DataDude wrote: » Yes precisely. We did consider your early repayment option alright, but the the only thing is by far the best value mortgage for us does not allow early repayment without penalty. Paying the penalty or going with one of the worse value lenders which allow early repayment would take most of the financial benefit out of having a part of the mortgage at a lower rate. I did consider just waiting out the 3 year fixed period and switch like you have outlined...but I assume at point of switching all the same potential issues would crop up around "where did your equity come from?".
awec wrote: » I would think the bank would want an explanation on where the money for the difference is coming from.
schmittel wrote: » If I’m reading that correctly the idea is to have smaller mortgage rather than more expensive house? If that’s the case I’d Do it thus:, drawdown a mortgage for x, (contract without early repayment penalties etc) buy house, borrow y from family, repay y off mortgage or switch to new mortgage for x - y. If think if you start introducing low interest family loans pre drawdown, somebody somewhere might raise an eyebrow, even for no good reason.
DataDude wrote: » Does anybody know if the following is possible to do: Assume mortgage approval for an amount X (deposit and income criteria met for this amount). Family member willing to provide a low interest rate LOAN of Y (crucially not a gift, which I know would be allowed). Proceed to purchase property with loan of Y from family member and (X-Y) from the bank. I know that inter family loans absolutely cannot be used to cover a shortfall in either LTV or LTI but wondering if this was not an issue, would it be possible? My gut feeling says no, since the bank probably don't want to get involved in a multi-creditor loan transaction but would be interested to hear if anyone has any experience on this.
fliball123 wrote: » The norm is now a couple buying so you need to double your stats. I framed it that way as he was pointing the bonkers jibe at me. We have been tooing and froing on here. I have said and proved that the average house is affordable for someone on the median wage. Now when I did my calcs if you check back on this. I said for a couple. I believe the majority of properties being purchased since the turn of the century has been by couples.
Fuzzy_Dunlop wrote: » Have the government ever clarified how it is intended for people to repay the stake the government takes and at what interest rates? It's such a ridiculous proposal and is so obviously just going to increase prices and put money directly in developers pockets.
schmittel wrote: » Should have been called the Help to Sell scheme so!
awec wrote: » It was never supposed to be this. HTB was really just a politically convenient way to give developers greater incentive to build lots more houses. Since you could only get out of it what you had put in yourself it was never going to help on the affordability side.
jill_valentine wrote: » Well, for a start, none of that was what framed in your response to the other poster. You asked them to prove nobody could buy anything anywhere. Don't pretend now you meant that to mean something else. Regardless... Help to Buy has by now been fairly well demonstrated not to have had any effect on affordability. It has helped basically no one get on a property ladder, since many - if not most - applicants could already afford to build something. HTB was the difference between one house and another, rather than no house or a house. You might have meant Rebuilding Ireland, but it's not good news there either, as it's available to very few and even then rejects more than half of the applicants it gets (I've had an application rejected for one page going in on essentially the wrong colour paper). Some councils have a backlog of a year, for an approval that lasts only 6 months, and will not be extended. It is almost impossible to use in its current format - in all of 2020, DCC approved a grand total of 154 of these loans, Fingal something like 20. I can't even find a figure for how many got to drawdown stage, but given how much of an arseache the process is, I wouldn't be shocked if it was less than half. I've an APA in Loans and I find it a nightmare, best of luck to anyone else. On the subject of sums - You used MyHome.ie. Your Median figure is a bit beefier than mine IIRC, but we'll run with it. We can't search for 138 odd k, so we'll round all the way up to 150k while we're at it, in effect using a well above average median earner as our benchmark. Excluding sites leaves us with around 1443 properties available to that above Median earner who would have 150k worth of buying power, in all the Republic of Ireland, excepting all other real world considerations, property conditions, and under the most generous terms. That number also does not account for bidding bumps, assumes the applicant has a flawless mortgage situation (eg no kids and isn't a contractor) and doesn't allow for subtraction of Auctions that mortgage buyers can't access because MyHome doesn't let you exclude them. That's... I mean that's nothing, especially when half of workers are already shut out from the off and I know from my own experience that on MyHome a lot of them are already sold anyway and not taken off yet. You're looking at, realistically, a thousand properties anywhere in the country in range of our above average worker, in a state of 5 million people. For perspective, the most recent data I can find lists 4,495 "single adults" alone on the homelessness register. There is no intellectually honest way of looking at those figures and pretending they represent an affordable - ie realistically achievable through concerted effort - entry level property market. Even less if we're pretending it's as plausible for anyone to live and work in West Cork as it is Dublin City.
