House Market Weakening?
- Thread starter whathome
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walk2dewater
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owenm said:
I must be trespassing then, cos I live in a very nice townhouse but I don't own it....
lets say if my rent is a shade over €1,000/mth and the property goes for €800,000 and it's not getting any more expensive for the foreseeable future, i.e. the soft landing, then what sense would it be to buy it? Every month I would be saving myself a fortune by renting rather than paying off a €800k loan, my deposit gets bigger and the place stays the EXACT SAME price...
Furthermore, who do you think has the leverage in the relationship? Me with my pile cash, or my landlord who's subsidizing my lifestyle?
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Guest107
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gearoidmm said:
Joinery, Builders Merchants, Kitchen Fitters etc .
Furniture Shops sell more to new houses than elsewhere as do White Goods shops.
And not all the building industry is declared and counted , there are lots of cash in hand merchants in the system .
I still reckon its around 4 persons per house or 320k workers. If the thruput falls as it evidently threatens to in and from October 2006 we suddenly have 160k surplus workers in the construction sector .
Lovely
walk2dewater said:
Perhaps landlords should be considered philantropists rather than investors
No yield in many cases, capital appreciation possible but not guaranteed - capital depreciation also possible in the years ahead.
And as mentioned they often subsidise the costs of renters who want to live in prime areas close to work, amenities, best schools etc.
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walk2dewater
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Remix said:Perhaps landlords should be considered philantropists rather than investors
No yield in many cases, capital appreciation possible but not guaranteed - capital depreciation also possible in the years ahead.
And as mentioned they often subsidise the costs of renters who want to live in prime areas close to work, amenities, best schools etc.
true, but personally though, the entertainment value of pointing out the obvious is almost at zero now, I've even started saying the demographics-dead-money-booming-this-that-the-other, mantra just to avoid the topic entirely, I've also admitted to "owning" my home a couple of times, to particular females if u understand... J
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Guest107
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Thats works a bit better than the rather postmoderne 'would you like to share bread and bed and a mortgage with me for 35 years ?? ' . The dopier ones never understood the difference between a homeowner and a mortgage owner anywaywalk2dewater said:
. The ultra dopey ones think a big and a long mortgage is more impressive than a small one.bearishbull
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from todays indo
"Executive" rents in the Irish capital were lower than in many major cities. The monthly cost of renting a luxury two-bedroom unfurnished apartment was found to be just over €1,200 in Dublin, compared to €3,400 in Tokyo, €2,500 in London, €2,200 in Beijing and €1,900 in Paris.
"The cost of day-to-day living in Dublin might be higher than in some European cities, but good quality accommodation isn't as expensive," Mr Duncan said.
When you can rent a 3bed home in D4 (supposedly one of Irelands most exclusive areas) for 1700euro a month why spend a million plus on the same property? Rents are so cheap because so many people are buying/have bought as investors and are keeping artifically low the rental of properties in the more exclusive areas,eventually things have to give.How can the likes of Sean Dunne expect to make money on apartments in D4 if rents are so poor there? if there truly was a shortage of housing in Dublin then rents would be much higher(like in london and paris etc) and not just property prices.
"Executive" rents in the Irish capital were lower than in many major cities. The monthly cost of renting a luxury two-bedroom unfurnished apartment was found to be just over €1,200 in Dublin, compared to €3,400 in Tokyo, €2,500 in London, €2,200 in Beijing and €1,900 in Paris.
"The cost of day-to-day living in Dublin might be higher than in some European cities, but good quality accommodation isn't as expensive," Mr Duncan said.
When you can rent a 3bed home in D4 (supposedly one of Irelands most exclusive areas) for 1700euro a month why spend a million plus on the same property? Rents are so cheap because so many people are buying/have bought as investors and are keeping artifically low the rental of properties in the more exclusive areas,eventually things have to give.How can the likes of Sean Dunne expect to make money on apartments in D4 if rents are so poor there? if there truly was a shortage of housing in Dublin then rents would be much higher(like in london and paris etc) and not just property prices.
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walk2dewater
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... and since half of all new immigrants to Ireland are female this means that the fundamentals supporting todays healthy property market are robust and there's no issue at all at all, in fact buy now or be priced out, so go on now with yourself etc etc... excellent!
madisona said:
Yes, I hear a deluxe ironing-board is a must-have pulling accessory.
