Property Trends: The time is Now!
If you are thinking of buying in the coming months, now is time to do so!
Property prices in Ireland are increasing all the time and they are now 15 per cent higher than a year ago. These prices will only increase further in the months ahead. In South Tipperary in particular, prices have not yet hit the top of their value.
According to economists, the property market has not yet peaked but prices will probably continue to rise in the foreseeable future.
At Lynch Solicitors we take the view that you ‘strike while the iron is hot’ and secure a property for an affordable price before the house prices increase any higher.
The Central Bank, being wary of the past property bubble, are talking about putting limits on what you can borrow from January 2015.
Proposals by the Central Bank
The proposed measures from the Central Bank will require banks to restrict lending for a purchase to 80% of the value of the property. Essentially this means that from January a purchaser will require a 20% deposit to buy a property.
At present in the market only an 8% -10% deposit is required. So for example if a house is valued at €300,000, then a deposit will be €60,000 from January onward.
Also the Central Bank is proposing that you can borrow up to a maximum of three and a half times your gross annual income. So for example a person earning €50,000 per year gross would have potential borrowings capped at €175,000.
The reality of these new proposals is that once they come into practice it is going to be much more difficult to get a mortgage.
It will take people longer to be in a positon to apply for a mortgage because of the increased amount of savings that they will have to prove.
While the regulations are not yet in place, regulated lenders are instructed to take account of the likely introduction of the new terms and to begin to adapt their lending practises in anticipation of its introduction.
Prospective buyers should note that there is a window of opportunity between now and end of the year.
Coupled with house prices in the area being at a reasonable level there will be no better time to purchase a property for the foreseeable future.
At Lynch Solicitors we have a Conveyancing Department that will be able to help you. We pride ourselves on taking a practical common sense approach to both the buying and selling of properties. If you have any queries and would like to make an appointment please contact one of our team.