20% Deposit for New Mortgages

[Maguire01]

In principle, it's a sound idea to have a deposit. Not sure how they arrived at 20% though, will push a lot of people out of the market, many of whom will be well fit to afford mortgage repayments, but will instead be forced to rent, in turn making it difficult to save a deposit.

[armaghniac]

They may have used a bit of psychology here. Propose 20% and take the inevitable hits  and then "relax" to 15%.

[thebigfella]

I would imagine that because of the 20% deposit requirement now imposed to buy a property, it will take a lot of customers out of the market, which will lead to a higher demand for rental property, which is already getting out of hand in dublin.

First time buyers are going to be forced into renting, and trying to save a deposit, their rent will go up annually due to high demand for rental property, leaving them less money to save each month. Over a period of time this should lead to house property prices falling, which will not help people currently in negative equity. Id say landlords across the country are rubbing their hands at this development.

Yep then add in the fact the property prices (in Dublin) are rising quicker than what people can save, including no interest on savings; people will never get any closer at the moment.

Basically tax the fcuk out of everyone buying property and not using it as their primary residence, then you will see the market normalise. This does nothing for anyone apart force more people to rent in an unregulated market. Dublin landlords are laughing like fcuk at this.

[Kidder81]

Aren't there 5% deposits in the North?

[seafoid]

I suspect the government are going to come up with some scheme to assist people in getting around this.
They have probably the biggest vested interest in keeping the property market rising - to offload Nama stock and improve the balance sheet of banjaxed nationalised banks.

They want to sell AIB and PTSB so they need high property prices in Dublin
Be with AIB. Have it as a millstone around your neck.

[Rossie11]

I would imagine that because of the 20% deposit requirement now imposed to buy a property, it will take a lot of customers out of the market, which will lead to a higher demand for rental property, which is already getting out of hand in dublin.

First time buyers are going to be forced into renting, and trying to save a deposit, their rent will go up annually due to high demand for rental property, leaving them less money to save each month. Over a period of time this should lead to house property prices falling, which will not help people currently in negative equity. Id say landlords across the country are rubbing their hands at this development.

I think first time buyers will now have to move to cheaper locations which were never on their radar but now they have no choice if they want to save the deposit.
This should/could have the effect of stopping rent prices spiralling upwards in some areas.
The one area I feel which will suffer will be the local economy. These people now stuck in a place they don't want to be will be spending nothing outside the essentials in order to save every cent and get to the magic 20% and get out.

[seafoid]

The Government can't afford to have a new wave of negative equity. House owning is a very important thing but not at any price.
And a lot of first time buyers  might not be aware of the risk of the price going down and the implications.
So the 20% deposit is designed to turn people off taking the plunge.
It can always be reduced if the situation stabilises.

 

[armaghniac]

The one area I feel which will suffer will be the local economy. These people now stuck in a place they don't want to be will be spending nothing outside the essentials in order to save every cent and get to the magic 20% and get out.

Maybe, but their mortgage will be less, both because it is 80% and because houses price rises will be moderated, so more to spend later perhaps when family expenses are higher.

The point about deposit requirements is that interest rates now are at an all time low. Anyone borrowing to the hilt at an all time low in interest rates is very likely to come unstuck when interest rates are somewhat higher than normal.

[muppet]

I would imagine that because of the 20% deposit requirement now imposed to buy a property, it will take a lot of customers out of the market, which will lead to a higher demand for rental property, which is already getting out of hand in dublin.

First time buyers are going to be forced into renting, and trying to save a deposit, their rent will go up annually due to high demand for rental property, leaving them less money to save each month. Over a period of time this should lead to house property prices falling, which will not help people currently in negative equity. Id say landlords across the country are rubbing their hands at this development.

Yep then add in the fact the property prices (in Dublin) are rising quicker than what people can save, including no interest on savings; people will never get any closer at the moment.

Basically tax the fcuk out of everyone buying property and not using it as their primary residence, then you will see the market normalise. This does nothing for anyone apart force more people to rent in an unregulated market. Dublin landlords are laughing like fcuk at this.

You will see the market collapse.

And there will be no rental properties available even for social housing.

[seafoid]

I would imagine that because of the 20% deposit requirement now imposed to buy a property, it will take a lot of customers out of the market, which will lead to a higher demand for rental property, which is already getting out of hand in dublin.

First time buyers are going to be forced into renting, and trying to save a deposit, their rent will go up annually due to high demand for rental property, leaving them less money to save each month. Over a period of time this should lead to house property prices falling, which will not help people currently in negative equity. Id say landlords across the country are rubbing their hands at this development.

Yep then add in the fact the property prices (in Dublin) are rising quicker than what people can save, including no interest on savings; people will never get any closer at the moment.

Basically tax the fcuk out of everyone buying property and not using it as their primary residence, then you will see the market normalise. This does nothing for anyone apart force more people to rent in an unregulated market. Dublin landlords are laughing like fcuk at this.

You will see the market collapse.

And there will be no rental properties available even for social housing.

Muppet


I think when the Germans cop on and start allowing social investment to get the Eurozone away from the wolf of deflation we might see some social housing going up. The number of people on the waiting list is shameful.

[lynchbhoy]

What's the problem with negative equity ?

[theskull1]

+1

[dec]

What's the problem with negative equity ?

It makes it very difficult to sell and move house.

[seafoid]

What's the problem with negative equity ?

It makes it very difficult to sell and move house.

Say you lose your job and you have to sell the house. Negative equity restricts your options

[Kidder81]

What's the problem with negative equity ?

It makes it very difficult to sell and move house.

& when remortgaging