(If only irishbusinesswomen.com could see how enlightened we've become!).
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Guest107
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And thats what makes we Irish special so it is.bearishbull said:
The other thing that makes us special is that we think that there is a fundamental and large undersupply of habitable property in Dublin , especially Dublin .
Did anyone hear the Threshold person on RTE radio this evening ?
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Guest107
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She !
Some of her point was that the gubbirnment will ultimately have to stop paying th'oul 'dead money' to landlords. 40% of all rental units are paid for by the state . The state will eventually have to consider owning some of these units.
My 2c on this !!!!
In a recession that will climb over 50% and the government gets massive pricing power on rent levels everywhere.
So if the state were seen to 'socialise' certain apartment complexes in a soggy market by buying a few flats then the prices will drop further as they are seen as quasi 'social housing' and not 'pure' private sector units. This if only the state is 'buying' and the private sector is not buying.
Then again the government could beef up housing associations like in the UK, its high time and they are better landlords who run places properly unlike the corpos.
The government will only 'enter' the market to shore it up but will actually tank it to some extent instead. Section 5 is a bad joke.
Some of her point was that the gubbirnment will ultimately have to stop paying th'oul 'dead money' to landlords. 40% of all rental units are paid for by the state . The state will eventually have to consider owning some of these units.
My 2c on this !!!!
In a recession that will climb over 50% and the government gets massive pricing power on rent levels everywhere.
So if the state were seen to 'socialise' certain apartment complexes in a soggy market by buying a few flats then the prices will drop further as they are seen as quasi 'social housing' and not 'pure' private sector units. This if only the state is 'buying' and the private sector is not buying.
Then again the government could beef up housing associations like in the UK, its high time and they are better landlords who run places properly unlike the corpos.
The government will only 'enter' the market to shore it up but will actually tank it to some extent instead. Section 5 is a bad joke.
But if 40% of all rental is already paid by the government, they already have clout in the rental market - they just don't apply it because it costs more to fight down rent to the market level (which around where I am is between 150-300 below what the State pays depending on the property type) than it does just to pay the damn thing. Quite a few private landlords like that situation. At the moment, I would say that the fact that the government pays so much of the rent in the Dublin area is actually shoring up the rental market, not depressing it.
There are, as far as I remember, mixed views on whether housing associations are better landlords than local authorities in the UK, incidentally.
There are, as far as I remember, mixed views on whether housing associations are better landlords than local authorities in the UK, incidentally.
Landlords aren't exactly jumping into the Rental Accomadation Scheme because it means that they will have no say over the tenants that the council puts in their property. I don't think there has been a big take up for it.
It is also a reduced rent the council will be offering not a market rent.
It is also a reduced rent the council will be offering not a market rent.
As Peadar said - my parents have a few properties. They and some friends were approached by City Council and noone took up the offer.
They do take some hassle away for the landlord as its quite a long contract, but what you'll get back is probably going to be in poor condition and the Council will only give you a reduced rate as they are "saving you the hassle of looking for tenants".
Presumably people who are sufficiently time poor would take up their offer.
They do take some hassle away for the landlord as its quite a long contract, but what you'll get back is probably going to be in poor condition and the Council will only give you a reduced rate as they are "saving you the hassle of looking for tenants".
Presumably people who are sufficiently time poor would take up their offer.
G
Guest107
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Who insures it if it burns down ????? , as they do . I know that if I had corpo tenants in a gaff of mine the insurance would crease me.
. I know that if I had corpo tenants in a gaff of mine the insurance would crease me.
Z
z107
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I suspect that only slumlords would take them up on this offer. The council will probably use this scheme to house the tenants no one else wants. One can only imagine the condition of the property after four years.
Still no let up in sight.
http://www.rte.ie/business/2006/0628/houses.html
On another note there was an interesting discussion on the Dunphy show this morning between Jill Kerby, Austin Hughes and another guy from Trinity who I can't remember the name of (he was Russian so it isn't too easy to remember). Basically the argument came down to whether the gain in your house value is real or not. No prizes for guessing which side the banker took.....
http://www.rte.ie/business/2006/0628/houses.html
On another note there was an interesting discussion on the Dunphy show this morning between Jill Kerby, Austin Hughes and another guy from Trinity who I can't remember the name of (he was Russian so it isn't too easy to remember). Basically the argument came down to whether the gain in your house value is real or not. No prizes for guessing which side the banker took.....
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