They just collapsed the property market but you just don’t know it yet

Article is fairly dramatic. Everyone knows the fixed rate is only guaranteed at drawdown, not what you get quoted originally.

Plans by number of people to buy homes are set to collapse after Finance Ireland announced an enormous rate rise with immediate effect.

I thought they had to give one month’s notice? Or am I thinking of energy suppliers?

Buyers who might have been able to afford a five-year fixed rate of 3.75pc are unable to afford repayments now that this rate is 4.75pc, collapsing hundreds of house-buying deals.

I thought banks affordabaility stress tests for were for a 2% increase? Honestly, if you cannot afford a 1% increase you really should not be borrowing that amount

Mr Coan said Finance Ireland is currently taking at least 33 days for credit decisions and 20 days for a valuation. “So thousands of customers are likely to miss out, because of Finance Ireland’s self-inflicted delays.”

They’ll miss the lower rates. But unless they cannot afford the higher rate the sale can still proceed, with a short delay. Seller won’t pull out when they hear of your delay, as putting it back up for sale would take longer

Give it a few months and this anecdotal post will seem quaint. :ninja:

I know someone who has finally saved up cash to buy (not me!). Will be buying with no mortgage. They do know it might be before a fall, but buying for cash, no mortgage, no NE. So doing so with the knowledge that prices may fall, but they reason in that case all will fall or rise together & they’ve waited long enough to buy, and will finally do so, for cash (although moving out of Dublin to do so).

Limited house builds, partly due to a ridiculous cost base, with ever more inward migration, only means one thing, doesn’t it

House building to decline next year as developers put the brakes on new schemes in the face of spiralling costs

The number of new homes completed next year will fall because higher costs are already prompting developers to delay schemes, according to new forecasts from Davy Stockbrokers.

The outlook for 2024 may be even worse if the supply of apartments, which have a longer lead-in and build time than traditional homes, goes into decline.

Davy’s chief economist Conall Mac Coille is forecasting a relatively small decline in new home completions from this year’s expected 28,000 to 27,000.

That is well below the Government’s targets, far below most experts’ estimates of housing needs – and less than Davy had previously expected.

“Cost inflation is the obvious factor which is feeding into a slowdown this year in site commencements and therefore house completions in 2023,” Mr Mac Coille said.

https://www.independent.ie/irish-news/house-building-to-decline-next-year-as-developers-put-the-brakes-on-new-schemes-in-the-face-of-spiralling-costs-42053072.html

That’s an interesting one.

I assume a Sinn Fein administration would plan to build old school type council/corporation housing or is that entirely naive on my part?

With the ‘profit’ being measured in a lifetimes worth of first preference votes thereafter - a la FF in the 1930s?

NGO Zero for all.

Zero emissions from the NGO sector would be a super start to anyone’s day.

Just in time for Halloween?

Everyone doing books these days wha! Cash in before the…


:grimacing:

Excuse my total ignorance for whatever property inclined pinsters still exist, but the more I think about the above comment the more I become puzzled or dismayed or both, was it not always a case that you either, in simple terms:

A) Qualified for a mortgage in full or part, and purchased a gaff.

B) Had the cash to buy the gaff outright.

I mean this stuff was never secret.

What did I miss?

What changed?

But there’s a list of approvals, surveys, checking title, other reports etc isn’t there? I’ve never bought, so am just assuming, but if you’ve no informal advice from family members to know what to do or what snags you should watch out for when buying, then even a very brief outline from a webpage could be useful as a guide to the total novice.

Would be nice to have one here tbh - perhaps a wiki post?

I guess it confirms the insidious nature of the social breakdown of the modern times where social media has been as a prime enabler.

how was it so easy to buy a gaff or 2 gaffs etc. Back in the day… 15 times income you say? Tell me more…

Work away How to Buy a House

A good thread from The Economist:

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UK . Above from TheRube more useful.

Meanwhile in America…biggest drops since the last bubble burst…

But Ireland is different, no house price drops here.
Supply is mentioned but immigration isn’t.

[Quote]

Traditionally, the regulation of investment funds has been largely about developing and enforcing investor protection rules. But we have to learn from history. The lessons of the global financial crisis, the COVID-induced market shock of March 2020, and the UK’s recent LDI issue are clear.

The sector is too big to ignore. The financial system in Ireland is heavily weighted towards the non-bank sector. The largest part of that sector is made up investment funds, money market funds and special purpose entities. We have the third largest funds sector in the world. To give a sense of scale, by the end of 2021, there were nearly 10,000 such entities, up from about 6,000 in 2016. In the same period, asset values of these entities increased from approximately €3 trillion to €5.6 trillion. The financial stability risks are self-evident, as are the risks to investors, consumers and the community as a whole. We need to think in an agile, forward-looking and connected way to address this.

Over recent years we have played a leading role in international efforts to develop solutions to address financial stability risks in the funds sector. Where solutions are developed and available, we should move quickly to implementation. The Central Bank of Ireland is planning to introduce leverage limits for property funds connected to the domestic economy, but we cannot tackle the wider issue alone. Global and European coordination is needed here, and, I suggest, urgently.”

[End Quote]

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Cheers Poacher. V interesting. Fair play to CB if they bring it in