Softening house market?

Thank you Claw Hammer for properly explaining it. Some people don't get it.

But this is why I am questioning it do they pack it in and go on the dole or try and reduce their wages to compete? The idea that they can either leave and go to a different country where the same issues are there that Ireland face with regards to building is farcical if anything Ireland is under supplied and the government are incentivizing building. The other theory is they will go into a different business? I mean we are hitting a recession are builders going to retrain and work in IT or Pharma or something else and then the last option is they will simply go onto the dole - like they dont have bills to pay.

House prices were way higher in the Celtic tiger and wages were lower.

There is plenty houses in cork city for under 250k. It's not difficult to save 30k between two people over 5 years. It's only 50 or 60 euro per week like.

People seem to have so much money for fashion, image, coffee, restaurants, holidays, the list goes on. There was never so many eateries and coffee shops in the country.

People never had it so good if you ask me but sure you can't open you're mouth in case you might hurt someones feelings. 😂😂😂

With all due respect, 'getting jobs done' does not equate to getting a house built.

self builds in Ireland generally operate on a stage payment basis with the mortgage company releasing funds as each stage is complete.

a typical arrangement is as follows

1. foundations and subfloors
2. Main blockwork
3. Roof Complete
4. Plastering complete
5. power on & heating running / 2nd fix joinery
6. Snagging and handover

each of those stages apart from the last once could be north of 50,000, and you're relying on engineers, solicitors and lenders to all fulfill their obligations in a timely manner to get funds released as agreed, the reality is, all it takes is one person in the chain to make a mistake, go on holidays etc, and the builder can be left carrying the can in the meantime. And by and large, work does not stop, it continues as stuff like plant and scaffolding is on hire and incurring costs, dates have been given to subcontractors, who are hard to get, and them taking on projects elsewhere will only lead to further delays and compounding costs.

Its often the case at the end, where the budget has been blown, and its the builder whos left hanging, the homeowner has moved in, and its a nightmare to collect the final balance as the funds just arent there. You can't keep people out of their houses, as by this point they'l now essentially be paying back a full mortgage as well as rent.

Source? - Myself, been in the game nearly 20 years.

On my first week in college in 2006, I was offered a 15k loan by bank who cold-called me. I had little savings, feck all employment history and no demonstrable ability to repay a loan. Naturally, I didn't the money, and I thank my past-self for knowing not to accept the devil's shilling, but that's the kind of thing that was happening in Celtic Tiger Ireland.

Simply put, it was beyond easy to buy property back then.

The point I was making is that credit was incredibly available back then. I didn't take it because I had, and still do to a point, an aversion to debt.

You said it was easy to get a mortgage because you were offered a 15k short term loan. I have more than that as a credit limit on my credit card now. It doesn't mean mortgages are freely available.

I am talking about the attitude to debt, not the quantumj of debt. This post is irrelevant.

No, I gave an anecdotal story on the availability of credit in 2006. I didn't mention anything about today.

Poster clearly made a point about the situation in 2006. They are correct. I know someone who left college with multiple of 5-figure debt purely because the bank kept throwing money at them that they didn't need. Their family bailed them out but in reality the debt should have been written off for predatory lending.

Well said. Now people are more concerned about how they look on Instagram or sorry Insta 🤣

But why cry! It was your responsibility to say No just as you did say No. But why do you think it is always someone else responsible for your decision! It is your responsibility, something that perhaps never too late to learn. Just cause you are offered a big loan from the bank, it is your responsibility to check if you can can repay.

AIB is to increase the interest rate it charges for new fixed rate mortgages by another 0.5%.

It is the second rate increase by the bank since Octobe

The changes, which take place from close of business today, will not affect existing fixed rate mortgage holders with the bank or those with variable rates.

Borrowers with tracker mortgages have already seen their rates increase in line with European Central Bank changes.

The move follows three rate increases since July by the ECB, bringing its main lending rate to 2%.

AIB says that customers who draw down their mortgage by 16 January 16 will be able to avail of previous rates.

The increase will apply to AIB mortgages as well as those from the group's EBS and Haven brands.

According to AIB more than half of its mortgage customers are on a fixed rate mortgage.

The increases are the latest of a slew by the main banks here in recent weeks.

The most recent announcement came yesterday, when Ulster Bank said it was increasing its fixed rates on certain mortgages.

Further rate increases are expected from the ECB in the coming months, with a rise of as much as 0.75% anticipated next month.

AIB will also launch a one year fixed term deposit product offering a rate of 0.5% for personal and business customers with deposit balances of greater than €15,000.

This represents an increase on the previously announced fixed term deposit rate of 0.25%, the bank said.

It requires an intention to defraud which can be inferred if no good excuse is available.

That wasn't his point at all. He said he didn't take it. His point was that he, as presumably an 18 year old with no credit history or employment, had fairly large sums of money thrown at him. It was a point as to the availability of credit at that time.