bearishbull
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Beaten to it by Afuera! MAdness, how can the owner of the house renting it for 2500 a month think its a good investment when the equivalent mortgage is around 7000??
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johnjoe101
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Newstalk down to business show going to do a segment on housing market between now and two. If your interested usually a good show hope there is actually a bit of dedate.
I hear you, and of course I realise there are many factors which should be considered, and of course I know and realise I am not owed a thing by my parents, they've done enough raising me! However, in my own personal situation, the parents have a wad of cash in the bank from my father's own inheritance from his parents who passed away, specifically held for their retirement, and will in the next 10/15 years (give or take) own a 2nd house (again, not something I'm looking forward to as it will be my grandmother's house which is willed to my mother -my grandmother is in her 90's and much as I'd like her to be around forever, chances are she's not going to see 120), so should they either take a mad notion and go globetrotting, or require medical/nursing homes costs, they would be more than able to afford it without having to dip into thier own house equity. I'd like to think that by the time they reach that age where they might need treatment, I'd be earning enough to help look after them also.
I realise this sounds horribly cold and callous, but it's something that my parents have had serious discussions with me about as it was them that finally tipped the balance for me to remain renting for the immediate future - having been gobsmacked at the cost of servicing a mortgage when I was going about one. this is just from my side of the family, of course, my husband has a similar situation on his own side. Reading back on that it sounds like I am a greedy money-hungry person, but TBH I'd prefer they lived into their 200's than to have me sitting in their house missing them.
The stability thing is something that doesn't really bother me, as there is (and always has been) plenty of housing stock in my area for rent, and with so many new apartment blocks going up day by day, the choice is only widened. If we have kids and are turfed out on our ear, we will just move within the same town to rent another property. Who knows, I may be looking to move from my area anyway for work reasons and it's a lot easier to walk away from a lease than to be stuck with a house that won't sell - even with the property climate as it is, a house we were looking at with a view to buy over 10 months ago is still on the market, not having reached it's asking price (we put in an offer of 5k under asking, and were refused, and the vendors are probably kicking themselves now as they're still stuck with it on the market).
OK, if the market falls apart, and the BTL investors have to sell at lower prices than are currently tabled leaving fewer residences for rent, I can always then dip my toe in the property pool myself, which is what I am actually aiming for rather than sitting around waiting for my poor parents to kick the bucket
Or I can look to emigrate, which is something that is always an option.
Apologies for waffling on for so long,
I guess I'm just trying to say that in the current climate, it makes absolutely no sense whatsoever for me to buy, and I would think I am not alone in this. I just can't see the incentive for any young couple on an average wage to stretch themselves uncomfortably for a poor quality of life (commute, a huge proportion of their earnings servicing a mortgage for the next 35/40 years, having to put off having kids/limiting the amount they want to have due to financial considerations) to own an overpriced slapped-together-in-a-hurry residence. I am petrified for some of my friends who have stretched themselves to buy a house in a crummy area, who are only just keeping their heads above water in their initial fixed rate period while sitting on 2nd hand sofas eating beans on toast, who can't afford to start a family, and who literally don't know where the money will come from to service the mortgage once they come out of the fixed rate seeing as the current interest rate has already pushed the repayments they would be making well beyond their comfort zone...
All this in a climate where there are job losses ahead. I can see a situation where we might be the ones to put them up under our roof while they get back on their feet if it all goes wrong for them.There's my sentiment for what it's worth! Again, sorry for the length of the post.
liteweight
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snuffle said:I realise this sounds horribly cold and callous, but it's something that my parents have had serious discussions with me about as it was them that finally tipped the balance for me to remain renting for the immediate future - having been gobsmacked at the cost of servicing a mortgage when I was going about one. this is just from my side of the family, of course, my husband has a similar situation on his own side. Reading back on that it sounds like I am a greedy money-hungry person, but TBH I'd prefer they lived into their 200's than to have me sitting in their house missing them.
Undoubtedly, I've heard numerous stories of hard faced children awaiting parents' death. In fact, at a funeral, I once heard the offspring say "one down, one to go". Naturally I was horrified but I don't think this in regard to your post.
I've also had this discussion with my daughter. She found it all too upsetting but I ploughed on! There are only two certainties in life and that is that we are all born and we will all die!
I only have her best interests at heart and sometimes we have to take a cold hard look at our position in life. This was never more true than when it comes to investing in the property market in Ireland. I don't want my children to have to live someplace where 'they eat their young' in order to get on the property ladder!!
We could help out with the deposit and go guarantor but she'd be left with the day to day expense of the mortgage and bills. At the moment, we have investments, property, and a PPR which will fetch a good price. We believe the PPR is too big for old people to live in and maintain, so when the kids leave the nest, it will go on sale. We'd much prefer to see them happy and secure while we are alive to witness it. I would never go into debt for this purpose though (property for them), as so many of my friends have done.
