Current public sentiment towards the housing market?

[onekeano]

A lovely house in my area has been on market for months,got a write up in Sunday Business Post before going to auction in May but did'nt sell and is now for sale by private treaty for 1.3million it had been on sale at auction with an AMV of 1.45million in May. Another on same road sold for 1.25 mill in March at auction having had an AMV of 950k
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Must have trouble selling at lower price as its on market all summer, and its not the type of house you'd expect to remain on market long if sentiment was positive.

BB - have to say, I checked this house out because its on a great road which I admire. The 4th and 5th bedrooms were an ATTIC CONVERSION. They had some bloody cheek quoting 1.45mn (which assuming the normal 20% "bonus" would mean they expected almost 1.75mn). I think you may have forgotten to mention that another house in the immediate area sold in May for <€1.1 mn which had loads of potential and was ideally located in terms of aspect.

Roy

 

[bearishbull]

BB - have to say, I checked this house out because its on a great road which I admire. The 4th and 5th bedrooms were an ATTIC CONVERSION. They had some bloody cheek quoting 1.45mn (which assuming the normal 20% "bonus" would mean they expected almost 1.75mn). I think you may have forgotten to mention that another house in the immediate area sold in May for <€1.1 mn which had loads of potential and was ideally located in terms of aspect.

Roy

Wasnt aware of anything your saying but im sure your right. Still long time for one of those houses to remain on market. Its just one more piece of evidence that the sentiment is quite different to earlier this year, it may pick up again and that wouldnt suprise me but the correction is inevitable in next 12-16months.

 

[whathome]

ECB tone confirms looming interest rate rise

http://www.unison.ie/business/stories.php3?ca=80&si=1685483

"The ECB is likely to keep raising rates until there are clear signs that the eurozone economy is slowing, although some analysts believe this will happen next year, pegging rates at 3.75pc"

 

[Maine]

A lovely house in my area has been on market for months,got a write up in Sunday Business Post before going to auction in May but did'nt sell and is now for sale by private treaty for 1.3million it had been on sale at auction with an AMV of 1.45million in May. Another on same road sold for 1.25 mill in March at auction having had an AMV of 950k
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Lets say it sells for broadly that price plus stamp means E 1.5m. A 25yr old starting out and trading up will pay in total including all interest at least E3m before finally owning this property i.e. double the price as a basic rule. Thats 75,000 a year for 40 years of after tax income or 120,000 a year for 40 years of gross income. We will truly be a miracle economy if the incomes are there to support this.

PS in 2004 I think there was something less than 3000 properties in the UK that sold for more than £1m ? Can anyone confirm ?

 

[SLAPPY]

I was very suprised and thrilled to read that the Irish will soon own the entire world.

http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1685652&issue_id=14628

"That's right, forget about buying a three-bed in Lucan to rent to a gaggle of nurses, Cambodia is the place to lay down your cash for a rainy day.
The home of the Khmer Rouge and the killing fields was yesterday being touted as the latest must-have for the hordes of ever-hungry Irish property investors. "

I wonder if I can buy a few acres on this killing field? I'm sure these people are getting filthy rich selling worthless Cambodian property to all the young Irish who can't afford to get on their local property ladders. There is a reason why property is dirt cheap in Cambodia; wages average around $70 per month (assuming you can find work with 20% unemployment rate). But I'm sure all the specuvestors did all their research and already know this. My humble advice to any world investors out there is to sell (if you can) and get your hands on the cold hard cash that you may have made. Once the world properyt bubble finally runs its course, all these foreign properties will go back to their previous local prices (worthless).

 

[Duplex]

A lovely house in my area has been on market for months,got a write up in Sunday Business Post before going to auction in May but did'nt sell and is now for sale by private treaty for 1.3million it had been on sale at auction with an AMV of 1.45million in May. Another on same road sold for 1.25 mill in March at auction having had an AMV of 950k
[broken link removed]

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Lets say it sells for broadly that price plus stamp means E 1.5m. A 25yr old starting out and trading up will pay in total including all interest at least E3m before finally owning this property i.e. double the price as a basic rule. Thats 75,000 a year for 40 years of after tax income or 120,000 a year for 40 years of gross income. We will truly be a miracle economy if the incomes are there to support this.

