Property Market 2016

Michael D Not Higgins

In other news, the rent a room scheme limit has been increased from 12k per year to 14k.

OfflerCrocGod

Villa05 wrote: »

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

The truly prudent wouldn't pour all their savings into a deposit. The truly prudent would put 20% down as deposit and keep the rest of their savings in liquid form.

This would allow them to get the lower interest rates, keep a large sum of money as savings and to avail of this grant.

derekbro

Will the rent a room exemption going up to 14k not just cause existing landlords using this to up the rent?

asteroids over berlin

derekbro wrote: »

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

Yes 20k per property

Michael D Not Higgins

derekbro wrote: »

Will the rent a room exemption going up to 14k not just cause existing landlords using this to up the rent?

Probably more likely to rent a second bedroom in most cases. Looking at daft for Dublin, over 60% of sharing ads are below 600/month.

asteroids over berlin

i find it laughable, new builds will go up in price! The lads sitting around the table with their tea and biccies and this is the best they can come up with. fcuk wits!

radharc

asteroids over berlin wrote: »

i find it laughable, new builds will go up in price! The lads sitting around the table with their tea and biccies and this is the best they can come up with. fcuk wits!

Everyone is looking at this the wrong way, this is a supply initiative, nothing to do with the demand side. The government obviously know developers will stick the 5% onto asking prices but are happy for them to do so if it makes them more likely to build new houses. It is basically a 5% grant from the government to house builders to encourage them to step up activity.

ThisRegard

Utah wrote: »

Wondering this too, how will it be split?

Probably deducted the same way mortgage interest relief is done, the bank deducts it from your repayments.

jay0109

radharc wrote: »

Everyone is looking at this the wrong way, this is a supply initiative, nothing to do with the demand side. The government obviously know developers will stick the 5% onto asking prices but are happy for them to do so if it makes them more likely to build new houses. It is basically a 5% grant from the government to house builders to encourage them to step up activity.

No, I think most people fully understand how this will work

Villa05

OfflerCrocGod wrote:

The truly prudent wouldn't pour all their savings into a deposit. The truly prudent would put 20% down as deposit and keep the rest of their savings in liquid form.

What about the low income person who would only qualify for a loan equivalent to 70% of the purchase price but through prudent behaviour may have saved 30% of the deposit.

Villa05

Intresting that a cheap loan scheme can be set up for farmers but nothing similar for housing where there is obvious demand

Landowner's must be God's in this country


Farmers – A special loan fund being established in conjunction with the Strategic Banking Corporation of Ireland to provide farmers with loans that have an interest rate below 3pc per annum. Will help improve cashflow and reduce cost of short-term borrowings.

Earleybird

Another weak move by the government, there were a number of ways to stimulate supply but instead they've opted for something which will increase prices. They have essentially undercut the Central Banks rules put in place to slow excessive growth. How about they put their money into developing the thousands of acres of land they have, fast tracking zoning and planning and getting some extra houses built!? Just another silver bullet plan from the great minds in our Dail.

ThisRegard

Earleybird wrote: »

fast tracking zoning and planning and getting some extra houses built!? Just another silver bullet plan from the great minds in our Dail.

Because this is the wrong thing to do.

OfflerCrocGod

Villa05 wrote: »

What about the low income person who would only qualify for a loan equivalent to 70% of the purchase price but through prudent behaviour may have saved 30% of the deposit.

Yes, the whole scheme is a nonsense, but I'll take advantage of it if I can, I'd be foolish not to.

Earleybird

ThisRegard wrote: »

Earleybird wrote: »

fast tracking zoning and planning and getting some extra houses built!? Just another silver bullet plan from the great minds in our Dail.

Because this is the wrong thing to do.

Whys that?

ThisRegard

Earleybird wrote: »

Whys that?

History has shown us what a mess rushed rezoning can cause, in terms of the potential for dodgy dealings, estates built with no facilities around them or infrastructure to support them, and just simply the idiocy in rezoning green belts in order to build more houses. Processes are there for a reason.

Villa05

OfflerCrocGod wrote:

Yes, the whole scheme is a nonsense, but I'll take advantage of it if I can, I'd be foolish not to.

Are you a builder?

OfflerCrocGod

Villa05 wrote: »

Are you a builder?

I put a deposit down a few weeks ago and it looks like I meet all the criteria.

