Buying Your Own Home
Buying Your Own Home
Seven out of ten Irish people own their own home. That's more than in most other European countries. In Germany, for example, though wages have generally been higher than here, the figure is four in ten. There are, without doubt, historical, social and cultural reasons why this is so. Since the days of the tenant farmer, the Irish have worked hard and often made great sacrifices to own their holdings whether they are houses or farms.
In modern Ireland buying a home of your own is now a major life event, taking on the significance of a rite of passage for the young (or youngish!). It is a signal to society at large that this person has become a fully fledged adult, ready to take on all the responsibilities that property ownership entails. It shows in the huge number of people eager to get a foothold on the property ladder.
According to Davy Stockbrokers, growth in the first-time buyer sector of the market has stood at an average of 16,000 annually for the past six years. Demographic trends suggest a continued increase in demand for at least the next 10 years as the rise in growth of the key 25-44 age group is predicted to continue until 2011, dip a little, and continue to grow further after 2016. As Ireland has one of the lowest ratios of households per head of population in the developed world, there is every reason to assume continued growth in this sector of the market. To satisfy demand, over 60,000 new housing units were built in Ireland in 2003 and although this figure represents a great achievement, up from 22,000 in 1993, the consensus among experts is that it is still too low. Despite the confident predictions of the commentators who have been forecasting a drop, or even collapse, in house prices for years, prices continue to rise, if at a slower pace. By the end of 2003 the average mortgage given by the major lenders was in the region of €155,000-Ű170,000. At the end of 2004, that figure was €190,000. Such rapid growth in lending might be a cause for alarm were it not for significant decreases in interest rates and income tax which have made mortgages much more manageable for most purchasers.
From Making Property Work by Maureen Moran
