Current public sentiment towards the housing market?

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my head hurts please make the pain go away
 

Obviously this is a joke?
 
Sarcasm, but how many people will be heard to laud the "so unfair" type statement after 'de correction'
 
The purpose of the book is to teach people to buy assets not liabilities, it is a philosophical thing.

It is not a stock-pickers book - subscribe to the FT if you want stock tips.
 
yawha said:
I bought one of his books about a year ago,one of my worst investments ever.
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I concur. Never bought his book but had it pressed on me by a friend who thought it was brilliant and knew I had an interest in "all that financial stuff". I'm not being patronising when I say the advice is idiotic, essentially just pointess platitudes and homespun philosophies dressed up as financial wisdom. When the market is low, look out for bargains, don't spend more money than you earn etc.

They are plenty of better books to dish out financial advice to people who wish to learn more. In "Rich Dad, Poor Dad" there was stuff that was just completely erroneous but I think it has all been covered in another thread on this board. Suffice to say, you won't get rich following his advice and could potentially lose a lot of money.

I've mentioned it before but I think it's worth repeating ad nauseum. There will be no easy profits to be had when the Irish property market crashes.
 

Investing is first and foremost about capital preservation, second "managing your trades". These two things explain why the wealthy stay that way.

Sermon over
 
Surly the news last week that electricity prices are due to rise by 34 pc and ESB 20 pc circa should have a major impact on peoples thinking as it will take a lot of money out of peoples pockets every year. Is it not like a 1/4 to 1/2 pc rate rise ??
 
CapitalCCC said:
The purpose of the book is to teach people to buy assets not liabilities, it is a philosophical thing.
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Totally agree - I think it's a good book about a healthy mindset to have.
 
however she had heard that many people were predicting that the price of property would rise dramatically in Ireland
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Were there many forecasters?
Surly the news last week that electricity prices are due to rise by 34 pc and ESB 20 pc circa should have a major impact on peoples thinking as it will take a lot of money out of peoples pockets every year. Is it not like a 1/4 to 1/2 pc rate rise ??
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Doubtful, for me personally it means approx €350 extra p.a. whereas a 0.25% interest rate increase costs me circa €720 p.a
 
Glenbhoy said:
Doubtful, for me personally it means approx €350 extra p.a. 0.25% interest rate increase costs me circa €720 p.a
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Ouch, thats like taking a 1k salary cut with each .25% increase!
 
room305 said:
the advice is idiotic, essentially just pointess platitudes
.
.
don't spend more money than you earn etc.
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I do not want to turn this into a RD/PD thread. But do you have any idea what percentage of the population fail to grasp basic concepts such as this..? If Joe Soap could learn "an asset produces positive cashflow" and "don't spend more money than you earn" this economy wouldn't be heading for half the crash that I personally believe it is.

If the absolutely-financially-clueless people I encounter every day could actually learn these two concepts alone, then the few quid they spend on whatever book/CD/website/lecture they learned it from, would be well worth it.

Certainly alot cheaper than finding out that that 3-bed in Cavan
you've been feeding cash to break-even for 2 years was a bad investment.
 
soma said:
I do not want to turn this into a RD/PD thread.
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Agreed, so I will try keep this somewhat on topic. There are better books than RD/PD and ones filled with less erroneous information. I mean, he thinks Amway is a fantastic organisation (he would - they plugged his book for him) and a legitimate business model. In reality, it's not far removed from pyramid selling. A lot of the anecdotes don't really seem plausible, in fact the whole setup doesn't and I am inclined to think it's all made-up and he only ever made money from selling shoddy books.

He also promotes the idea that education is worthless if you want to make money. Statistically this has been proven to be untrue.

However, to keep things on topic. His advice in relation to property is dubious. He promotes the idea that in a housing market crash you can swoop in, snap up a couple of bargain properties, thereby making a killing.

In reality, even if you are lucky enough to call the market bottom, negative sentiment might leave the value of those properties stagnating for many years. Hardly an efficient way to spend your capital.

Wealthy people (of which I am not one) tend to be as concerned with wealth preservation as they are with wealth creation. However, I doubt any of them ever got rich or stayed rich by investing money that should be spent on bills and taxes.

I try to work on an 80/20 rule. Try to always save or invest 20% of your income. There - you can have that one for free.
 
Ouch, thats like taking a 1k salary cut with each .25% increase!
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True, though luckily herself benefits from all those benchmarking deals, now if only I could get her to contribute to the mortgage!!
To be honest, the increases haven't impacted us at all yet, and save for a loss of employment the increases will not affect us, additionally, we haven't yet reached the level where renting is cheaper for us (edging closer though).
However there must be many couples out there who are starting to find it getting a bit tight, the average interest rate impact of a 0.25% increase is €50 per month (on a 330K, 30yr), hence with the 1.25% by year end, the average increase will be approx €3000 p.a or a €4000 pay cut!! Bear in mind that the average is probably not particularly relevant here anyway, as newer buyers will be impacted significantly more than the average and vice versa.
 
Credit Cards in Ireland

One thing that might be useful to keep an eye on in the future is the number of credit cards in the Irish market. If there is a squeeze in personal finances then I would suspect that this figure will go up and many people will take out new credit cards and transfer their existing balance to the new card for one of those low introductory offers.

Anyone know what the figure is at the present time?
 
Glenbhoy said:
True, though luckily herself benefits from all those benchmarking deals, now if only I could get her to contribute to the mortgage!!
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All you have to do is inform her that if she isn't contributing you would be entitled to a far greater share of the house if things were ever to bomb between you. Though the arguement following such an announcement would probably negate the gain
 
Glenbhoy said:
To be honest, the increases haven't impacted us at all yet, and save for a loss of employment the increases will not affect us
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Well for the fact that you seem to be well able to afford the increases doesnt mean they havn't impacted you, or are you on a fixed rate or something?
 
32,500 hits in 3 weeks! No wonder the site crashed... Does the interest point to another imminent crash?
 
All you have to do is inform her that if she isn't contributing you would be entitled to a far greater share of the house if things were ever to bomb between you. Though the arguement following such an announcement would probably negate the gain
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She'd get the judge onside.
Well for the fact that you seem to be well able to afford the increases doesnt mean they havn't impacted you, or are you on a fixed rate or something?
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I disagree, if you don't notice the increase at all, i would say it has no impact.
 
Glenbhoy said:
I disagree, if you don't notice the increase at all, i would say it has no impact.
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Your current/savings account has less cash in it than if the rates hadn't increased, therefore it has impacted you. Obviously you can manage this unperturbed.
 
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