Property Market 2015

flintash

gaius c wrote:

There's been a lot of huffing about this from various people but it looks like the rules are there to stay and people need to start budgeting according to them.

So last week i walk into my bank for a chat, with mortgage approval from June, and now they say, sorry Flintash, but there is new rules from central bank that came in the last few weeks, and we cannot give loan you were approved for back in June.
Im ****ing shocked! Rumours started last year,bank were told of this at the start of this year, yet they gave me piece of paper in june based on old rules. What a bunch of clowns! But anyways, i havent bought anything with the money i dont have, so im cool.
But for gods sake, when all this gonna come into affect fully into property market? i just cant believe in the current direction of it.

groovyg

Flintash I thought the new rules came into effect last January, bit surprised they gave mortgage approval based on the old rules back in June. Also doesn't mortgage approval only last 6 months?

flintash

Supposedly yes. But now i needed different mortgage- equity release mortgage, opposed to normal mortgage i asked for in the summer, maybe that changed the whole thing for me. I dont know. I didnt go into details with the bank, I had different questions in my head. Just wondering myself NOW, would they honor mortgage approval if i actually try to buy the house based on that one, probably not.

flintash

flintash wrote: »

Supposedly yes. But now i needed different mortgage- equity release mortgage, opposed to normal mortgage i asked for in the summer, maybe that changed the whole thing for me. I dont know. I didnt go into details with the bank, I had different questions in my head. Just wondering myself NOW, would they honor mortgage approval if i actually try to buy the house based on that one, probably not.

Probably not. The approval will have expired by now.

'Equity-release'? Wow - it's been a while since I've heard people talking about releasing the equity in their house.

If you are buying as an investor, you need a 30% deposit under the new rules.

flintash

groovyg wrote:

Also doesn't mortgage approval only last 6 months?

I cant recall exact date of letter of aproval, think it was end of june, and i called back second half of November. Counting on my fingers, still within 6 month . 😀

Barely Hedged

flintash wrote: »

So last week i walk into my bank for a chat, with mortgage approval from June, and now they say, sorry Flintash, but there is new rules from central bank that came in the last few weeks, and we cannot give loan you were approved for back in June.
Im ****ing shocked! Rumours started last year,bank were told of this at the start of this year, yet they gave me piece of paper in june based on old rules. What a bunch of clowns! But anyways, i havent bought anything with the money i dont have, so im cool.
But for gods sake, when all this gonna come into affect fully into property market? i just cant believe in the current direction of it.

Sounds like the bank did you a favour. You aimed at a target mortgage amount and they shot you down when the nitty gritty was worked out. Would you have preferred if they had burdened you with a loan you couldn't pay back?

You can't believe in the current direction of the property market - low supply, pent up demand, people with significant deposits, booming economy. What more obvious factors do you need to indicate towards rising property prices?

Sounds like you need the equivalent of the Tango ads where the subject of the ad gets slapped in the face offering a dose of reality

flintash

You put a smile on my face Barely hedged.
Firstly my target mortgage was in line with my current rent payment, which is even pretty low within current rent market's rates. Dont even start about interest rises, cause you know, my rent will " never" rise. And about loss of my job- in that case, you will suck it up and pay for me, as for the rest 100k defaulters you're paying now. There is second factor but i wont go into details now.
Second , all i see around me are people in not so secure jobs like back then, moaning how they barely put christmas dinner on their table, and then i turn around and see houses for 400k up in the sticks. So my question is who the heck can afford them? But anyway, it is what it is, i'm still bear.

And sorry, i dont know what ad youre talking about, i cant afford telly these days...you know...im buying a house...stretching meself... Lol

Are you renting while owning another property that you let out? I'm just wondering what you mean when you say it's an equity-release mortgage.

SarahMollie

flintash wrote: »

I cant recall exact date of letter of aproval, think it was end of june, and i called back second half of November. Counting on my fingers, still within 6 month . 😀

I think the 6 months is for you to have completely purchased your property, not to sit on it for 5 months and then go back in not even being sale agreed.

You're basically being looked at again from scratch.

Michael D Not Higgins

flintash wrote: »

And about loss of my job- in that case, you will suck it up and pay for me, as for the rest 100k defaulters you're paying now.

You've some nerve, and the sad part is there's plenty more that think like you. I'm just glad I'm not an Irish taxpayer anymore.

