2 months Ago
The benefits for existing homeowners
First-time buyers benefit from not paying property transfer tax; however, existing homeowners moving into a new property hold clear advantages financially. They can pull on the equity they've built up in the home they currently own alongside rate relocation schemes that favourably offer offsetting the interest rate on their existing mortgage and lower mortgage repayments, therefore allowing them to afford properties valued over €100,000 higher than what first-time buyers can afford, whilst approximately incurring the same monthly cost.
During the last quarter, young homeowners aged 25-35 were the primary consumers in the mortgage market. In the last four months, mortgages from this age group increased by 40%, versus a 16% increase from first-time buyers in that age group. According to Boudewijn de Jong, Mortgage advisor, it is increasingly important for first-time buyers to ensure they build up sufficient equity for ascension of the property ladder professionally, while existing homeowners continue to leverage their own equity position in the homes they own. He insisted that more affordable housing is needed if better opportunities are to be achieved for those entering the market for the first time.
Market Trends and Opportunity
First-time buyers should not paint a bleak picture of the housing market, given the tougher competition they face. They continue to benefit from landlords having to sell rental properties due to tenant rent regulations, which adds to the supply of housing within the owner-occupied sector. New mortgages seem to be at slightly lower than the peaks of results just 12 months ago + higher wages are helping new buyers. On average, new first-time buyer mortgages were €345,612 for the last quarter, which is an increase of 6.4% and existing homeowners' moving up the ladder mortgages were €364,300, a robust increase of 3.1%.
