Current public sentiment towards the housing market?

[phoenix_n]

An ever greater consequence is that because of the perceived equity in property actual cash reserves will be low or even negative.

 

[phoenix_n]

I have called a 'crash' already. Its just the time it takes to sell (lead time) which is why is it not visible now. Expect xmas for it to in public domain. (earlier in business pages)

From today's Independent...- Business section

Desmond warning on property bubble
http://www.unison.ie/irish_independent/stories.php3?ca=35&si=1687460&issue_id=14637

"DERMOT Desmond, who is one of Ireland's top financiers, has warned of a bubble in the Irish property market. "


IS THE PARTY FINALLY OVER?
http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1687282&issue_id=14637

"IS the great Irish property party finally coming to an end? The question has been prompted by a number of recent indicators that appear to suggest early signs of a slowdown in the property market. "

 

[SHARP]

Could be on to something there. I didn't really believe it because I hadn't heard of many people financing their lifestyle with their housing equity. Then again when people are living the dream they don't want to admit they are behaving like the people you see in "Ocean Finance" ads.

On average, when a mortgage is switched in Ireland, €36k extra debt is taken on. There are approximately 100 mortgages switched every day. I doubt it is all for foreign property and conservatories.

This is just what I "know" of what some people I know/know off to have done:

"Remortgaged to pay for Classic cars"
"Remortgaged to buy a motorbike"
"Remortgaged to buy a foreign investment"
"Remortgaged and put all existing loans from the car and holiday loan and then could take out a new loan for a new car"
"Remortgaged to pay for a holiday"
"Remortgaged to pay for new TV and Christmas presents in 2005"

They are just some of the things I know have been done by people - but Im sure there are many,many more that have done it.

I just have a feeling that more and more people over the past 2-3 years have actually topped up/remortgaged up to present values of their houses and if they fall in value - they are in negative equity, but with their shiny new car and tv to keep them happy.

 

[poormouth]

This is just what I "know" of what some people I know/know off to have done:

"Remortgaged to pay for Classic cars"
"Remortgaged to buy a motorbike"
"Remortgaged to buy a foreign investment"
"Remortgaged and put all existing loans from the car and holiday loan and then could take out a new loan for a new car"
"Remortgaged to pay for a holiday"
"Remortgaged to pay for new TV and Christmas presents in 2005"

They are just some of the things I know have been done by people - but Im sure there are many,many more that have done it.

I just have a feeling that more and more people over the past 2-3 years have actually topped up/remortgaged up to present values of their houses and if they fall in value - they are in negative equity, but with their shiny new car and tv to keep them happy.

 

[poormouth]

This is just what I "know" of what some people I know/know off to have done:

"Remortgaged to pay for Classic cars"
"Remortgaged to buy a motorbike"
"Remortgaged to buy a foreign investment"
"Remortgaged and put all existing loans from the car and holiday loan and then could take out a new loan for a new car"
"Remortgaged to pay for a holiday"
"Remortgaged to pay for new TV and Christmas presents in 2005"

They are just some of the things I know have been done by people - but Im sure there are many,many more that have done it.

I just have a feeling that more and more people over the past 2-3 years have actually topped up/remortgaged up to present values of their houses and if they fall in value - they are in negative equity, but with their shiny new car and tv to keep them happy.

Apologies for last mail pressed send too quickly.

Is'nt this exactly what Eddie Hobbs usually suggests in his "Show me the money" programme.

 

[Eurofan]

This is just what I "know" of what some people I know/know off to have done:

"Remortgaged to pay for Classic cars"
"Remortgaged to buy a motorbike"
"Remortgaged to buy a foreign investment"
"Remortgaged and put all existing loans from the car and holiday loan and then could take out a new loan for a new car"
"Remortgaged to pay for a holiday"
"Remortgaged to pay for new TV and Christmas presents in 2005"

Had to add one i heard of recently;

"Remortgaged to buy a horse"!!

This was in order to buy a racehorse with her brother and as anyone who watched Hector on "Only Fools Buy Horses" it certainly wasn't cheap.

The most astonishing aspect is she reckoned it was 'an investment'...

