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Make hay while economy plummets?

  • 24-06-2008 2:16pm
    #1
    Fed_Up
    Closed Accounts Posts: 22 ✭


    So, the media is abound with predictions of doom and gloom. All going to die, etc. etc.

    If house prices tumble, does that put someone who will have a bit of disposable income in the next two years not in a better position to buy? Didn't the property developers of the last decade not make all their money riding the wave coming out of the last so called recession of the 80s?

    So if someone has a guaranteed job and decent income in the next few years, is this drop in the market price of stuff not a good thing? (Bit naive but looking for your opinions!)


Comments

  • #2
    El Stuntman
    Closed Accounts Posts: 4,720 ✭✭✭El Stuntman


    Fed_Up wrote: »
    So, the media is abound with predictions of doom and gloom. All going to die, etc. etc.

    If house prices tumble, does that put someone who will have a bit of disposable income in the next two years not in a better position to buy? Didn't the property developers of the last decade not make all their money riding the wave coming out of the last so called recession of the 80s?

    So if someone has a guaranteed job and decent income in the next few years, is this drop in the market price of stuff not a good thing? (Bit naive but looking for your opinions!)

    yes, absolutely.

    Save, save, save and you will be in a great position to buy in a couple of years when the market nears bottom (bearing in mind that prices are still waaaaaay overvalued). Until then, it makes far more sense to rent.


  • #3
    pocketdooz
    Registered Users, Registered Users 2 Posts: 1,559 ✭✭✭pocketdooz


    Yes, good idea - try and exactly time the market so you buy right at the bottom. That is notoriously easy to find. Until then continue paying someone else's mortgage for them by renting while waiting for an extremely inelastic market like the housing market to continue falling and then you will be fine . . .:D

    Alternatively . . . find 5 houses in the area you want to live in.

    Bid 80 % on each of them.

    Find out why the buyers are selling - identify those that NEED to sell.

    Find out how many months those properties have been lying idle.

    Property in Dublin is NOT overvalued by any traditional economic / econometric model. (Sounds false but is in fact true - don't believe everything you read in the paper)

    Identify up and coming areas that will hold their value as opposed to developer-built lego-towns

    e.g. Ringsend/Irishtown/East Wall vs. Adamstown/New Lucan/Navan

    Buy and enjoy your home, sit and wait for the market to rebound.

    We are back to 2005 Q3 prices now - (this is fact, I do this for a living and can show you the data by PM if you like)


  • #4
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Yes, OP.
    Cheaper housing benefits the masses and the economy. Expensive housing benefits a small minority, you don't need hints to know who they are :D


  • #5
    randombar
    Registered Users, Registered Users 2 Posts: 3,428 ✭✭✭randombar


    Interesting thread lads, just wondering, me and de missus are heading off on the years travel in October. Is this a good idea considering the job market? I'm in Engineering and she's in banking (Credit Risk Management actually haha!)


  • #6
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    GaryCocs wrote: »
    Interesting thread lads, just wondering, me and de missus are heading off on the years travel in October. Is this a good idea considering the job market? I'm in Engineering and she's in banking (Credit Risk Management actually haha!)

    Well at least you'll get 100% financing for your mortgage if you do plan to purchase. As of 2 weeks ago AIB was able to offer me a 380k joint mortgage based on my brother being a civil engineer. I'm a banker. Just goes to show how much banks believe in my profession.....


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