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firinn
Guest
I have been reading through this thread for a while and I have often noticed posts (in fact there is one a few posts up in this thread) suggesting that australians earn a lot less than we do and that this should be taken into account when comparing property prices between Ireland and Australia.
I lived in Australia for a number of years and returned to Ireland quite recently, judging by my field (IT) and other fields that I am aware of, Australians do not earn much less than us. From my experience they earn approximately 10-20% less, also the cost of living (aside from property prices) is considerably lower there, allowing far more disposable income to be thrown at a mortgage.
Admittedly it is difficult to compare countries in terms of disposable income as there are many factors to be taken into consideration (access to free education, health etc.), but on the whole even though property prices are considered high in australia (with respect to rental income ratio) they are not even remotely comparable to house prices in Ireland and the lower income argument simply does not apply. Houses in Ireland are quite simply ridiculously over-priced with respect to fundamentals, how long they will stay that way I do not know.
I lived in Australia for a number of years and returned to Ireland quite recently, judging by my field (IT) and other fields that I am aware of, Australians do not earn much less than us. From my experience they earn approximately 10-20% less, also the cost of living (aside from property prices) is considerably lower there, allowing far more disposable income to be thrown at a mortgage.
Admittedly it is difficult to compare countries in terms of disposable income as there are many factors to be taken into consideration (access to free education, health etc.), but on the whole even though property prices are considered high in australia (with respect to rental income ratio) they are not even remotely comparable to house prices in Ireland and the lower income argument simply does not apply. Houses in Ireland are quite simply ridiculously over-priced with respect to fundamentals, how long they will stay that way I do not know.
fatmanknows
Registered User
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- 53
Above report mentions house prices grew 1.1% last month. I cannot believe such tosh - their info is way out of date IMO.
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phoenix_n
Guest
"The latest Permanent TSB/ESRI house price index says that house prices grew nationally by 1.1% last month. "
I figure those rates reflect houses sale agreed in may/june ?
No, earlier than that - today's ESRI/PTSB report relates to market activity in April/May
The ESRI/PTSB report is based on mortgages drawn down when final contracts are signed. This means that there is approx 10 week lag on sale agreed prices. Add another month for report preparation and you have data that is three to four months old at the time of release.
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Guest107
Guest
Correct. They are a lag indicator where we tend to discuss lead indicators around here ...such as sentiment
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StoppedClock
Guest
Well said firinn, agree completely, I had the exact same experience
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phoenix_n
Guest
The rate when announced then in oct for July is going to be shocking.
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Bedsit
Guest
Anyone thinking of starting a new business then maybe the Irish equivalent of the following may be a winning idea:
Foreclosure.com
RealtyTrac.com
[broken link removed]
Foreclosure.com
RealtyTrac.com
[broken link removed]
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Gab24
Guest
Hi,
Just noticed some %10 drop in asking prices for newly built apartments in Limerick. These 2 bedrooms apartments used to have a starting price of 250.000 up to a few weeks ago, through GVM auctioneers. They were also listed on daft for that price:
http://www.daft.ie/searchsale.daft?search=1&selected_agent=&id=88316&s[agent_id]=2758&s[p]=rprppuwq
But, the last advertising from GVM is asking for 225.000:
[broken link removed]
It might be a clear sign that the upper limit was reached and it's harder to find buyers at the prices from a few months ago.
The builders are the first ones to drop the prices, as they usually make huge profits, anyway.
It's very curious for me why the vast majority of building companies for houses are irish only. Considering the huge profits one can make here, I was expecting all the past few years to see german and other european companies to try to get a slice of the pie and create a bit more competition between builders. Is it because of the "extra-regulation" ?
Just noticed some %10 drop in asking prices for newly built apartments in Limerick. These 2 bedrooms apartments used to have a starting price of 250.000 up to a few weeks ago, through GVM auctioneers. They were also listed on daft for that price:
http://www.daft.ie/searchsale.daft?search=1&selected_agent=&id=88316&s[agent_id]=2758&s[p]=rprppuwq
But, the last advertising from GVM is asking for 225.000:
[broken link removed]
It might be a clear sign that the upper limit was reached and it's harder to find buyers at the prices from a few months ago.
The builders are the first ones to drop the prices, as they usually make huge profits, anyway.
It's very curious for me why the vast majority of building companies for houses are irish only. Considering the huge profits one can make here, I was expecting all the past few years to see german and other european companies to try to get a slice of the pie and create a bit more competition between builders. Is it because of the "extra-regulation" ?
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StoppedClock
Guest
I was thinking of starting www.hiredgoons.ie
it has been a lean few years for the hired goon industry.
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Guest107
Guest
Down!
The townhouses are still €295 on both Daft and GVM
Watch out for quietly increasing allowances which is how price cuts are often masked , eg the €5000 kitchen allowance becomes €10000
Things are bad when they simply cut the headline price because they cannot mask the price cut.
The townhouses are still €295 on both Daft and GVM
Watch out for quietly increasing allowances which is how price cuts are often masked , eg the €5000 kitchen allowance becomes €10000
Things are bad when they simply cut the headline price because they cannot mask the price cut.
Raskolnikov
Registered User
- Messages
- 351
I'm not arguing that property price in Ireland is ridiculously inflated, I think it is too. I'm not even going to argue the degree as to whether the Irish or Australians get paid more. My problem is; as you yourself touched on, comparisons between prices in Ireland and Australia are difficult since we've got two completely different economies, tax systems, property markets, etc.
As an aside, it's interesting how Australia is rapidly becoming the favoured immigration route for the countries of the British Isles. Is there anyone who wants to immigrate to the USA anymore?
nacho_libre
Registered User
- Messages
- 92
As an aside, it's interesting how Australia is rapidly becoming the favoured immigration route for the countries of the British Isles. Is there anyone who wants to immigrate to the USA anymore?
Yes. I know 5 people that have emigrated to the US in the past 2-3 years. One as
recently as last week. Although this is off the topic, but I agree that the Oz route is
now more common than the US.
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StoppedClock
Guest
Banks have sold on a lot of their risk (to US investors getting out of their own Banks
) also they are very profitable at the moment and investors believe that any property crash (if they believe in one at all) will play out slowly so plenty of time to dump bank stock later.Actually banking shares are extremely low. They trade at a P/E ratio of around 10.
So perhaps the market doesn't feel current earnings are sustainable ...
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Guest107
Guest
American News
Not as advanced as Australia , yet, but bad
[broken link removed]
Not as advanced as Australia , yet, but bad
[broken link removed]
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