The Central Bank eases lending restrictions
Finally, the Central Bank has got its act together in relation to the deposit requirements for First Time Buyers. New regulations will be effective from 1st January next. First Time Buyers will be required to only have 10% of the purchase price saved, irrespective of the cost of the house. Read more..
October’s Budget highlighted a number of areas that may have gone unnoticed by some of our readers.
- Landlords will be to claim relief on 80% (2016 75%) of the interest paid on a mortgage for an investment property in 2017. This will rise to 100% by 2021. Read more..
The pain that depositors are feeling, with rates below 1% gross will continue. This is due to the fact that the ECB have made it clear that they intend on keeping rates at current levels for many years to come.
Anyone waiting for a significant rise in deposit rates, in the coming years, is totally delusional! In addition the high DIRT rate of 41% and USC charge is adding to this misery.
Leaving money on deposit should only be considered for convenience rather than as an investment decision.
So what is the solution? You need to look at moving to an Read more..
Central Bank finally sees the light!! and removes 20% deposit requirement for first time buyers.
Finally, the Central Bank has seen the light and removed its ridiculous requirement for First Time Buyers to have a 20% deposit when purchasing a house above €220,000.The new rule is that they only require 10%, irrespective of the price of the house.
For Second Time Buyers, Investors etc. the deposit requirement of 20% will remain, which I think is appropriate. If these purchasers do not have the minimum 20%, then I believe they are not in a position to trade-up or invest.
Hopefully this change will lead to more activity among First Time Buyers, but there is one major elephant in the room!! and that is property supply, particularly in Dublin. The Government now needs to sit up and take the measures that are necessary to either force developers, who are sitting on land banks, or a planning process that is slowing up supply to finally sort out this issue.
The Rental Market will also benefit from this change, as more people will seek to purchase a home and move from being tenants to homeowners.
WORD OF CAUTION — It will be 2 years before we can assess if this climb down by the CB has worked.
Issue: Investors who buy Investment Property could be bitterly disappointed if they do not do their homework.
Comment: It never ceases to amaze me the love affair we have in this country with property. Despite the grief that Investors have experienced over the last 8 years it seems that there are still many people who do not consider property as a risky investment.
A lot has changed since 2008 and any investor buying property Read more..