The S&P 500 erased its June decline after a report showed U.S. pending home sales posted a record gain, exceeding all forecasts.
Fuzzy_Dunlop wrote: » Does anyone know how many normal pay slips following being on the subsidy the banks are looking for?
cnocbui wrote: » Good luck waiting to snap up those bargain priced houses after prices fall.
MrMusician18 wrote: » 6 months.
Assetbacked wrote: » Speaking of the S&P500, https://www.investopedia.com/the-fed-s-corporate-bond-portfolio-5069989 The Fed has been buying the debt of Apple and Microsoft, among other large corporations. That is jaw dropping, I just don't understand where they think this is going to end? The Fed is now propping up the stock and bond markets, they are not reflecting the real economy. Facebook has lost billions in valuation the past few days, apparently due to the corporations pulling their advertisement but I suspect there was some haircuts to advertising budgets due to the Covid19 crisis which were conveniently timed to gain some free positive publicity from pulling their online ads. A lot of the tech jobs in Dublin are online sales, once the Fed stops pumping money into the system, these companies may find that they need to cut their cloth which would have implications for jobs and demand for rentals in Dublin.
schmittel wrote: » The fact that banks restrict lending to people whose salaries are subsidised/replaced by government handouts should not really come as a big surprise to anybody.
cnocbui wrote: » It was 14.9% in 2017, according to the OECD: http://www.oecd.org/gov/gov-at-a-glance-2019-ireland.pdf
richard D wrote: » This can only mean one thing a lack of lending, which will result in lower competition for houses, and ultimately lower prices. I'm flabbergasted at how people can argue on this thread that house price are going up because of pent up demand from Covid 19 savings, house prices go up due to lack of supply. Its utter nonsense. We know that we are in a recession all the forecasters, IMF, Central Bank, Irish Government etc are all forecasting a contraction in the economy by up to 12% and maybe some recovery in 2021. All have forecasted a downward projection on house prices. All the models used have factored in all the variables such as a) Shortage of supply due to construction ceasing,b) additional savings accumulated during the lock-down etc. Do you think its wise to trust someone opinion Mr Joe Bloggs on this site who has ulterior motives to begin with (a) either bought a hose recently b) looking to buy before there exemption is pulled) who wants to convince themselves that house prices will go up due to xxxx, so they feel,like they have made/will make the right decision. Can people accept that fact that house prices will fall. Instead of trying to make themselves feel better if they have bought recently or are looking to buy. The only questions is how much will prices fall, 5%? 10%? 15%? or 20%+, that should be the focus of this discussion.
Dub4747 wrote: » I can understand if you're on unemployment benefit but why if your company decided to avail of help from the government but still tops up your wages in full should you be ruled out? My husband and I own a home and are literally a week away from putting it on the market and have found the home we want to buy as we need to trade up. We talked to AIB (we have our current mortgage with them) and went through all our wages and details but had not finalised our application. I have worked fulltime from home (more hours than ever before) during lockdown and my salary has remained unchanged. I am not unemployed. I am not on a pay cut. My job is not in danger. My company just used help the government offered so they could afford to keep all staff employed and paid. My husband's job is totally secure and he even got a pay rise during the lockdown. Why should we be ruled out from a mortgage? It's total BS. We bailed these banks out and now they want to screw those of us who are still working and making our full wages???
Dub4747 wrote: » Why should we be ruled out from a mortgage? It's total BS. We bailed these banks out and now they want to screw those of us who are still working and making our full wages???
ebayissues wrote: » Banks are or should be using a risk based approach towards lending. If you're on the government scheme, or you received, bank should withdraw AIP and re-asses your situation in 6 months. You should not be given a mortgage. The actions taking by AIB should have be done 1/2 months ago. No denial, I've skin in the game. Exemption expired , still renting with a disgusting and frustrating housemate, however I still have the peace of mind now than to purchase and lose my job. I see posters here saying better proceed as it's better to loose your job and live in your own house - really sums up why we pay huge rates for mortgage in Ireland. Anyone whose job is at risk and yet still proceeds deserves what they get.
