House price rise sparks hope of market recovery

bjak

http://www.independent.ie/business/personal-finance/property-mortgages/house-price-rise-sparks-hope-of-market-recovery-3150804.html

Another day, another Indo article on how the property market will "recover" .

Hasn't it been recovering for the last 4 years

Zamboni

The news came as NAMA announced it would knock down the first of the properties it owns.

Apologies for my language, but the fvcking bastards.
I saw this coming about three years ago.
The supply/demand ratio doesn't suit them so they just eradicate the supply and of course the tax payer is left with the bill.
I honestly don't know how there isn't riots taking place in this country yet.

seamus

Zamboni wrote: »

The supply/demand ratio doesn't suit them so they just eradicate the supply and of course the tax payer is left with the bill.
I honestly don't know how there isn't riots taking place in this country yet.

Well it's probably more of an economic issue than anything else. There are two options with a lot of these properties:

1. Pump money into them to bring them up to saleable condition and sell them at a considerable loss (i.e. price paid + work done)
2. Knock them, write off the loss and sit on the land

All things considered, option 2 is probably the way forward and probably the cheapest option for the taxpayer.

Zamboni

seamus wrote: »

Well it's probably more of an economic issue than anything else. There are two options with a lot of these properties:

1. Pump money into them to bring them up to saleable condition and sell them at a considerable loss (i.e. price paid + work done)
2. Knock them, write off the loss and sit on the land

All things considered, option 2 is probably the way forward and probably the cheapest option for the taxpayer.

It is now.
It is easier to justify knocking down half built homes that have been rotting for four years than it would have been four years ago.
This was planned.

seamus

Zamboni wrote: »

It is now.
It is easier to justify knocking down half built homes that have been rotting for four years than it would have been four years ago.
This was planned.

Four years ago the estates still would have needed a lot of work - lots of them were half-finished - and with the complete halt in the property market at that stage, they would have had to have been sold at a considerably reduced price, probably 80% or more off.
NAMA wouldn't have even recouped the extra money it put into finishing the estate, never mind the cost of taking them on in the first place.

I agree that it's easier to justify knocking them now, but that doesn't mean that selling them four years ago would have been the better option. The best option may have been knocking them four years ago, but I suspect the labour involved is considerably cheaper today than in 2008.

Ray Palmer

Zamboni wrote: »

The news came as NAMA announced it would knock down the first of the properties it owns.

Apologies for my language, but the fvcking bastards.
I saw this coming about three years ago.
The supply/demand ratio doesn't suit them so they just eradicate the supply and of course the tax payer is left with the bill.
I honestly don't know how there isn't riots taking place in this country yet.

I don't get why you are so angry. It was known this was likely due to there being no need for the properties in rural areas.
You can look at it as if they did it to keep supply limited or it didn't make financial sense to do them up unless demand was high enough.
Considering there are less jobs in rural areas now moreso what use are these properties. It was financially viable years ago and matters got worse. Nothing really to do with the properties deterriation.
Very few would benefit from them being for sale.

bjak

No surprise that the newspaper articles have no mention of the numbers on the housing list in Longford or surrounding counties. Why would journalists even bother to ask?

indiewindy

bjak wrote: »

No surprise that the newspaper articles have no mention of the numbers on the housing list in Longford or surrounding counties. Why would journalists even bother to ask?

Ireland is run for the benefit of a tiny elite. If we had serious journalists in this country, they would be raising these types of issues and the serious issues flagged by namawinelake site and the propertypin.
Nama not calling in personal guarantees as is being reported is outrageous and would not be tolerated in a properly run country:mad::mad::mad::mad::mad:

StillWaters

bjak wrote: »

No surprise that the newspaper articles have no mention of the numbers on the housing list in Longford or surrounding counties. Why would journalists even bother to ask?

Why is that relevant? These flats are on a flood plane, have no public transport and are not in compliance with fire regulations and have major structural faults.

christmas2012

were still in a recession it is irresponsible talking up house prices,people are still losing their jobs,being made redundant having their pension packages cut etc..

as far as i can see there is a property stand off - people are not buying - thats whats keeping house prices low.

what will drive them up is people running out like stupid lemmings and panic buying..they will rocket

Villa05

seamus wrote: »

Well it's probably more of an economic issue than anything else. There are two options with a lot of these properties:

1. Pump money into them to bring them up to saleable condition and sell them at a considerable loss (i.e. price paid + work done)
2. Knock them, write off the loss and sit on the land

All things considered, option 2 is probably the way forward and probably the cheapest option for the taxpayer.

3rd solution offered by the private sector - Auction it off to the highest bidder
Guess what it works
http://www.auction.co.uk/irish/LotDetails.asp?A=780&MP=84&ID=780000074&S=L&O=A

All eyes were on the unfinished housing estate in Ballyjamesduff offering three incomplete houses and approximately 4 acres of land with lapsed planning for 31 further houses. The lot was offered with a maximum reserve of €40,000 and after a frenzy of highly competitive bidding sold for €122,500. The buyer, a developer from Northern Ireland plans to complete the three houses. There are approximately 2,000 unfinished housing developments in Ireland, and much debate has centred around how to tackle the problem. The sale has now benchmarked a transparent value for those deciding to dispose of such assets

http://www.allsop.co.uk/i/140/107/1113/allsop-space-s-successful-irish-auction-is-a-day-of-firsts

StillWaters

And some will be, and have been auctioned off, sold or completed.

This is a pile of worthless cr@p that the Council should be thoroughly ashamed of ever permitting to be built.