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Eirmail
Guest
Still a crazy amount of money for a depreciating asset that might make a 2.5 percent return per year. Including stamp duty management fees etc..
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Still a crazy amount of money for a depreciating asset that might make a 2.5 percent return per year. Including stamp duty management fees etc..
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phoenix_n
Guest
Which is why the smart money has already left.
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plaudit
Guest
So if I had put down a booking deposit a while ago for €560K I could cancel the booking, and then buy it again for €495?
How much is a booking deposit, about €6K?
How much is a booking deposit, about €6K?
Shhhh - we don't want everyone to be trying that, now do we? We don't want any panic in the housing market because God knows, we're going to get the soft landing according to every estate agent and bank economist. Why rock the boat?
Is this one near you phoenix_n?
Old Price : €520,000
New Price : €490,000
http://www.daft.ie/searchsale.daft?search=1&selected_agent=&id=104009&s[agent_id]=595&s[p]=rprqxuvs[broken link removed]
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Eirmail
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Or rent for another 12 months and buy it for less
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phoenix_n
Guest
Yep! Pass it most mornings. Its still got a bit more to drop!
P.S. dont want to go off topic but i mentioned Bueno Aires as a good buy before and came across this article. Beware as it may make you pack up all and emigrate.
http://[FONT=Arial
Livin' the dream
Surely for those looking to trade up (I am looking to do so, or invest in 2nd property), isn't a slowdown in the market a GOOD thing?
Some rough figures to make my point...Let's say I have a house of €300k and aspire for my next house to be around €500k. A 10% drop of house price would mean that the gap between the house has closed from €200k to €180k - A GOOD thing if you are trade-up, even if you've seen the asking price of you house drop by €30k because what you are buying has also dropped and by more. I guess the same logic would apply to growth reducing to zero (aspirational house is not getting further away from me), and not just actual reductions in value. Am I being dim?
Some rough figures to make my point...Let's say I have a house of €300k and aspire for my next house to be around €500k. A 10% drop of house price would mean that the gap between the house has closed from €200k to €180k - A GOOD thing if you are trade-up, even if you've seen the asking price of you house drop by €30k because what you are buying has also dropped and by more. I guess the same logic would apply to growth reducing to zero (aspirational house is not getting further away from me), and not just actual reductions in value. Am I being dim?
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Eirmail
Guest
It can be good for trade ups but you have to time it right. If you buy a place you want to make sure a sale on your current place does not fall through. Otherwise you can be left with 2 properties losing value. Anyone who is investing in a second property is just stupid , these things are losing value! Put your money in a savings account and have a look at the property market in 12 months is what I say
Dan McLaughlin this morning on Morning Ireland spoke about deteriorating affordability leading to a reduction in house price inflation. However, he also said that investors make up an insignificant proportion of the market and therefore even if they exit the market it won't make a difference... only 40% of new houses bought by investors last year according to Sherry Fitz.
[broken link removed]
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bearishbull
Registered User
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I;ve been telling friends about Buenos Aires for years. Its dirt cheap but safe, with great culture and weather and very european. Im considering moving there and buying a property with cash in next ten years, once im still single. I'd work part time over there and live off a lump sum.
Arthur Daley
Registered User
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This guy has been out of control for some time. Buy to let has been a large part of the lending market for the last 5-6 years, and if it fuelled shortage of supply on the way up why not on the way down? Even given his 2-3% prediction for growth in '07, if I can get 6% on deposit wouldn't I be better to invest there and disinvest out of property. Especially given the downside risk identified by the price falls here and the likelihood of ecb rises in '07.
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phoenix_n
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Isn't there a daft report due out today?
It should be out, usually it is leaked as well a few days beforehand so maybe there is bad news coming.......
I've just seen on David McWilliams website ( http://www.davidmcwilliams.ie/ ) that he's scheduled for interview on the Gerry Ryan show tomorrow (3rd November).
Given that Gerry is regarded as quite bullish re Irish Property and known for throw away comments along the lines of "Sure we all know it can never go down ..." it's interesting that he has on one of the original uber bears. Perhaps he's turning bearish ???
Anyway IMO the show has a fare bit of old influence over the common man.
Given that Gerry is regarded as quite bullish re Irish Property and known for throw away comments along the lines of "Sure we all know it can never go down ..." it's interesting that he has on one of the original uber bears. Perhaps he's turning bearish ???
Anyway IMO the show has a fare bit of old influence over the common man.
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random2006
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David McWilliams is also starting a new TV show on RTE next week so its also a way of advertising that!! From the trailers I think he is going to be taking a very - we only have construction and we need something more - approach to the program which may alert people to the unhealthy reliance on the construction and property markets.
Eunan King from NCB stockbrokers was interviewed on the RTE news at 6. He was talking about an NCB report on the European population outlook to 2020. He highlighted the young demographic profile for Ireland compared with the rest of Europe. Interestingly he mentioned that the current baby boom is smaller than the 1970-1980 one. He also said that given inward migration and the young population, he expects demand for house completions to run at 65,000 to 2015.
That means that based on NCB projections, we currently have an annual over-supply of 35,000 homes. Bank of Ireland today released a report saying that completions could hit 100,000 this year. If the current rate of building continues, who’s going to buy the surplus 35,000 units built annually?
Higher interest rates and an over-supply of new property are really going to put a negative squeeze on the market.
That means that based on NCB projections, we currently have an annual over-supply of 35,000 homes. Bank of Ireland today released a report saying that completions could hit 100,000 this year. If the current rate of building continues, who’s going to buy the surplus 35,000 units built annually?
Higher interest rates and an over-supply of new property are really going to put a negative squeeze on the market.
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sunrock
Guest
highlighting an aspect of our demographic profile saying we have a lot of people under 15s__future tax payers
i remember in the 80s__our politicos were saying young people were our greatest asset even as they all emigrated
its just soothing noises and of course our leaders and vi s couldnt care less about young people
now they are also saying we will have more immigrants_very handy for landlords who need rentersbut maybe not so good for low wage irish workers
if immigrants were the solution why not let everyone from africa or india claim asylum here so all our unoccupied houses will be full of renters
the ensuing full occupancy will cause higher house prices and we will perpetuate our boom
simple really
i remember in the 80s__our politicos were saying young people were our greatest asset even as they all emigrated
its just soothing noises and of course our leaders and vi s couldnt care less about young people
now they are also saying we will have more immigrants_very handy for landlords who need rentersbut maybe not so good for low wage irish workers
if immigrants were the solution why not let everyone from africa or india claim asylum here so all our unoccupied houses will be full of renters
the ensuing full occupancy will cause higher house prices and we will perpetuate our boom
simple really
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