Property Market 2019

Bluefoam · 16-07-2019 10:53am

rireland wrote: »

Just crash already! No hope of buying without a crash.

And before people say I wouldn't be able buy in a crash...possibly. But at least prices would be at a lower base and more affordable in future.

The people who benefit from a crash are the ones with cash and disposable income. If you can't afford to buy now, you'll have the same experience during and after a crash... you'll just be left wondering how everything managed to pass you by again...

Concentrate on putting yourself in a position where you can buy, and stop focusing on what everyone else is doing to make your life difficult.

fliball123 · 16-07-2019 11:14am

Bluefoam wrote: »

The people who benefit from a crash are the ones with cash and disposable income. If you can't afford to buy now, you'll have the same experience during and after a crash... you'll just be left wondering how everything managed to pass you by again...

Concentrate on putting yourself in a position where you can buy, and stop focusing on what everyone else is doing to make your life difficult.

I reckon the current trend is a blip with regards to Brexit with prices coming down. people are holding the powder dry as brexit will take at least 2 years to resolve. The thing is people have a lot of options with regards to their property. Rents are flying up. Personally I am trying to sell I have a set price I have had some low ball offers but if I don't get the money I am looking for I will simply rent until the market rises to what I want (could take 2 years could take 10 years but property historically rise in the end regardless of the up and down cycle) . I wonder how many others are in the same boat. I don't need to sell to buy. I reckon if I was buying I would hold off for 6 months see what happens with brexit and then go on what happens there. Anyone thinking brexit wont impact our property prices are deluded everything in this country will be impacted by brexit, property, jobs, the over all economy.

16-07-2019 11:58am

rireland wrote: »

Just crash already! No hope of buying without a crash.

And before people say I wouldn't be able buy in a crash...possibly. But at least prices would be at a lower base and more affordable in future.

Yes let's all hope for an economic disaster because it might or even might not suit you.

cameramonkey · 16-07-2019 1:59pm

fliball123 wrote: »

I reckon if I was buying I would hold off for 6 months see what happens with brexit and then go on what happens there.

Brexit might take a lot longer than 6 months to resolve, it could take 6 years or more.

fliball123 · 16-07-2019 2:12pm

cameramonkey wrote: »

Brexit might take a lot longer than 6 months to resolve, it could take 6 years or more.

that is true but in 6 months at least you will know if its a hard or soft brexit or an extension.. It could take a decade to resolve

mariaalice · 16-07-2019 2:16pm

fliball123 wrote: »

I reckon the current trend is a blip with regards to Brexit with prices coming down. people are holding the powder dry as brexit will take at least 2 years to resolve. The thing is people have a lot of options with regards to their property. Rents are flying up. Personally I am trying to sell I have a set price I have had some low ball offers but if I don't get the money I am looking for I will simply rent until the market rises to what I want (could take 2 years could take 10 years but property historically rise in the end regardless of the up and down cycle) . I wonder how many others are in the same boat. I don't need to sell to buy. I reckon if I was buying I would hold off for 6 months see what happens with brexit and then go on what happens there. Anyone thinking brexit wont impact our property prices are deluded everything in this country will be impacted by brexit, property, jobs, the over all economy.

You are prepared to rent for 2 to 10 years with all the cost and uncertainty associated with that becaue you are not prepared to sell at the price the maket dictates?

fliball123 · 16-07-2019 2:19pm

mariaalice wrote: »

You are prepared to rent for 2 to 10 years with all the cost and uncertainty associated with that becaue you are not prepared to sell at the price the maket dictates?

yeah I am I will clear the mortgage and have a little left over. I will put it up as unfurnished so it will be the walls and floors that will be wear and tear but sure you can replace them if selling and why should I sell when I am not getting the price i want when i can make a small profit after tax and mortgage and let the market go where it goes in 10 years time i will most likely get a lot more than I am looking for while some one else pays my mortgage

JDD · 17-07-2019 9:53am

I think he's less referring to someone staining your couch to the risk of someone deciding not to pay their rent and overholding for six months or more.

