Rate of cash buyers purchasing houses hiked to 60pc following boom - Central Bank
Published 25/07/2016 | 13:35
SIX out of 10 houses and apartments are being bought with cash.
New figures from Central Bank economists show that the proportion of cash buyers has shot up to 60pc of purchases.
During the housing boom just 25pc of purchasers were able to buy without a mortgage.
But now the wealthy and institutional investors are dominating the residential property market.
The high proportion of cash buyers is also due to difficulties ordinary home buyers have getting approval for mortgages since the bursting of the property bubble.
This is due to banks tightening lending, job losses and pay cuts and Central Bank lending restrictions.
The rise of cash buying is also due to high numbers of speculators buying so-called distressed property assets, properties where the borrowers have defaulted on the loan.
Commentators have also pointed out that the “bank of mum and dad” plays a big role. This is where wealthy parents finance the purchasing of homes for their children.
A new academic paper from three Central Bank economists shows that there has been a sharp fall in the numbers getting mortgages since the financial crash which began in 2016.