Softening house market?

CBI know house prices are now falling and the institutions/funds internationally are in trouble this an irresponsible attempt by the FF/FG/CBI to interfere in market inflation no lessons learned by the usual suspects in this country

If you don’t understand that his required return isn’t baked into his hourly rate then there is no hope for you.

As someone who has been trying to buy this summer this is such a massive kick in the balls. Prices finally look like they might be stabilising and they go and do this, utter fúcking madness. Housing is already out of reach to many under 40 in Ireland at current prices and at the first sign of things potentially slowing down they decide to do this. I'm actually gobsmacked.

Id imagine houses worth 450k in the commuter belt today will be 500k by this day next week. 530k by the end of the year.

A crazy decision. Nuts. Wow.

You'd nearly swear there was a general election coming.

I really feel bad for the likes of yourself, what a shitshow and it smells stink rotten to the highest order. I honestly believe with the crap that's gone on over in England and pension and Investment firms under pressure this is just a government intervention in order to allow some of these investment funds to liquiditate some of their housing stock while pending up demand in order to give them an "out", all the while at the absolute detriment of the Irish first time buyer trying to make their way in life.

Why are you gobsmacked? The state has done everything it can to drive up house prices up. I'm surprised that they didn't do this before now, if anything.

However, I think that this will delay the inevitable only for a time. Eventually, the market will turn, but this action is allowing people to take on more debt to pay for yet higher house prices at a time when interest rates are rising. The politicians and bureaucrats who run this Ponzi scheme have long since passed the realm of incompetent. After the last few years, the adjectives that come to mind for me are "sinister" and "malicious".

That's it exactly. Punishment for the prudent.

But sure, at least now you can enjoy a life of constant stress, and never be able take a break from work. Make sure not to ever get sick.

Confidence is waning but the government just pulled about 2k dwellings from supply and the CB has just raised the financial ceiling for every borrower.

The tide might be on the way out but they are doing their damnedest to stop it

This is the justification for the change. Because incomes are not keeping pace with materials inflation it's becoming very difficult for housebuilders to build homes that people can get the finance to buy to allow them to turn a profit. It looks like they believed that housebuilding would collapse if people didn't have access to more money.

This neglects other options though. A huge part of a houses value is tied to the land it sits on and that is absolutely ripe for trimming. Add to that the fact that housebuilding here is notoriously inefficient, there were other options.

They chose the easiest lever to pull, increase the indebtedness of the people that suffered no jobs in the recession and astronomical rents as they tried to save. Sure why not throw on a lifetime of heavy indebtedness too.

We had the most conservative borrowing rules for mortgage lending in Ireland. Guess what we still have. The CB has been reviewing this for the last 10-12 months. The previous standard was 3.5 times income. However fir a lot of buyers they were depending on the exception's at the start of the year that were allowed at 4.5 times.

I do not think it will change prices to much. It will be an advantage to single buyers who wish to buy lower priced property.

For a person on the average industrial wage of 50k it will give them another 25k. With the HTB and a deposit it will allow the to purchase at the 250k bracket. Repayments @3% would being the 1250/month.

It will also prevent some of the panic of trying to complete contracts early in the year to achieve an over 3.5 times loan. However loan repayment would be slightly less than 40% of take home pay which is a slight worry.

It will make a big difference to those couples paying significant rent in the 80-100k total income who may be squeezed out of buying

Will it be the 2020's version of the 100% mortgage from the mid-late 2000's?

Investors and funds dont care about a 4x multiple. They are already selling. Shameful policy to squeeze the average joe to the max and leave them holding massive debt with a house worth a fraction of what they spent.

Hilarious decision though, you couldnt make up the stupidity of the government decisions...unless you realize they aint making decisions for the common man.