I've said it before and I'll say it again. Q3 2020 - Q2 2021 is when the economy will slump. It won't crash like 2008 as that was a once in a lifetime crash, akin to 1929, but about 15% will come off property prices. Save your cash, and wait to buy until then. I would have done that myself only we had to buy last year when we did. If you're okay renting for another couple of years I'd wait.

Bluefoam · 17-07-2019 10:07am

JDD wrote: »

I think he's less referring to someone staining your couch to the risk of someone deciding not to pay their rent and overholding for six months or more.

I've said it before and I'll say it again. Q3 2020 - Q2 2021 is when the economy will slump. It won't crash like 2008 as that was a once in a lifetime crash, akin to 1929, but about 15% will come off property prices. Save your cash, and wait to buy until then. I would have done that myself only we had to buy last year when we did. If you're okay renting for another couple of years I'd wait.

Wow, thats a very specific prediction... But i'll only last exactly 1 year... I'd better be ready. Thanks for the information. I'm going to put my life on hold based on your observations.

fret_wimp2 · 17-07-2019 10:09am

Bluefoam wrote: »

Wow, thats a very specific prediction... But i'll only last exactly 1 year... I'd better be ready. Thanks for the information. I'm going to put my life on hold based on your observations.

Relax! He put his opinion out there, its up to you what you do with it. If you want to put your life on hold waiting for what someone thinks may or may not happen, have at it, but its your decision and your consequences one way or the other.

Bluefoam · 17-07-2019 10:11am

fret_wimp2 wrote: »

Relax! He put his opinion out there, its up to you what you do with it. If you want to put your life on hold waiting for what someone thinks may or may not happen, have at it, but its your decision and your consequences one way or the other.

I think you missed my sarcasm...

ELM327 · 17-07-2019 10:23am

JDD wrote: »

I think he's less referring to someone staining your couch to the risk of someone deciding not to pay their rent and overholding for six months or more.

I've said it before and I'll say it again. Q3 2020 - Q2 2021 is when the economy will slump. It won't crash like 2008 as that was a once in a lifetime crash, akin to 1929, but about 15% will come off property prices. Save your cash, and wait to buy until then. I would have done that myself only we had to buy last year when we did. If you're okay renting for another couple of years I'd wait.

How much of the 15% is spent renting for the few years?

Bluefoam · 17-07-2019 10:27am

ELM327 wrote: »

How much of the 15% is spent renting for the few years?

Your logic and considered approach aren't welcome here!!! We need a crash! So that prices will come down and all the people who can't afford to buy now will be set back another 10 years!!!

Evd-Burner · 17-07-2019 10:52am

L1011 wrote:

I'm getting quite uneasy about the discussion of an identifiable specific property at this stage. The OP has been given quite a lot of solid advice so far so that should be enough

ELM327 wrote:

How much of the 15% is spent renting for the few years?

hahahahaha. Exactly what I was thinking. The rental cost for the house im buying is about 2k per month. If I was to wait 2 years to buy that would be 48k.

The house I'm buying is 340k so if things dropped by 15% it would be 51k less. So theoretically a saving of 3k and running the risk of not being able to obtain credit in 2 years!

17-07-2019 11:14am

Evd-Burner wrote: »

hahahahaha. Exactly what I was thinking. The rental cost for the house im buying is about 2k per month. If I was to wait 2 years to buy that would be 48k.

The house I'm buying is 340k so if things dropped by 15% it would be 51k less. So theoretically a saving of 3k and running the risk of not being able to obtain credit in 2 years!

You'd be building up equity in the house though if you buy now and are paying the mortgage.

Plus you have your house.

Colonel Claptrap · 17-07-2019 11:16am

Noah Scruffy Kale wrote: »

You'd be building up equity in the house though if you buy now and are paying the mortgage.

Plus you have your house.

Like a dollar, a house now is worth more than a house in the future :P

Evd-Burner · 17-07-2019 11:21am

Noah Scruffy Kale wrote:

You'd be building up equity in the house though if you buy now and are paying the mortgage.

