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Athlone property prices booming !

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Comments

  • #52
    [Deleted User]
    Posts: 31,118 ✭✭✭✭ [Deleted User]


    Zubeneschamali wrote: »
    It seems to me that once the market starts to rise, the pent up demand (from all the people who passed on buying for the last 6 years) means prices will jump, before supply can come up to speed.

    In what way is this nonsense and misleading?
    If the new mortgage guidelines are strictly enforced, the price ceiling will very quickly appear and overpriced houses will not sell!


  • #53
    johnp001
    Registered Users Posts: 658 ✭✭✭johnp001


    ghogie91 wrote: »
    Houses have definately went up in price I was having a gander on daft before i even seen this thread and they have gone up.
    Selling prices have not gone up, as described in the data referenced by the Athlone Advertiser article linked in the OP.
    Asking prices also have not gone up based on comparison of price increases vs price decreases from e.g. daftdrop/collapso.
    blast06 wrote: »
    veryangryman ..... you are dismissing the Athlone pharmaceutical industy plus effect of Athlone IT plus dept education plus tourism industry plus barracks etc etc in saying that Athlone would be banjaxed if Ericsson pulled plant.
    It is great to have pharmaceuticalas jobs, Ericsson, barracks etc in Athlone but the jobs provided are not as suitable for supporting property buying as previously from these employers.
    e.g. latest DF contract pays less than previous, Ericsson jobs mainly from graduate program and are lower paid


  • #54
    Long Gone
    Registered Users, Registered Users 2 Posts: 771 ✭✭✭Long Gone


    johnp001 wrote: »
    Selling prices have not gone up, as described in the data referenced by the Athlone Advertiser article linked in the OP.
    Asking prices also have not gone up based on comparison of price increases vs price decreases from e.g. daftdrop/collapso.

    Link relevant specifically to the Athlone property market from either of those two websites please ? (or are you just looking at reported regional trends). Athlone property selling prices have definitely increased recently.
    johnp001 wrote: »
    It is great to have pharmaceuticalas jobs, Ericsson, barracks etc in Athlone but the jobs provided are not as suitable for supporting property buying as previously from these employers.
    e.g. latest DF contract pays less than previous, Ericsson jobs mainly from graduate program and are lower paid

    Not sure what point you're trying to make here. There are already plenty of jobs locally that pay more than enough to support property selling prices far in excess of what property is currently available for in Athlone.


  • #55
    johnp001
    Registered Users Posts: 658 ✭✭✭johnp001


    Long Gone wrote: »
    Link relevant specifically to the Athlone property market from either of those two websites please ? (or are you just looking at reported regional trends). Athlone property selling prices have definitely increased recently.

    For selling prices my post was (as stated) based on the same Co. Westmeath data from PPR as was used in the Athlone Advertiser article
    For asking prices see www.myhome.ie/pricechanges?RegionID=3969&LocalityIDs=3971
    which is 17 decreases vs 4 increases (specifically for Athlone East)
    and http://www.myhome.ie/pricechanges?RegionID=3969&LocalityIDs=3090 (for Athlone West) 8 decreases vs 0 increases
    Long Gone wrote: »
    Not sure what point you're trying to make here. There are already plenty of jobs locally that pay more than enough to support property selling prices far in excess of what property is currently available for in Athlone.

    Point is that the jobs being created in Athlone are not driving property buying as much as previously for some of the employers mentioned earlier in the thread.
    DF new entrants had pay reduced by 10% from 2011, Athlone is no longer Brigade HQ so for a member of DF buying home in Athlone makes less sense as they are more likely to spend significant part of their contract in other barracks and it is more possible that Athlone barracks numbers could fall. ( or even close like Mullingar, Clonmel, Cavan and Castlebar)

    Ericsson had redundancies in 2012 followed by large ongoing graduate recruitment. New graduate positions are on lower wages than those positions made redundant. Those on graduate program are less likely to be at a stage in their career to want permanent homes in the area.

    I agree that there is property available in Athlone for prices that would support paying back a mortgage on average wage. (Although new mortgage rules proposed yesterday would tighten up on bank lending for these to those without significant deposits)
    This underlines the fact that there is no shortage of supply in the area, which is the main reason why there will be no upward pressure on Athlone/Westmeath prices while the macro-economic downward pressures will apply.


  • #56
    Long Gone
    Registered Users, Registered Users 2 Posts: 771 ✭✭✭Long Gone


    johnp001 wrote: »
    For selling prices my post was (as stated) based on the same Co. Westmeath data from PPR as was used in the Athlone Advertiser article
    For asking prices see www.myhome.ie/pricechanges?RegionID=3969&LocalityIDs=3971
    which is 17 decreases vs 4 increases (specifically for Athlone East)
    and http://www.myhome.ie/pricechanges?RegionID=3969&LocalityIDs=3090 (for Athlone West) 8 decreases vs 0 increases



    Point is that the jobs being created in Athlone are not driving property buying as much as previously for some of the employers mentioned earlier in the thread.
    DF new entrants had pay reduced by 10% from 2011, Athlone is no longer Brigade HQ so for a member of DF buying home in Athlone makes less sense as they are more likely to spend significant part of their contract in other barracks and it is more possible that Athlone barracks numbers could fall. ( or even close like Mullingar, Clonmel, Cavan and Castlebar)

    Ericsson had redundancies in 2012 followed by large ongoing graduate recruitment. New graduate positions are on lower wages than those positions made redundant. Those on graduate program are less likely to be at a stage in their career to want permanent homes in the area.

