3 recent significant events

This last week i have seen three really large nails driven into the property market

  1. Regulator comes out and has imposed rules on what the banks can and cannot lend. i used to be able to get 6-8 times salary, now its 4 tops

2.House prices to be correctly advertised going forward in local press, should help remove the belief that prices are stable

3.Banks increasing intrest rates and removing spurious products (100% Morts.) from market.

these three have as i see become visable in the last few weeks.
the affect on house prices should be brutal. If you were savvy enough to rip the arse put of your asking price early in the year and gone sale agreed, then you are lucky. going forward, if you need to sell from now on, your screwed if your expecting anything like recent price levels.

i did a quick calculation on my house,:

i bought in 2002 for 200k
factor in intrest and its equivelent in todays money to 240k

Max Mort i can get on the online calculators this week is 230k

so i can no longer afford my house, even though my salary has been stable.

my observation. prices to go to 2002 levels and fast

I didn’t see this , Has it just recently happened? Is it online somewhere or are “they” trying to hide it from us?

Yep they’re all significant alright. Tipping point possibly in Autumn as inventory continues to grow while buyers stay on the sidelines.

The killer blow … :smiley:

SuperPiper, must have missed Number 1, do you have a link?

As a matter of interest what is the supposed market value of your house today?

superpiper - also missed point one - do you have a link?

Also which online calculator are you using and how accurate do you think these are in the real world of mortage brokers etc. (I’d say more realistic that they were!)

I didn’t see anything from the regulator on this either, but thought it has been self imposed by the banks. They’ve certainly tightened the multiples recently, aswell as LTV.

So did I.

Maybe the People’s Republic has it’s own Regulator :stuck_out_tongue:

if this point is true (never mind adding in the effect of the other 2) then the market is oficially screwed. Is the fact you wouldn’t be a FTB factored into the calculator ‘only’ giving you 230k?

anyone with links to this development

Guys depending on income ICS will give a sole applicant x5 times with an income of <50k as of yesterday when they released new criteria. FTB criteria.

edit as made a mess of numbers trying to do too many things at once.

mortgages.ie/borrow.cfm

just checked the one online calculator but this crowd will give me 5.4 times my salary and bonus combined (I assumed 10% bonus but this is in no way guaranteed in my job) i.e. they’ll lend me 5.4 x (salary+10%) or 6x my salary ignoring bonus

EDIT: just to add I would be a FTB

Not Quite.
Sale prices can no longer be reported incorrectly, but there’s no requirement to report them at all.

There’s a subtle difference between stopping people lying and forcing them to tell the truth. They can always exercise their right to remain silent.

-Rd

True - but is uninformed panic among the sheeple better or worse than informed panic?

Certainly the days of misinformed relaxation are over.

Superpiper doesn’t seem to be logged on at the min.
I’ve asked this question before but couldn’t find an answer - what power does the Central Bank have to restrict lending multiples (of salary) or LTV’s (100%)??

Would love if someone could answer this for me!!

erm,

sorry, i didn’t mean that a regulator is restricting the market to 4 time salary,

I was listening to Today fm on the way home last week and a official body (not sure which) was describing how the banks have to follow certain rules now to give out mortgages (ie play nice)
The woman mention credit assesments being compulsory.

i have (maybe incorrectly) corrolated this to the multiple now being offered on the web calculators being dramatically reduced.

Matt was going off on one about the stable door etc but to me it seems that as of autumn last year, the regulators have but the brakes on the banks.

Matt was as suprised as i was to hear of this so late.

And the article prompted me to find out just what i can borrow.

sorry for the confusion, i’ll try to find some links

Edit: like this

mortgages.blogs.ie/2007/08/19/new-rules-on-stress-test-for-mortgage-lending/
independent.ie/business/iris … 61764.html
%between%

yes over 40 years!

my Mortgage is for 30 years

a subtle but important note

Thanks Superpiper.

My reading of the situation is that the banks are now effectively self-regulating (after the horse has bolted) But it’s also my opinion that the Central bank should have acted years ago to restrict borrowing when it saw the emerging bubble - but that the Central Bank Could not or Would not act.

yes

in other words, regulation, voluntary or not, is now throttling prices.

sorry for the confussion, did anybody else catch the interview?

Don’t worry about the confusion - Dick Roche made a career out of it! :smiley:

Market Conditions are Throttling Prices

The Regulator is skittering along behind the market conditions claiming that they influenced them. This is manifestly untrue .