Probably about the same amount of that saving and my cost of mortgage plus tax and upkeep etc would still be less than the 48k.

Colonel Claptrap wrote:

Like a dollar, a house now is worth more than a house in the future

Hence I'm still going ahead with the sale

aloooof · 17-07-2019 11:22am

Evd-Burner wrote: »

hahahahaha. Exactly what I was thinking. The rental cost for the house im buying is about 2k per month. If I was to wait 2 years to buy that would be 48k.

The house I'm buying is 340k so if things dropped by 15% it would be 51k less. So theoretically a saving of 3k and running the risk of not being able to obtain credit in 2 years!

If you want a more accurate figure, you should be using the rental cost you are currently paying vs what you would be paying for the mortgage. It will inform how much you save / lose in the interim 2 years.

Also, loan amortization in the 2 year period should be considered. Very loosely: 340k, assuming 10% deposit of 34k, mortgage would be 306k. Taking a 30 year mortgage @3%, by July 2021, your principal will be around ~292k.

A 15% drop = 289k. Minus 10% deposit = 260k mortgage in July 2021. Plus the 5k you've saved on the deposit.

So, rather than your suggested saving of 3k, a (theoretical) 15% drop could see you in a more beneficial scenario (depending on your rent situation). But ultimately it is important to do your sums and weigh that up against things like certainty of ownership vs uncertainty of waiting for a crash, and suitability / size of property etc. etc.

aloooof · 17-07-2019 11:26am

Noah Scruffy Kale wrote: »

You'd be building up equity in the house though if you buy now and are paying the mortgage.

Plus you have your house.

Not necessarily, if we're assuming a drop in house prices. EDIT (my bad): The 15% suggested drop would have them around parity, owing 292k with the house worth 289k.

ELM327 · 17-07-2019 11:26am

aloooof wrote: »

If you want a more accurate figure, you should be using the rental cost you are currently paying vs what you would be paying for the mortgage. It will inform how much you save / lose in the interim 2 years.

Also, loan amortization in the 2 year period should be considered. Very loosely: 340k, assuming 10% deposit of 34k, mortgage would be 306k. Taking a 30 year mortgage @3%, by July 2021, your principal will be around ~292k.

A 15% drop = 289k. Minus 10% deposit = 260k mortgage in July 2021. Plus the 5k you've saved on the deposit.

So, rather than your suggested saving of 3k, a (theoretical) 15% drop could see you in a more beneficial scenario (depending on your rent situation). But ultimately it is important to do your sums and weigh that up against things like certainty of ownership vs uncertainty of waiting for a crash, and suitability / size of property etc. etc.

in interest only (exclude payment of capital)

aloooof · 17-07-2019 11:33am

ELM327 wrote: »

in interest only (exclude payment of capital)

Why interest only? The capital part would be accounted for in my suggestion for including loan amortization in the calculation as well, no? (Interested, in case I'm overlooking something).

ELM327 · 17-07-2019 11:38am

aloooof wrote: »

Why interest only? The capital part would be accounted for in my suggestion for including loan amortization in the calculation as well, no? (Interested, in case I'm overlooking something).

If you're doing it that way (which is possible but less clear IMO) you need to include rent figures for 2 years in the 15% drop scenario.
For clarity:

Rent for 2 years: 260k mortgage + (2 years * 18k/yr rent)
Buy now : 306k mortgage + (2 years of interest payments, or €x)

airportgirl83 · 17-07-2019 12:39pm

aloooof wrote: »

Noah Scruffy Kale wrote: »

You'd be building up equity in the house though if you buy now and are paying the mortgage.

Plus you have your house.

Not necessarily, if we're assuming a drop in house prices. EDIT (my bad): The 15% suggested drop would have them around parity, owing 292k with the house worth 289k.

Could you include drop in rental income in your calculations as well? If house prices drop, rents might follow. You don't want to end up contributing to your mortgage to cover the cost of it.

