Article: Crowds fail to materialise for launch of Millers Glen, Swords

bidiots

Mongfinder General wrote: »

An ECB rate of 5 or 6% will put a big chunk of mortgages in arrears. Barring a major shock, this is a few years away. But it could happen and with term loans of 35 and 40 years in place already, there is nowhere to hide.

Just imagine the carnage if the interest rates of the early 80's were to prevail!

Won't be a problem, just refuse to pay anything and live rent free like thousands are doing today.

2Mad2BeMad

bidiots wrote: »

Won't be a problem, just refuse to pay anything and live rent free like thousands are doing today.

the only people who are living rent free are the ones on the social welfare who are getting rent allowance, which are mostly lone parents who are actually not "alone".

This will fail. Swords was a popular place to live, but far to many pikeys live their now:pac:

washman3

Did the property cheerleaders on RTE cover this on the Six1 and 9 o'clock news tonight.
Nice to see them with a little egg on their faces...:p

BTW, in any normal society this particular developer would never be allowed build houses again, if not locked up for a very long time.!!

Mongfinder General

2Mad2BeMad wrote: »

the only people who are living rent free are the ones on the social welfare who are getting rent allowance, which are mostly lone parents who are actually not "alone".

This will fail. Swords was a popular place to live, but far to many pikeys live their now:pac:

Whereabouts are most of the piebalds based in Swords? Anything particular area that is full of scruffs?

Mongfinder General

D_D wrote: »

I have a general question on variable rate mortgages, which may be stupid, but I'm gonna ask it anyway... I got a small mortgage recently enough (€110,000 on a 4.25% variable rate). If the ECB rate keeps dropping like it did recently, banks begin to lose further on their tracker loans and need to make the difference up elsewhere, so could mean an increase in the variable rate loans (i.e. me paying more).

But if the ECB rate increases from its current all-time low position of 0.05%, to something more reasonable like 1% (I've no idea what's reasonable) does that mean that banks are now suddenly making money off these tracker mortgages, so potentially they can loosen their variable rates? (say a drop from 4.25% to 4.0% potentially)

Or will it be always a case for the likes of me that the variable rate will always have a threat of increasing, but never decreasing?

Sorry for the convoluted question, but it was something I wondered about. Was I foolish to take a variable rate mortgage? The reason I did so was because the amount I was borrowing was low, and a change in the rate didn't have a massive impact on the monthly repayments. The variable rate also gave me the option to overpay monthly (which I haven't availed of yet) so I could pay off the mortgage early, whereas the fixed did not give me this option...

It's hard to gauge exactly what the cost of funds is for Banks now. The eligible liabilities guarantee is no more so that is a big saving. Interest paid on deposits has dropped too so that's another saving. It would probably take a rise in interest rates of about 2% before trackers became viable again, maybe more. Would variable rates rise in tandem? They probably would but if Bank's really want customers off trackers then they may depress variable rates so that trackers don't look so attractive. This is unlikely though unless there is new competition in the market as Banks will ride you up the hole for as long as they can.

My advice to you is to pay as much as you can afford to overpay (Bank's hate this, they want as much interest out of you as possible). Variable rates are about the only show in town right now. Fixed rates are a total rip off but are useful if there is a threat that rates will take off.

Our opposition parties will probably make political capital out of this coming up to an election. Noonan mentioned at .25% decrease in the variable rate before he got the job he has now. I'm still waiting.

Sh1tbag OToole

NightOfTheHunt wrote: »

ECB rate is lowest it's been in history, 0.05% since yesterday.

They'll be paying people interest on their loans if it goes much lower.

Last roll of the dice from Draghi.

While I might disagree with your general views on this issue, I am glad talk of interest rates is being discussed here. It's something which FTBs rarely consider (beyond past the first 4 - 5 years) and can have a huge impact on affordability and total repayments of a 25 - 35 year term loan.

So the banks pretty much get the money for free or make it out of thin air, but a mortgage has 100x+ more interest on it than .05% so where in the almighty feck does all the money paid in interest by ordinary punters end up going?

jellybear

Just saw an update there for anyone interested- all 2 beds sold, good selection of 3 beds and two 4 beds left

gaius c

Interesting. Thought the "pent

up demand" would see the bigger houses go first. Guess their budgets must be too tight.

Sh1tbag OToole wrote: »

So the banks pretty much get the money for free or make it out of thin air, but a mortgage has 100x+ more interest on it than .05% so where in the almighty feck does all the money paid in interest by ordinary punters end up going?

Paying for the mortgages that are not being paid.

Arbiter of Good Taste

jellybear wrote: »

Just saw an update there for anyone interested- all 2 beds sold, good selection of 3 beds and two 4 beds left

I thought the whole point of the current rises in prices was pent up demand for 3 and 4 bedroom family homes?

jellybear

Don't know why you quoted me there and posed a question.
Not looking to get into a discussion was just giving a factual update.

Arbiter of Good Taste

jellybear wrote: »

Don't know why you quoted me there. Not looking to get into a discussion was just giving a factual update.

No need to be defensive. You quoted something that stated that 2 beds were sold out. My question - not necessarily for you, so no need for you to get into a discussion - was that we are being constantly told that there is pent up demand for 3 and 4 beds. I'd like to understand the apparent disconnect.

jellybear

Not being defensive, just wondering Just didn't see the point in quoting me and posing a question that's all. Suppose price had a lot to do with it as, in my opinion, the 3 and 4 beds, 4 beds in particular, seemed quite overpriced.

brooke 2

jellybear wrote: »

Just saw an update there for anyone interested- all 2 beds sold, good selection of 3 beds and two 4 beds left

Did I hear correctly yesterday that if the back garden is south facing, it will put an
extra €10,000 on the house price??

