Ask the Experts: Is it a good time to be a first-time buyer?
Published 23/01/2016 | 02:30
No. For first-time buyers, the failure of the Central Bank's lending control measures to reflect the average house prices in Dublin, the lack of supply due to the inability of second-time buyers to move and increasing rents have created a perfect storm which has put property ownership beyond the reach of many.
For those that have got the wherewithal to buy, they should because it is doubtful that prices will remain at this level.
Darina Collins is a director of and a founding member of the Real Estate Alliance, a partnership of more than 50 auctioneering firms. She is also a partner in REA O'Brien Collins, the Drogheda based general practice firm.
Unless you have a large amount of money saved, it is not a good time to be a first time buyer. High rents combined with the Central Bank's mortgage deposit requirements, have made it increasingly difficult for young people to save deposits, especially in Dublin.
Marian McQuillan is the CEO of Quillsen, formerly Gunne Estate Agents and was previously a director of Purcell McQuillan Tax Partners.
Purchasing your first home in Dublin can be more challenging as opposed to other parts of the country.
The effects of the new Central Bank lending restrictions are felt more acutely in Dublin's higher price environment. From a value perspective it is a good time to buy, the question is can you raise the finance to purchase a house in your preferred location.
It is more likely that the supply of houses coming to the market will increase faster than the availability of finance into the market.
However, the first-time buyers of today have an added challenge in that the new Central Bank lending requirements necessitate a higher deposit and a more restrictive multiple of income.
While you may be one of the lucky ones to avail of the leeway discretion on offer in 20pc of the cases.
Michael is the managing director of the Sherry FitzGerald estate agency group which has a 66 branch network including franchises, He has more than 26 years experience in the sector.
Overall it is a good time to be a first-time buyer.
The situation in Dublin is definitely more challenging for first time buyers because of the impact of the lending rules and the supply situation.
Buyers are recommended to investigate what is available and to get a full inspection survey carried out to ascertain the quality of unit before purchasing.
This will provide the buyer with peace of mind so that the property they are purchasing is not defective.
Patricia Byron is the director general of the Society of Chartered Surveyors Ireland which has 5,000 members working in the property and construction sector.