Evd-Burner · 17-07-2019 1:26pm

aloooof wrote:

If you want a more accurate figure, you should be using the rental cost you are currently paying vs what you would be paying for the mortgage. It will inform how much you save / lose in the interim 2 years.

I cant, I'm 30 this week and i was told a few years ago when I moved back into my parents that I have to save and move out by 30. As we are close to closing I am allowed to stay until we close and move.

aloooof · 17-07-2019 5:27pm

airportgirl83 wrote: »

Could you include drop in rental income in your calculations as well? If house prices drop, rents might follow. You don't want to end up contributing to your mortgage to cover the cost of it.

You could, but I'd wager it's another variable that we're guessing, meaning the result becomes increasingly unreliable.

Ultimately, it always comes back to fundamentals; if you can afford it and it suits your needs in the medium-to-long term, it's always a good time to buy.

(As an aside, I was actually surprised in my workings above that, even with a 15% drop over 2 years, OP would still be around parity. I'd have guessed they'd be in negative equity.)

rireland · 18-07-2019 8:31am

Bluefoam wrote: »

The people who benefit from a crash are the ones with cash and disposable income. If you can't afford to buy now, you'll have the same experience during and after a crash... you'll just be left wondering how everything managed to pass you by again...

Concentrate on putting yourself in a position where you can buy, and stop focusing on what everyone else is doing to make your life difficult.

This does not make sense.

I have cash saved up. I do not have enough cash for a 200k mortgage due to my salary.

My cash sum is worth much much more when prices drop.

And concentrate on putting myself in a position to buy? Stupid CB rules mean I have to get a salary increase of 50%....that's only if house prices stay at current levels too.

CB rules are protecting banks but they're throwing people under a bus forcing them to pay massive rents.

rireland · 18-07-2019 8:34am

Noah Scruffy Kale wrote: »

Yes let's all hope for an economic disaster because it might or even might not suit you.

You're deluded if you think people don't care about themselves first and foremost.

18-07-2019 8:40am

rireland wrote: »

You're deluded if you think people don't care about themselves first and foremost.

Of course they do. But the people who are deluded are those in this thread who seem to think a crash will come along, leave them entirely untouched, and let them buy a nice cheap house.

beauf · 18-07-2019 8:50am

rireland wrote: »

....
CB rules are protecting banks but they're throwing people under a bus forcing them to pay massive rents....

Those rules are preventing you from buying something you can't afford. They are also stopping banks from unsustainable loans.

How can you not realise this.... when banks lifted those rules last time the market went super Nova.

High rents are a different issue. That's lack of supply and increased demand.

rireland · 18-07-2019 8:55am

ELM327 wrote: »

How much of the 15% is spent renting for the few years?

Why do people always reply with this?

Even if the full 15% (which is high) was spent on rent, it's still massively beneficial to get a mortgage at prices 15% lower.

Example: House now worth 300k v house worth 15% less (255k). 30k deposit for both.

Total payment over 30 year mortgage:

300k house = €409,680
255k house = €346,860

So that's an increase of about 18%. That 63k difference is nothing to be sniffed at.

Quite a modest difference considering interest rates will have to go up sometime and spending 45k on rent would cover a number of years.

rireland · 18-07-2019 8:58am

beauf wrote: »

Those rules are preventing you from buying something you can't afford. They are also stopping banks from unsustainable loans.

How can you not realise this.... when banks lifted those rules last time the market went super Nova.

High rents are a different issue. That's lack of supply and increased demand.

the market went super Nova.

The market is already supernova!

This generation literally can not buy without money from parents, a massive deposit or a massive salary. Actually, I have a massive deposit, slightly above average industrial wage and I still can't afford it!

beauf · 18-07-2019 9:01am

rireland wrote: »

Why do people always reply with this?

Even if the full 15% (which is high) was spent on rent, it's still massively beneficial to get a mortgage at prices 15% lower.

Example: House now worth 300k v house worth 15% less (255k). 30k deposit for both.

Total payment over 30 year mortgage:

300k house = €409,680
255k house = €346,860

So that's an increase of about 18%. That 63k difference is nothing to be sniffed at.

