Demand for new homes

faceman

Right so the "bubble" hasnt burst and people are still buying ranches despite hikes in interest rates etc but i have come to the conclusion people are dumb!

As someone who started with no economic skills and made lots of dosh from the property market i still cant understand why people are dumb when it comes to their purchasing decisions!

It was day one of a property launch in newbridge yesterday (the meadows i think it was called). The queues to get in the place were unreal! Units were snapped up like a flash no different to 5 years ago!

But heres what i cant understand. Their 4 bed detached props were smaller andmore expensive compared to larger properties in other parts of newbridge!!! (e.g. kilbellan, walshestown park)

Do people forget that the term "shop around" applies to property too? Did anyone on boards put a deposit down on The meadows? Anyone from newbridge wanna offer some opinion?

tHE vAGGABOND

Its very easy to get sucked in by the great look of a show house. Its also dead easy to convince yourself that your making out like a demon because your not paying 10-15 grand of stamp duty, and not full think of the pro's and con's as fully as they should..

Some folks just go mad, and dont think of the traffic or the insane commuting times and tell themselves it will all be good

jimmycrackcorm

As the years roll on properties get smaller and more expensive. Just look at the 100ft gardens people used to get. Where your money would buy you a three bed semi 6 or 7 years ago, it would only buy you an apartment now.

Perhaps people have a preference for a new house over an older one - perhaps they're considering the impact of stamp duty. Or maybe it is simply a snobbishness where people consider that the area desirability warrants a few extra hundred grand to be spent just to live in a location. I mean that has always struck me as being crazy.

SkepticOne

It is also being suggested on another forum that people were queuing for the latest phase of Adamstown even though there were still unsold units from earlier phases.

Something tells me that this is not the smart money getting into the market at this stage!

MiaMia

SkepticOne wrote:

It is also being suggested on another forum that people were queuing for the latest phase of Adamstown even though there were still unsold units from earlier phases.

Something tells me that this is not the smart money getting into the market at this stage!

Anybody I know who has queued has done so as they were sick of being out bid by real/phantom bidders – when looking at second hand places – at least they know the price – even if the new Adamstown phase is really pricey!

There is also the slight advantage that you don’t have to have your mortgage arranged right away – just a deposit – you wait for the place to be partly built before you pay anymore.

I know someone who got one of the cancellations from phase 1 of Adamstown - it suited him down to the ground – he basically has had two years to save for white goods etc – supposedly moving in in the summer.

chump

Sure it hasn't been long since those pyramid schemes suckered many a sucker.

There is a ridiculous fascination with owning something new - particularly among young buyers.

faceman

chump wrote:

There is a ridiculous fascination with owning something new - particularly among young buyers.

until recently that was down to the stamp duty rules. Still people do i like to make a place their own.

As for young buyers - they're gettin younger!
http://www.unison.ie/irish_independent/stories.php3?ca=9&si=1779221&issue_id=15272

someone at this stage should publish a guide for FTB's and property. Pitfalls, advice etc.

Moonbeam

Young people are sick of renting,earn good money and see it as an investment for the future.
I think this is a great thing but didn't realise how high the % was.

soma

Moonbeam wrote:

Young people are sick of renting,earn good money and see it as an investment for the future.
I think this is a great thing but didn't realise how high the % was.

I would take a more cynical view.

Every pyramid scheme needs a continuous supply of more and more new investors/suckers who enter at the bottom and shovel increasing amounts of money into the scheme so that those in the middle and upper levels can benefit.

That FTBs are (reportedly) getting younger is down to mortgage banks becoming more creative and lax in how they rope those younger people in with the likes of 40 year mortgages, 100% financing, interest only etc.

godtabh

MiaMia wrote:

Anybody I know who has queued has done so as they were sick of being out bid by real/phantom bidders – when looking at second hand places – at least they know the price – even if the new Adamstown phase is really pricey!

There is also the slight advantage that you don’t have to have your mortgage arranged right away – just a deposit – you wait for the place to be partly built before you pay anymore.

I know someone who got one of the cancellations from phase 1 of Adamstown - it suited him down to the ground – he basically has had two years to save for white goods etc – supposedly moving in in the summer.

Thats what I've done. The only exception to what you said was I had my home loan sorted before I got the place.

Was first in line in March of last year and am still waiting for the place to be ready. Should be soon enough.

But in the mean time I'v been able to save up and have money left over for after I kit the place out so I think it was a good move.

Sponge Bob

Its still a good idea if you are SURE you will not have to move .

If you are thinking of laddering your way from shoebox to bigger shoebox to housheen to house then stop right now. The government will be waiting to clip 7% off each move in the form of stamp duty and in any downturn nobody will buy the shoeboxes so you are stuck there .

Therefore it DEPENDS what you start with.

godtabh

Sponge Bob wrote:

Its still a good idea if you are SURE you will not have to move .

If you are thinking of laddering your way from shoebox to bigger shoebox to housheen to house then stop right now. The government will be waiting to clip 7% off each move in the form of stamp duty and in any downturn nobody will buy the shoeboxes so you are stuck there .

Therefore it DEPENDS what you start with.

Property will go up and down. A down turn is usally followed by an up turn. If you buy to live rather than as an investment then I think you'll be all right and as for stamp duty you can get a round to it if you buy new other wise you'll just have to accept paying it untill there is a change in policy.

jimmycrackcorm

chump wrote:

Sure it hasn't been long since those pyramid schemes suckered many a sucker.

There is a ridiculous fascination with owning something new - particularly among young buyers.

Traditionally it has solely been linked to stamp duty rules. I don't think anyone buys a a new house simply because it is new. Mainly the decision is dominated by price and location.

Sponge Bob wrote:

Its still a good idea if you are SURE you will not have to move .

If you are thinking of laddering your way from shoebox to bigger shoebox to housheen to house then stop right now. The government will be waiting to clip 7% off each move in the form of stamp duty and in any downturn nobody will buy the shoeboxes so you are stuck there .

Therefore it DEPENDS what you start with.

In Reality if there is a downturn, then it just means you have to wait longer to move up the ladder. People will still need shoeboxes even in a downturn as those type of buyers are unlikely to get finance for something bigger. Also it is not all one-sided, the larger properties will have to come down in price too so it does become a bit relative.

The real problem is with the > 500k properties which could see huge drops in value, but for us mere mortals who can't afford those we'll still be in the same boat.

The_Conductor

kearnsr wrote:

Property will go up and down. A down turn is usally followed by an up turn. If you buy to live rather than as an investment then I think you'll be all right and as for stamp duty you can get a round to it if you buy new other wise you'll just have to accept paying it untill there is a change in policy.

Entirely true. However an upturn can last 8-10 years, as indeed can the following downturn. So- if you are buying for investment purposes, unless you are very astute in your timing, you are stuck longterm with a property that you may not be able to cover......

Irish people are going to have to grow up en-mass over the next while, and learn a few economic lessons. You would have thought that the Eircom fiasco would have taught a few lessons to people, apparently people have short memories......

godtabh

smccarrick wrote:

Entirely true. However an upturn can last 8-10 years, as indeed can the following downturn. So- if you are buying for investment purposes, unless you are very astute in your timing, you are stuck longterm with a property that you may not be able to cover......

Irish people are going to have to grow up en-mass over the next while, and learn a few economic lessons. You would have thought that the Eircom fiasco would have taught a few lessons to people, apparently people have short memories......

I agree with what your saying. If you buy to live in your place you should be fine over the long term. Making a quick buck is probably not gona happen now for a while.

I want to live in my new place for at least the next 7 years (for the interest releif and other reasons) then see what the situation then.