 

[room305]

The most astonishing aspect is she reckoned it was 'an investment'...

Well the Irish are well used to "investments" that cost them a lot and earn them little ...

 

[Calina]

The most astonishing aspect is she reckoned it was 'an investment'...

yes well, high return investments are usually high risk aren't they?

 

[conor_mc]

yes well, high return investments are usually high risk aren't they?

Ah, but you're assuming that Irish people can remember how to equate risk with reward.

In our minds, the highest reward investment (property - due to leverage) is the least risky (sure property prices only ever go up...!).

 

[room305]

yes well, high return investments are usually high risk aren't they?

But they often seem to mix up which you are supposed to maximise and which you are supposed to minimise.

 

[Jason7]

Mount st annes - 2 bed apartments 750K all sold out !!!!

I am truly astonished at a) the price and b) how any one could pay that kind of money for an apartment in Miltown in todays market that is showing all the signs of at best a slow down .

 

[BigM]

Well would people actually tell you that they have remortgaged to buy the new TV, car, holiday, new furniture - or is it a "loan"???

I was in with my solictor the other week in relation to a personal matter and he mentioned to me that he would be very busy between now and Christmas because of all the re-mortgage's draw downs he has to do. I asked "was everyone still building extensions etc" and his response gave my theory a bit of weight when he said "no, its to pay for the holidays expenses as the credit card bills are in .......and christmas, its the busiest time - very little to do with the property"

Hmmmm. Now I am worried...
Although I just find it hard to believe that people would be stupid enough to remortgage up to the max in order to buy ridiculous luxuries (a horse for God's sake!?!? ) and pay for them over 30yrs.
But I suppose, what is it they say about one being born every minute?

 

[whathome]

Mount st annes - 2 bed apartments 750K all sold out !!!!

I am truly astonished at a) the price and b) how any one could pay that kind of money for an apartment in Miltown in todays market that is showing all the signs of at best a slow down .

Which development are you talking about - from what I've seen, these apartments are coming down in price...

Old price : €695,000


New price : €675,000
www.daft.ie/135338

 

[beattie]

Mount st annes - 2 bed apartments 750K all sold out !!!!

I am truly astonished at a) the price and b) how any one could pay that kind of money for an apartment in Miltown in todays market that is showing all the signs of at best a slow down .

They are in for a rude awakening in the near future

 

[room305]

Same properties are €1,450pm to rent or €3,150pm to buy (100% mortgage).

More than double!

 

[BigM]

Which development are you talking about - from what I've seen, these apartments are coming down in price...

Old price : €695,000


New price : €675,000
www.daft.ie/135338

Jason7's talking about the latest release - 2beds "from €715k"
which, funnily enough, is what you'll end up paying after Stamp on the €675k listed above

 

[whathome]

Mount st annes - 2 bed apartments 750K all sold out !!!!

I am truly astonished at a) the price and b) how any one could pay that kind of money for an apartment in Miltown in todays market that is showing all the signs of at best a slow down .

From this cache (11 Aug) it looks like the last brand new 2 beds in the latest phase were sold months ago:

 

[cjh]

From this cache (11 Aug) it looks like the last brand new 2 beds in the latest phase were sold months ago:

..which makes more sense, because you could have sold a caravan for €750 K a few months ago....

 

[whathome]

IMF warns over UK property crash

[broken link removed]

Ireland get's a mention...

"House prices in Spain, Ireland and the United Kingdom still look elevated, and could come under pressure in a rising interest rate environment," it said.

"At this point, concerns centre on the US, although other markets, such as those in Ireland, Spain and the United Kingdom, also still seem overvalued by most conventional measures."

 

[BigM]

IMF warns over UK property crash

[broken link removed]

Ireland get's a mention...

"House prices in Spain, Ireland and the United Kingdom still look elevated, and could come under pressure in a rising interest rate environment," it said.

"At this point, concerns centre on the US, although other markets, such as those in Ireland, Spain and the United Kingdom, also still seem overvalued by most conventional measures."

Sure there's nothing to worry about so - prices are merely "elevated"...
And anyway, does anyone take any notice of these pronouncements from the likes of IMF? Let's see how much coverage it gets...