The last 18 months has been a turbulent affair in the property and banking business. Auctioneers’ window displays showing the same properties, the only changes on the brochures in the windows are the prices falling, yet the properties still are not selling.
At the height of the property market an average priced house would be sale agreed in three weeks at way above the marked price. The public’s perception was that if they didn’t buy at the time the price would be higher in a matter of weeks. That has all changed now as we are constantly hearing on television and reading in the newspapers that the bubble has burst.
The original excitement has vanished and buyers are sitting on the fence but good news is starting to filter through those negative newspaper headlines. Interest Rates fell in October by 0.5per cent and the signs are that there will be another cut in November. This will make a huge difference in the average monthly repayments, for example in July this year the net monthly repayments on a €300,000 loan were €1,500 per month but now with the anticipated interest rate cut in November repayments on the same loan will fall by up to €200 per month, and with the increase in mortgage interest relief in the Budget net repayments on a €300,000 loan would be €1,100 per month, a massive saving of €400 a month.
Buyers who are currently renting should be made aware that there is an abundance of properties out in the market place below €300,000 and with average rental properties in Galway commanding €1,000 per month it still makes a lot more sense to own your home and now is a good time to buy.
For information on mortgages and interest rates call David Byrne of Simply Mortgages in Galway on 091 700944.
