Set a minimum deposit amount, rather than a percentage?

[Brendan Burgess]

I agree in principle with the requirement for a 20% deposit. But for someone who wants to buy a home in Dublin for €300k, that means that they would need €60k + costs , or around €70k, which would be very difficult for most people to save.

So how about setting a minimum deposit of, say, €30k?

In Dublin that might represent 10% of the price of a house. It would represent a higher proportion where houses are cheaper.

If 30k represented less than 10% of the house, then they would be required to save 10%



Brendan

 

[Steven Barrett]

When it comes to the world of finance, everything works in percentages.

 

[Brendan Burgess]

When it comes to the world of finance, everything works in percentages.

Hi S

Which is why this suggestion had not occurred to me.

There is no law that it must be a percentage. Although I think that 90% should be the maximum.

Brendan

 

[Steven Barrett]

Setting a monetary amount gets too difficult to manage.

Do you have one size fits all? Then what about the people who only want a €90,000 mortgage? Or at the other end, people buying somewhere for €1m+, only need a relatively small deposit...and you know the press will spin the life out of that

The rich only need 3% deposit for their mansions while those scraping by need a whopping 33% deposit

A percentage based is the easiest to manage overall.


Steven
www.bluewaterfp.

 

[Brendan Burgess]

HI Steven

I had updated the initial post as follows:

"
If 30k represented less than 10% of the house, then they would be required to save 10%"

So someone buying a house for €1m would need 10%.

The percentage is easiest,but doesn't get around the problem of very dear starter homes in Dublin, especially

 

[Steven Barrett]

but doesn't get around the problem of very dear starter homes in Dublin, especially

That's not the Central Banks issue though. Houses in Dublin are incredibly expensive because there's hardly any new ones being built. And when new ones are built, they will be built on land that was bought at Celtic Tiger prices so the developer/ Nama will be charging top prices for them.

Maybe the 20% deposit will save people from themselves. Buying your first home is an incredibly exciting time and emotion takes over.

There is still 15% of mortgages that the 20% deposit won't apply to but I's say only those with very strong applications will get them.


Personally, I think votes will decide it and the government will intervene for first time buyers.


Steven
www.bluewaterfp.ie