PS in 2004 I think there was something less than 3000 properties in the UK that sold for more than £1m ? Can anyone confirm ?

The property in question is an extended semi. The cost of reinstatement (i.e. the cost of rebuilding a facsimile of the property) would be in the region of say €200,000; which would suggest that the narrow strip of land on which this house stands is worth somewhere in the region of €1,000,000.

 

[Duplex]

There was an article in todays IT, by a woman discussing the US market. She advised that Irish buyers might want to steer clear of Florida as prices had fallen by 15%. (The IT has run several articles extolling the virtues of Floridian property previously, they weren't decent enough to issue a warning to their readers however when the market started to dive.)

Anyway this lady singled out Phoenix, Arizona as a possible alternative investment location for Irish investors scared away from Florida and other cooling markets. So to circumvent the need for her to publish an article in a couple of months telling her readers to avoid Phoenix I'll do that now. Avoid Phoenix prices are falling now.

Fortune Magazine called the Phoenix market as far back as May, and what did the official organ of the super rich call it? 'A Dead Zone'. The Irish are in the grip of a mania that may have infected others but not in the feverish lunatic manner it has here.

http://money.cnn.com/2006/05/03/news/economy/realestateguide_fortune/

 

[Raskolnikov]

Today's (Cork) Examiner came with a bumper 72 page Property section, I don't see any evidence of price reductions in it although I have noticed properties in it that have been on myhome for months now. Asking prices have remained static though.

 

[Jeanne]

What are the most popular days for viewing (in Dublin)? I heard Thursday evenings and Saturday's. There are a few houses for sale in my neighbourhood and I've not seen much activity today, which I thought would be a busy day for viewings.

 

[Jeanne]

The owners of the "Irish" Examiner would like it to be known that the Examiner is a national newspaper which is also read in Dublin ( albeit by Cork people that are living there). Boy.

I still think of that paper as the 'Cork' Examiner. Living in Dublin, it wouldn't occur to me to buy it!

 

[Jeanne]

Today's (Cork) Examiner came with a bumper 72 page Property section, I don't see any evidence of price reductions in it although I have noticed properties in it that have been on myhome for months now. Asking prices have remained static though.

Not surprised. The EA's will of course ignore the obvious change in public sentiment toward the property market (imo) and react as though it's business as usual. I suppose we can all be guilty at times of deluding ourselves into thinking if we ignore something we don't like it will go away.

Usually I feel sorry for those with their heads buried in the sand because they don't want to see what's ahead. Not this time though.

 

[thejuggler]

Speaking of the Examiner I saw an advert in todays edition for a new development in Kanturk (I think) which had as a "special September offer" included a fully fitted kitchen including all electrical appliances for all buyers. I think it was someone on this thread that predicted that we would start seeing builders throwing in these "extras" to entice buyers as the market begins to crash. Is it proof that we are now at this point?

 

[tententwenty]

"That's right, forget about buying a three-bed in Lucan to rent to a gaggle of nurses, Cambodia is the place to lay down your cash for a rainy day.
The home of the Khmer Rouge and the killing fields was yesterday being touted as the latest must-have for the hordes of ever-hungry Irish property investors. "

Investing in Germany or the south of France is one thing, but if you're going as far afield as south east asia, you'd better have your homework well and truly done. They have all sorts of little gotchas and addendums they like to spring on rich westerners.

For example, property in the Philippines is a decent prospect, but you can't actually own any as a foreigner. You can own it through your wife or husband, however. Doesn't stop them advertising beachfront property in Cebu to the Americans. And once you have bought your property, they like to inform you that the land taxes haven't been paid on the property since world war 2. There are a few things you can do to get around these restrictions, but generally stay well clear of the place, would be my advice.

Remember, in asia, yes means no, and they never say no....

Edit: Oh yes, and lets not forget political instability...

