redo said:I agree with you Loki. The example figures supplied do not make financial sense. Why would you invest in somthing that would be out performed by cash in the bank. It really is a STUPID example, deserving of The Sun or the like.
soma said:I know someone currently purchasing a place for 1.3m, planning to rent it for one year (obviously at a negative yield) and fully intends to flip it for 1.9m after that year.
Loki said:FTIs normally can do this as their mortgages are so much cheaper than other people on the same road and/or wages.
I think if you have to make such riddiculious examples to make a point I think it is close to lying.
Loki said:FTIs normally can do this as their mortgages are so much cheaper than other people on the same road and/or wages.
I think if you have to make such riddiculious examples to make a point I think it is close to lying.
Loki said:FTIs normally can do this as their mortgages are so much cheaper than other people on the same road and/or wages.
soma said:- I know someone currently purchasing a place for 1.3m, planning to rent it for one year (obviously at a negative yield) and fully intends to flip it for 1.9m after that year. This type of activity is covered by her comment "or if the investor flogs the property to an even bigger mug down the line."
In the current market, I think there's every chance this guy will find that mug in 12 months time.
Calina said:Can you provide back up for this statement? Why is it so much cheaper for FTIs than for other people?
soma said:Personally I don't see the example as extreme - I know someone currently purchasing a place for 1.3m, planning to rent it for one year (obviously at a negative yield) and fully intends to flip it for 1.9m after that year.
Loki said:The exclusive property in each country has the highest prices becasue of the social status. Go to the monopoly board in each capital city and find a house for sale on each of the top property roads. Compare them and you might be closer.
redo - I must have a habit of hanging out with 'extreme' people then! *lol* (I sound like the X-Games..) cos I know of two other situations like this (one also in dublin, one in the southwest).redo said:I'd call that extreme.
The problem ivuernis is that I cant even begin to talk logically about things like this to the parties involved - they just roll their eyes - they've heard all the 'doom and gloom' (as they would say) for years.ivuernis said:So, even after paying stamp duty, negative yield, etc. they still expect to make a 400k plus profit? I'd call that optimistic in the extreme.
Out of curiosity, are they borrowing most of the €1.3m or is it cash in the bank?
Neffa said:Anyone see Rabobank.ie's view on property investment - a welcome view in the sea of "it only ever goes up"
[broken link removed]
I agree. While there's been an undeniable irrational exuberance for some years now i think even the most bullish commentator is waking up to the fact that the numbers just don't make sense anymore.ivuernis said:The tide seems to be turning w.r.t. to commentry on the property market.
Neffa said:Anyone see Rabobank.ie's view on property investment - a welcome view in the sea of "it only ever goes up"
[broken link removed]
bankrupt said:Came across this:
http://www.netcastdaily.com/broadcast/fsn2006-0318-2.asx
(Recorded interview with this book's author: "The second great depression 2007-2020")
Yikes! This guy is full of doom and gloom, he's calling a complete slump in 2007 with current high house prices and debt levels as a key precursor. He's talking about the US but it sounds pretty familiar.
Anyway, would be interested to know if people here think he's a crank or not.
Discussed on Housepricecrash.co.uk:
[broken link removed]
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