Property Market 2018

The_Conductor

Zenify wrote: »

Seems to be a lot of articles going around at the moment. My mortgage broker rang me the other day encouraging me to buy too. I've had a rolling approval for over a year with him and never got a call before.

I'm past being cynical- I'm actually sad that we, as a nation, don't seem to have learnt anything whatsoever from the mayhem of the lost decade.........

We seem to be hitting 'replay' without any memory of what comes next..........

Bob24

The_Conductor wrote: »

I'm past being cynical- I'm actually sad that we, as a nation, don't seem to have learnt anything whatsoever from the mayhem of the lost decade.........

We seem to be hitting 'replay' without any memory of what comes next..........

Yes this is depressing :-/

Having said that while many things are slightly being done to get there, I wouldn’t said we are in a 2007 situation. At leat not yet.

James 007

The_Conductor wrote: »

I'm past being cynical- I'm actually sad that we, as a nation, don't seem to have learnt anything whatsoever from the mayhem of the lost decade.........

We seem to be hitting 'replay' without any memory of what comes next..........

Listen mate, sitting on the sidelines, cribbing and moaning is a lost opportunity. I don't know how people who engage in that don't commit suicide because frankly the only thing that motivates me is being able to actively change something.

zl1whqvjs75cdy

Fundamentals are a bit better this time but by jaysus I'm scared. And I just bought a place!

Villa05

The_Conductor wrote:

Irish lending institutions have, of late, been making a concerted effort to convince consumers to buy fixed rate products to try and insulate them from the vagaries of the market- when the day of reckoning does come. The government itself- is recognising this with its lifetime mortgage interest rate offer (at sovereign rates).

I cannot for the life of me understand our so called "consumer champions" on the airwaves. I have heard 2 on rte and newstalk effectively advising people away from 10 year fixed rates basically saying it's too long to be locked into a fixed rate.

DubJJ

Villa05 wrote: »

I cannot for the life of me understand our so called "consumer champions" on the airwaves. I have heard 2 on rte and newstalk effectively advising people away from 10 year fixed rates basically saying it's too long to be locked into a fixed rate.

I don't understand that when you can get released from a fixed rate now for next to nothing, very poor advise.

D_D

DubJJ wrote: »

I don't understand that when you can get released from a fixed rate now for next to nothing, very poor advise.

Can I get some advice on this actually? I got a letter from BOI saying that my fixed rate mortgage is up. I was on 3.35%, fixed for two years. They have offered me the following:

Variable: 3.9%
1 Year Fixed: 3.0%
2 Year Fixed: 3.0%
3 Year Fixed: 3.0%
5 Year Fixed: 3.0%

I was overpaying previously the max I could on a fixed rate (10% of monthly repayment amount).

Is it best to just go 5 year fixed at 3.0%, or will rates drop further in a year, so take 1 year fixed at 3.0% and review this time next year?

Thanks!

DubJJ

Ulster Bank are offering 2.6% fixed for 5 years and €1500 towards legal fees, max LTV 80%

D_D

DubJJ wrote: »

Ulster Bank are offering 2.6% fixed for 5 years and €1500 towards legal fees, max LTV 80%

I saw that, but my mortgage amount falls below the threshold to avail of the offer. I plan to keep it simple and stick with BOI.

DubJJ

In that case I'd take the 5 year fixed with BOI, due to new legislation there's vey little penalty out there for breaking a fixed term early. I just got released from a 3 year fixed term after only 12 months with zero penalty.

Villa05

D_D wrote:

I saw that, but my mortgage amount falls below the threshold to avail of the offer. I plan to keep it simple and stick with BOI.

Have they not offered a 10 year rate. The 10 year rate appears to be rising while the shorter term rate are falling

D_D

D_D wrote: »

Can I get some advice on this actually? I got a letter from BOI saying that my fixed rate mortgage is up. I was on 3.35%, fixed for two years. They have offered me the following:

Variable: 3.9%
1 Year Fixed: 3.0%
2 Year Fixed: 3.0%
3 Year Fixed: 3.0%
5 Year Fixed: 3.0%...........

the BOI APRC are very high though compared to their interest rates

1 Year LTV 81%-90% 3.00 4.4
2 Year LTV 81%-90% 3.00 4.3
3 Year LTV 81%-90% 3.00 4.1
5 Year LTV 81%-90% 3.00 3.9

It's the figure on the right that's of relevance.

The variable 3.9 is 4.0% APRC

The APRC (Annual Percentage Rate of Charge) is the total cost of the credit to the consumer, expressed as an annual percentage.

The 3.0% figure is just a sales pitch

BOI are very slow to drop their variable rate too though.

Q&A

D_D wrote: »

I saw that, but my mortgage amount falls below the threshold to avail of the offer. I plan to keep it simple and stick with BOI.

I thought Ulster Bank did away with the minium threshold for their better rates

Browney7

Augeo wrote: »

the BOI APRC are very high though compared to their interest rates

1 Year LTV 81%-90% 3.00 4.4
2 Year LTV 81%-90% 3.00 4.3
3 Year LTV 81%-90% 3.00 4.1
5 Year LTV 81%-90% 3.00 3.9

It's the figure on the right that's of relevance.

The variable 3.9 is 4.0% APRC

The APRC (Annual Percentage Rate of Charge) is the total cost of the credit to the consumer, expressed as an annual percentage.

The 3.0% figure is just a sales pitch

BOI are very slow to drop their variable rate too though.

Is that not because the rollover rate is assumed to be the SVR?

