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  • 15/02/2019 - Ronan Lyons 0 Comments
    The Daft.ie Rental Price Report

    New Year is a time for optimism. The Last Daft.ie Rental Report had the headline 'No end in sight for rental sector woes' and focused, in particular, on the lack of availability on the market. All of this was in the context of the tenth consecutive Rental Report where annual inflation in advertised market rents was above 10%.


    So how, then, should we interpret the fall in inflation recorded in this latest report? Nationally, inflation fell from 12.4% in mid 2018 to 9.8% by the year end. This fall was seen in Dublin and the other cities, as well as in Leinster outside of Dublin.  (Munster, Connacht and Ulster - outside the cities - are going the other way, with inflation at double - digit rates and two year highs.)

    The first thing to note is that we are still discussing substantial price increases, even if in percentage terms the increases in key markets have fallen below a noteworthy threshhold.  The average Dublin rent rose by €160 during 2018, compared to €180 in 2017.  It is unlikely that any new or existing tenants will be celebrating just because the new all time high is less dramatically above the previous high than it was compared to the figure from two years ago.

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  • 19/07/2018 - Oliver Farrell 0 Comments
    How to negotiate the mortgage maize to get your first home
    • Would be home buyers face challenges not least
      sky rocketing rents that make saving difficult
    • Under Central Bank rules borrowers are allowed to borrow 3.5 times their salary and
      need a 10% deposit, other home buyers need a 20% deposit
    • A limited number of borrowers can avail of exceptions to Central Bank Rules. In November 2017 the regulator tweaked its
      policy on exceptions, changing how the available budget for exceptions can be split between
      first time buyers and second and subsequent buyers.
    • Since January 2018 up to 20% of new lending to first time buyers can exceed the 3.5
      times salary borrowing gap, while up to 10% of it value of new lending to other
      home buyers can breach the limit.
    • This rule has created a rush at the beginning of the year. Top tip is now to get
      ready for 2019 and be ready for exceptions next year.
    • Understanding your mortgage rate options, interest rate is key, figures suggest that for the typical
      first time buyer a 0.25% increase to their mortgage will increase payments by
      €35 per month.
    • With European interest rates at record lows, a growing number of borrowers are
      choosing to fix their mortgage rate to lock in lower rates and the banks are
      now starting to offer very competitive fixed rates.
    • For borrowers it is very important to understand that interest rates will increase
      and that will happen within the next 12 months.
    • Presently variable rates in the making for somebody borrowing 90% range from 3.2% APR to
      4.4% APR. Fixed rates for the same type of person range from 3.3% APR for a 2 year fixed to 3.9% APR
      for a 10 year fixed rate. So you can see some very competitive fixed rate
      products.
    • Also some options to split between fixed and
      variable.
    • Fixed rates more flexible that in the past as a lot of banks do not charge penalties
      for breaking a fixed rate loan and also you can now with some lenders move
      house and retain the fixed loan.
    • The nuts and bolts of how a mortgage works,

      o
      How long your mortgage approval is valid for.

      o
      What you need to do to get a loan re-approved while you are searching for a
      property.

      o
      An increasing number of approvals expire and people haven’t found a house.


    • It is difficult to get a mortgage and that is probably correct.
      o
      Sometimes people need to plan for 6 months and clean up their bank current account before
      applying as banks look closely at your expenditure and savings pattern.

      o
      The Central Bank stress test all mortgage cases at 2% above the rate for prudence.
           
    • Some lenders offer cash back deals, I would say consider very carefully avoiding
      paying more in the long run. I would
      like to see these products withdrawn for to help transparency for an already
      complicated market.



      Oliver Farrell QFA is an experienced
      Mortgage And Financial Adviser with Over 25 years’ Experience and can be Contacted
      at (087) 252 5037 or farrellfinancialservices@eircom.net


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