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REA Property Auction: Has the market finally bottomed out?

REA Property Auction: Has the market finally bottomed out?

REA Property AuctionAll eyes will be focused this morning on the Real Estate Alliance auction where 59 properties are going under the hammer today for up to 60% less than their original asking price.

The auction, which kicked off at 11am in Dublin’s Shelbourne Hotel includes houses, apartments, commercial properties and development sites ranging in price from €60,000 to €1.5m. Most of what’s on offer today are located in the provinces where the market has taken a heavier hit than in the main cities and towns.

Some believe the auction will help provide the Government with a true valuation of properties across the country and will also reveal the answer to the million dollar question i.e. has the property market finally bottomed out?

Should empty, unfinished houses, ghost estates be demolished?

Should empty, unfinished houses, ghost estates be demolished?

Should empty, unfinished houses, ghost estates be demolished?According to a few sources & reports released earlier this month the stock of empty homes in Ireland soared 30% in the three years through 2009 and it is now estimated there are between to 345,000 and 352,000 vacant houses in Ireland.

Bad-bank NAMA aims to buy €80billion of property loans as part of a government plan to free up lenders but has warned only one third of loans – €27bn of the €81bn to be taken over by NAMA are functioning with debtors paying money owed or at the very least some of the interest on the loan. As a result, NAMA chief executive Brendan McDonagh told the Oireachtas Joint Committee on Finance this week that it may be forced to knock down unfinished property developments outside Dublin…“We may well be faced with the very difficult decision of perhaps knocking down certain developments”. …

Greed knows no bounds: Rise in mortgage rates

Greed knows no bounds: Rise in mortgage rates

Although the European Central Bank (ECB) left its rates unchanged yesterday for the 11th month in a row Bank of Ireland followed AIB today by announcing an increase in their standard-variable rates. The increase from 2.6% to 3.1% for both existing and new customers will add an extra €80 a month to the repayments of a €300,000 mortgage.

Thousands of homeowners who are vulnerable (and already hard-pressed,) to these rising mortgage rates are now being warned that they have seven days to act. Commenting on the rate rises Karl Deeter of Irish Mortgage Brokers said, “There is a very short window of opportunity now for those seeking security around the level of their future mortgage repayments to act fast before the rates increase further.” He continued, “These rises come in a year of cuts, levies, higher tax costs and deflation. It seems their greed knows no bounds.” …

Apartments for €69,950: Would you buy at this price?

Apartments for €69,950: Would you buy at this price?

Apartments for €69,950: Would you buy at this priceApartments at Tailteann Court in Mullingar which is less than an hour outside Dublin city centre, go on sale this weekend for as little as €69,950.

The 63 apartments which were originally put on the market for €202,000 failed to sell a single unit and are now being sold for less than two thirds of their original asking price.

Director of the Irish Mortgage Corporation Frank Conway, who is assisting with the sale this weekend said that the monthly repayments for one of these apartments would be cheaper than a car loan and also the equivalent monthly cost total of a 20 a day cigarette habit.

“If a person were to take out a mortgage of €75,900, their net payments would be only €264.85 per month. If we compare this to a car finance payment, let’s say they borrow €15,000, interest rate 10%, four-year loan, the repayments would be €380.44. Not only that but if you buy a pack of 20 cigarettes per day for one month this would cost €263.50. For just over €1 more, you could own a two-bed property,” he said. …

Is it cheaper to buy than to rent?

Is it cheaper to buy than to rent?

Is it cheaper to buy than to rent?Recent reports reveal that the rental market is showing, albeit small, signs of stability. To the delight of some landlords, good quality rental property is in demand and rent rates have slightly but steadily increased since December 2009.

With this recent news, the worthy discussion on whether to buy or to rent has raised its head once again.In terms of asking prices, property is now a lot cheaper than during the Celtic Tiger reign and house prices are a lot more attractive now than three years ago. Commenting on the latest rental reports, PIBA, the country’s largest group of independent stock brokers said…

Which is fair: Stamp Duty or Property Tax?

Which is fair: Stamp Duty or Property Tax?

Which is fair: Stamp Duty or Property tax?

The Commission on Taxation report recommended moving away from our reliance on transaction taxes such as stamp duty and to introduce a Property Tax which would provide a more stable stream of revenue.

New homeowners would be exempt from paying the property tax for a 7 year period from the year they paid (probably a hefty) stamp duty – …

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