Villa05

OfflerCrocGod wrote:

I put a deposit down a few weeks ago and it looks like I meet all the criteria.

Ahh you need to be a builder to take advantage of it

athtrasna

Michael D Not Higgins wrote: »

Probably more likely to rent a second bedroom in most cases. Looking at daft for Dublin, over 60% of sharing ads are below 600/month.

Rent a room is based on total income, adding in bills could easily bring a room over the 600 mark so there may be some rentincreases now that it's gone up. I won't be letting my other room or upping my lodgers rent, it's not all about the money.

The_Conductor

athtrasna wrote: »

Rent a room is based on total income, adding in bills could easily bring a room over the 600 mark so there may be some rentincreases now that it's gone up. I won't be letting my other room or upping my lodgers rent, it's not all about the money.

Listened to Pascal O'Donoghue on the 4PM news yesterday- he seems to think the increase in the rent-a-room scheme is particularly directed at solving the student accommodation issue- how or why he has come to this conclusion is beyond me. I can't see many owner occupiers deliberately going out of their way to court students as housemates..........

68 lost souls

The_Conductor wrote: »

Listened to Pascal O'Donoghue on the 4PM news yesterday- he seems to think the increase in the rent-a-room scheme is particularly directed at solving the student accommodation issue- how or why he has come to this conclusion is beyond me. I can't see many owner occupiers deliberately going out of their way to court students as housemates..........

It is something I had been considering doing, particularly on a Monday - Friday basis, partly because I know it will not be a year round and I can have my own space in the summer months. Also I know they are likely only to be there for one academic year and then move on as I dont really want to let a room but may have to to be able to furnish the house.

OfflerCrocGod

Villa05 wrote: »

Ahh you need to be a builder to take advantage of it

I'm talking about the first time buyers grant, what are you referring to?

Villa05

OfflerCrocGod wrote:

I'm talking about the first time buyers grant, what are you referring to?

The ftb grant. The government even admit it it will benefit developers

OfflerCrocGod

Villa05 wrote: »

The ftb grant. The government even admit it it will benefit developers

Absolutely, the whole scheme is a nonsense. In my case though I put down the deposit before the announcement so I know what price I'm paying and I look to be meeting the other criteria so it looks like I will benefit from it. It doesn't change my opinion of it but I'd be a fool not to avail of it. I'd rather they just built houses or financed building them instead of pulling these stunts.

ligerdub

The government aren't interested in increasing supply. If anything they will do as much as possible to placate the populace seeking to buy (a relatively small percentage of the population), but as little as possible to solve the problem. If you think it's tough to buy a house in Dublin in 2016 it's going to be practically impossible in 2017. They will have a greater chance of staying in power by 1) looking to see an increase in house prices to reduce the number of people in negative equity (a large population), 2) keeping the ones who can't find a home as quiet as possible but not really helping them (a relatively small % of the overall population).

We're already at record levels of supply, and if anything the demand is increasing. It'll be interesting to see how this will play out in terms of price increases, but I suspect it will have to decline at some point.

Zzippy

ligerdub wrote: »

The government aren't interested in increasing supply. If anything they will do as much as possible to placate the populace seeking to buy (a relatively small percentage of the population), but as little as possible to solve the problem. If you think it's tough to buy a house in Dublin in 2016 it's going to be practically impossible in 2017. They will have a greater chance of staying in power by 1) looking to see an increase in house prices to reduce the number of people in negative equity (a large population), 2) keeping the ones who can't find a home as quiet as possible but not really helping them (a relatively small % of the overall population).

We're already at record levels of supply, and if anything the demand is increasing. It'll be interesting to see how this will play out in terms of price increases, but I suspect it will have to decline at some point.

Do you mean record low level of supply?

ligerdub

Zzippy wrote: »

Do you mean record low level of supply?

Yes, my mistake.

draiochtanois

This post has been deleted.

EmmaMurray2016

This isn't a first time buyers grant cause I'm a first time buyer and I can't afford NEW builds in Dublin. We have to buy a house for 220,000 or less 10% deposit. Then after that it goes up to 20% so where are these new builds for 220,000?????! Angry face cause I can't find smiles. This should be called grant for developers while they hyke up the prices.

Yes I'm moody sour head over it as I thought they were going to help us buy.

Well done to all the ppl who can afford a new build up here. Grab their poxy grant.

Rant over.