El_Dangeroso

Michael D Not Higgins wrote: »

You've some nerve, and the sad part is there's plenty more that think like you. I'm just glad I'm not an Irish taxpayer anymore.

I'm pretty sure that comment is tongue firmly in cheek.

Michael D Not Higgins

El_Dangeroso wrote: »

I'm pretty sure that comment is tongue firmly in cheek.

Even so, there's still a sense of entitlement about their posts. This shock about being told they can't have more money from the bank than is allowed by the rules of the Central Bank, as if approval in principle is a legally binding offer of a mortgage and not just a yardstick.

flintash

Deleted User wrote:

Are you renting while owning another property that you let out? I'm just wondering what you mean when you say it's an equity-release mortgage.

Ye, probably the mortgage is not for me if i dont even understand what that it. Basically, what bank said was, i was to buy property in cash, and then i would do renovations, and bank will release the money, its like self build, he explained. Well, i forgot to mention the house in question was what considered a derelict.
Well, Sarah, i guess you're right, just then it appears its quite short of time, and if you dont buy in very first month, whats the point when?
I find it quite illogical,when they do all these numerous checks considering current circumstances and then give out 30 years long loan.
And yes Michael, it was tongue in cheek.

Ah I see, I see. Thanks

gosplan

i went from intial mortgage application in mid September to keys 2 weeks ago with work being finished before Christmas.

I'm amazed at how straightforward the process was.

Brokers FTW!!!

gaius c

flintash wrote: »

So last week i walk into my bank for a chat, with mortgage approval from June, and now they say, sorry Flintash, but there is new rules from central bank that came in the last few weeks, and we cannot give loan you were approved for back in June.
Im ****ing shocked! Rumours started last year,bank were told of this at the start of this year, yet they gave me piece of paper in june based on old rules. What a bunch of clowns! But anyways, i havent bought anything with the money i dont have, so im cool.
But for gods sake, when all this gonna come into affect fully into property market? i just cant believe in the current direction of it.

Just goes to show that approval isn't worth the paper it's written on.

Half the market is cash so that means restriction of credit may not impact straight away.

gaius c

gosplan wrote: »

i went from intial mortgage application in mid September to keys 2 weeks ago with work being finished before Christmas.

I'm amazed at how straightforward the process was.

Brokers FTW!!!

Killers by any chance?

He's really rather good!

jon1981

SarahMollie wrote: »

Correct!
Also Raheney is also quite expensive. Good stock of nice sized family homes but they're priced to match.

Killester has a less impressive name so might be some value there, but I don't know it well enough.

Killester is more recently more expensive than Raheny. Alot of properties in and around Super Valu upwards of 650k. Most if not all houses between middle third/Abbeyfield road and the village is running above 500k.

Raheny is massive prices vary between 300k to 600-700k also.

Killester is now level pegging with Raheny and Clontarf

jon1981

guile4582 wrote: »

lived here for the last 10 years, all friends are here, all activities i like doing are here. I know it i suppose. I am open to northside but really really enjoy my life on the southside.

quicker access to home, down the country.

None of these are nailed on reasons to stay southside, but simple answer is i like it. I will exhaust all avenues

btw: where would u suggest? Raheny, Killester? Clontarf isnt really affordable is it?

We rented on the southside for years (Dartry)...Not a hope of affording anything reasonable there or the surrounding locations (beyond a dilapidated small 2/3 bed for 500k) so we made the plunge and we love the northside area we bought in.

roads to consider:

Brookwood road, Brookwood avenue, Brookwood park, Brookwood meadow. Middlethird, abbeyfield, the demesne. These areas are a mix of Killester and bordering Artane (great value) along the howth road. Lovely old mature houses with big leavy trees lining the roads. Take a drive around some weekend and see what you think.

reasons to consider:

Near the coast (walk on a nice day)
Walk to St Annes park
Loads of bus options into town
walking distance to the Dart
Near loads things, shops, banks, pharmacies...etc.
Nice pub options (harry byrnes , say no more)
12-13 euro in a taxi home from Dame street at night.
20 min leisurely cycle into town
50 min walk to Croker on a nice sunny day
Nice big terraced houses with huge gardens!
Lots of schools
Loads of GAA and Rugby clubs
m50/m1 easily accessible

MayBea

SarahMollie wrote: »

Granted I'm basis this on South Dublin, but you seem to need to go right to the edge of the city (Stepaside, Firhouse, Knocklyon, Citywest) to get that type of property in a new build. In the more established and affluent areas, they've seen a lot of larger homes (often 3 story townhouses to fit the maximum on the site) that are very large and cost £6/700k and upwards.
Hardly a reality for most young people on normal incomes.

