PROPERTY 2012

Grecco

I`m thinking about re-entering the property market this year. Currently looking at commercial properties (and have an offer on one ) but also town houses which have commercial potential.
I feel prices are now at the bottom or at least were almost there so now is a good time to start investigating.
Anyone else feel there's super bargains to be got now or will the prices remain down and flat like this for years upon years???

Jesus Wept

I don't really understand why people think houses are an investment. They get older each year, older houses are built to **** standards with no insulation.

No one expects their car's value to rise but nearly everyone expects their house's value to rise. It's not like we are stuck for land either.

Grecco

The-Rigger wrote: »

I don't really understand why people think houses are an investment. They get older each year, older houses are built to **** standards with no insulation.

No one expects their car's value to rise but nearly everyone expects their house's value to rise. It's not like we are stuck for land either.

If you get them at a low low price then they are a very good investment with fantastic returns.
the way I see it is the price of houses have tanked and we are near or at the bottom on top of which the value of cash ie the euro has also lost ground which makes the prices even cheaper.
Just because its all doom and gloom now doesn't mean it will always be that way

digitally-yours

Grecco wrote: »

If you get them at a low low price then they are a very good investment with fantastic returns.
the way I see it is the price of houses have tanked and we are near or at the bottom on top of which the value of cash ie the euro has also lost ground which makes the prices even cheaper.
Just because its all doom and gloom now doesn't mean it will always be that way

There is no such thing as "LOW LOW PRICE" its all about what market Value is at that time.I will not go into detail about this but its not how 90% of the people understand it.

following are some charts which show you the reality. You make your mind up.



Global and European PMI

Unemployment and Bond Yields

Youth Unemployment (the people you might be selling to if you choose to sell)

Central Bank Balancesheets (has an impact of the Amount of credit they will make available in future)

Earning Vs Growth expectations

clairedavies

If you have the money to spare then sure... it's a cash buyers market and the result of the most recent Allsop auction from last Thursday were encouraging. Commercial properties however are a little more concerning for me. People have to 'live' somewhere but they can always 'work from home'. I would be especially cautious of retail premises, with the old dot com industry still growing high street shops are losing value and tenants.

http://www.auction.co.uk/irish/pastResults.asp?A=790

Jim2007

Grecco wrote: »

Anyone else feel there's super bargains to be got now or will the prices remain down and flat like this for years upon years???

Ireland is about to enter a tighter economic union with the rest of middle Europe, that means that sooner or later Irish banks will have to start to operate along the lines of the rest of the union. This means that it is reasonable to assume that borrowing power will start to cap at around 2.5 to 3.5 time annual income. Unless borrowers are going to substantially increase their savings capacity, then I'd say we're a fair bit a way from bargains!

Furthermore, middle Europe does not have a tradition of encouraging home ownership, so you can expect that when it comes to common budget objectives there will be little understanding for the traditional Irish attitude in this area.

Accordingly I think it is very hard to make any kind of reasonable assumptions about how things will play out.

Mr. Loverman

Could you please outline your reasons why we are at or near the bottom? If you could refute the many reasons people think we are not near the bottom, that would be great.

I am genuinely interested to hear your views.

SyntonFenix

The housing market isn't exactly an attractive form of investment at the moment. Unless you are preparing to wait a while. It's a bit of a mess out there.

http://tyillc.blogspot.com/2011/12/20pc-of-irish-mortgage-holders-behind.html

House prices look likely to fall another 10% in Dublin. From a recent survey from Daft.ie states the majority replying were couples or first time buyers looking to get on the ladder. They're waiting in the long grass, but I would say they'll be waiting a little longer. One to two years indicated in the graphs at the link below.

http://blog.daft.ie/2012/02/daft-ie-release-inaugural-consumer-attitudes-survey/