Nope. One is loadsa people trying to sell, the other is fewer people looking to buy.
As for those reports you mention, ask yourself who publishes them.... think about it now, what interest might a bank or an estate agent or the construction industry have in reinforcing positive sentiment?
Listen, if there was a shortage of housing then rent would be much more expensive. It isn't because there isn't any shortage.
There is, or rather there has been, a shortage of housing for sale because specuvestors have held onto properties for capital appreciation. These guys will let these go once they start costing (or stop making) them money, they wouldn't own them in the first place if they weren't in it for the money.
Fair enough - shake hands - I don't want to be branded like the hurling men from my County (Laois).
100 year mortgage anyone?
In a couple of years time, I bet people like that will be all over the airwaves demanding the taxpayer bails them out of their financial situation. What's more, I bet the government will cave.
At this stage I don't think people like this are actually buying anything, after 3 years how much of the capital will they have paid off?
mmm, this is something they did in Japan back at the hight of it in the early-mid nineties (maybe they still do)..... a multi-generation mortgage: you buy the house, and your kids inherit your debt, and repay the remaining 20 or 30 years, or whatever it was originally set at
You have to say it is pretty "stupid" (not for want of a better word) to buy at 2k a month over 30 years when, as was pointed out by somebody, they could probably rent the same place for 1100, not pay legal bills, stamp duty, uncertain interest and still create a "solid future for themselves".
At this stage I don't think people like this are actually buying anything, after 3 years how much of the capital will they have paid off?
The general opinion on this thread seem to be that it's all about capital appreciation. It's not. For the next 3 years, that couple have someplace to call home, where they have the freedom to do as they wish, within limits imposed by society. There are not subject to a landlord's whims for a start. I don't know why more renters here aren't worried about where they are going to live, given that all of us investors are supposed to be selling up fortwith!
Cellopoint, you might yet find yourself living in Clondalkin ( I believe that area was the target of your last disparaging remarks on AAM). If there is no capital appreciation to be expected, and IR rising, landlords will raise rents to cover themselves. You can huff and puff all you like but they are entitled to do this and will do it.
Granted, that couple will not have made much of a dent in the mortgage after three years, but renters will have stood still. A little gain is better than nothing. After 5 years, they are in a better position all round. If they fall on hard times, they have a 2 bed which they can take advantage of by renting one room via the rent a room scheme and pay no tax. I'm not saying I agree with their purchase....but they do have options which most renters don't.
After 5 years, they are in a better position all round.
The general opinion on this thread seem to be that it's all about capital appreciation. It's not.
I don't know why more renters here aren't worried about where they are going to live, given that all of us investors are supposed to be selling up fortwith!
If there is no capital appreciation to be expected, and IR rising, landlords will raise rents to cover themselves. You can huff and puff all you like but they are entitled to do this and will do it.
Not sure I agree with this....
If theres a serious crash, (and thats not a certainty btw) the houses won't disappear, they will still be there, probably owned by the banks who will have to offload them
Listen, if there was a shortage of housing then rent would be much more expensive. It isn't because there isn't any shortage.
There is, or rather there has been, a shortage of housing for sale because specuvestors have held onto properties for capital appreciation. These guys will let these go once they start costing (or stop making) them money, they wouldn't own them in the first place if they weren't in it for the money.
mmm, this is something they did in Japan back at the hight of it in the early-mid nineties (maybe they still do)..... a multi-generation mortgage: you buy the house, and your kids inherit your debt, and repay the remaining 20 or 30 years, or whatever it was originally set at
Isn't a 100 year mortgage better than an interest only mortgage?
An interest-only mortgage is an infinite term mortgage - the ultimate in inter-generational mortgage lending (even worse than Japan).
Isn't a 100 year mortgage better than an interest only mortgage?
An interest-only mortgage is an infinite term mortgage - the ultimate in inter-generational mortgage lending (even worse than Japan).
Matt Cooper has just mentioned that the housing market appears to have taken a sudden dive and will be discussing it on the last word soon.
An infinite interest-only PPR mortgage is RENT, plain and simple. The bank buy the house on your behalf and rent it to you. You'll never own a single brick of it.
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