Appartamenti “convenienti” e due letti vicino a Phoenix Park di Dublino al prezzo fino a € 402.125

Bargin I’ll take 3

Why do we need to have affordable housing. You can either afford to live in that area or qualify for social housing.

This affordable housing reel is justing giving false hope to people who think they will.l9ve in a prime location for peanuts.

I mean, its “affordable” to someone I guess.

Edit: I think the issue is the government has no definition of affordable. Shouldn’t it be like:

Minimum wage X Set period of time + 5-10% deposit

Or something like that at least.

If you’re American in Ireland and considering a home, this is a PSA:

So, as an American living here in Ireland, having gone through the mortgage process, the conversation above about the benefits paying off mortgages early is interesting, and is VERY different than the US.

I had been ready to jump on the “this person is wrong, there’s always an advantage to paying off mortgages early” bandwagon. BUT, I remembered an interesting call to BOI on my mortgage, and I just confirmed it with ChatGPT:

Yes, mortgage interest in Ireland is typically calculated and paid differently from how it’s handled in the U.S. Here are some key differences:

1. Interest Calculation:
– Ireland: Most mortgages in Ireland use a reducing balance method, where interest is calculated daily based on the remaining principal. This means that as you make payments, the interest owed decreases accordingly.
– U.S.: Many U.S. mortgages (especially fixed-rate ones) use an amortization schedule where interest is front-loaded—meaning a larger portion of the early payments goes toward interest rather than the principal.

2. Payment Frequency:
– Ireland: Mortgage payments are generally made monthly, but since interest is calculated daily, making extra payments (even small ones) can significantly reduce overall interest costs.
– U.S.: Payments are also monthly, but because of amortization, making extra payments doesn’t immediately reduce the interest owed as significantly unless they are applied directly to the principal.

3. Fixed vs. Variable Rates:
– Ireland: A large portion of mortgages are on variable rates (though fixed-rate options are becoming more common). Many variable-rate mortgages are tied to the European Central Bank (ECB) rates or lenders’ standard variable rates (SVRs).
– U.S.: Fixed-rate mortgages (15-year, 30-year) are much more common. Adjustable-rate mortgages (ARMs) exist but are less dominant.

4. Overpayment and Early Repayment:
– Ireland: Many lenders allow early repayments on variable-rate mortgages without penalty, but fixed-rate mortgages may have penalties if overpaid beyond a certain threshold.
– U.S.: Most fixed-rate mortgages do not have prepayment penalties, allowing borrowers to pay off their mortgage early without extra fees.

5. Mortgage Tax Deductions:
– Ireland: Mortgage interest relief (tax deductions on mortgage interest) was phased out for new loans after 2020, except for some transitional relief in 2024.
– U.S.: Mortgage interest is tax-deductible for homeowners who itemize deductions, making it financially advantageous for many borrowers.