Ok, so you have a hunch that prices will fall, but you dont know by how much or why, and you are basically have a wild guess. Right, that clears that up then.
I would go and search for the theory behind the "over 50%" figure but there are over 2000 posts in this thread and I somehome dont think its worth the effort.
My point is try to keep the discussion factual or at least based on solid reasoning.
What's the solid reasoning behind the belief that a property can't sell for less than the original build cost?
It would probably more realistic to claim that the prices would fall back to 2000/2001 levels. However, that would probably still work out around 50%
In reality, steelblue , when anyone can produce real facts to support such falls then this thread will have ceased to exist as it will be in the public domain. Its his analysis (which i concur in parts) so if you have would like to state your analysis (which is also valid) then by all means proceed.
I dont mean we can predict the future, thats my point, we cannot. But why bother just picking figures out of the air and not being able to back them up with proper reasoning.
Yep, a fall back to pre bubble prices would be 50% . I am additionally assuming that more central areas will not give all of that back and will keep some of their post 2001 gains.
In 2001 a litre of Diesel was 55p or €0.65c now its nearly twice that. Commuting has a marginal cost you see.
Builders can only set realisable prices and if they are caught with inventory then tough.
you mentioned previously where "over 50%" reduction in price is going to happen.
I say this because builders will not subsidise a person to buy a property below the build cost.
I didn't mention that, I think you're thinking of someone else
Agreed but desperate sellers of second hand property won't be concerned about original build cost. If I'm selling a house, I don't care what it originally cost to build it - could have been 10k or 200k.
I say this because builders will not subsidise a person to buy a property below the build cost.
ahh no. You justify their not falling at all, anywhere at all , first
if you accept they can or may fall I'll take your hand and lead you to the next logical conclusion
Prices will always be near the max affordability of most people.
Do you not see what you've just written? You've got to ask yourself why crappy generic houses in crap locations miles from Dublin aren't below the max affordability for average earners. It's called hysteria driven by FTBs and investors with 19th century inferiority complexes....
And most property in these outter commute towns are 200-400k, a 50-60% reduction would bring prices way below the max affordability of most people, so why would this happen?
...
Only in a rising market. In a falling market, many potential purchasers stay away even if they can afford to buy. Alternatively they may wait so that a better property will drop into their price range. So in a falling market, property becomes more affordable - it doesn't always have to be at the limits of affordability.
Prices will always be near the max affordability of most people.
Good read.I think my sentiment is similar to yours in that i spent a number of years in Australia and came back last year. I also sold my rented house at the beginning of this year. I too realised the substantial profiit i could realise and was not going to risk that on, from what i could see, an inflated asset. (Interesting that you should mention Gold. I am currently researching that (have invested the bulk of my proceeds elsewhere) but not so sure of the current price. If you could add more info in the gold thread i'd appreciate it)
Could someone explain how a buyer may reclaim a booking deposit.
My situation:
I currently have highest bidder (after the usual price war) on 2 properties which are due to close very soon.
To avoid any pitfalls (seller pulling out, survey not sound) i was going to put the booking deposit on both properties. (have the available cash due to my early sale of my house)
Is this advisable. It probably is not fair but then whichever seller is willing to sign (and all is well with house) first gets the deal.
What is involved in getting back my booking deposit and under what
circumstances can i lose it.
Thanks for any info.
Do you not see what you've just written? You've got to ask yourself why crappy generic houses in crap locations miles from Dublin aren't below the max affordability for average earners. It's called hysteria driven by FTBs and investors with 19th century inferiority complexes.
I rent in Dublin 6 and there's no way I would live in Rathoath/Balivor/Kinnegad or somewhere even if someone paid me. I'm deadly serious about this because it would take me at least 90 mins to get to work and I'd be surrounded by awful, shallow people with miserable lives. How depressing is that?
Only other point is that "affordability" will be significantly redefined once this era of incredibly cheap credit is brought to an end.
Irish people want to buy property, we all wanted a car each years ago, now its a house, so unless that attitude changes....
Just take 2packs word for it, good lad.Yeah I agree with you, I am just trying to find out why these prices will reduce by over 50% as stated by 2Pack.
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