Current public sentiment towards the housing market?

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StoppedClock said:
Disagree that it is irrelevant. Assuming that we accept that a fair house price is 125 times the monthly rent then we can work out the fair price and know if we are getting good or bad value. Very relevant in any purchase IMO.
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I agree that there is a fundamental equivalence between rental income and fair price, however 125 times rent would equate to a rental yield of over 10%. I'd be more inclined to put the ratio at 200 times monthly rent, which is about 6%.

Either way, ratios of 500-700 are plain crazy, simple as that.
 
As the thread title is "Current public sentiment towards the housing market?" .... i reckon this opens it up to the opinions of the Australian public aswell as expats

I am in Oz, having emigrated a couple of years ago... and have been looking through an Ozzy property site like myhome.ie with an Ozzy work mate..

I decided to show him what you can get in myhome.ie for 400,000 yo yos.... he may still be laughing...
 
Calina said:
If banks have likewise been advising people to keep their starter homes in addition to providing ever insane loan amounts, then they really should be taken out and very heavily punished - hit them in the profits if necessary - for contributing to a major economic issue for the country as a whole.
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Our bank manager was just short of pleading with us to hang on to both of our existing properties when trading up. He was coming up with all sorts of crazy ways we could work IO so that the rent would cover the mortgages. In the end, his "encouragement" was one of the reasons we were happy to do the opposite and sell both.
 
macbri said:
Interesting article from the examiner especially with so much housing stock still to come on the market.

I was looking at some recent statistics on demographics of recent ftbs in Ireland.I was amazed at the high percentage of people less than 25 who make up this figure(from memory 15%)

Again this must be unique in Europe
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IMO the past 18 months has seen alot of people in their mid 20s buying property. The 100% 35yr mortgage market is directly targeting this age group. This brings forward demand into 2006 and 2007 - effectively creating extra buyers in these time periods. I think the stats on age being put out are skewed and know of people still in college that are attempting to get on the property ladder.

This may keep the market up for another 12 months as younger buyers soak up the next 100k units.

Hence there is every risk that prices go up in the short term probably through to summer 07 when these 'new' buyers have all bought and rates have hit 4%. The big issue then is that normal demand for housing in 2008 / 2009 / 2010 will be much lower making a hard landing more likely.
 
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whathome said:
He was coming up with all sorts of crazy ways we could work IO
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And He will be among the first to be let go once the gravy train stops :D . The banks will keep their branch yellowpackers because they will be cheap to run and fully trained and up to speed for the post 2015 calf run ......the next baby bull .
 
miju said:
does anyone here think that the indo article today which is here looks remarkably like an advertorial ???
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This looks like an abridged version of what appeared in the paper Indo this morning.

The paper version says EAs were admitting that after the madness of late 2005/early 2006 asking prices AND actual prices had fallen in some areas of Dublin. The example they gave was a house which earlier sold for 700k and would no longer be expected to fetch that amount.
 
Calina said:
Banks do not have anyone's interest but their own at heart. One of the big contributing factors to a fall in supply of starter homes has been a failure to sell on. If banks have likewise been advising people to keep their starter homes in addition to providing ever insane loan amounts, then they really should be taken out and very heavily punished - hit them in the profits if necessary - for contributing to a major economic issue for the country as a whole.

/end moral judgement.
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I'd be in favour of severe censure.
 
StoppedClock said:
Disagree that it is irrelevant. Assuming that we accept that a fair house price is 125 times the monthly rent then we can work out the fair price and know if we are getting good or bad value. Very relevant in any purchase IMO.
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It's all relative. If you think 125 times monthly rent is a fair price, I doubt you'll ever own a home unless there was a catastrophe in the property market.
somerset said:
I decided to show him what you can get in myhome.ie for 400,000 yo yos.... he may still be laughing...
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Pointless comparison. Australians earn a lot less than we do. As a corollary, I could show a Norwegian property prices here and he would consider it very affordable relative to his income.
 
Raskolnikov said:
It's all relative. If you think 125 times monthly rent is a fair price, I doubt you'll ever own a home unless there was a catastrophe in the property market.
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I prefaced my statement with "Assuming we accept" as I personally do not agree with that ratio but my point was not about the ratio but rather about the idea that irrespective of what actual price is we must have our own measure of what prices should be to determine if we are getting good or bad value. It touches on a discussion that I oft have re. houses always go up in the long term which I accept but the point so many people miss is that there are better and worse times to buy.
 
I think the stats on age being put out are skewed and know of people still in college that are attempting to get on the property ladder.



how??:confused:
 
somerset said:
I think the stats on age being put out are skewed and know of people still in college that are attempting to get on the property ladder.



how??:confused:
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Parents paying deposit, going guarantor or just buying it to get children on property ladder, I suspect.
 
somerset said:
I think the stats on age being put out are skewed and know of people still in college that are attempting to get on the property ladder.



how??:confused:
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some parental assistance and using wages from working experience year - buying outside a rural town so prices are relatively more do-able
 
miju said:
does anyone here think that the indo article today which is here looks remarkably like an advertorial ???
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"[FONT=Verdana, Arial] Although there was a "positive feeling" in the market, vendors were now forced to be more realistic in their asking prices, he said. "Vendors can see the high level of supply out there. Buyers are not in such a rush to view properties and make an offer. They are now much more likely to have four or five similar properties to look at.""

Looks like REAs are now talking down the market and trying to lower sellers expectations.. this is the beginning of the end in my book. It must mean they are afraid sales will dry up due to stubbern sellers.
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Maine said:
some parental assistance and using wages from working experience year - buying outside a rural town so prices are relatively more do-able
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Talk about madness. How do these people know where they will end up working?

That said, if someone is planning on putting several children through college in the same town, it might make financial sense for them to buy rather than paying rent for four or five years for each child.
 
Irish independent
whizzbang said:
"[FONT=Verdana, Arial] Although there was a "positive feeling" in the market, vendors were now forced to be more realistic in their asking prices, he said. "Vendors can see the high level of supply out there. Buyers are not in such a rush to view properties and make an offer. They are now much more likely to have four or five similar properties to look at.""[/FONT]
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and from the sydney morning herald

"There are some sad stories. But we have to show the sellers the comparable sales and say honestly this is where the market is realistically at."

Seems they are talking the same language but the irish market has yet to be 'called'.
 
IMO the CAO news yesterday is not good for investors in towns with ITs- likely to be lower student number intakes going forward.
 
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