Home ownership ... why?


#42

Of course you would also have to put up with 180% VAT on cars, and around 50% income tax :laughing:

Sweden, until recently, didn’t really have a fixed length on mortgages and a lot of people never paid any of their mortgage repayments back, just paid the interest each each month. Strange system that meant they paid very little but never really owned their properties, but the banks must have loved it.
Anyway, they brought in a ruling last year against this, but you can still get a 100-year mortgage


#43

In theory yea, not sure why it hasn’t worked for banking - thems great rates … our banks are feckin fleecing us

(literally just drew down my mortgage this morning, didn’t take long for me to start moaning :joy:)


#44

Congrats. Hope you have many happy years of moderating us from within your own four walls.


#45

If i can get coverage


#46

:joy::joy::joy: Best of luck with everything!


#47

Best of luck with your new home!

I think it isn’t a single financial market, but the EU have been trying to make it happen but v complex. Would be unreal to properly open up the european banking market as it is a monopoly (with a governements vested interest in keeping it that way) here. That is why I think could be fantastic if An Post can break in but I am still sceptical they could somehow get blocked?


#48

Thanks, lads, very exciting.

You do have pepper here now, with their huge interest rates. An Post is a deal with some spanish bank, the lads behind avant card.


#49

My sister in law just got a mortgage in Paris . The rate is •5%. Point five percent.


#50

ah here.


#51

Irish Banks don’t fund at the same level that Other Large European Banks can due to a variety of reasons (size of market , previous economic hard times, perceived riskiness etc). So it fully makes sense that you see a discrepancy in rates between Irish and other European banks. Also the ECB rate being at X (Euribor 3 month rate = -.318% so the banks actually charge you to give them money) does not mean that either 1)the bank or 2) the individual will borrow at this rate. You can argue that the bank is taking too large a spread VS what they fund at but it is very difficult to see where they are funding unless you actually have access to their funding their side .


#52

Best of luck Tayto.

Ownership of the house cuts out paying rent in the retired years. however it can be a financial millstone around you if have to move for whatever reason (accidental landlords of the last generation will tell you about it)

Two Couples
Couple A have paid the their mortgage over the past 30 years and are now finished - the repayment rate has prob remained constant over those 30 years - now they have security and money no further repayments.

Couple B has rented for the last 30 years and have to keep renting until they die - no security and the rent they paid on a house 30 years ago is not the same as what they are paying today - nor will it be in the years ahead.

end of the day its a personal choice


#53

Banks are being funded by the ECB to promote leading. Why interest rates are so high I don’t know but it’s not a funding issue imo.


#54

€750,000 minimum yeh?


#55

ECB sets the base rate but they are a lender of last resort and that is not the rate the banks fund at, it will guide the rate that banks borrow and lend but it wont set it that rate is set by the market . For instance if a bank wanted to borrow money in the morning they wouldn’t borrow @ -.318 it just doesn’t work like that , everybody takes a cut and then adds a piece for perceived risk ETC so looking at the base rate VS actual lending rate isn’t entirely fair at where the back can actually fund itself. I was more responding to the question of why there is a spread in what Irish banks offer to other European institutions will offer on Mortgages and that will be related to what they can fund at.As an aside If an Irish bank was charger rates which were overly excessive to what was possible in the market you would expect another lender to come in and undercut them , this hasn’t really happened (potentially because there is no appetite to have exposure to the Irish market by European banks) bar KBC but they didn’t even really undercut VS the traditional Irish lenders which would mean either 1) it wasn’t really possible 2) they were also taking the same extortionate spread.


#56

Jaysus stay in the the sister in law, she’s minted!


#57

Not remotely near it.


#58

awww


#59

… no, €1.5m … :smile:


#60

Paris property values gone down alot the last 10 years then?


#61

Why are we nkt allowed to go to foreign banks for loans? Is it only for mortgages that we can’t but could we get a loan without capital backing from abroad?