Two of the country’s leading property companies are offering home buyers interest-free loans in an attempt to stimulate activity in the housing market.Glenkerrin Homes and Radora will announce details today of the schemes to assist would-be buyers at key Dublin locations, including Stillorgan, Elm Park, Ballinteer and Palmerstown.
Speaking on RTÉ Radio’s Morning Ireland, developer Ray Grehan of Glenkerrin Homes disagreed that the company was facilitating bad financial practice, by offering buyers a loan for their house deposits.
Builders step in where lenders fear to tread; a lack of money and a lack of confidence - that is how Mr Grehan assessed the problems in the housing market.
Fellow developer Mr McNamara’s apartment development in Elm Park in Dublin 4 has already seen prices fall 20% to attract buyers.
Radora is now offering interest free loans of up to 30% of the selling price to be paid back within five years.
According to a statement, Glenkerrin is stepping in to help out those no longer able to secure loans of up to 95%.
Potential buyers of its properties Stillorgan, Ballinteer and Lucan will have to pay 5% of the asking price. They can then avail of an interest-free loan of 15% of the price to be repaid in seven years.
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