RTE Prime Time Thursday 22nd on problems for overseas investors
- Thread starter PetPal
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P
PAB
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Re: RTE Prime Time Thursday
Thanks for the notice PetPal,
Will watch with interest
Thanks for the notice PetPal,
Will watch with interest
B
Black Mariah
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Well done, PetPal. You beat me to it. It's on at 21:30 on RTE 1.
John Rambo
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On a similar note in the Examiner today there was a report on the Revenue getting details from banks in Spain and Portugal of Irish account holders. Basically they're going to look at the activity and see if it tallys with their declared income. Could mean trouble for some!
You're welcome. Did any of you get to the RTE meeting (in preparation for this programme) last Saturday in town?
John Rambo
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I don't, sorry.It was on the front page of Monday's paper. Only saw it because I was in Cork to be honest.
Thats a pity. Anyone have the inside track as to what is was about? Vaguely?
dereko1969
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this coupled with the forced resignation/sacking of the sunday tribune business editor for running a story on ken macdonalds difficulties in selling his own house point up a worrying trend in journalism, as per usual he who pays the piper is calling the tune and we're all suffering for it.
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Well they contacted me to see if I was interested in contributing (REF my posts on losses in Budapest). Essentially they were looking at a number of overseas markets (US, Spain, France, and Eastern Europe) where the Paddy's were sold a pup.
I declined to contribute to the program but did advise the researcher that essentially anyone that lost money had done so willingly and were too eager to make a quick buck to do any research and so were caught out. To my mind, that is efficient market dynamics, and tough as it is for some people (me included), them's the breaks!
Irish buyers seem to do more research than other, in fairness. English or Americans just fall in love with the place.
The shocking thing to me is that there are dodgy companies out there floggin apartments to gullible buyers with ultra hard-sales tactics. Everyone knows who they are and what they're doing. But why hasn't their profits fell?
Couldn't disagree with you more Riviera.
In the last 5 years tens of thousands of savvy! Irish buyers have bought in to developments from Bansko to Budapest to Cape Verde on the back of greedy 5 - 10 year capital appreciation expectations which are not going to be realised. There is very little re-sale market in these emerging markets. Not alone have investors been sold a pup regarding capital appreciation many are now coming out of 3 - 5 year guaranteed rental schemes and are finding that there is little or no real rental market for these same properties. We are the laughing stock of Europe. Investors are taking a bath and things will get much worse.
The Iseq is today off some 40% from its highs of a few short months ago. Irish property prices are also down. There is ever increasing pressure on cash flow to cover loans / equity releases taken out to finance these foreign purchases and as net incomes from these properties are a long way off covering real monthly expenses many people (IMHO) will say enough is enough and look to get out but at what cost? I see real losses of 25 - 40% if they are indeed able to sell. There isn't another market of savvy Irish investors entering the frame I can tell you. The only re-sale market will be local.
I simply can't get over the "what does anyone know about X area in Ballygoslava...." type questions on this forum. This does not constitute real research. A prospective investor needs to get out there independent of agents / developers and investigate ROI matters on the ground. I've been foolish myself regarding overseas property investment in the UK and although appts are now just about covering themselves via rental my initial expense / income calculations were well off the mark.
IMHO the future is very bleak. I would advise my family / friends against investing in overseas property for the next 3 – 5 years.
In the last 5 years tens of thousands of savvy! Irish buyers have bought in to developments from Bansko to Budapest to Cape Verde on the back of greedy 5 - 10 year capital appreciation expectations which are not going to be realised. There is very little re-sale market in these emerging markets. Not alone have investors been sold a pup regarding capital appreciation many are now coming out of 3 - 5 year guaranteed rental schemes and are finding that there is little or no real rental market for these same properties. We are the laughing stock of Europe. Investors are taking a bath and things will get much worse.
The Iseq is today off some 40% from its highs of a few short months ago. Irish property prices are also down. There is ever increasing pressure on cash flow to cover loans / equity releases taken out to finance these foreign purchases and as net incomes from these properties are a long way off covering real monthly expenses many people (IMHO) will say enough is enough and look to get out but at what cost? I see real losses of 25 - 40% if they are indeed able to sell. There isn't another market of savvy Irish investors entering the frame I can tell you. The only re-sale market will be local.
I simply can't get over the "what does anyone know about X area in Ballygoslava...." type questions on this forum. This does not constitute real research. A prospective investor needs to get out there independent of agents / developers and investigate ROI matters on the ground. I've been foolish myself regarding overseas property investment in the UK and although appts are now just about covering themselves via rental my initial expense / income calculations were well off the mark.
IMHO the future is very bleak. I would advise my family / friends against investing in overseas property for the next 3 – 5 years.
how come the future shock programme & david mcwilliams got aired so? i would say this relates to a specific threat of legal action but unfortunately we are all in the dark.
ubiquitous
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Perhaps RTE are not as dependent on the property sector for advertising revenue, as the Sunday Tribune is - although with the sheer volume of property porn programmes nowadays, you'd never know.
In relation to Future Shock, its worth noting the vehemence of the attacks on Richard Curran following the airing of this programme. The property editor of one of the nation's leading newspapers even wrote at the time that the programme would "ruin his career". In the meantime, many of Curran's observations are being proved right, while this editor is sounding more desperate by the week in trying to put a positive gloss on the market.
My hunch also
I agree with much of what you say, but this is not true in all cases, particularly for larger cities in the emerging markets of CEE.
RTE doesn't have the resources to fight avoidable legal battles, so unfortunately it sometimes has to accept defeat at the first sign of major trouble.