Today’s Daft.ie was looking particularly stark for Sligo.
For Rent
One apartment, High Street, 900 per month, one bedroom.
For Sale
Eight apartments from 99k to 200k depending on the size & number of bedrooms etc.
Let’s look at the price of a one bed in Quayside, 115k.
I pulled the numbers below off Bing
Mortgage amount: €115,000.
Repayment period: 20 years
Variable interest rate: 4.45%
Monthly repayment would be €629.
So why is everybody not buying instead of renting? It’s a no-brainer.
Is it because of the 10% deposit rule, to qualify for a mortgage in Ireland?
Might be kind of hard to save a deposit of 11K when the rent is €900 monthly.
If I didn’t know better, I’d say there was a conspiracy behind it.
It’s not a conspiracy – lending with small collateral fueled the boom that led to the last recession. Separately, from the lenders perspective, if you can’t save 11k in the above example than you’re a high risk of default.