So says Frank Conway, director of the Irish Mortgage Corporation in today’s Examiner when talking about the cost of funding “some substantially reduced properties being launched onto the market” in recent weeks. Elsewhere in the article research undertaken by Myhome.ie shows that two thirds of first time buyers intend buying in the next 12 months – that’s the same proportion as intended buying in the next 12 months last September 2009. A consequence of the tumble in property prices is that banks are phasing out 40-year mortgages. Hopefully the latest Permanent TSB/ESRI house price index due out shortly will throw some more light on settled prices.
Property costing “scarcely more than the cost of a packet of cigarettes per day”
April 21, 2010 by namawinelake
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Every 6 months myhome says the same thing in a ‘survey’
The common element is that ‘relentless hordes are lined up ready to pounce on cheap property’, yet it never happens.
They will eventually be proven right but not until around 2015 or 2016.
Meanwhile they shall inevitably continue to tediously regale us with this nonsense.
Someone pointed out to me this morning that a pack of cigarettes costs €8 and for 365 days in a year costs €2920 and if you assume an introductory rate of 2.1% interest only on an 80% LTV mortgage, then that points to a property costing the best part of €175,000. I don’t know whether these were the sums or circumstances that the contributor to the article had in mind, and although €175k is about 1/2 of average peak prices, it is still a substantial sum of money.
(2920/0.021)=139047; 139047/0.8=173809.
And that price it does not include the mandatory mortgage life insurance and is not costed at real rather than teaser rates.