Does the CB realise how the new mortgage rules have effected people

Graham

pablo128 wrote: »

Flogging whole apartment blocks to overseas cash investors instead of offering them to the general public doesn't help either.

Unless you're one of the people renting an apartment in one of those blocks, in which case not a lot changes.

I am of course assuming the sale of an apartment block doesn't result in its wholesale export from the state.

pablo128

Graham wrote: »

Unless you're one of the people renting an apartment in one of those blocks, in which case not a lot changes.

I am of course assuming the sale of an apartment block doesn't result in its wholesale export from the state.

http://www.thejournal.ie/vulture-funds-2866677-Jul2016/

Michael D Not Higgins

Mod: guys, be civil please.

thierry14

MarkAnthony wrote: »

OP if you think about this logically what do you want to happen? If you remove the CB rules you still can't buy because that €250K house is being sold for €750K. The issue is supply I'm afraid.

Curious why is supply a problem if there are over 32k houses for sale on daft?

Example Tyrrelstown D15 has 20 houses for sale and 1 for rent

Rental supply is a big problem with that ratio, it's a problem all over the country, but a choice of 20 homes for sale doesn't seem bad to me.

How many should we have for sale to cure supply?

100k

Most people I know just cant afford the deposit, none of them cite the lack of houses for not buying

Michael D Not Higgins

It's not about how many houses there are for sale. If all of those houses have people living in them, it's just a big chain of people swapping houses. The problem is new houses aren't being built at the level that's required to support the needs of the new entrants to the market. This puts upward pressure on the price since there's more buyers and fewer houses.

All your friends see is what's on daft and what's the price. People without an interest in the economics behind this don't realise the supply issue since the housing stock on daft is going up. So they blame the central bank rules instead of the lack of supply.

OfflerCrocGod

Angel2016 wrote: »

I think people if they want to buy areas they like or have their minds set on need to work out a plan and budget so that they can afford to buy there and save up that little bit longer.

I agree, so I'm not sure I see the reason for complaining about having to save up for an extra two years if that's your viewpoint. There are houses for ~€200K in D15 which are just fine but you prefer other areas, and since other people do to the prices are higher. Removing the CB rules means everyone else can bid those houses up just like you could, it's a lose-lose.

Graham

OfflerCrocGod wrote: »

Removing the CB rules means everyone else can bid those houses up just like you could, it's a lose-lose.

Absolutely.

Many people think it's the central bank deposit rules that is preventing them buying their dream home for €250,000. What they fail to understand is the removal of the deposit rules would probably see the house price quickly leap towards €350,000.

riclad

We saw in the celtic tiger ,
if theres no rules ,banks would lend 300k on a house thats worth maybe 200k or less
when the economy slows down,
House prices fall, banks would need bailing out by the taxpayer.
So we simply need strict lending rules on loans in order to prevent another boom /bust
cycle.

The_Conductor

Guys- thread cleaned up and reopened.
Please discuss the implications of the Central Bank rules- to your heart's content- but in keeping with the charter governing the forum.

I'd also hammer home the core principle which governs moderating in general- if you disagree with the point another person is making- refute their post- without attacking the poster. If, for whatever reason, you don't feel you can refute the post- report it so the mod team can take a look at it.

I honestly don't think I've ever deleted 72 posts in a thread ever before- please don't give me cause to delete more.........

fits

Someone I know who was a former bank manager, reckons that when the personal connection went from the loan decisions, that the country went downhill. Now I know there are good and bad things about decisions being made by unconnected people completely removed from the situation, but there is no nuance in the decision making anymore.

Hazydays123

I think the rules are a good thing. My recent experience of viewing properties has been that you can barely get from room to room there are so many other househunters there. Clearly plenty of people are still able to save and get mortgages. I hate to think of the heat that would be in the market if it was a free for all.

OfflerCrocGod

The IMF has complimented the CB and its rules http://www.rte.ie/news/business/2016/0728/805511-central-bank-imf-report/