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Four reasons for a property slump, can anyone think of reasons otherwise?

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Comments

  • Registered Users Posts: 26,960 ✭✭✭✭GreeBo


    Bluehair wrote:
    They are completely relient on strong capital growth in order to trade up in a few years to something more akin to what they'd like to live in. Talk about risk!
    You could argue that the "risk" at worst is an inability to move somewhere, but you still have your house.
    Negative Equity only really matters if you are trying to sell, if you dont sell you havent lost anything yet, you can hang on for the next bubble :D:o


  • Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    Bluehair wrote:
    They are completely relient on strong capital growth in order to trade up in a few years to something more akin to what they'd like to live in. Talk about risk!

    I agree with you on people taking risks like that. I think investors are doing the same too buying because they think it is easy money and potential capital growth. The differnece is a home has an additional value other than captial by meaning of not paying rent and increasing equity as the mortgage is paid off.
    A good buy is good buy and at some point both investors and FTB seem to lose track of themselves. Somepeople decided prices in Dublin are too expensive and there is better value out side the city yet didn't value commute times, services and fuel. This will eventually bite in some manner but a price crash is unlikely IMHO and such problems are more likely to keep Dublin prices up as they try to make it back.


  • Registered Users Posts: 1,366 ✭✭✭whizzbang


    GreeBo wrote:
    You could argue that the "risk" at worst is an inability to move somewhere, but you still have your house.
    Negative Equity only really matters if you are trying to sell, if you dont sell you havent lost anything yet, you can hang on for the next bubble :D:o

    Didn't people just abandon houses in the UK house price crash? just let the banks deal with the Negative Equity? I think it gets on people's nerves to be paying off a mortgage on a house that is worth substantially less than the mortgage.

    Then again, that might help the rental market! ;)


  • Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    whizzbang wrote:
    Didn't people just abandon houses in the UK house price crash? just let the banks deal with the Negative Equity? I think it gets on people's nerves to be paying off a mortgage on a house that is worth substantially less than the mortgage.

    Then again, that might help the rental market! ;)

    Yes they did abandon houses but the reason wasn't negative equity as such. People bought houses that didn't meet their needs or were in bad areas. Then they were in negative equity and decided to cut their loses.
    It was only a certain section of the population that did this and they were the type you see on Spendaholics and those dodgy loan ads on UK TV. I am of course talking in general terms I am sure somebody will mention a friend of their's. If you buy in Cavan and commute to Dublin your Cavan house will go to negative equity quicker and longer. People are doing things like this and saying they are the smart ones. MIght not be bad but greater risk


  • Registered Users Posts: 9,555 ✭✭✭DublinWriter


    It was only a certain section of the population that did this and they were the type you see on Spendaholics and those dodgy loan ads on UK TV. I am of course talking in general terms
    Damn right you are.

    No offence, but basically that's crap.

    I remember Norman Lamont putting up the UK interest rates *four times* in one day when that happened.

    Nearly everone who bought property in the couple of years prior to 1992 were mortgaged to the hilt, so they were basically screwed when interest rates hit the roof.

    As for the people losing their houses being "the type you see on Spendaholics and those dodgy loan ads on UK TV", I really do think not. I knew about half a dozen young couples and singles who had to walk away from property that they'd only recently bought.

    Maybe you're not acutally only enough to remember 1992 in any meaningful way, but personal credit wasn't really that popular then. Only a select few of us actually had credit cards and store cards were yet to be catch on.


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  • Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    Maybe you're not acutally only enough to remember 1992 in any meaningful way, but personal credit wasn't really that popular then. Only a select few of us actually had credit cards and store cards were yet to be catch on.

    Well maybe you aren't neutral enough to look at the figures outside people you knew. I never said it didn't effect everyone just that the people who handed their keys back were generally from a particular soci-economic group. The hardest hit were those who bought baddly and at the lower end of the market. These people took the biggest risks and suffered the most. I am not saying it was their fault either just they had some control over the situation themselves. Their were lots of warnings of a different nature to the ones here. People were screwed over but they were partially to blame and then didn't take responibility by wlking away. The sensible thing to do and hard to do but the did have input on the result.
    I wasn't blaming personal credit either but it was a contributing factor. It is comparible to what is happening now with remortgages that was also an issue in the UK prior to the crash. If you want to ignore the parrallels that's fine but it doesn't make the view "crap". The UK is about 15-20 years ahead of us in general.


