More should be done about the property situation?

Affable

Isn't it rather discouraging for young students/graduates about the improbability of finding a decent independent lifestyle after uni?

Even if you work really hard, you then need more experience, plus graduate jobs are at a rate where you can't afford to buy or even rent in many cases.

Doesn't something need to be done about this dispiriting situation?

Rb

Well there is an incentive for first time buyers here.

I have to agree though, it's an absolute joke and once I'm qualified I'll be getting out of here to somewhere with cheaper property/cost of living in general until I'm financially stable enough to move back and set up camp here again.

astraboy

Speaking as a soon to be grad, I don't think house prices effect us that much, most people, myself included, have no intention of buying a house and settling down straight out of college. Rents are far more applicable to us, and as house prices drop, rents will hopefully too, or at least stay at the same level.

On a personal note, I found some of the Grad offer's wages in Ireland insulting to be honest. How people could have a half decent time in Dublin on those wages I don't know. I'm off to try out London, better experience, something different and a good bit more money!

As for houses, they were overpriced for years and everyone knew it. Let the free market do its work. I do think however that it is important that people with secure employment can still get mortgages, this should bolster the housing market. At the moment with the credit crunch the banks will not be so willing to dole out mortgages.

Sherifu

Affable wrote: »

Doesn't something need to be done about this dispiriting situation?

Is it that bad in England?

Affable

Sherifu wrote: »

Is it that bad in England?

Seemed it to me during my degree. Hard to keep motivated when you know that ultimately you will live back with your folks after uni.

gcgirl

House share is the answer !

kowloon

gcgirl wrote: »

House share is the answer !

Absolutely, no reason to have a house all to yourself until you're lookng to nest down, kids etc.

jimmycrackcorm

Affable wrote: »

Isn't it rather discouraging for young students/graduates about the improbability of finding a decent independent lifestyle after uni?

Even if you work really hard, you then need more experience, plus graduate jobs are at a rate where you can't afford to buy or even rent in many cases.

Doesn't something need to be done about this dispiriting situation?

The generation that thinks life owes them doth speaketh up.

Affable

jimmycrackcorm wrote: »

The generation that thinks life owes them doth speaketh up.

I don't know, it WAS in fact easier for past generations to buy houses actually.

Rents are actualy going up because of the credit crunch.
Grad salaries are grand in my field.
I'll probably qualify for a mortgage after a year.

leninbenjamin

the problem isn't in property. they are still overpriced. the problems lie in the banking system. the credit crunch revealed a lot of 'questionable' behaviour by the banks, and now they are scared ****less of lending to each other. basically the banking system is ****ed, they liberalised it too much and now none of them trust each other.

leninbenjamin

Affable wrote: »

I don't know, it WAS in fact easier for past generations to buy houses actually.

actually the generation before me tells me there was exactly no difference. as a proportion of income the mortgages were still as high. that 2.5 rule kept prices artificially low, but the consequence was massive interest rates.

ah ****. double post. soz.

dotsman

I agree that Graduate wages are low in this country (perhaps it is because this country has an abundance of graduates). It seems to me that companies don't value a person just because they are a graduate - you have to be a graduate with 2/3 years good experience.

I started on the career ladder 3.5 years ago on an alright wage (could afford a nice room in Donnybrook and a decent social life, but little to no savings or major luxuries). Three and a half years later I'm earning more than double what I've started on and have just bought a place (city centre apartment).

Don't expect to finish college with a silver spoon. You have to prove your worth, and if you're good enough, you'll soon start climbing the ladder to a decent salary.

jimmycrackcorm

Affable wrote: »

I don't know, it WAS in fact easier for past generations to buy houses actually.

Really? my SOH was telling me how when her parents bought their house. they could only afford soup to eat on the day before pay day. Nowadays it is people complaining that they can't afford to buy PS3 games.

leninbenjamin

leninbenjamin wrote: »

actually the generation before me tells me there was exactly no difference. as a proportion of income the mortgages were still as high. that 2.5 rule kept prices artificially low, but the consequence was massive interest rates.

It's not really the 2.5* rule that ultimatly determines how much you can afford to borrow, it's the proportion of your income that you have left after paying the mortgage each month. A £50 a month mortgage was enormous if your income was only £150 a month.

It's the infamous "market rates" that cause the problems in conjunction with people willing to pay a fortune for "shoeboxes" and banks daft enough to lend such huge amounts. If house prices were dependant on the cost of construction (materials & labour) but excluding land the average price of a house would be about 1/3 of the current price. Land & location really determiines price.

gcgirl

Go travel see the world then when you come back the house market will have fell through and you'll be able to pick up a house for little or nothing just like the 80's :rolleyes:

Ross_Mahon

gcgirl wrote: »

Go travel see the world then when you come back the house market will have fell through and you'll be able to pick up a house for little or nothing just like the 80's :rolleyes:

Yeah sure lots of the suburban areas like Tallaght and Clondalkin houses were really cheap back then, they were made to put knackers like me into! :pac: The houses are worth far more now with the development going on everywhere.

