Property Market 2016

draiochtanois

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keane2097

draiochtanois wrote: »

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That and perverse incentives.

cruhoortwunk

What effect will the FTB grant on second hand houses? I know it will push up prices of new builds, but will that have as much effect on second hand houses?
Will the fact that new builds cost more mean that more people opt for second hand, thus pushing their prices up too?

draiochtanois

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Gandalph

The_Conductor wrote: »

A developer on the other hand depending on the project could be 16/17/18/19/20%.........

CIF did a study released about 6-7 months ago- which showed that finance now accounts for up to 40% of the construction cost of a property.

You would need interest rates to be up at 60-70% for finance to make up 40% of your average house construction cost so that's ludicrous.

Most reports or media coverage of the construction industry is absolute garbage, I wouldn't really pay any heed to them.

bittihuduga

3 new estates launching this weekend - hope they dont increase the prices depending on the grant (if any) from government:
Tully Hall, Adasmtown and Barnwell

OfflerCrocGod

Grant details http://www.rte.ie/news/budget-2017/2016/1011/823164-help-to-buy-scheme-launched-for-first-time-buyers/

jay0109

OfflerCrocGod wrote: »

Grant details http://www.rte.ie/news/budget-2017/2016/1011/823164-help-to-buy-scheme-launched-for-first-time-buyers/

Fill yer boots

yogicolly

any idea how this rebate will be received for buyers since July 19th? Luckily bought new home for 270K recently and appear to qualify so just curious how this will be paid to people in similar situations. Cheers

Villa05

OfflerCrocGod wrote:

Grant details

Mortgage must be 80% or higher LTV
The prudent need not apply!

Barnavave

bittihuduga wrote: »

3 new estates launching this weekend - hope they dont increase the prices depending on the grant (if any) from government:
Tully Hall, Adasmtown and Barnwell

You can add €20k to any of the above homes as of today.

Utah

I think I fall into the small number it will benefit!

whiskeyman

It's great for those who have already bought and can avail of the grant, and not incur any potential increase in price.

Michael D Not Higgins

The only way I can see it having an impact is if the banks are more likely to grant exceptions to these new build first time buyers. Even if that happens, it just lowers the bank's capacity to grant exceptions elsewhere.

The FTBs aren't going to have more money up front to affect the price they pay, not to mention that new build houses aren't auctioned, they're fixed price.

REFLINE1

yes but it brings a w

Michael D Not Higgins wrote: »

The only way I can see it having an impact is if the banks are more likely to grant exceptions to these new build first time buyers. Even if that happens, it just lowers the bank's capacity to grant exceptions elsewhere.

The FTBs aren't going to have more money up front to affect the price they pay, not to mention that new build houses aren't auctioned, they're fixed price.

It odes bring a new group of of people who would have been still saving , or competing for an exemption into the market as now they have there deposit topped up by 20K.

Bob24

Villa05 wrote: »

Mortgage must be 80% or higher LTV
The prudent need not apply!

This is outrageous.
Banks will be happy though - this will encourage people to borrow with higher LTV , meaning longer repayments and higher interest rates --> more profit for the bank.

ThisRegard

REFLINE1 wrote: »

It odes bring a new group of of people who would have been still saving , or competing for an exemption into the market as now they have there deposit topped up by 20K.

How?

seamus

The banks have some flexibility in granting exemptions from the deposit rules.

Since the 5% is effectively "guaranteed" income for a FTB, they may factor that into their calculations and offer 92-95% LTV mortgages for FTBs on new builds.

Of course, this won't make new builds more affordable for FTBs, it'll simply push up the prices of new builds by 2-5%.

cruhoortwunk

Villa05 wrote: »

Mortgage must be 80% or higher LTV
The prudent need not apply!

Could you not hold aside your extra deposit cash, commit to the 80% mortgage (and get the grant), then pay off the mortgage earlier with the extra ca$H?

REFLINE1

ThisRegard wrote: »

REFLINE1 wrote: »

It odes bring a new group of of people who would have been still saving , or competing for an exemption into the market as now they have there deposit topped up by 20K.

How?

As i understand it this rebate will be added to someones deposit requirement. So if a couple for example were 15-20 k shy of the deposit requirment for 400k house, and were saving away to get there, or were looking to be exempt of the LTV criteria, they now no longer need this exemption or to continue saving for another year.

Bob24

cruhoortwunk wrote: »

Could you not hold aside your extra deposit cash, commit to the 80% mortgage (and get the grant), then pay off the mortgage earlier with the extra ca$H?

That's what I though as well I can think of 2 potential problems:
- A higher LTV in the beginning means you will get a higher interest rate for the whole duration of our mortgage
- If you push the LTV too much the bank might not offer you a loan

cruhoortwunk

Bob24 wrote: »

That's what I though as well be you have 2 problems:
- A higher LTV in the beginning means you will get a higher interest rate for the whole duration of our mortgage
- If you push the LTV too much the bank might not offer you a loan anymore

Higher interest rate, but shorter term as you pay it off earlier with excess cash, so possibly not that bad. Worth it to get the €20k relief surely

68 lost souls

Bob24 wrote: »

That's what I though as well I can think of 2 potential problems:
- A higher LTV in the beginning means you will get a higher interest rate for the whole duration of our mortgage
- If you push the LTV too much the bank might not offer you a loan

Unless adjust it. I know people that have recently paid off the difference between say 80 and 75% then rang the bank and got a lower interest rat ebased off the 75% LTV.

Michael D Not Higgins

REFLINE1 wrote: »

As i understand it this rebate will be added to someones deposit requirement.

Missed this first time around (I think the page I was reading has been updated with this information now). This just lowers the amount someone has to save. The LTI and LTV are still in place.

Many people have been arguing with the rules insofar as they cannot save the required deposit in a reasonable amount of time but their income level would sufficiently cover a mortgage.

If we imagine a case of someone trying to buy a 270k property, they need a minimum deposit as a FTB of 32k. If 13.5k of a rebate is covering part of the deposit, then they only need to save 18.5k. That could be the difference between buying a house this year and having to wait two to three years for some people.

In the worst effect, the developers will see an extra 5% to squeeze out of FTBs. How the government will stop the construction industry profiteering is the real question.

Bob24

cruhoortwunk wrote: »

Higher interest rate, but shorter term as you pay it off earlier with excess cash, so possibly not that bad. Worth it to get the €20k relief surely

True, more paperwork but possibly beneficial financially (really depends on how much the interested rate is increasing and how much you are borrowing).

Also, many banks have 80% as a threshold for higher rates, I am wondering if it will be possible to get both the grant ad the lower rate.

For example if I look at AIB their rate bracket is LTV >50% <=80%.

To get the grant you need an LTV of at least 80%, and to get that rate you need an LTV of maximum 80%; so technically you can get both only if your LTV is exactly 80%. Is that doable in practice?

Wesser

Can someone please confirm .... Does this apply to new builds only? I just want to check Im correct no nasty answers please.

So surely that exempts the majority of FTB.

Michael D Not Higgins

Wesser wrote: »

Can someone please confirm .... Does this apply to new builds only? I just want to check Im correct no nasty answers please.

So surely that exempts the majority of FTB.

Yes new builds only.

Utah

New builds and self builds

derekbro

Is the max 20,000 per property, i.e. 10,000 per person for a couple?

Utah

derekbro wrote: »

Is the max 20,000 per property, i.e. 10,000 per person for a couple?

Wondering this too, how will it be split?