 4.5% you would be saving €2,010 a year on mortgage interest relief for 5 years = €10,050

If your house price falls again (like it has done nearly every month since 2007), you only need it to fall by 3.35% to save the same €10,050

I think people are mad to buy now when every pointer out here from Nama's properties to be released onto market to increase in property taxes etc etc etc etc point to futher fall in prices

riclad

i think Prices will continue to fall, epecially outside,dublin, galway ,citys,
so the the tax credits will be matched by price falls in the future.
You have to take into account how much rent you are paying.
I Don,T think they,ll extend the tax credits past december this year.
of course it Has,nT kicked off a buying frenzy ,
most houses are bought with cash,
Even people with good jobs find it hard to get a loan ,.
You might get an 80 per cent loan ,ie you,ll need to have around 2o per cent saved up.

L1011

I suspect the loss of TRS will just be further downward pressure anyway, along with the property price DB. That said, I'm buying now for logistical reasons but I think holding out a little bit longer isn't going to work out badly.