Peyton Manning

Dont worry, Im an economist in training. Ill have it all sorted out in a few years.

Archimedes

Archimedes wrote: »

Dont worry, Im an economist in training. Ill have it all sorted out in a few years.

lol, you can't do any worse than the present shower.

chopperbyrne

astraboy wrote: »

On a personal note, I found some of the Grad offer's wages in Ireland insulting to be honest. How people could have a half decent time in Dublin on those wages I don't know.

What are the wages being offered to graduates?

Wook

what ireland could enforce is perhaps something they have been doing in some other european countries.

Heavily tax empty houses, houses that have been standing empty, so the owners do something with it or sell it.

seamus

Ah students. Listen, you may spend 4, 5 or 10 years in college, buts that's no guarantee of a €50k paycheque, an office and a secretary when you leave. It's the rare few that land on their feet straight out of college, but for some reason students think that they deserve the same treatment. I've been there.

Most of you will have to drop into a job paying less than you think you deserve, which gives you good experience, but no guaranteed career. Accept this, most of us have had to do it. Your degree will stand to you a couple of years after leaving college, not immediately when you graduate.

If you get €25k straight out of college, be happy. That's more than enough money to share a house with two mates in Dublin, party 3 or four nights a week and go on a cheap sun holiday every year. What more do you want?

joejoem

seamus wrote: »

What more do you want?

Kittens please. Lots of kittens. Maybe a new pair of jeans too.

chopperbyrne

seamus wrote: »

Ah students. Listen, you may spend 4, 5 or 10 years in college, buts that's no guarantee of a €50k paycheque, an office and a secretary when you leave. It's the rare few that land on their feet straight out of college, but for some reason students think that they deserve the same treatment. I've been there.

Most of you will have to drop into a job paying less than you think you deserve, which gives you good experience, but no guaranteed career. Accept this, most of us have had to do it. Your degree will stand to you a couple of years after leaving college, not immediately when you graduate.

If you get €25k straight out of college, be happy. That's more than enough money to share a house with two mates in Dublin, party 3 or four nights a week and go on a cheap sun holiday every year. What more do you want?

Exactly.

Anyone who expects to stroll into a €30k+ a year job straight out of college is delusional.

For the most part, you're a liability to any company that takes you on until you've been given proper on the job training.

Until then, deal with the low wage, work hard and in a few years you'll be on a decent wage.

Unshelved

I don't know, it WAS in fact easier for past generations to buy houses actually.

Really? How do you buy a house when when you have no job? Or when your only emplyment record is FAS course after FAS course? Or when interest rates go up by 1% a month until they're at 18%. That was the reality in the 80's and early 90's. Try buying a house under those circumstances.

eirmail

Moonbaby wrote: »

Rents are actualy going up because of the credit crunch.
Grad salaries are grand in my field.
I'll probably qualify for a mortgage after a year.

Simply not true , under what logic can a credit crunch drive rents up.

Rents are "going down" because of oversupply of property which people and developers are being forced to rent out, because of the credit crunch amongst other reasons.

gcgirl

Ross_Mahon wrote: »

Yeah sure lots of the suburban areas like Tallaght and Clondalkin houses were really cheap back then, they were made to put knackers like me into! :pac: The houses are worth far more now with the development going on everywhere.

Sorry but if you can see developers are having a hard time trying to sell the houses they have as for construction the amount of people now going on the dole is unreal compaired to 5 years ago!

Blisterman

What happens to all the people who were going to buy a house, but are now holding on for a couple of years, for house prices to drop?

They rent, thereby increasing the demand for rented properties.

eirmail

Blisterman wrote: »

What happens to all the people who were going to buy a house, but are now holding on for a couple of years, for house prices to drop?

They rent, thereby increasing the demand for rented properties.

Yes but what happens all those properties that were meant to be sold by builders and investrors and now no one will buy them because the values are dropping. They get rented out , thereby increasing rental supply. It is a zero sum game. Apart from all the empty properties that now need filling and increased emmigration.

this can be backed up by daftwatch , rental supply up 2 and a 1/2 fold in 2 years

http://daftwatch.atspace.com/

Blisterman

I guess it depends on the area.
I know, in Central London, house prices have dropped in the past year, while rents have increased by quite a lot.

eirmail

Blisterman wrote: »

I guess it depends on the area.
I know, in Central London, house prices have dropped in the past year, while rents have increased by quite a lot.

Rents increased in America 2005-2006 , Ireland 2006-2007 London now.

This is all part of the same cycle , initially they increase but then they fall back. The renter is forced to rent permanently or sleep on the street the property owner is not forced to rent out straight away , they can sit and try and sell it but eventually they are forced to rent it out after a year or so to cover expenses.

A lot of the world property cyles are similar with timeframes of a year or two separating them.