After that we intend to buy the yacht and perhaps go globe trotting! This is my sentiment!
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markyboy
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€650k Price drop!
Sea Court, Butlerstown, County Cork
According to the Examiner today this has been "relaunched" with a "revised asking price of €1.85 million, down from €2.5 million" and this includes "more restoration work"
Sea Court, Butlerstown, County Cork
According to the Examiner today this has been "relaunched" with a "revised asking price of €1.85 million, down from €2.5 million" and this includes "more restoration work"
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That looks right to me now!
perhaps it just looks for the number of times your name appears in this thread, so any time you are quoted counts as a post?
bearishbull
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Re: €650k Price drop!
Lovely place but you'd get it for less than a million in france.
Its a significant drop.125k in one jump down is big - how did the EA get them to do that.
We were all told in 2005 that interest rates would move up this year yet it did not stop the "spring" boom. This indicates that the next 2 interest rises are not yet priced in by the wider population. The October increase will shake the pyramid further and combined with a december rise will IMO put further pressure on prices.
If the market does not shift the current stock before next springs selling season then it we could see a real slowdown even if rates do not rise further for a few months of 2007. There may not be a dead cats bounce.
I passed a house in the D14/16 area on view this afternoon and couldn't resist walking veeery slowly past and gawking in to see how many were in there viweing. No sign of activity or a line out the door and no sign of anyone inside other than the EA (I presume she was the EA) who, have to say, cut a lonely figure. Front door was wide open to greet all those property hungry punters who accoding to EA's are still out there, yet the place was empty. I guess the lashing rain today didn't help
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plaudit
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This is a lot of the problem in this country, people do not realise that central banks tend not to like suprising the market so they give plenty of advance notice of possible rises and then closer to the time if it becomes probable that a rate rise is coming they indicate that too. The interest changes get priced in by the market gradually.
3.5% is pretty certain by Christmas and further rises are being indicated. The tone at next weeks press conference will give us an indication if we can expect a rise again in the new year.
Undoubtedly, I've heard numerous stories of hard faced children awaiting parents' death. In fact, at a funeral, I once heard the offspring say "one down, one to go". Naturally I was horrified but I don't think this in regard to your post.
I've also had this discussion with my daughter. She found it all too upsetting but I ploughed on! There are only two certainties in life and that is that we are all born and we will all die!
..... we intend to buy the yacht and perhaps go globe trotting! This is my sentiment!
Some lovely children out there alright!! One down indeed. Horrid. As I said, I'd prefer to have my parents enter the guinness book of records for living to 200...and like your daughter, I too was upset when I heard my parents talk about "inheritance" while they're still fit and healthy prime of their life people! Seems the "Celtic tiger" has brought about a really unseemly obsession with money above and beyond all else, which I do not like. The sooner people realise what is important in life the better. Could be in for a wait on that front though, although perhaps if (when) the bubble bursts - when interest rates rise just that little bit too high for most FTBers to pass the stress test criterion of mortgage lenders meaning the bottom rung falls out of the ladder - people might just about start realising the usual foghorn blather about "how much my house has appreciated" is not the most vital dinner party conversation topic.
PS I love your idea of the yacht...your retirement PPR
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blindjustice
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Sentiment at this stage................
Its gonna be a crappy Christmas for some people and a worse new year!
("get on the property ladder - the sooner the better" - they never mention ya can fall off - Trichet down at the bottom shaking!)
Its gonna be a crappy Christmas for some people and a worse new year!
("get on the property ladder - the sooner the better" - they never mention ya can fall off - Trichet down at the bottom shaking!)
From Today's Independent:
'Washout week' isn't the real iceberg that'll sink the boom
http://www.unison.ie/irish_independent/stories.php3?ca=35&si=1698385&issue_id=14715
'Washout week' isn't the real iceberg that'll sink the boom
http://www.unison.ie/irish_independent/stories.php3?ca=35&si=1698385&issue_id=14715
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plaudit
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Is this article saying that banks think because rates have risen by 2-3% that thats it, they can't possibly rise again by more than another 1%?
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plaudit
Guest
Also from todays business post:
"New borrowers will only be offered 75 per cent of the mortgages that they qualified for last December, if rates continue to rise at current levels."
Its only now that the first few rounds of interest rate hikes are really beginning to sink in, wait until there are a few more hikes.
"New borrowers will only be offered 75 per cent of the mortgages that they qualified for last December, if rates continue to rise at current levels."
Its only now that the first few rounds of interest rate hikes are really beginning to sink in, wait until there are a few more hikes.
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plaudit
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Stunning
It appears to me that all the vested interests view these rate hikes as nothing more than an inconvenience, a few awkward questions from buyers - extra hassle - that they don't need.
There seems to be a certainty in most quarters that prices will just keep on rising, and the gravy train will just enter a speed limit zone for a while before it accelerates again.
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