More than a 3rd of homes are being acquired without a home mortgage – typically by individuals who make less than those with home loans, brand-new figures reveal.
Cash purchasers had a lower typical earnings (€49,900 a year) than those with home loans, who made €79,200, a report from the Central Statistics Office (CSO) revealed.
Across all purchases, the common purchaser’s mean earnings has actually increased by almost half considering that 2012, from €48,600 in 2012 to €71,300 in 2021. The figures from the CSO just consist of personal purchasers and not institutional financiers.
The CSO did not develop where the purchasers’ wealth originated from, however a lot of the money purchases are believed to be by households moving home and purchasing from the earnings of the sale of their existing property.
Irish Mortgage Holders Organisation chief David Hall said: ‘It’s unclear whether that money individuals had actually was saved or an inheritance. Covid likewise provided a timeframe for money to have actually been collected too.
‘It is surprising because it is counter-intuitive; more detail is required before anything definitive can be said about it but it would almost certainly be a bit counter-intuitive.
‘You have inheritance of money, inheritance of property and a combination of both.’
The share of homes bought with a mortgage was 63% in 2021, which was a slight drop from the highest recorded proportion: 65% in 2019.
South Dublin had the largest mortgaged sales in 2021, at 77%.
The median price paid for a dwelling purchased with a mortgage of €309,000 was more than 40% higher than a home bought without a mortgage at €220,000.
Dún Laoghaire-Rathdown was the area with the highest median price for mortgaged sales at €610,000 and non-mortgage purchases at €560,000. The local authority area in south Co. Dublin has had the highest median price for both mortgage and non-mortgage purchasers since 2016.
The median loan amount was €220,000 in 2021 compared to €213,600 in 2020.
The median income of those buying with a mortgage was €79,200 in 2021 – up from €56,700 in 2012 – compared with €49,900 for buyers without a mortgage, which represented an increase from €37,100 in 2012. The median is the middle point between the lowest and highest incomes.
Dún Laoghaire-Rathdown was the local authority with the highest median income of buyers with a mortgage at €126,900, followed by Dublin city at €93,300.
Longford was the region with the lowest median income of buyers with a mortgage, at €56,000.
The median age of home purchasers in Ireland in 2021 was 39, up from 35 in 2010, reflecting the difficulties faced by younger people trying to get on the property ladder. Buyers with a mortgage had a median age of 37 compared with 47 for those who purchased without a mortgage, the CSO’s study indicated.
The highest median age of purchasers with a mortgage was 40 in Kerry, while the lowest was in Kildare and Meath at 35, the research likewise revealed.
