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Guest107
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room305 said:
It means that Irish inflation will track the rate rises ....given the mad size of our mortgages ....and that rate rises will not curb inflation in Ireland but may fuel it.
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It means that Irish inflation will track the rate rises ....given the mad size of our mortgages ....and that rate rises will not curb inflation in Ireland but may fuel it.
room305 said:
They can demand all they like, but are unlikely to get them. We have already lost most of our competitive edge in this regards.
The economy will suffer especially, the extra money going to be spent on servicing higher mortgage costs will result in money not being spent elsewherein the economy.
It's possible to see a stagflationary scenario for the irish economy, whatever about anywhere else.
whizzbang said:
Have thought about it, some family members work in the public sector and comparing salaries i can believe the recent stat that says on average public sector workers earn 40% more than private sector workers. Plus there's all added benefits, e.g. pension, better job security, etc.
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phoenix_n
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This from the Sunday Independent...
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Getting back to the topic at hand, i have a developer acquaintance who assures me the market won't drop (not that i would expect him to say otherwise), but at the same time he has recently off-loaded some of his property portfolio and diverted the funds into other areas.
You are right. My mistake, the figures I gave relate to a with capital repayments mortgage. Highlights how little the IO mortgage saves you once rates go much higher.ivuernis said:
A 242.85% increase in a few years. Quite staggering.
As an aside, I am continuously baffled by the lack of knowledge on the part of property investors here. Over the weekend, I asked a friend of mine (whom I have been trying to convince to sell his investment property and pay off his outstanding debts) was he concerned about rising interest rates over the short-medium term.
He conceded that although he was worried about the difficulty of making the repayments on his interest-only mortgage, there was only a year and a half left to run on the interest-only component. After which, he assured me confidently, rising interest rates would no longer be a concern as all the interest will have been paid off on the loan and he will only be repaying the capital ...
whizzbang said:
Like a lot of things in this crazy economy of ours i guess, but they have unions and are less prone to the vagaries of globalisation. I've never been in a unionised job, work in IT, and the spectre of competition from out sourcing to more competitive countries always looms on the horizon.
It was a struggle not to burst out laughing to be honest. Anyway, I said that I had never heard of such a mortgage and that typically an interest-only mortgage involved repaying only the interest for a few years followed by repayments of both interest and capital but that at all times you are repaying the interest on the outstanding balance of the loan.Howitzer said:
Although he insisted he was sure, some back of a beer mat calculations on just how much he would have to be repaying the bank to "forward pay" all the loan interest, even if he had fixed @ 3.5% for 30 years, seemed to convince him.
I left it at that but have my fingers crossed he will give serious consideration to selling. Even my parents when I visited them this weekend, seemed less bullish on property. My father was all set to purchase another as recently as one month ago (despite my pleas) but has now decided to adopt a "wait and see" attitude to the market and will reassess the situation in a few months.
If you want an indicator of what public sentiment is like, that is not a bad one. I believe many people are moving into a cautionary phase which will only be heightened as rates continue to rise.
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