Not quite. Suppose the house costs 300K and you pay interest only, in 10 years time the outstanding debt will still be 300K regardless of market conditions in 10 years.
Eventually, maybe after 30 years, you should be able to buy the house for a weeks wages, inflation and all that.
I wouldn't have thought that the Last Word was main stream. Wait until Adrian Kennedy starts talking about it!!
Not quite. Suppose the house costs 300K and you pay interest only, in 10 years time the outstanding debt will still be 300K regardless of market conditions in 10 years.
Eventually, maybe after 30 years, you should be able to buy the house for a weeks wages, inflation and all that.
Not quite. Suppose the house costs 300K and you pay interest only, in 10 years time the outstanding debt will still be 300K regardless of market conditions in 10 years.
Eventually, maybe after 30 years, you should be able to buy the house for a weeks wages, inflation and all that.
Going back to the title of the thread, whether or not a crash actually develops, SENTIMENT is on the move......
.... Foreclosure. Its something which banks in ireland VERY rarely do, which is great. The number of foreclosures has been in single figures for years.
Might not be subject to the landlord's whims, but may be subject to the whims of the property management company. I would hate to live in a place where some clip-board jockey with a luminous jacket is forever knocking on your door telling you what you can and can't do.lightweight said: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!
I wouldn't live in Clondalkin if I was paid. In fact, my professor at university asked if I would move in to his spare house in Clondalkin at low rent about a year or two ago, which I politely refused.lightweight said: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.
You're forgetting they've also payed the difference between renting (13k a year) and owning (23k a year), as well as 2k's worth of management fees etc. Therefore, they need capital appreciation of 12k each year, just to break even. The risk they've taken on is not worth the potential gain.lightweight said:Granted, that couple will not have made much of a dent in the mortgage after three years, but renters will have stood still.
Not necessarily - you have to weigh up the risks involved in a potential downturn. If you play poker, you'd be aware of pot size to probability ratio. Now were I to weigh up the potential gain vs the probability of a crash, I'd fold my hand straight away. Irish property is a bit like playing an off-suit 2 & 7 with AAK on the board. (might make for a good bluff, but you can't bluff forever if the fundamentals just ain't there...)lightweight said:A little gain is better than nothing.
Don't forget renters have a lot of options which owners don't. E.g. if they don't like their social housing neighbours, they can just go on daft and find a new place. Or, if the washing machine is broken, they can just ring up the landlord. Or, if they don't like the traffic, they can find somewhere closer to work. Or, if there's an economic crash, they can just up and leave and ride the next boom wherever it may be.lightweight said: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.
yeah and once a hundred thousand people listening to the last word tell their family friends etc it spreads rapidly, any media in ireland isnt too far from mainstream. add this to indo and herald and numerous other bearish stories in media and sentiment cant not be affectedemm, who's Adrian Kennedy? Wouldn't have thought anything is more mainstream than Matt Cooper on radio, maybe Radio 1 gets a bigger audience but that's about it.
emm, who's Adrian Kennedy? Wouldn't have thought anything is more mainstream than Matt Cooper on radio, maybe Radio 1 gets a bigger audience but that's about it.
emm, who's Adrian Kennedy? Wouldn't have thought anything is more mainstream than Matt Cooper on radio, maybe Radio 1 gets a bigger audience but that's about it.
Remember the lenders have been very busy with the securitisation process - selling the rights to mortgages to overseas investors, hedge funds etc.
Should have someone realistic and without a vested interest like jill kerby but will be one of the estate agent guys or a bank guy likes that media wh0re austin hughes.
You may have taken out your mortgage with your big friendly Irish bank but they merely service the mortgage - the rights could well be held by some stressed overseas hedge fund.
Gerry Ryan was just the other day banging on about how you can't go wrong with "bricks and mortar" for your pension.
How many BTL's has he got I wonder?
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