Current public sentiment towards the housing market?

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room305 said:
If you want an indicator of what public sentiment is like, that is not a bad one. I believe many people are moving into a cautionary phase which will only be heightened as rates continue to rise.
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Very true, according to [broken link removed]

The next phases are Anxiety, denial, fear, depression, panic, capitulation, despondancy, desperation and then on up to hope.

I wonder how quickly we will cycle through them?
 
room305 said:
Although he insisted he was sure, some back of a beer mat calculations on just how much he would have to be repaying the bank to "forward pay" all the loan interest, even if he had fixed @ 3.5% for 30 years, seemed to convince him.
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I am aghast at that lack of knowledge considering the financial outlay and risk (what risk in buying property some might say!!) involved. He should hopefully thank you in time if you save him from a nasty surprise at the end of the interest-only term of his mortgage.

I know of similar of tales that make me fear for the general knowledge of people getting involved in property investment. I know of a someone who's followed a friend of theirs down the road of a second "investment" property purely on the basis that their friend was an accountant and how could an accountant be wrong about investing in property. Whilst I'm sure the accountant knows how to make the most of any tax breaks, etc. it does not make them financial gurus in all aspects. When did people lose the capacity to think for themselves?

 
ivuernis said:
I am aghast at that lack of knowledge considering the financial outlay and risk ... When did people lose the capacity to think for themselves?
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We may be a "rich" country but believe me, and I've lived and worked in several countries, collectively as a nation we don't think like people from rich countries. The average, middle-class Swiss or Canadian simply wouldn't fall for what going on here. We think more like Albanians with their famous get-rich pyramid schemes.
 
walk2dewater said:
We think more like Albanians with their famous get-rich pyramid schemes.
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Sure haven't we had pyramid schemes in Cork recently! I remember when pyramid schemes were ongoing during the 80's and even as a kid back then I was dumbfounded as to why people got involved. When it happened again recently I didn't know whether to laugh or cry.
 
It will be a very interesting autumn selling season when the ECB puts rates up. Speculators who've bought with an IO mortgage will find it very hard to offload these properties without a heavy price discount. It could become very expensive if they hold out for a better price in a falling market and with rising IO payments.
 

yeap.

But, and this occurred to me the other day, perhaps all that overhang of unrented property will come onto the market. Since capital appreciation is "guaranteed" and prices soft, IO holders may compensate for higher rates by renting out their currently unoccupied properties. Better to accept the burden of being a landlord and make €500/mth for that Dublin apartment, or €750/mth for the Kildare 3-bed. We may see collapsing rents. This is good cos my lease is up early Autumn Perhaps I can extract another 5-10% off my (already cheap) rent.
 
Like the saying, men are motivated by two emotions : Interest and Fear. Interest has spawned the property boom and fear will burst it.

whizzbang said:
Very true, according to [broken link removed]

The next phases are Anxiety, denial, fear, depression, panic, ca1pitulation, despondancy, desperation and then on up to hope.

I wonder how quickly we will cycle through them?
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This was in today's Independent:

http://www.unison.ie/irish_independent/stories.php3?ca=9&si=1649377&issue_id=14329

 
Re: spanish investors hget hit

2Pack said:
Todays Irish times, some 100,000 Irish who own property in Spain are being chased for local taxes (like rates) and a 'wealth tax' on top.
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Can we now expect Daft.ie to start selling overseas properties? Eventually, there will be a worldwide shortage of naive paddys to offload these foreign "investments" to.
 
Flipper wants out

As you can see the EA is selling them for [broken link removed]and there seem to be some left (mid terrace)

A flipper got one, he wants his profit so he <cough> Mis Spells the name of the estate and asks for €685k
 
Re: Flipper wants out

2Pack said:
As you can see the EA is selling them for [broken link removed]and there seem to bel some left (mid terrace)

A flipper got one, he wants his profit so he <cough> Mis Spells the name of the estate and asks for €685k
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I'm shocked and appauled....

look like he is hoping to charge people with stupid/lazy tax...
 
Re: Flipper wants out

2Pack said:
As you can see the EA is selling them for [broken link removed]and there seem to be some left (mid terrace)

A flipper got one, he wants his profit so he <cough> Mis Spells the name of the estate and asks for €685k
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Well, if anyone does buy it, they deserved to be ripped off.
 
There's definitely a creaking sound coming from the property market. Is it the brakes squeaking - or something more serious?
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my guess is that it's the creaking of the last support columns of FTB's propping up the market about to give way
 
miju said:
my guess is that it's the creaking of the last support columns of FTB's propping up the market about to give way
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Perhaps not the FTB's but definately the 'Buy to Let' crowd and the speculators who buy from the plans hoping for a quick turnaround.
 
Wow that was a pretty scary anecdote about a specu-vestor not understanding the "reset" on his interest-only loan. I wonder how much the joe-soap-specu-vestors understand about their exotic mortgage products..

Here's a question about IO mortgages. Alot of speculation appears to be carried out using them. AFAIK most of them reset to being interest+capital after a period of e.g. 3-5 years. But what is there to stop speculators from switching mortgage providers each time the 'reset' is about to kick in..? (assuming they always have the cashflow to pay even v high interest rates). I'm unfamiliar with the smallprint of mortgages, so I don't know if they are somehow locked-in or pay hefty charges for transferring institutions.
 
soma said:
But what is there to stop speculators from switching mortgage providers each time the 'reset' is about to kick in..? (assuming they always have the cashflow to pay even v high interest rates).
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Nothing AFAIK, although if the market value of the property drops below the loan amount then obviously they cannot borrow more than what the property is worth.

You'll find though, that once interest rates are high enough, the monthly savings that result from having long terms or repaying only the interest are greatly reduced.
 

AFAIK you can have IO for the term of the mortgage now - BoSI currently do that and I think others do too. In any event, you can certainly flip providers at no cost if you have a 3-year "introductory" IO term.
 
AFAIK you can have IO for the term of the mortgage now
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How does that work? - I thought with interest only mortgages, you're only paying off the interest, so you always owe the amount borrowed.
 
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