cnocbui wrote: » If four people are interested in a house, and one of them gets bumped from contention because of loan requirements, that still leaves 3 in competition to buy so in all likelihood, the price won't drop. As we have already seen anecdotally, if prices do drop, or if there is even just a suspicion they might, many sellers will just withdraw from the market or not enter it to begin with, further restricting supply.
kippy wrote: » Wait a minute. We pay huge mortgage rates for mortgages because it's almost impossible reclaim the asset for the bank. This is a rule of the game. Why take a personal stance in this? I wouldn't be condoning buying a house while you are in a precarious financial situation if it wasn't so hard for the banks to take the asset back. Your own personal stance won't lower rates and while the rules are as they are at the moment I can see why people try their damnedest to buy.
MrMusician18 wrote: I remember in 2012 I saw a house, one of those lovely red brick Georgian houses in D6, one of the smaller ones sell for something like 450k, and thinking to myself that someone had snapped up a bargain. I could recognise that this house was going for a song, so why didn't I bid? Simple reason was I didn't have access to the credit necessary, just like every other person that watched that sale pass them by. Sometimes it's only the wealthy that can afford the bargain.
Dub4747 wrote: I can understand if you're on unemployment benefit but why if your company decided to avail of help from the government but still tops up your wages in full should you be ruled out?
kippy wrote: Wait a minute. We pay huge mortgage rates for mortgages because it's almost impossible reclaim the asset for the bank. This is a rule of the game. Why take a personal stance in this? I wouldn't be condoning buying a house while you are in a precarious financial situation if it wasn't so hard for the banks to take the asset back. Your own personal stance won't lower rates and while the rules are as they are at the moment I can see why people try their damnedest to buy.
Villa05 wrote: » You know your in a bubble when people excuse irrational behaviour to obtain a particular asset The crash may not be too far away
brisan wrote: » The fact that your company took the payment and I quote My company just used help the government offered so they could afford to keep all staff employed and paid. This basically means in your own words that without those Government payments your company could not afford to keep all its staff employed and therefore would have to cut jobs The bank or you have no way of knowing if your job is one of those that would be cut
handlemaster wrote: » Will it continue? And why would it ?
givyjoe wrote: » If the government mandated that they close their doors, obviously they couldn't afford to pay their staff, now the doors are re-opened, they can. Not every company is dead wood.
kippy wrote: I wouldn't condoe the behaviour for everyone in every circumstance but if you've been approved for a mortgage, you've a deposit saved up, and you're planning to live in the house for the long term, it's a safer personal stance to try get the house purchased than hold off and rely on the rental market to look after you for an undefined amount of time, while all the time realising that your chances of getting mortgage approval again in the short to medium term are damn near impossible. A house is not just an asset. It's not all about profit and loss.
brisan wrote: » By your own admission some are and the banks will not take the risk and rightly so
Augeo wrote: » And if there's a second wave of Covid19 and the doors need to close again????? Banks will obviously not be overly keen to lend to folk who are on state support. Borrowing hundreds of thousands if your employer can't afford to pay you at the moment really isn't overly wise ............ it looks like many folk don't agree so the banks are taking the correct course of action, IMO. Unfortunately many companies will go wallop over the coming months ........ of those it's reasonable to presume they'd have had reduced turnover from March to June and qualified for state support to pay their staff.
givyjoe wrote: » Many im sure will, however many wont and simply issuing a blanket policy having previously been on covid is further exacerbating the negative impact on the economy. You seem to be completely forgetting that the government imposed a lockdown so that many viable businesses simply couldn't get customers through the door, doors are now re-opened and they no longer meet the criteria for qualifying for wage subsidy. There is a requirement now that a letter be provided to state if you were affected, that you are longer affected and there are no changes to your wage or employment status. How long do you think folks should have to wait after the covid subsidy is over? Until a vaccine, x number of years.. never?
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