I'd agree on this.
Having lived in Dundrum for nearly a decade, I can understand your unwillingness OP to move into a different location - everything is at your doorstep here.
Expect fierce bidding wars for any kind of house in this area - we were househunting for over a year in surrounding areas and bought a new build in Stepaside eventually. I can safely say I feel as if we never left Dundrum, it's so easily reachable - I walked to town centre in 25 minutes yesterday(driving takes 5-7 minutes). Luas at Glencairn is a 7 minute walk and only takes 25 minutes to Stephens Green.
Good range of schools: primary Educate Together (secondary is on planning), Gaelscoil, fee-paying Rosemont School.
We got as super warm (A energy rating) brand new house as oppose to a G-rated small three bed by moving 3 km further.

gosplan

gosplan wrote: »

i went from intial mortgage application in mid September to keys 2 weeks ago with work being finished before Christmas.

I'm amazed at how straightforward the process was.

Brokers FTW!!!

Nope, PM if you need a recommendation.

Start to finish he was pushing everyone involved (including us the odd time) to just get it done.

handlemaster

http://m.independent.ie/business/personal-finance/property-mortgages/dublin-house-prices-fall-as-rest-of-country-surges-on-34302983.html


Interesting saying dublin dropped up to 9.3% in places during 2015

Barely Hedged

handlemaster wrote: »

http://m.independent.ie/business/personal-finance/property-mortgages/dublin-house-prices-fall-as-rest-of-country-surges-on-34302983.html


Interesting saying dublin dropped up to 9.3% in places during 2015

Nothing interesting about it when it's a survey of opinions based on very selective areas

handlemaster

Barely Hedged wrote: »

Nothing interesting about it when it's a survey of opinions based on very selective areas

For me it is Interesting.

Barely Hedged

handlemaster wrote: »

For me it is Interesting.

What exactly is interesting about it?

The fact that they quote "prices". Asking prices are down? Is that an objective indicator?

Or the gem that house prices are down in a mainly working class part of Dublin ie Tallaght? Confirmation that a mortgage to income ratio is impacting people who generally have very fixed incomes. Hardly a surprise I'd say?

I Am The Law

"Falling Dublin prices are being blamed largely on the Central Bank's tightened lending regime introduced at the start of this year, impacting harder in the capital where prices are up to twice what they are elsewhere. In tandem, agents are blaming rising rents, which are trapping Dubliners and cutting down their ability to save for vastly increased deposits.

Many are struggling with the 3.5 times income-to-loan ratios."

I find it interesting to see that the CB rules are having the desired effect. Realistic house prices may be possible in 2016 after all.

MarkAnthony

I Am The Law wrote: »

"Falling Dublin prices are being blamed largely on the Central Bank's tightened lending regime introduced at the start of this year, impacting harder in the capital where prices are up to twice what they are elsewhere. In tandem, agents are blaming rising rents, which are trapping Dubliners and cutting down their ability to save for vastly increased deposits.

Many are struggling with the 3.5 times income-to-loan ratios."

I find it interesting to see that the CB rules are having the desired effect. Realistic house prices may be possible in 2016 after all.

I'm not sure what 'realistic' is but I'd imagine a fair jump in Q1 2016 as the banks use their exceptions.

Jake Stiles

Wonder will Q1 in future years be the time to sell.

As KBC have told prospective buyers to wait until then, or will banks stretch their exemptions out over the full year and take this year as a learning.

crisco10

Jake Stiles wrote: »

Wonder will Q1 in future years be the time to sell.

As KBC have told prospective buyers to wait until then, or will banks stretch their exemptions out over the full year and take this year as a learning.

Defintely the feedback I've heard from banks. Exemptions are used up for 2015 but good candidates are lined up for exemptions in 2016.

Assuming the banks aim to use up their full exemption allowance, it makes more sense to run out of exemptions and have to tell people to hold off until 2016 instead of being left with exemptions on 31st December.

The_Conductor

I'd actually imagine the lenders presumed they'd be given some sort of a supplementary allowance for lending to people- when they went to the Central Bank and told them they had used up their annual quota. After they were told to take a hike- I'd surmise that they'd make a better effort to try and space them out going forward. Anyhow- time will tell.