Quite a modest difference considering interest rates will have to go up sometime and spending 45k on rent would cover a number of years.

I wonder if anyone had done this calculation if moving to England.

beauf · 18-07-2019 9:25am

rireland wrote: »

The market is already supernova!

This generation literally can not buy without money from parents, a massive deposit or a massive salary. Actually, I have a massive deposit, slightly above average industrial wage and I still can't afford it!

So what you need is to over extend buy a place then the market to crash. You be in negative equity for 15 yrs and perhaps have a drop in salary and lose your job in the crash.

I don't get the whole generation thing. It was much the same for my generation, except most of us decided to emigrate. 2/3 of my college class emigrated. Most never returned.

For some reason this generation thinks they all should be able to buy a property, and live in Dublin. They are blind to the economic realities of life. They see all this immigration and emigration and think it doesn't apply to them.

The govt only sees it's native population as a means of generating tax. It cares nothing for your welfare. Health, housing, pensions, just a waste of money. If they can attract a better skilled cheaper workforce here, people who will work two jobs, and companies that will subside their staff housing. The govt wants that. It's economic policy.

All I'm saying is there are better opportunities and a richer life experience by broadening your horizons.

aloooof · 18-07-2019 9:37am

rireland wrote: »

Stupid CB rules mean I have to get a salary increase of 50%....that's only if house prices stay at current levels too.

rireland wrote: »

Quite a modest difference considering interest rates will have to go up sometime

You're suggesting the lending rules are stupid, yet acknowledging interest rates will have to go up sometime. Can you see the conflict here? Have you worked out your repayments if the interest rates increased by, say, 1%?

SozBbz · 18-07-2019 9:38am

rireland wrote: »

Why do people always reply with this?

Even if the full 15% (which is high) was spent on rent, it's still massively beneficial to get a mortgage at prices 15% lower.

Example: House now worth 300k v house worth 15% less (255k). 30k deposit for both.

Total payment over 30 year mortgage:

300k house = €409,680
255k house = €346,860

So that's an increase of about 18%. That 63k difference is nothing to be sniffed at.

Quite a modest difference considering interest rates will have to go up sometime and spending 45k on rent would cover a number of years.

Because its all money you that you need to spend to maintain a roof over your head?

300k house = €409,680
255k house = €346,860 + Rent X however many years you spend trying to beat the market.

2 years could become three, four, five depending on either changes in your own circumstances and/or changes in market circumstances.

Also you could spend so long waiting to buy that your age begins to count against you. I know people now who were not ready to buy previously but now can only get shorter term mortgages because of their ages.

You can't control everything around you and you can't guarantee that the assumptions that todays calculations are based on will be valid at a given point in the future.

rireland · 18-07-2019 10:04am

beauf wrote: »

Those rules are preventing you from buying something you can't afford.

Eh....I can afford it.

If I lose my job on a 250k mortgage or a 150k mortgage I won't be able to afford it either way...

rireland · 18-07-2019 10:06am

beauf wrote: »

So what you need is to over extend buy a place then the market to crash. You be in negative equity for 15 yrs and perhaps have a drop in salary and lose your job in the crash.

I don't get the whole generation thing. It was much the same for my generation, except most of us decided to emigrate. 2/3 of my college class emigrated. Most never returned.

For some reason this generation thinks they all should be able to buy a property, and live in Dublin. They are blind to the economic realities of life. They see all this immigration and emigration and think it doesn't apply to them.

The govt only sees it's native population as a means of generating tax. It cares nothing for your welfare. Health, housing, pensions, just a waste of money. If they can attract a better skilled cheaper workforce here, people who will work two jobs, and companies that will subside their staff housing. The govt wants that. It's economic policy.

All I'm saying is there are better opportunities and a richer life experience by broadening your horizons.

Negative equity does not matter at all. I don't know why it's such a big talking point. If someone is in negative equity, that's the risk they took when buying.