    I agree that there is property available in Athlone for prices that would support paying back a mortgage on average wage. (Although new mortgage rules proposed yesterday would tighten up on bank lending for these to those without significant deposits)
    This underlines the fact that there is no shortage of supply in the area, which is the main reason why there will be no upward pressure on Athlone/Westmeath prices while the macro-economic downward pressures will apply.

    I don't agree with your doom and gloom analysis. Property prices locally are now at an extremely affordable level - Prices are at levels buyers could only have dreamed about a few years ago. There is plenty of demand for housing locally and your point regarding the DF is a red herring - The DF members were never a significant percentage of those buying properties in Athlone. There is also much greater critical mass in the local economy than you suggest by claiming that it can be swayed one way or the other purely on the basis of one local employer allegedly now employing more graduate level employees than in previous years.

    The reality is that all the demand for quality housing exists locally. All that is needed is a slight easing in credit availability and the current punitive levels of taxation and stealth taxation to result in increased home buyer confidence ( "feel good factor" ). A significant rebound of house prices will then inevitably occur. I forecast that in 18 months time property prices locally will be at least 10% higher than the current level.


  • #57
    blast06
    Registered Users, Registered Users 2 Posts: 228 ✭✭blast06


    Good analysis Johnp001.
    There is one point i raised earlier though that i feel you are missing.
    In my case i have a property with an estimated (imo from keeping tabs on recent selling prices in the estate) selling price of 165K and a renal income of 900 per month meaning investment yield of ~6%.
    With this level of yield, then it is, i feel, inevitable that cash investors will start getting on the game now given that Dublin prices have bounced to the level where investment yields for new buyers have reduced significantly over last 12-18 months (hard to find data on Daft to say what average yield is now in Dublin but rental on this 3 bed semi in Lucan would need to be €1575 per month to have annual yield of 6% ... http://www.daft.ie/sales/14-esker-meadow-close-lucan-dublin/1003598/ would it really get that much rental ? (note of course i am presuming the prices is secured)).

    I should add that i don't really care what awy the prices go for next 10 years!


  • #58
    Long Gone
    Registered Users, Registered Users 2 Posts: 771 ✭✭✭Long Gone


    blast06 wrote: »
    Good analysis Johnp001.
    In my case i have a property with an estimated (imo from keeping tabs on recent selling prices in the estate) selling price of 165K and a rental income of 900 per month meaning investment yield of ~6%.

    Which is another indicator that local property prices have overshot the bottom of the market and it's therefore only a matter of time before a significant upward correction occurs....


  • #59
    Frank Lee Midere
    Closed Accounts Posts: 3,780 ✭✭✭Frank Lee Midere


    Long Gone wrote: »
    Which is another indicator that local property prices have overshot the bottom of the market and it's therefore only a matter of time before a significant upward correction occurs....

    6% is fairly standard for a rental yield. Don't assume that cash bubbles can go on for ever.


  • #60
    blast06
    Registered Users, Registered Users 2 Posts: 228 ✭✭blast06


    Frank Lee Midere wrote: »
    6% is fairly standard for a rental yield. Don't assume that cash bubbles can go on for ever.

    I assume you mean 6% is fairly standard in Dublin Frank? Any examples in Daft to back that up.... I'm not doubting - just can't find any.
    Also, bubble is not the right word when yields are at 6% imo.... if it was like in 2007 when yields in Dublin were more like 3-4%, then I'd agree with the use of the word bubble. The real question for Dublin and other areas is how high the rental market prices can increase to - this will to a large degree dictate how high the property prices go imo


    Long Gone.... are you an auctioneer ;-)


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  • #61
    gladrags
    Registered Users Posts: 6,028 ✭✭✭gladrags


    blast06 wrote: »
    I assume you mean 6% is fairly standard in Dublin Frank? Any examples in Daft to back that up.... I'm not doubting - just can't find any.
    Also, bubble is not the right word when yields are at 6% imo.... if it was like in 2007 when yields in Dublin were more like 3-4%, then I'd agree with the use of the word bubble. The real question for Dublin and other areas is how high the rental market prices can increase to - this will to a large degree dictate how high the property prices go imo


    Long Gone.... are you an auctioneer ;-)

    LG is definitely involved in property.

    Read all lg posts.


  • #62
    Long Gone
    Registered Users, Registered Users 2 Posts: 771 ✭✭✭Long Gone


    gladrags wrote: »
    LG is definitely involved in property.

    Read all lg posts.

    I most certainly am not - And I very much resent your false, scurrilous and completely baseless accusation that I am. I am simply expressing my personal opinion regarding the current state of the local property market.


  • #63
    blast06
    Registered Users, Registered Users 2 Posts: 228 ✭✭blast06


    Long Gone wrote: »
    I most certainly am not - And I very much resent your false, scurrilous and completely baseless accusation that I am. I am simply expressing my personal opinion regarding the current state of the local property market.

    OK, maybe not an auctioneer .... but a bit of a drama queen :)


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