First-time borrowers still opting for long loan terms

irishtimes.com/newspaper/property/2010/0527/1224271218292.html

Opting… Yeah, right… :sick:

The banks are still having it their way as the longer term means lower monthly repayments and thus a lower chance of the customer falling into arrears or defaulting. Plus the obvious longer term = more moola for the bank.

Sadly there’s still a lot of sheeple out there need to wake up. 10/15 years is such a bloody long time to have to continue paying a mortgage.

It’s the old affordability argument, lash a teaser rate, start 'em off with low repayments i.e. the max of what they can possibly afford…

Dr. Pepper, what’s the worst that can happen…

Repeat to fade… XX

absolutely agree

or on the other hand you could say that if FTB’s still have to go to ‘non standard’ lengths to ‘afford’ a house then you surely have to infer that prices are still WAY too high

well anybody buying a house now is an uber retard and deserves to be in negative equity for the next 1000 years FFS

“showed that 24 per cent of all borrowers negotiated the 35-year term”

“Negotiated”? What was the bank’s starting position? 50 years?

And that means that 24 % of all borrowers are under 30? I dont really believe that.

Turkeys vote to make Christmas a 7 day event XD

i recently bought/build a large detached house with cash only in nice location

i suppose i am a Muppet to? :unamused:

I wouldn’t read too much into it.

If/when I take out a mortgage I’ll be getting it for the longest term possible.
I’d plan to over pay it every month and pay as though I was paying on a 20year plan or so, but having it on the longest term possible means your “official” repayments are lower, giving you much greater flexibility if something happens.

I’d say your method represents less than 1 percent of 35 year mortgage holders, who just pay the minimum for the full term.

If you bought in 1970 the average mortgage was about £20 per month
a lot of money back then but by 1989 this would only buy you a music CD
and this was with 8% interest rates.
It’s incredible what high inflation can do to a 35 year mortgage.
This is what the Americans are hopeing to do with their debt by way of
the printing press but if they get it wrong :open_mouth:

When debtors outnumber savers, then let loose the presses. XD

Loathe as I am to call anyone a muppet,however you probably overpaid for your house,whether it was with cash or not.
All that extra money could have been spent on something else.

Well, in these uncertain times…

I too am still kermit-like adding bits on to my house that I built at the peak (2005-6). Sometimes you just put your money where your want is… after all, what do you earn it for? :smiley:

I completed the building works and fitted out the house to my taste and high standards and of course following all the latest regulations and more (think extra extra insulation for A rating, solar heating, triple glazing, extensive groundworks and landscaping, wastetreatment, oak/marble floors, large modern kitchen etc) thats alot more than you would get in any of the homes build during the bubble

the cost of labour alone was a small fraction of what it would have cost a few years ago, and having envelopes of money cash in hand persuades contractors (who are desperate for work) to say the least :wink:
im not worried unless the cost of labour and materials falls ALOT more or the country goes of the rail altogether (then i be the least affected) …
anyways keeping large amounts of money in the banks in asking for trouble
i chose to invest in a place for me and family to live and for myself to have a much bigger office space
and its already staring to pay off both financially and in terms of quality of life and work, and im currently working on starting a second business :slight_smile:

there seems to be this line of thinking on this site that anyone who bought a house recently is a fool, and if theres large amounts of debt involved or buying an apartment or estate house then i might agree
but please dont paint everyone with same brush
im extremely happy with the decision i made, and i dont have to worry for the next few decades about bank repossessing the home i worked so hard for to pay and build or owning anyone a cent

it sounds to me more like you built than bought. There’s a conceptual difference in this country.

for me its not a question of whether prices will go down but whether a similar home can be build cheaper later AND the what is the risk of the banks collapsing with your money

i dont have to live or work in dublin anymore (been there dont that, got the feck out of the rat race) so thankfully i was able to vote with my feet and now that builders and craftsmen are desperate for work take advantage of the situation to build a home that can be proud of (and be warm in :slight_smile: )

like many pinsters i worked, saved hard and waited wondering when the bubble will burst
if it didn’t burst I would have emigrated by now and taken my skills elsewhere
while for many people (especially ones who fell for the bubble) this recession has been devastating, so far (despite few ups and downs), for me and my family this has been an opportunity, i know it might sound wrong but there it is my main duty is to my family

im sure many other pinsters are still waiting in wings to get a home to live in, after all isnt that why most of us are here 8DD

Then you’re in a reasonably good position. But it would be a mistake to assume that this is possible for everyone. I only say this as someone who is looking at how that might be made possible in the next few years. But you need to recognice there is a difference between you being able to build that makes that pretty much okay at this point, and someone buying a pre-built property be it second hand or from a desperate developer. If you can build to own spec then those differences come into play.

I’ve mixed feelings about this. I’m in a position where major change is possible, however, there are elements of living in Ireland and Dublin that make it more attractive to stay here rather than ship to - say London, Paris or Munich. I don’t see this as sounding wrong. For the most part, people should do what they recognise as the best for them. When I have been asked for advice about buying I have pointed out that they will have to live with such decisions for a long time and they should be sure they want to do what they are doing. For me, money is not everything, never has been.

I’m not sure why I am here any more to be honest. I still have a few outstanding points regarding stability in the rental market that have yet to play out but the truth is, the wider argument is now hearts and minds and the need for social change.

I don’t own property. I may not ever own property at this stage having run my life slightly differently to a lot of people and being born at a time when I ran into the property bubble. I do know that after 10 years in this country I am happy here for the most part and have no great desire to ship out if financial reasons are the sole reason I would go.