It's the same if I bought a house that turned out to be a ****ty location and I couldn't sell the house

rireland · 18-07-2019 10:07am

aloooof wrote: »

You're suggesting the lending rules are stupid, yet acknowledging interest rates will have to go up sometime. Can you see the conflict here? Have you worked out your repayments if the interest rates increased by, say, 1%?

Interest rate repayments will affect the higher mortgage much more than the lower one.

And yeah, I could take a 1% increase in rate and still be paying less on a big mortgage than I pay on rent.

SozBbz · 18-07-2019 10:10am

rireland wrote: »

Eh....I can afford it.

If I lose my job on a 250k mortgage or a 150k mortgage I won't be able to afford it either way...

No you really can't.

Truly affording a mortgage means affording it under a position of stress. If rates went up by 2% how would you fare?

The CB rules make absolute sense and are there to protect people like you from yourself.

If the restrictions were going and we were back at the 9x salary multipes that were common pre crash, then guess what? House prices would go through the roof.

Banks and Developers would profit.

What matters is what you can afford relative to others chasing the same houses. If the restrictions are removed for you, they're removed for those around you too. You're still in the exact same position, only now the number you need is hugely inflated.

rireland · 18-07-2019 10:12am

SozBbz wrote: »

No you really can't.

Truly affording a mortgage means affording it under a position of stress. If rates went up by 2% how would you fare?

The CB rules make absolute sense and are there to protect people like you from yourself.

If the restrictions were going and we were back at the 9x salary multipes that were common pre crash, then guess what? House prices would go through the roof.

Banks and Developers would profit.

What matters is what you can afford relative to others chasing the same houses. If the restrictions are removed for you, they're removed for those around you too. You're still in the exact same position, only now the number you need is hugely inflated.

If there's job losses tomorrow no one will struggle so, considering everyone has been stress tested?

The CB rules are to protect the bank, not the people. This generation are getting screwed over by having them forced to rent insane rents.

duffman13 · 18-07-2019 10:15am

rireland wrote: »

Eh....I can afford it.

If I lose my job on a 250k mortgage or a 150k mortgage I won't be able to afford it either way...

Your more likely to lose your job during a downturn though and the banks exposure on 150 over say 250 is what's taken into account. Either way if you lose your job you are in trouble, I take your point if you had 150k mortgage it's obviously better but your not going to see a correction of 100k in a property. Prices may drop, I'd say 2nd hand properties might drop by 10% but demand is there at the moment albeit reduced a little recently so expecting a huge post brexit slump particularly in Dublin is naive IMO.

The central bank rules stop someone getting a mortgage and leaving huge exposure to the financial sector. You might have a great deposit but if your earning say 30k a year and have a mortgage of 200k that's not prudent in any world regardless of the deposit you have.

If you've a recession proof job (civil service etc) and a good chunk of a deposit then by all means wait for the correction you think will happen and keep saving in the mean time. Otherwise try increase your earning potential if possible

duffman13 · 18-07-2019 10:18am

rireland wrote: »

If there's job losses tomorrow no one will struggle so, considering everyone has been stress tested?

The CB rules are to protect the bank, not the people. This generation are getting screwed over by having them forced to rent insane rents.

Sorry but it's to protect both, banks need to be regulated as they made an arse of the country. People need to be regulated because they carried away with themselves. As much as the banks are vilified and rightly so, the last economic crash was a result of the greed and human nature of everyday people.

As regards stress testing, it's to test people's income for an increase in interest rates, if anyone losses a job tomorrow they will be in trouble. Stress testing isn't for that

rireland · 18-07-2019 10:21am

duffman13 wrote: »

Your more likely to lose your job during a downturn though and the banks exposure on 150 over say 250 is what's taken into account. Either way if you lose your job you are in trouble, I take your point if you had 150k mortgage it's obviously better but your not going to see a correction of 100k in a property. Prices may drop, I'd say 2nd hand properties might drop by 10% but demand is there at the moment albeit reduced a little recently so expecting a huge post brexit slump particularly in Dublin is naive IMO.

