House price inflation continues to slow....

Question for Loki

Loki,

since you are in the property trade and have some long term experience of it can you tell us, what you expect to happen over say the next 10yrs and why. As you've probably noticed the vast majority on here (certainly these housing threads) are just a little pessimistic about the future, so I would like to hear the perspective from inside the trade.

Cheers,
Glenbhoy
 
Re: Question for Loki


Loki,

To echo Glenbhoy's question, I'd also like to hear why you think the growth in house prices can continue to outstrip people's salary increases.
 
Re: Question for Loki


I think current housing stock will be changed especially close to the cities. 3 bed semis close to the city will be changed into two seperate places. The main driver behind that will be the changing demographic of Irish families and/or lack of. More development within old housing estates, currently it is just corner gardens. The space between houses and where two garages meet will be built on for further housing. Big houses in areas will have appartment blocks built on them. Property prices will go up but people will be buying smaller places. It has happened before just look at all the old big houses around the city and how many of them are single households?
THe people living in these various differnt single dwelings will be single people,imigrants, divorcees and crash pads for people during the week. Traffic problems will get worse so being near public transport will be vital and housese far from transport will probably stagnate or drop in the outer areas. The children raised in cars will not want to speand the time commuting like theri parents do now. Cars will be more expensive to run which also plays a factor. Owning a house too far away from work will mean you have to be paid very well restricting prices further or leave many people trapped. THe outter suburbs will have many social problems due to lack of emmenities for children that will have become teenagers. The outter suburbs will be seen as a bad place to be well maybe not all but a high percentage and more likely some very troublsome ones scttered through most of the housing range.
I am actually pretty pessimistic about the social structure we are creating. My family bought a fair bit of property in the 70s and 80s. We bought on the basis of rental income in years and potential for capital gain. We based this on convenience after future development which would probably happen under normal conditions. Never had probalem getting tenants and the areas rose. We looked at social trends of our tenants and historical use of properties. Houses last about 3 generations easily and over that time they are changed to social standards. Not many people need servant quarters now and in the future not as many people will need or want a 3 bed semi. Developers will generate their work by changing these houses.
Don't forget it is all speculation.
 
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