jill_valentine wrote: » Help to Buy has by now been fairly well demonstrated not to have had any effect on affordability. It has helped basically no one get on a property ladder, since many - if not most - applicants could already afford to build something.
fliball123 wrote: » Sorry Jill I took the median wage including part time workers(so half our population are on over this amount and under it 36k) and using the current metrics that we borrow by and looking at the current stock of property available on myhome and over half the current stock is affordable by these metrics. This is not expressing bad faith its expressing the fact that there is property out there available for the average (median) and is affordable. Is all property affordable to all people ?? NO but like everywhere in the world people pay a premium for desirable areas and houses that are built to a higher standard. Now I do realise that asking price does not equal selling price, currently things are selling at a higher price point due to a supply issue. Also those on under the median have mechanism to help them buy.
donnaille wrote: » Yes, is there a way to block posters whose opinion I do not agree with? - I cannot find this option.
schmittel wrote: » Now I understand all property for all people! Your mansions in Howth again :rolleyes: Your posts speak for themselves.
fliball123 wrote: » I wouldnt stop him posting, at this stage if I see the letters IMO in his post I just go to the next post. The odd time he does comes up with some good facts and figures but then uses them to try and prove something else or contradicts a position he held a month back which is always funny
fliball123 wrote: » Well you put this post up. I am the one claiming that some property is affordable to some people and I have quantified this with the math using the median wage. Your using hyperbole with regards to your math where you think the average property price is 10 times the national wage which is an outright lie.
fliball123 wrote: » So prove that your statement that anyone saying property is currently affordable is bonkers???
Mic 1972 wrote: » I'm following this one https://www.boards.ie/vbulletin/showthread.php?t=2058047890&page=362 it's more for people who are actually buying a house and have real examples of what's going on out there
fliball123 wrote: » So all property for all people is unavoidable?? can you quantify/prove this ??
schmittel wrote: » There are those on here claiming property is currently affordable which is bonkers. That is who I am referring to. Yes there some 15 years ago saying property at over 10 times the national wage was perfectly normal, and that people should stop cribbing and moaning from the sidelines. Look how well that turned out.
fliball123 wrote: » average Irish house pricehttps://www.newstalk.com/news/average-house-price-in-ireland-increased-by-almost-e20000-this-year-1124268#:~:text=Average%20house%20price%20in%20Ireland%20increased%20by%20almost%20%E2%82%AC20%2C000%20this%20year,-Marita%20Moloney&text=The%20average%20listed%20price%20of,price%20nationwide%20was%20%E2%82%AC269%2C522. average house price = 269,522Average wagehttps://www.irishtimes.com/business/economy/average-full-time-salary-in-republic-nearly-49-000-1.4289348#:~:text=The%20latest%20figures%20show%20average,increase%20of%203.7%20per%20cent). Average wage full time salary = 49000 Even at the median salary 36k (with part time workers included ) how is this 10 times the average wage?? 10 x 36 = 360k ? 10 x 49 = 490k? Average house price just under 270k? Can we stop with the hyperbole ?
schmittel wrote: » What do you mean by all property for all people?
JimmyVik wrote: » Any chance there can be a branch of this thread but without the constant dominance by PropQueries. Its just taking from the whole thread and has been for a long time now.
jill_valentine wrote: » This question is in such expressly bad faith I would consider it deliberate aggravation for sport in the realm of "Not touching, can't get mad". It takes an almighty strain to pretend not to understand a common sense understanding of a word as everyday as "affordable", or that you think the reverse of it is that it's impossible for anyone to get property ever.
