# The property ladder...rungs missing?



## p45 (17 Sep 2008)

Are couples, or anyone else, living in apartments, who want to move up the property ladder to buy a house and maybe start a family, trapped? Given that anyone who's in the market for an apartment's gonna buy a new one.


----------



## Don_08 (17 Sep 2008)

I would have thought it depends on location.  

City Centre apartments will be attractive to young single workers or workers who need a city centre crash pad.  

Apartments out in the suburbs there may be a problem with.


----------



## DeeFox (18 Sep 2008)

There is a lot of talk in the media at the moment about FTBs holding off buying - this is a problem for someone who wishes to sell but these FTBs will come back to the market eventually through necessity.  While I don't think (taking the OPs example of a young couple in an apartment) vendors are "trapped" I think it will be a waiting game.  However, I think it will be interesting to see how long the Investors (who made up a big proportion of those purchasing property in recent years) will hold off before re-entering the irish residentail market.  I've seen little speculation in the press about how to tempt this group back into purchasing!


----------



## ubiquitous (18 Sep 2008)

DeeFox said:


> I think it will be interesting to see how long the Investors (who made up a big proportion of those purchasing property in recent years) will hold off before re-entering the irish residentail market.  I've seen little speculation in the press about how to tempt this group back into purchasing!



Who's going to lend to them, even if they want to buy?


----------



## aircobra19 (18 Sep 2008)

p45 said:


> Are couples, or anyone else, living in apartments, who want to move up the property ladder to buy a house and maybe start a family, trapped? Given that anyone who's in the market for an apartment's gonna buy a new one.


 
Why is that a given? Its depends on price. If its cheap enough it will sell.


----------



## shanegl (18 Sep 2008)

Original purchase price puts a barrier on what it can be sold for though, unless they can fund the difference to get out of negative equity.


----------



## aircobra19 (18 Sep 2008)

So what you're actually saying is you can't buy something unless you can afford it.

I don't see how that only applies to apartments.

Also I don't see why you can't start and raise a family in an apartment. Millions of people do it all the time.


----------



## shanegl (18 Sep 2008)

aircobra19 said:


> So what you're actually saying is you can't buy something unless you can afford it.
> 
> I don't see how that only applies to apartments.
> 
> Also I don't see why you can't start and raise a family in an apartment. Millions of people do it all the time.


 
No, I'm saying that negative equity stops people trading up.


----------



## aircobra19 (18 Sep 2008)

The OP didn't mention negative equity thats something you've introduced to the topic. Being in negative equity just makes it harder to get a loan, so you'd have to take action to reduce your debt quicker, in order to make yourself more attractive to someone giving you a loan. 

[broken link removed]

Anyway negative equity isn't limited to apartment owners either. Lots of apartment owners aren't in negative equity and some probably own their apartments outright. 

I would guess that most apartments are in the central locations and "can" be more expensive than family homes further out. Some obviously aren't. But thats comes back to my point that you can buy what you can afford.


----------



## noel_c (18 Sep 2008)

aircobra19 said:


> Also I don't see why you can't start and raise a family in an apartment. Millions of people do it all the time.



Sure but that applies to large family-friendly apartments abroad. On the other hand most recently-built Irish shoebox apartments have been aimed primarily aimed at young singles/couples (or those who rent to them) and are in no way suited to family living.


----------



## rmelly (18 Sep 2008)

> I've seen little speculation in the press about how to tempt this group back into purchasing!


 


ubiquitous said:


> Who's going to lend to them, even if they want to buy?


 
And is it in anyone's interests that they 'return to the market'?


----------



## aircobra19 (18 Sep 2008)

noel_c said:


> Sure but that applies to large family-friendly apartments abroad. On the other hand most recently-built Irish shoebox apartments have been aimed primarily aimed at young singles/couples (or those who rent to them) and are in no way suited to family living.


 
Lots of smaller houses would have the same flaw, and a lot of both have crazy layouts with poor storage space. Something you only realise once you've been living in your own place a while. As you use a rented place slightly differently. 

That said ...



> FOUR YORKSHIREMAN SKETCH
> (Hawaiian music)
> Man#1 (Michael Palin) Aye! Very fussable, eh? Very fussable bit, that? eh?
> Man#2 (Graham Chapman): Grand meal, that was, eh?
> ...


 
Maybe its not that bad...


----------

