First-time buyers, returnees ,employers are pulling their hair out with the major difficulties experienced when attempting to purchase a new home in Ireland booming capital – Dublin
A new report by KBC Bank published today has shown that you need to be earning at least €100,000 a year to purchase a bog standard 3 bedroom house in Dublin.
The report found that the price of new homes in Dublin had doubled in the last eight years rising from €200,000 in 2012 to €180,000 in 2020.
Which means that in order to secure a 90% loan a buyer would need to be earning €98,000 per year .
These new figures are placing significant demands on employers as employees are demanding wage rises to live and work in the Capital .
Wage inflation is now a serious concern as demand for labour rises and Ireland is facing an acute skills shortage in all sectors and occupations ,employers are increasing bonuses on offer along with ” signing on rewards ”
None of these incentives qualify for a mortgage under the tough Central Bank rules as they are deemed to one off payments .
Meanwhile on the housing front the KBC Bank report went on to inform us that in Dublin house prices costs more than 9 times the average salary , the Central Bank restriicts mortgage applicants from borrowing more than 3.5 times their income.
Of course this lack of affordability is impacting oil the housing market with home sales dropping for the first time since 2011 with house purchases by householders falling for the first time since 2012 and purchases of new builds dropped by 15%
The developments on the housing front when coupled with the acute skills shortages and resulting wage rate rises ,along with the economic damage the Coronavirus will cause the Irish Economy will result is significant contraction and falling growth levels in 2020 .
Back 4 Good will be offering our unique solutions to address these issue if/when Ireland gets a Government in place .
