J
I sincerely hope we get a dead cat bounce early next year - I'm selling my rental property once the current lease is up in Jan.[in 2007]"
firstly , everyone in the world would like a cheap house to buy or rent (except of course for pro / spectulative investors) , it's not a sentiment unique to this thread
secondly, to flip what your saying , how about not investing and letting the greater fool get burned and even though your wages are lower than the people "ahead" of you, because you are in actual fact in real terms well ahead of the game when the bubble pops because while everyone else is drowning in the pool and reaching for a life belt your sitting idly by on the side sipping sangria and catching some sun watching in amazement
it doesn't all work the one way you know
I think you might be getting confused between
a) Sentiment - which is how people feel about the state of the market now and in the future (that's what we are discussing)
and...
b) Desire or yearning for cheaper property - that is always the case for buyers. (which we are not discussing)
As a tennat myself I am appalled at the private rental sector an the sicken disaster that is about to unfold.
Its amazing how quickly this collapse is moving.
People want to see a crash.
... if wage increases didn't correlate with inflation to some degree, even then, we'd be long bankrupt [snip]... If your wages don't keep up, and you can't afford to invest in other assets you'll be left behind. It's harsh, I don't like it, but I think that's the way it is and thinking otherwise may result in you being left behind yourself (how many of us challenge our bosses when our pay rises don't match or beat inflation? My attitude is, if they don't it's time to leave).
I think they're stongly linked in many posts on this thread. Maybe I'm misinterpeting others...
Realistically, how much should a bank lend a couple earning €60k/year. The old lending rule 2.5 times first wage, 1.5 times second wage was chucked out the window years ago. If it was still in place the a couple on average industrial wage could not borrow more than €120k. Even if the bank would lend 4 times combined wages that would still be only €240k, considering the average house price in Dublin is over €400k. Plain and simple most are priced out of the property market.
Well i for one dont believe for a second the vacancy rate of 15% touted by this and many said subject experts when it comes to accomodation in dublin.
Its amazing how quickly this collapse is moving.
Please make meaningful contributions to the debate.Double ditto.
That's ridiculous - Sentiment, and buyers yearning for cheaper property are not strongly linked. If that were true, sentiment would NEVER change. Buyers always want cheaper property. Have you ever heard of a buyer saying "If only I could pay a bit more for that house I'd be happy"?
Sentiment does change however, people go from thinking "I better buy now before prices go up" to "I'm going to hold off, prices look like they might fall". Before and after that change in sentiment, they'll always be yearning for cheaper property.
What I meant was that a lot of the posts have emotional underpinnings.
I've had Landlords try to end my lease before it is due to expire so they can sell. I am not sure what the postion is now, you might be able to break the contract if you give genuine reason allowed by law and are in fact lying then you can be prosecuted.
Dont panic the correction is over, we had our soft landing and prices are taking off again. I was talking to somebody today who was talking to somebody who works in daft and the price of houses has started to go up again, it was just a temporary correction after the huge increase in prices in the spring.
House price increases will continue to rise at 5% above the rate of the economic growth (i.e. 12% next year!!!)
Dont panic the correction is over, we had our soft landing and prices are taking off again. I was talking to somebody today who was talking to somebody who works in daft and the price of houses has started to go up again, it was just a temporary correction after the huge increase in prices in the spring.
House price increases will continue to rise at 5% above the rate of the economic growth (i.e. 12% next year!!!)
ajapale you will have to remind me when/where I made that post.
Just a note on wage inflation in the construction sector (the largest part of the private sector). Its running at an annual rate of 3.7% CPI is 4% (public service is about 6%). So effective wage deflation.
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