Current public sentiment towards the housing market?

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TallSpoon said:
No stamp duty!
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I know it irks people to have to pay stamp duty,but even with the stamp duty included you would still come out better off.Anyway most houses are priced compared to other similar properties in an area,so in effect people are paying the stamp duty to the builder on a new build rather than the government.
It's a disgrace that builders get this preferencial treatment, more of the govenments sop to their property developer mates.Either have stampduty on owner occupiers or don't but to have it payable on only one side of the market is a disgrace.
 
I suppose the no stamp duty on new builds was to promote new builds. More profit for the builder, more attractive proposition to build. If the crash does come, could it be blamed?
 
New builds attract people for a number of reasons. The first, I think is that there is no stamp duty for FTB (usually) and for owner occupiers if property is under 125 sq.mt. Even if the size does not meet this criteria, stamp duty on a new property is charged on the purchase price, less VAT, so it is a smaller amount due in comparison to an older property.

Undoubtedly, the 'bells and whistles' in a new apartment attract certain people. A number of agents have told me now that this has become extremely important in the last few years. Apartments built in the 70s and 80s are difficult to sell, even though lots of them are twice the size of a modern one. The reason given is that their facades are not nice!

Another factor is the timescale. Only a deposit is paid on a new build and this means that a FTB has time to save, either to have less of a mortgage or to furnish. An investor bides his/her time and doesn't mind how long it takes to build. The investment is appreciating long before he/she has to start paying interest.
 
All over the Uk builders are churning out 2 bedroomed new-build hotel-style flats you couldn't swing a cat in , often in grim inner-city areas and trying to sell them for as much as semi-detached places in nice suburbs!
They have expensive kitchens and bathrooms and are in a block of similarly-appointed flats so are £125k (about 165k Euros) more expensive than ordinary flats in 70s blocks or flats converted from houses.
Even if the rest of market stagnates these will lose almost half their value.
Calling them executive flats is laughable as all the executives I know would rather live in large houses in leafy suburbs!
and young professionals who can afford £200k for a place prefer established, trendy (oxymoron unintended!) areas.where there are more amenities....and which are no dearer.
eg Didsbury and Chorlton in Manchester or Chapel Allerton and Headingley in Leeds.... as opposed to the city centre wastelands..........
Is the same thing being borne out in Irish cities??????
 
Some interesting statistics on projected housing starts for 2006 for following countries.I'm not 100% sure on UK figure(using earlier post from someone on here,please correct if I'm wrong)

Country Housing starts Population
US 1,050,000 300M
UK 125,000 58M
Australia 145,000 21m
Ireland 100,000 4.2m

Can anyone not see that Ireland is building houses at 400-700% the rate of countries above-surely this alone will lead to a crash or am I missing something?

Countries above have all high migration programmes and US/Australia operate substanial skilled migration programmes which does have a meterial impact on housing market.
 
UK vs Ireland

The key difference between say London and Dublin is that London has a good (if wheezing) public transport system where Dublin is utterly car reliant.

Therefore many of the 'executive' shoeboxes (aka starter homes aka get on the 'ladder' homes) are in a field in commuter land and not in the inner cities or near where the work is.

Oh! and we have no green belts.
 
macbri said:
Can anyone not see that Ireland is building houses at 400-700% the rate of countries above-surely this alone will lead to a crash or am I missing something?
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The best method to gauge supply is to look at the rental market. In Castlenock there are 59 places to rent. If i limit it to 2 beds, 1200 max i have noticed that the price of these is now falling to 1100 which indicates strong competition.

http://www.daft.ie/searchrental.daf...rch+%BB&more=&tab=1&s%5Bsearch_type%5D=rental
 
Raskolnikov said:
I'm not completely disagreeing with you, but when I see posts like this, I'm not yet convinced that the fury of the Irish Property Pyramid scheme is spent yet.
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Or this?

Couldn't believe a single income family (bread-winner on 35k) getting themselves into this mess. God only knows where they got the idea of 'investing' in Irish property from.
 
Evidence of rising supply levels

Lucan.
25 properties over 500K
140 properties under 500k

I also saw a house in Malahide (Gainbrough) drop its asking price from 750k to 725k.


.....couldn't happen here though, our market is based on solid fundamentals.
 
Just noticed a house in Rathfarnham has dropped in price from 635k to 550k.

Must be getting desperate to shift it before even more inventory gets dumped on the market in September.
 
Raskolnikov said:
Could the tragi-comedy of the Irish property market get anymore ridiculous? .
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Well, we've had the comedy: endless property hype,panic bidding as if no more houses were being build, silly prices for dog-box houses, dublin more expensive than london etc.

The tragic part of this amateur drama is in the next act - due shortly
 
Why would people reduce asking prices by so much just before the supposed autumn selling season???? If i was confidient i'd wait till the autumn season starts to reduce asking prices.
 
bearishbull said:
Why would people reduce asking prices by so much just before the supposed autumn selling season???? If i was confidient i'd wait till the autumn season starts to reduce asking prices.
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Well don't rule out personal circumstances forced upon the seller - may have overextended themselves etc. Yeah, I'm surprised people are dropping prices now. Surely you would only drop when selling season didn't bring any bids to the table.
 
bearishbull said:
Why would people reduce asking prices by so much just before the supposed autumn selling season???? If i was confidient i'd wait till the autumn season starts to reduce asking prices.
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Perhaps they are not confident. And you must bear in mind that many vendors can 'afford' to drop their prices and still realise a substantial profit. Better to get that 300K in the bank now than to be stuck with a highly illiquid asset.
 
bearishbull said:
Why would people reduce asking prices by so much just before the supposed autumn selling season???? If i was confidient i'd wait till the autumn season starts to reduce asking prices.
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You said it - "supposed". If this Autumn miracle which will see buyers flood back into the market at 1am on the 1st of September doesn't materialise, I don't see much in the way of sentiment propping up this market.
 
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