Buy house before January?

Johngoose

Hi just wondering what opinion people have, on buying property before more lending restrictions come?

Balmed Out

I think once you're mortgage is sanctioned and agreement to purchase house the new rules wont apply provided you draw down the mortgage within six months.

There's bound to be a surge of people trying to get in before the new rules so prices may be a little higher for the next few months.

My own gut feeling is prices will decrease / flat line or only have very moderate gains after that. There's still a lot of people in their mid 30's (like me) who the new rules wont affect as they've been saving so long but due to the lack of any sort of market outside the main urban centers haven't bought yet so I wouldn't see any big collapse in prices for desirable properties.

Theboinkmaster

Johngoose wrote: »

Hi just wondering what opinion people have, on buying property before more lending restrictions come?

Nobody can tell you for sure but my own opinion would be prices spiking a little between now and the end of the year as people panic buy, and then in new year slowly decreasing (moderately). So if it was me I'd wait and see.

It is possible that a house say in SCD now would go for €500k and then this time next year would go for €450k - small increase in supply and reposessions combined with decreased cash buyers demand and new lending restrictions could easily lead to a 10% decrease next year, but who knows - is just speculation TBH.

Heisenberg1

Theboinkmaster wrote: »

Nobody can tell you for sure but my own opinion would be prices spiking a little between now and the end of the year as people panic buy, and then in new year slowly decreasing (moderately). So if it was me I'd wait and see.

It is possible that a house say in SCD now would go for €500k and then this time next year would go for €450k - small increase in supply and reposessions combined with decreased cash buyers demand and new lending restrictions could easily lead to a 10% decrease next year, but who knows - is just speculation TBH.

Why do you think there will be decrease? These changes won't affect people looking in that price bracket. People looking to buy in that bracket have huge deposits saved and have good salaries. Banks have been stress testing people more rigorously in the last 2 years. The only reason prices have risen so fast is down to supply. What these measure will prevent is the people on the lower end of the scale will find it much more difficult to get on the ladder, which I suppose is a good thing as it will prevent over borrowing. On the flip side it will push more people into rental accommodation which will push rents up higher so its a win for landlords. Why don't they start looking at capping rents.

El_Dangeroso

The prices won't go down until June next year, that's when everyone who received AIP from this year will have to reapply under new rules if they have not bought already.

Theboinkmaster

Heisenberg1 wrote: »

Why do you think there will be decrease?

I think it could decrease demand (volume) and limit affordability so prices would have to decrease to meet this. Maybe.