Buy Now or Wait? Some crucial facts!

Although speculation is rife concerning the fortunes of the property market, conditions to buy property have, in many respects, never been better especially for First Time Buyers. Here’s some good reasons to buy in the current market.

1. Falling interest rates
   Mortgage interest rates have dropped significantly over the last year. A First Time Buyer can now cover repayments on a €200,000 loan over 30 years for around €950 per month. That’s based on a 4% rate; even if you allow another 1% rise in rates, the monthly repayments compare well to typical rents.

2. Increase in Mortgage Relief
   Mortgage relief for First Time Buyers has increased by 5%, from 20% to 25%. This means First Time Buyers will now receive mortgage relief of 25% on the 1st two years of their mortgage repayments.
3. Decline in house prices
   The decline in house prices has brought a substantial improvement in affordability to the market place. Prices are now as much as 40% below what they were at the peak in 2006.
   The average price paid for a house nationally in January 2009 was EUR 258,006 compared to EUR310,632 at the end of 2006.
4. Exemption from Stamp Duty
   First Time buyers benefit from not having to fork out for Stamp Duty. This helps to fund the deposit required to buy which is now somewhat more given the tighter lending criteria

While uncertainty abounds as we battle though tough economic times, it makes a lot of sense to consider buying for those who have a deposit at the ready and qualify for the necessary mortgage approval.