Wednesday 18 October 2017

Don't raise the roof over rise in price of property

YIPPEE. Property prices rose for the third month in a row in September, with a particularly strong increase of 2.4pc in Dublin.

Don't break out the champagne just yet.

Any recovery in the property market -- if that is indeed what it is -- will be pock-marked, geographically uneven, and slow.

However, we can expect a surge in buyer activity before the end of this year.

Generous tax reliefs are due to go for those who do not sign up for a house or apartment before December 31.

Calculations by the Construction Industry Federation show that a first-time buyer couple, borrowing €200,000 at 4.5pc, would get €2,250 in mortgage relief for next year.

This will fall to €2,025 in 2014. Over the five-year life of the tax relief, it would be worth a handy €10,125 to the couple.

What this could mean is that there will be a lot of activity now until year-end, and then little or nothing for months once we get into 2013.

Then there is the issue of bank lending, or lack of it. Fixed rates and variable rates are going up for those who can get mortgage approval.

The upturn, when it comes, will be geographically uneven. Dublin has a shortage of supply, particularly of good quality family homes.

But other parts of the country still have an excess supply.

All this means that we can expect more ups and downs in prices in the coming months.

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