Private ownership of land was abolished by the Khmer Rouge in the 1970s. Such ownership is also not recognized by the PRK government, which for example, refused to support former owners when they returned and found others living on and working their land.

 

[Harrogate]

Negative Amortisation Mortgages have been available in the boom markets of the US for some time.... These are interest-only mortgages where you don't actually pay all the interest...It is simply rolled up and and paid back later with interest on the interest!

 

[whathome]

From The Sunday Times (Ireland) today:

Will lenders be so optimistic when property values start falling?

http://www.timesonline.co.uk/newspaper/0,,176-2350000,00.html

"Like most of us, the bosses of lending companies have all been infected with the “property-itis virus” that convinces otherwise rational people that property values can only go up. It certainly explains why 800 mortgages a day are being sold even as repayment costs go up."

 

[bearishbull]

Was driving to see a friends new house in Ashbourne yesterday and once i got past finglas onto the new motorway it immediately struck me how much land is sitting there so close to m50 /dublin etc. Driving for miles and miles theres endless acres of fields many of which werent being used at all while some had a few horse in them and other had crops. When the people who own such land here and in other locations close to dublin eventually sell up tp developers,what will happen to the prices of all the houses miles and miles further out from dublin? Why hasnt the government used its powers to free up this land for development years ago and serve the greater public good? Agricultural land should not get more than twice its agricultural value and government should CPO all agricultural land in greater dublin as due to the current housing crisis, food should not be grown where the nations capital (and economic powerhouse) should be expanding into.Can you imagine crops growing on land 6miles from centre of london or any other major capital city??? The lack of action and planning in this country to suit vested interests will be the downfall of us.

 

[Eurofan]

So true, i fly in and out of Dublin Airport often and it amazes me to see just how much greenfield land there is in and around the city, and i'm not talking about phoenix park here.

The supposed issue of 'lack of land' is a red-herring, there's a lack of zoned and serviced land. Unfortunately that's a political issue too....

 

[beattie]

So true, i fly in and out of Dublin Airport often and it amazes me to see just how much greenfield land there is in and around the city, and i'm not talking about phoenix park here.

The supposed issue of 'lack of land' is a red-herring, there's a lack of zoned and serviced land. Unfortunately that's a political issue too....

Can't see anything being done about this with this government in power. The people who frequent the FF tent at the Galway races wouldn't want to see too much zoned land coming on stream, it is much better to get people to commute 200km per day instead!

 

[Glenbhoy]

In fairness Bearish, surely more urban sprawl is the last thing we need. Yeah, it'd be great if they rezoned land closer to the city, but get an underground servicing it first. In the UK the population are housed on 6/7% of the available land.
Obviously, if planning restrictions were to be relaxed many people would lose substantial amounts of money, including every home owner in the country, what you're proposing is anarchy, a complete breakdown in our society, you're mad

 

[bearishbull]

In fairness Bearish, surely more urban sprawl is the last thing we need. Yeah, it'd be great if they rezoned land closer to the city, but get an underground servicing it first. In the UK the population are housed on 6/7% of the available land.
Obviously, if planning restrictions were to be relaxed many people would lose substantial amounts of money, including every home owner in the country, what you're proposing is anarchy, a complete breakdown in our society, you're mad

No , the urban sprawl results from spreading suburbs out to meath etc, higher density closer to city is far better for numerous reasons. You wouldnt do it overnight but if we want to plan for future we need cheaper property/land as high cost land/property means higher wages and higher costs making us uncompetitive internationally when we need to be as competitive as possible going forward, articifically high prices as a resuly of only 4% of land being urbanised is not a smart long term move.
How would every home owner lose substantial amounts of money? if your living in a house what does it matter what its worth? 60% of homeowners own their houses outright and have no mortgage. The children of the homeowners who you say will "lose money" will have to pay far less for their bricks and mortar and people trading up will have to pay less for a bigger/better house.There would be some short term suffering but in long term the economy and irish society would be much better off.Some would lose out but this would be offset by gains of many other, those speculating in property and other vested interest minorites would lose out but families who just want somewhere to live and affordable houses for their kids etc in the future would benefit.