keth said:
I guess by Trotski-ite I mean those who are almost 'unwilling' to take the chance that most other hard working people have. These same people are adamant about their stance almost believing that a low cost house is their right. Did we forget that we're living in a free market (almost) and that the persuit of dreams via money and profit is permitted, neigh, encouraged
How many people out there have made massive amounts of money on their house or houses. And why shouldn't they? More power to them, and to those that havn't, that is a pity, but come on?
We are not living in a communist society where all are equal weather we like it or not. Everyone has the right to speculate, appreciate and recooperate.
If you feel so strongly, join the socialist party.
Keth.
Wow - strong stuff!
I think you've got the wrong end of the stick here, certainly for my own position. I own property in Ireland and in the UK which are rented out but were bought a long time ago so that the income comfortably covers the costs. I also have investments in the form of equities sitting to draw on if I wish to buy a property in Ireland and have a large mortgage approved to do so. I don't begrudge anyone who has made money from property - I have done so myself handsomely from our UK property already and fair play to yourself and others who have done so too, possibly on a greater scale than myself.
I lived through a property crash in the UK and saw the before and after effects. My view is that Ireland is close to the tipping point of the property market so that there may (see Loki, I did not say will
) a correction and that would present more attractive buying opportunities in 1-3 years time. So I am renting in a very nice area, biding my time, trying to improve my cash position so that I am in the best possible situation. I am speculating, but from a different perspective from yourself
Some other observations on the fact that comments have been made that "I'll ride out any downturn" - while it is true that in the UK most people simply held tight and did not sell, there were forced sales in the form of repossessions across the market (FTB's, top-end of the market, BTL etc.), people died, got divorced, were made redundant, had more kids etc. etc. - point is - not everyone can stay in the same house for many years as their circumstances change and they have to move. Properties always come onto the market even when the market is weak due to these factors, and the market was further surpressed in London because people were terrified it would fall further.
In Ireland, the situation may be exacerbated by the fact that BTL seems to be higher than in the UK (therefore the economy is more sensitive to property income) and also a lot of the tax take is associated with housing (employment, stamp duty, VAT etc.). So any downturn would produce a multiplier effect in the economy which would in turn hit house prices hard. If you believe that, then wait and see when you can buy. If you don't, go ahead and buy if you think you're getting good value.
Or ask yourself this - if the price of houses in Ireland is very high by international standards AND the house you own is growing faster than your household income when interest rates are rising, does that not strike you as a bit unsustainable?
You pays your money, you takes your choice