NIMAN

Of course it will, BBQs and decking !!

jellybear

brooke 2 wrote: »

Did I hear correctly yesterday that if the back garden is south facing, it will put an
extra €10,000 on the house price??

No idea. Didn't hear that myself.

MouseTail

brooke 2 wrote: »

Did I hear correctly yesterday that if the back garden is south facing, it will put an
extra €10,000 on the house price??

Interesting, south facing gardens always fetched a premium on the second hand market, this is the first time Ive heard it being priced into new homes.

jimosterberg

Mongfinder General wrote: »

It's hard to gauge exactly what the cost of funds is for Banks now. The eligible liabilities guarantee is no more so that is a big saving. Interest paid on deposits has dropped too so that's another saving. It would probably take a rise in interest rates of about 2% before trackers became viable again, maybe more. Would variable rates rise in tandem? They probably would but if Bank's really want customers off trackers then they may depress variable rates so that trackers don't look so attractive. This is unlikely though unless there is new competition in the market as Banks will ride you up the hole for as long as they can.

My advice to you is to pay as much as you can afford to overpay (Bank's hate this, they want as much interest out of you as possible). Variable rates are about the only show in town right now. Fixed rates are a total rip off but are useful if there is a threat that rates will take off.

Our opposition parties will probably make political capital out of this coming up to an election. Noonan mentioned at .25% decrease in the variable rate before he got the job he has now. I'm still waiting.

Bank of Ireland are offering a 10 year fixed rate now at 4.99%. What is people's opinion of the value of this?

mr_seer

MouseTail wrote: »

I wouldnt be surprised if there was a new entrant to the mortgage market in Ireland within 12 months. It will be a mixed blessing, will break the cosy 'cartel' that is there, but will could possbly inflate prices further.

No foreign bank wants to be anywhere near the Irish mortgage market. They are all trying to pull out (including KBC BTW). Why would any foreign bank want to lend here when they effectively cannot realise any value from the asset securing the loan in the event of default?

MouseTail

mr_seer wrote: »

No foreign bank wants to be anywhere near the Irish mortgage market. They are all trying to pull out (including KBC BTW). Why would any foreign bank want to lend here when they effectively cannot realise any value from the asset securing the loan in the event of default?

Because there will be money to be made. Bank of Scotland cleared their books of toxic loans in 2011 (loads of great bargains), and sold off the quality stuff to Certus.

Peter File

MouseTail wrote: »

Because there will be money to be made. Bank of Scotland cleared their books of toxic loans in 2011 (loads of great bargains), and sold off the quality stuff to Certus.

Are you serious?. The foreign banks left because they lost vast amounts of money.
There is very little chance of a another foreign entering the mortgage market here as it is very expensive to try to repossessive a house where payments are not being made.

MouseTail

Peter File wrote: »

Are you serious?. The foreign banks left because they lost vast amounts of money.
There is very little chance of a another foreign entering the mortgage market here as it is very expensive to try to repossessive a house where payments are not being made.

We shall see.

The_Conductor

MouseTail wrote: »

We shall see.

NIB handed back its banking licence- and the building societies, with one notable exception, are now history. IF there is a perceived segment in the market where there is money to be made- no reason that an international bank might not step in (Chartered were rumoured to be interested- as was Santander- no idea whether these are even viable options any more).

The_Conductor

jimosterberg wrote: »

Bank of Ireland are offering a 10 year fixed rate now at 4.99%. What is people's opinion of the value of this?

Its not a million miles away from mortgage rates on the continent (which are fixed for the life of the mortgage- not just 10 years).

If a buyer is seeking peace of mind- I'd say go for it. Its likely it'll cost you more to fix in the future- but you could get a considerably cheaper variable rate in the interim.

dubrov

You'd be crazy to come in here with a bank without some serious government guarantees.
The government seem to change the rules on a weekly basis.

It might look attractive now but that could all change very quickly

NIMAN

Am I the only person thinking that a quarter of a million for a 2 bed house is MADNESS?

Red Nissan

Villa05 wrote: »

I thought with al that "pent up demand" all those houses would have sold Today

AND "The return of the CASH buyer!"

Rezident

Infoanon wrote: »

How can people queuing for houses be a positive story??

Has nothing been learned from the collapse ?

Evidently, not a lot has been learned, I've been looking for a house for a long time and I think we're already seeing the start of the next (current!) bubble. Don't worry though, I am sure the government and the central bank will take care of everything this time . . . :eek:

brooke 2

MouseTail wrote: »

Interesting, south facing gardens always fetched a premium on the second hand market, this is the first time Ive heard it being priced into new homes.

That's what I thought! No extra work or materials went into the house with the
south facing garden. Crazy!!

EmilyHoward

I'm seeing mixed reports on the prices of these houses, can anyone confirm?

For example
2-bed town-house : €240,000
3-bed semi-detached : €280,000 - €290,000
4-bed : ?

jellybear

EmilyHoward wrote: »

I'm seeing mixed reports on the prices of these houses, can anyone confirm?

For example
2-bed town-house : €240,000
3-bed semi-detached : €280,000 - €290,000
4-bed : ?

4 bed- €399,950- €425,000