  • Closed Accounts Posts: 118 ✭✭Rubens


    Yippee - Another thread on house prices.

    Simple as this:

    Renters (Whiz etc) give us their "ideas" on why prices will drop because they WANT prices to drop.

    Owners/Investors(MorningStar etc) give us their "ideas" on why prices will continue to rise because they NEED prices to rise.

    Therefore the arguments and logic are biased and the information posted is selective and based more on wishful thinking than any useful data.

    RJ.


  • Registered Users Posts: 1,366 ✭✭✭whizzbang


    Rubens wrote:
    Yippee - Another thread on house prices.

    Simple as this:

    Renters (Whiz etc) give us their "ideas" on why prices will drop because they WANT prices to drop.

    Owners/Investors(MorningStar etc) give us their "ideas" on why prices will continue to rise because they NEED prices to rise.

    Therefore the arguments and logic are biased and the information posted is selective and based more on wishful thinking than any useful data.

    RJ.

    yes, but we all get to vent! ;)

    J


  • Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    Rubens wrote:

    Simple as this:

    Owners/Investors(MorningStar etc) give us their "ideas" on why prices will continue to rise because they NEED prices to rise.

    Therefore the arguments and logic are biased and the information posted is selective and based more on wishful thinking than any useful data.

    RJ.

    Except you obviously miss some key points. I don't need them to rise and suggest ways for the government to act to insure a soft landing and provide housing at an affordable rate. If prices drop I am still OK and wouldn't want to buy now but If I wanted a home I wouldn't wait out the market due to the risks and need. It's not all black and white I want a sustainable market for all but have covered myself while others are taking huge risks and seem to think this is smart.


  • Closed Accounts Posts: 118 ✭✭Rubens


    Except you obviously miss some key points. I don't need them to rise and suggest ways for the government to act to insure a soft landing and provide housing at an affordable rate. If prices drop I am still OK and wouldn't want to buy now but If I wanted a home I wouldn't wait out the market due to the risks and need. It's not all black and white I want a sustainable market for all but have covered myself while others are taking huge risks and seem to think this is smart.

    Were you born a bore or did you have to work on it? Why do you spend your life responding to posts just for the sake of it with nothing really intelligent to say?

    If somebody posts the word "white" you come back with "black" just to get your name on the thread.

    In future if I post don't bother responding just to try to prove your always right.

    Watch this space for MorningStar's long-winded futile reply including loads of quotes from this etc etc

    Go away.

    RJ


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  • Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    Rubens
    Learn not to use my name in vein and accredit my comments correctly :p


  • Closed Accounts Posts: 191 ✭✭dublinguy2004


    Rubens
    Learn not to use my name in vein and accredit my comments correctly :p

    If only you could learn how to accredit your own comments correctly; Reading your posts is a tedious, frustrating exercise that ultimately ends in confusion. Go back to school.


  • Closed Accounts Posts: 1,036 ✭✭✭garred


    Poor old MorningStar, the lynch mob are after you :D
    I can never understand some people's attitudes in the way they post replies.
    We may not agree on some issues but you do contribute well to this particular forum. Far better than some posters who use guerilla tactics, they snipe then run.
    If there were points made from someone with years experience in property and someone who reads a couple of headlines, I know who I'd rather listen to.


  • Registered Users Posts: 14,148 ✭✭✭✭Lemming


    Rubens, keep it civil or else you can say goodbye for a while courtesy of a forum ban.


  • Closed Accounts Posts: 118 ✭✭Rubens


    Bar me for giving an opinion? Are you turning into Nesf or something?

    Go for it anyway if it makes you feel powerful - I don't give a turd either way.

    See Ya

    RJ


  • Registered Users Posts: 78,218 ✭✭✭✭Victor




This discussion has been closed.
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