The central bank rules stop someone getting a mortgage and leaving huge exposure to the financial sector. You might have a great deposit but if your earning say 30k a year and have a mortgage of 200k that's not prudent in any world regardless of the deposit you have.

If you've a recession proof job (civil service etc) and a good chunk of a deposit then by all means wait for the correction you think will happen and keep saving in the mean time. Otherwise try increase your earning potential if possible

Well all I have is hope, considering it's impossible for me to get a mortgage at current levels.

"wait for a correction" - I have no choice. Literally impossible to buy.

beauf · 18-07-2019 10:22am

rireland wrote: »

Eh....I can afford it.

If I lose my job on a 250k mortgage or a 150k mortgage I won't be able to afford it either way...

duffman13 wrote: »

....
As regards stress testing, it's to test people's income for an increase in interest rates, if anyone losses a job tomorrow they will be in trouble. Stress testing isn't for that

If two people buy a property and one loses a job, or has their income reduced. They might be able to manage. One person on their own is a much higher risk.

if it all goes south, both then borrower and the bank lose out. if they let too many do it, as is lift the rules, then the knock on risks are increased massively for everyone.

Graham · 18-07-2019 10:23am

rireland wrote: »

If there's job losses tomorrow no one will struggle so, considering everyone has been stress tested?

Stress tests prevent people from borrowing the absolute maximum they can afford in monthly repayment. Theoretically this leaves them with a cushion to protect themselves against interest rate rises or minor changes in personal circumstances.

The deposit requirements limit the potential for negative equity should there be a drop in house prices.

Without these safeguards it is all to easy for borrowers/lenders to lose the run of themselves, particularly in a rising market. You don't have to look too far back to see the consequences.

rireland wrote: »

The CB rules are to protect the bank, not the people. This generation are getting screwed over by having them forced to rent insane rents.

CB rules protect borrowers/lenders and the state.

rireland · 18-07-2019 10:23am

duffman13 wrote: »

Sorry but it's to protect both, banks need to be regulated as they made an arse of the country. People need to be regulated because they carried away with themselves. As much as the banks are vilified and rightly so, the last economic crash was a result of the greed and human nature of everyday people.

As regards stress testing, it's to test people's income for an increase in interest rates, if anyone losses a job tomorrow they will be in trouble. Stress testing isn't for that

Eh no, banks are there to protect the banks.

There's a reason banks have been told to offload underperforming loans.

beauf · 18-07-2019 10:25am

I like the way buying outside of Ireland or Dublin just isn't considered. No lateral thinking whatsoever.

SozBbz · 18-07-2019 10:25am

rireland wrote: »

If there's job losses tomorrow no one will struggle so, considering everyone has been stress tested?

The CB rules are to protect the bank, not the people. This generation are getting screwed over by having them forced to rent insane rents.

Nope, you're missing the point entirely.

People will not be as stretched as they were the last time. My mortgage is manageable. I could probably keep paying it for a number of years based on savings etc. People are not as over extended/high on credit as in 2007/8.

The banks do not want these rules -they constrain their ability to lend, thus constraining their ability grow their businesses and to make profit.

Also the rental crisis would get worse in a crash. Demand far exceeds supply. If prices fall, developers will simply stop building. Some people will emigrate, sure, but generally speaking the stock of property will continue to be insufficient which is whats driving high rents.

beauf · 18-07-2019 10:26am

rireland wrote: »

Eh no, banks are there to protect the banks.

There's a reason banks have been told to offload underperforming loans.

You just aren't listening. Or learning from the past.

beauf · 18-07-2019 10:28am

SozBbz wrote: »

...
Also the rental crisis would get worse in a crash. Demand far exceeds supply. If prices fall, developers will simply stop building. Some people will emigrate, sure, but generally speaking the stock of property will continue to be insufficient which is whats driving high rents.

Lanlords will sell up to buy back in when the market bottoms out.

....or when theres some protection for LL's introduced.

Be interesting to see what the funds do. They are locked in with the Tyrrelstown Amendment. It will probably won't be a crash though. So they'll just weather it. Profits are so high anyway.

Property Market 2019

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