Is the Stamp Duty promise now policy?
- Thread starter frash
- Start date
If I had a car for sale for a few weeks at say €10000 and nobody buys it then its is just too expenive, its a price issue and nothing else and to sell it I will need to reduce my price. The housing market shot up 20, 30 and 40% over a few years and there is no reason for it not to shoot back 20, 30 and 40% over a few years. Thats the reality of the situation, I am not saying houses will fall by 40% but in reality there is nothing that says our houses can't fall by this amount.
Its a speculative market no different to many others and for every winner there must also be a loser.
Its a speculative market no different to many others and for every winner there must also be a loser.
Negative equity already exists if no one will buy a house for less than the outstanding debt.
I think what people on this thread mean by negative equity is that they don't want to sell their property for less than they paid for it and have a loan outstanding which they must repay to the bank, but yes, in reality they are in negative equity if no buyer is willing to pay them what they paid for it initially.
Meathman99
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Can anybody explain why everybody in the media seems intent on talking the property/construction sector into the ground?
Well frash,
[broken link removed]
Here's finance bill no. 2 which was approved by the dail today. So it's law. No stamp duty at all for first time buyers.
It would be good to hear back from you in 1 or 2 months as to how you've been getting on. This would be a good indicator as to the effect of no stamp duty for FTB's. I'll say no more as I suspect you don't like hearing what I have to say.
ubiquitous
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I don't know that abolishing stamp duty will make the market get going again, every few hundred metres now there seems to be for sale signs up. Mortgage interest rates are the real killer especially as houses seem to be overvalued. With more interest rate hikes on the way I think a lot of first time buyers are scared. My friend is selling her apartment at the moment there are lots for sale around her and 1 apartment dropped their asking price by 20 grand compared to those around and it sold, my friend won't even consider that, as she's decided what she feels her place is worth and doesn't want to let it go less than that. But you need to be realistic we put our house for sale last october, sale fell through once hopefully going through now in next week or two but its at least 50 grand less than we expected to get last October. That's just the way things seem to be now. Sorry very long winded post!
It was approved by the Cabinet.
It has yet to go to the Dáil, and after that has to go to the Seanad and after that has to be signed by the President.
That article states that SD remains for floor areas above 125 sq metres. Not exactly the change that everyone was expecting.
Very interesting. I wondered how anyone could justify getting f.t.b. status when paying more than ( oh, pick a figure you consider expensive!). At least this way there is a limit on the size. And I had understood also that the whole idea of f.t.b. status was to give people a leg up when they might not otherwise be able to afford the stamp duty.
Good news (not!) for vendors now as presumably they will now have to pay someone to certify the floor area? How else will you pitch the property to f.t.b.'s?
mf
Good news (not!) for vendors now as presumably they will now have to pay someone to certify the floor area? How else will you pitch the property to f.t.b.'s?
mf
You still haven't said how many other similar houses are up for sale in your area though. Prices are set on the margins and maybe some of the other sellers are willing to negotiate at lower prices than you are?
Since inventory is at an all time high, I'd suspect that there is probably vast oversupply of properties for sale right now. On top of that, a lot of the investors that were buying last year have totally left the market (no more certainty of capital appreciation) so that's about 40% of the demand that existed last year up in smoke. Lower demand, higher supply... doesn't look very good I'm afraid if you're trying to sell. You'll need some way for your house to stand out amongst all the others.
L
LUFC
Guest
For people trying to sell houses/apartments & aren't willing to go below a certain price, do you realize that they're are energy ratings coming into homes (2009) & there is talk of a bill introducing minimum apartment sizes.
Now if your home has a bad energy reading, will this not further hamper your efforts to sell your house? same if your apartment is smaller then this propsed minimum sq ft, it will nearly be impossible to sell??
Given the possibility of more interest rates increases, people might be prudent to cut their loss now rather still have their house/apt still on the market in a years time holding out for a certain price.
Now if your home has a bad energy reading, will this not further hamper your efforts to sell your house? same if your apartment is smaller then this propsed minimum sq ft, it will nearly be impossible to sell??
Given the possibility of more interest rates increases, people might be prudent to cut their loss now rather still have their house/apt still on the market in a years time holding out for a certain price.
You've picked the most extreme case possible to prove you're right. €52,000 is way above average income. Most banks do not offer 40 year terms. I presume you have to be under 25 to get the 40 year. What % of FTB's earn €52k+, are under 25, are a professional (general qualifier for 100%), work in the same county that they wish to buy (this has been mentioned here as a qualifier for 100% mortgage). < 1% I'd say.
I checked the First Active website. €314,029.27 for a 40 year 100% (5 year fixed at 5.4% APR) mortgage, provided you're a professional. It's €282k if you're not a professional. It's €261k and €235k respectively on the tracker rate.
If you do enough massaging you can prove what you wish. We're talking about averages though. An average FTB can not get a €317k mortgage from an average sample of lenders. Also 30 years is average not 40.
Ah OK Mr Mortgage Broker. Your screen says yes. Given that this is a web forum I belive info on websites to be sufficient for posting here.
As someone else touched on there, is the only limit the 125sq m - if so, that's a very serious loophole imo that will see the exchequer lose out on quite a bit of money needlessly. Why did they not impose a price limit? This leaves the system open to abuse on large scale - more ridiculously rushed through legislation, it's like the prsi upper rate debacle last December again - or am I ranting needlessly again?
http://www.finance.gov.ie/documents/publications/financebill2007no.2/FinanceBill2.pdf
http://www.finance.gov.ie/documents/publications/financebill2007no.2/FinanceBill2.pdf