Z
I love the way the article just ends...
"Eddie Hobbs agrees, saying: "Poor auction results do not mean Armageddon, and anyone who thinks so demonstrates a complete lack of understanding of what a crash actually means. Our economy is "
Its almost as if he was going to say something that the powers that be don't like and they pulled the plug...
So this weeks competition to win a free ticket to the HOK foreign property expo choose one of the following:
Eddid Hobbs was recently misquoted in the Indo saying:
Our economy is :
a) based on solid fundamentals
b) floundering
c) manipulated by VI to line their own pockets
rest of the article is on a different page, FYI, here is wat he said:
[FONT=Verdana, Arial]"strong, so are the demographics with no suggestion of this weakening. Unless there is a shift in these pillars there will be no crash, just a cooling period which is the best possible outcome after a decade of growth."[/FONT]
he actually sounded more bearish in his last book, to me anyway.
Eddid Hobbs was recently misquoted in the Indo saying:
Our economy is :
a) based on solid fundamentals
b) floundering
c) manipulated by VI to line their own pockets
Rates slowing house price growth
Breaking news www.rte.ie
House Price growth shows for the third month in a row (despite the opening of the 'selling season'?) to 1%. Attributed to Increasing interest rates.
good stuff, dint think we had many well qualified ppl here
you can share your qualification if you feel like, always good to listen to well qualified ppl.
rest of the article is on a different page, FYI, here is wat he said:
[FONT=Verdana, Arial]"strong, so are the demographics with no suggestion of this weakening. Unless there is a shift in these pillars there will be no crash, just a cooling period which is the best possible outcome after a decade of growth."[/FONT]
he actually sounded more bearish in his last book, to me anyway.
Thanks. Are you looking online or the print version?
would like to see the result of that survery , which survery was it and have you got a link?
Maybe you should write one and submit it? I think an alternative viewpoint is always welcome but most bearish articles annoy even neutral people... heres a start
A short article with a title like
Rent vs Buy, Whats the best option in 2006?
So you are ____ earning ____ and are confused with the property market...
A typical X bedroom house in XXX costs, YYY, can be rented for approximately ZZZ. or mortgaged with a 30 year mortgage for .... Is it better to buy or rent. Note that the buying assumption is the 'best case' scenario, a couple with a steady income expecting > inflation salary increases and good job propsects.
Whats the best thing to do? Rent is dead money and you'll never see it again, but Houses prices are sky high. 30 years is a long time to be paying back a mortgage, and inflation aint what it used to be. The 50k given to Bertie back in the early 90's is still a lot of money when compared against nearly everything but house prices.
Risk
Rent is dead money. You are guaranteed never to see it again. So after 5 years you have lost xxxx, assuming rent increases of X%. Assuming you were able to finance the mortgage, and lived the same lifestyle, you would now have zzz sitting in your Rabo bank account...
By Buying, After 5 years, you will have paid back xxxx, and taken zzzz off the mortgage. Assuming interest rates remain unchanged. Hopefully, if prices increase by X% per year, you will have a paper profit of ....
Betting your future on the ECB
But over 5 years rates WILL change. They can go up or down. there has been increases of 1.25% since the historic lows of 2004. The smart (long term financial rate) money is that they will be at xxx which means the bank will charge you 5%
Now, assume the predicted interest rates rises of for 2007 occur, then stabalize for a 2 years and drop 1%. Thats Then do the calculations..
If you rent, its easy you'll still have lost xxxx paying rent, and if you kept the same lifestyle as the guy paying the mortgage, you'll have xxxx in your Rabobank... If you werent able to save the mortgage repayments every month, you will have less, but you wont have lost anything
If you bought, you'll have paid off .... What will the asset be worth?
I think it would show the risk is with the buyers...
So whats the decision
Rent for a year, see what happens... After all, when prices get to 500k, a 20k increase in prices increase in a year wont kill you. But a 1% increase in rates will, its another 5k to be found in that year....
http://www.askaboutmoney.com/showpost.php?p=283486&postcount=4625 is the best post on the thread and illustrates how people are betting their financial future on the ESB rate which is at historic lows and the bet is they stay there...
I think rather than emotional talk of a 'bubble' or crash, the facts speak for themselves...
I think something along those lines MP, but an explanation of what a bubble is, how the existence of such is measured against fundamentals and the fact that similar bubbles have formed and always burst in the past might be useful.
Also you have much more control over the rent you pay rather than the mortgage interest you pay.
You can fix your mortgage interest for a long period of tmie which gives you full control over the interest you pay. The same can hardly be said for a rented place where the price will fluctuate up and down depending on the market conditions.
/Nik
I love the way the article just ends...
"Eddie Hobbs agrees, saying: "Poor auction results do not mean Armageddon, and anyone who thinks so demonstrates a complete lack of understanding of what a crash actually means. Our economy is "
Its almost as if he was going to say something that the powers that be don't like and they pulled the plug...
So this weeks competition to win a free ticket to the HOK foreign property expo choose one of the following:
Eddid Hobbs was recently misquoted in the Indo saying:
Our economy is :
a) based on solid fundamentals
b) floundering
c) manipulated by VI to line their own pockets
........grand so it is.
Seem to remember that Eddie Hobbs is trying to sell a house euro 2m plus at the moment.
Seem to remember that Eddie Hobbs is trying to sell a house euro 2m plus at the moment.
You can fix your mortgage interest for a long period of tmie which gives you full control over the interest you pay. The same can hardly be said for a rented place where the price will fluctuate up and down depending on the market conditions.
/Nik
I think that the quality of the postings speak volumes for the calibre of the people who post on this board (present company accepted). This is a debate zac so debate.
Would you agree that Mortgage interest is dead money? as you are never going to see it again?
Also you have much more control over the rent you pay rather than the mortgage interest you pay.
I dont 100% agree on interest being dead money, or even on rent being dead money... Credit has been good to the ordinary man all over the last 100 years, it's enabled people to reach a certain level of wealth, by buying assets over time that they can use to generate more wealth or live in some level of independent comfort. I come from the background that you are better off owning and oweing nothing to anyone as soon as possible and am horrified at the duration of mortgages today...
If you owe nothing, then worst case, you can close the door and the landlords/banks/bertie et all can go f themselves..
Unfortunately, short of saving hard for many many years, or winning a dail seat... you'll need a mortgage to put a roof over your head and be able to plan to not worry about the roof over your head in X years. You dont really want to be past retirement and having to come up with a rent check for some landlord (or even some bank) do you? This may be an irish peasant mentality, but i dont really care.....
You dont own the house till the last payment but the banks do let you live in it while you pay it off, which is good of them
You could argue that the interest part of a mortgage plus house maintenance costs is the dead money (should be the same as the rent), not the full part of the mortgage, assuming of course the underlying asset keeps its value.
Yeah, you do have control over the rent, you can move easier. You cant paint the kitchen purple or whatever, so theres trade offs there ....
with rate rises moderating.....!!!
and bear in mind, that alot of credit in europe is drying up, the bottom has fallen out of the us bond market...
.
Somone learned how to do that from the boards.ie threadWhose been posting the most here?
congratulations whathome!
stupid 12th place...
You have over 1000 posts in total, when you search in your profile it shows 42 threads containing posts from you. Hope that clarifies things.I was surprised by the number of posts (102) that I supposedly had made. I went into my own profile and asked to see all posts by Liteweight. Counted them and it came to 42 give or take. If this count has been done automatically using names, e.g. 'search Liteweight' with automatic count, it may well be including posts where people quoted me, hence to 102 posts.
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