MayoSalmon

Augeo wrote: »

the BOI APRC are very high though compared to their interest rates

1 Year LTV 81%-90% 3.00 4.4
2 Year LTV 81%-90% 3.00 4.3
3 Year LTV 81%-90% 3.00 4.1
5 Year LTV 81%-90% 3.00 3.9

It's the figure on the right that's of relevance.

The variable 3.9 is 4.0% APRC

The APRC (Annual Percentage Rate of Charge) is the total cost of the credit to the consumer, expressed as an annual percentage.

The 3.0% figure is just a sales pitch

BOI are very slow to drop their variable rate too though.

I take it then this is how these banks offering cashback recoup their costs of that offering?

AIB which has no cashback offering appears to be offering much more attractive APRC

aloooof

I'm not sure if this is the correct thread to request this, but can someone explain how the APRC works in practice (vs the actual Fixed Rate offered, say)?

I've various Loan Amortization spreadsheets done up to try and get a handle on our potential repayments, but they're all done using the 3.0% Fixed Rate that BOI are offering.

mick2311

aloooof wrote: »

I'm not sure if this is the correct thread to request this, but can someone explain how the APRC works in practice (vs the actual Fixed Rate offered, say)?

I've various Loan Amortization spreadsheets done up to try and get a handle on our potential repayments, but they're all done using the 3.0% Fixed Rate that BOI are offering.

APRC is done using
n = term
(1+APRC) = ((totalCostCredit +amountBorrowed)/(amountBorrowed))^(1/n)

The totalCostCredit is calculated using the fixed rate and period then assumes the SVR for the rest of the term. This isnt a really good assumption

I think the advertised APRC is based on a 25 year mortgage.

The reason AIB have a much lower APRC than BOI is due to the lower variable rate.

The APRC of a 5 year mortgage fixed at 3% for 5 years would be very close to 3%.

aloooof

Perfect, that makes complete sense, thanks very much!

OwlsZat

Bubbaclaus wrote: »

Do people think demand will fall in the near future due to people being unable to save a deposit in the first place due to high rents?

Once this current blockage is cleared we could go through a phase of low demand due to a large chunk of the age group expecting to buy not being able to save the required 10%.

There is a real generation shift away from ownership. Might really influence demand!

Samuel T. Cogley

OwlsZat wrote: »

There is a real generation shift away from ownership. Might really influence demand!

Really or do you mean that 20 somethings just don't buy property because generally they don't especially in Ireland.

The_Conductor

Samuel T. Cogley wrote: »

Really or do you mean that 20 somethings just don't buy property because generally they don't especially in Ireland.

Did 20 somethings ever buy property- anywhere?
Normally- you'd be a good deal older, surely?

Samuel T. Cogley

The_Conductor wrote: »

Did 20 somethings ever buy property- anywhere?
Normally- you'd be a good deal older, surely?

In the UK where, at least anecdotally, people seem to marry and settle younger. But we'd be talking later twenties. I'm just questioning this generational shift. Is it a generational shift or just twenty somethings? Everyone I know in their 30s is buying/trying to buy bar the odd person with a decent rental in Kildare.

A few of us did the 'sensible thing' at university and bought - with 100% mortgages and guarantors!

little bess

The_Conductor wrote: »

Did 20 somethings ever buy property- anywhere?
Normally- you'd be a good deal older, surely?

I bought my first house at 25 in the UK, and other friends at the time did similar, but this was in the nineties. I wouldn’t be able to do it now.

Earleybird

little bess wrote: »

I bought my first house at 25 in the UK, and other friends at the time did similar, but this was in the nineties. I wouldn’t be able to do it now.

Course you wouldn't, you couldn't possibly still be in your 20s.

little bess

Earleybird wrote: »

Course you wouldn't, you couldn't possibly still be in your 20s.

Really?

Ryano87

What do you think of the advertised price of this house in Wicklow town? Given what I estates in Dublin are going for I think this is value?

Also I wonder what the market is like for 'nearly new' second hand homes given the help to buy grant won't be applicable to potential purchasers


https://www.daft.ie/wicklow/houses-for-sale/wicklow-town/5-sea-haven-greenhill-road-wicklow-town-wicklow-1692000

Granted you also have a commute to live with though.

Samuel T. Cogley

Ryano87 wrote: »

What do you think of the advertised price of this house in Wicklow town? Given what I estates in Dublin are going for I think this is value?

Also I wonder what the market is like for 'nearly new' second hand homes given the help to buy grant won't be applicable to potential purchasers


https://www.daft.ie/wicklow/houses-for-sale/wicklow-town/5-sea-haven-greenhill-road-wicklow-town-wicklow-1692000

Granted you also have a commute to live with though.

I couldn't live with the commute but 275K for a property with a seaview. Seems okay to me.

The dead land behind, the somewhat small garden, would be a worry for me too.

Edit: Could do with knowing the sqm :pac:

awec

Ryano87 wrote: »

What do you think of the advertised price of this house in Wicklow town? Given what I estates in Dublin are going for I think this is value?

Also I wonder what the market is like for 'nearly new' second hand homes given the help to buy grant won't be applicable to potential purchasers


https://www.daft.ie/wicklow/houses-for-sale/wicklow-town/5-sea-haven-greenhill-road-wicklow-town-wicklow-1692000

Granted you also have a commute to live with though.

It's value because Wicklow Town is too far for Dublin commuters.

Samuel T. Cogley

Samuel T. Cogley wrote: »

.....

A few of us did the 'sensible thing' at university and bought - with 100% mortgages and guarantors!

Sarcasm?

LirW

awec wrote: »

It's value because Wicklow Town is too far for Dublin commuters.

In fairness, a good number of people commute from even further away, lots of people from Arklow or Gorey do it every day.