T
trekie
Guest
this may not be nice to hear if you have just bought a property but as someone who has invested in several properties i think we have reached the peak in property prices...i had been seeking another property since oct 05 and had a bid accepted on a house which when i had refurbished it would have made economic sense to let out..However the vendor took the property off the market before contracts were signed when news broke that prices had increased a third since nov 05. No doubt it will go on the market at a higher price..When i went for a modest property in the dublin area the top bid was 318,000. With stamp duty and enough funds to do the nessesary bits and pieces i would have to borrow 360,000. When one considers
(1) the deluge of rental units coming on the market.( in 05 we built more units here than all of the uk put together)
(2) rents are likely to stay static at current levels of approx 11/12,000 euro's
(3)Interest rates are certain to increase
(4)one must factor into account that the property may be vacant for two months of the year.
Under these conditions it would not be viable to buy now. The first time buyer would also find it almost impossible to buy now as they will have to pay capital as well as interest. There is one other event that may put pressure on the letting market in this country.. I may be wrong but has anyone taken into account that the world cup is comming up. We have a huge number of young polish workers in this country, and if i were young, carefree, and flush with money i would be heading to germany to see my country play.. like i said i might be wrong but if im right ,there will be a lot of properties coming onto the rental market and the singel let investor may find there property vacant all of a sudden.
(1) the deluge of rental units coming on the market.( in 05 we built more units here than all of the uk put together)
(2) rents are likely to stay static at current levels of approx 11/12,000 euro's
(3)Interest rates are certain to increase
(4)one must factor into account that the property may be vacant for two months of the year.
Under these conditions it would not be viable to buy now. The first time buyer would also find it almost impossible to buy now as they will have to pay capital as well as interest. There is one other event that may put pressure on the letting market in this country.. I may be wrong but has anyone taken into account that the world cup is comming up. We have a huge number of young polish workers in this country, and if i were young, carefree, and flush with money i would be heading to germany to see my country play.. like i said i might be wrong but if im right ,there will be a lot of properties coming onto the rental market and the singel let investor may find there property vacant all of a sudden.
