MORTGAGES: There is an opportunity for variable rate mortgage holders to switch to one of the favourable two- to five-year fixed rates on offer at present from financial institutions.
It is anticipated that the European Central Bank will cut interest rates once more in the first quarter of this year but rates may begin to rise again after that.
Although most commentators agree on this scenario, it doesn't mean things will unfold exactly as predicted.
However, the consensus seems to be that the fixed rates on offer right now, starting from 4.49 per cent, provide good value.
The surprise reductions in stamp duty for investors and the restoration of mortgage interest relief on rental properties in the budget has tipped the property market in favour of the investor once again.
Financial institutions will be courting this sector throughout the year.
First Active has already come out with a two-year discount variable rate of 4.24 per cent for new investors in buy-to-let properties. The rate is available over a term of one to 25 years.
Customers applying for a buy-to-let loan for the first time can borrow up to 90 per cent of the value of the property.
Borrowers who currently own more than one buy-to-let property can borrow up to 80 per cent of the value.
The most recent Irish Permanent and Economic and Social Research Institute survey revealed house prices last year rose by less than one-third of the rate achieved in 2000.
The index showed that house prices rose by just 5.3 per cent over the first 11 months of 2001, compared to growth of 18.8 per cent over the same period last year.
The index also revealed that the trend continues to be for lower rates of growth overall - and some sectors have even experienced negative growth.
While it is pointless trying to predict what will happen in the months ahead, it is obvious that the stability of the housing market over the next 12 months will depend largely on the level of recovery achieved by the wider economy.