ireland.com/newspaper/breaki … king38.htm
"Second hand houses have seen an average fall in values of 7.7 per cent to date this year, while prices for new homes have fallen by 2.5 per cent. "
New houses would be much lower if it were not for all the goodies that developers are giving away, legal fees covered, first years mortgage paid, etc.
"Last month house prices nationally fell by 1.3 per cent as the traditionally strong autumn dissipated in what Niall O’Grady, head of marketing at Permanent Tsb bank, said was a “deferral of purchase decisions”.
He said buyers waiting to see what would happen was having an impact on the rental sector where rents are rising steadily. "
Someone should tell O’Grady that rents are infact falling for the last 3 months.
If we have similar falls to the one experienced in Oct (1.3%) over the 12 months of 2008, probably about 14% using reverse compounding it would be almost double the Goodbody’s forecast.
I have a friend who bought a city centre, 1 bedroom apartment a few months ago. He’s financially educated but simply doesn’t care if the market goes down. What a fab job the VIs did to convince people rent is dead money…
VT
if we have falls of 1.3 percent for November and December that will give a total year fall of 7.5 , yeah?
I think a couple of us have a few quid on decent odds for this with paddypower.
Of course he doesnt care … until he goes to sell it !
He probably didn’t factor stamp duty into his equations either.
Just how much is a FTB status worth these days?
Enough that at one point I considered starting a dating agency for FTB’s to meet other FTB’s.
If an FTB gets together with a non-FTB (the unclean so-to-speak) they lose their status.
-Rd
So I calculate the FTB mortgage interest relief to be worth €5k * 0.2 * 7 = €7k, or €14k for a couple.
Given that the average Irish house price is €295k, €14750 in stamp duty will be due. If you live in Dublin where the average price is €400k, that’ll be €30k stamp.
So FTB status is worth well over €20k euros, potentially up to €45k for a couple in Dublin.
I believe the conditions to be considered an FTB for mortgage interest relief are less strict than for Stamp Duty.
-Rd
Yeh me, i want my 80 euros winnings if it does. Those ESRI fellows better start reporting the true falls!