Irish Property Market 2020 Part 2

fliball123

Cyrus wrote: »

let me guess, is the answer they are all going to become social housing?

Well it might not be the worst idea in the world but what some forget is that students will be back maybe not this or next year but they will be back , same goes with tourist.

MacronvFrugals

Cyrus wrote: »

i was more of a PDs voter personally, im a floating voter now but i wont ever be floating sinn feinns way

Marginally lighter blue, but blue nonetheless

smellyoldboot

Bubbaclaus wrote: »

Can you explain what this means? Help to buy only applies to properties under 500k, which I doubt the "rich" have any interest in buying for their first home.

Already very comfortable/ not really in need of a subsidy so if not rich. The point is still very valid. It is not helping anyone get "on the ladder" that wouldn't otherwise be capable of doing so anyway.

Cyrus

fliball123 wrote: »

Well it might not be the worst idea in the world but what some forget is that students will be back maybe not this or next year but they will be back , same goes with tourist.

i was joking, his/her stock answer for any 'excess' is that the state is going to buy it up and make the whole thing a social housing scheme

fliball123

Cyrus wrote: »

i was joking, his/her stock answer for any 'excess' is that the state is going to buy it up and make the whole thing a social housing scheme

I know but Cyrus in your joke there could be a short term solution (for a year or two) while corona is in town for those who need to be housed

Amirani

Kasey_Don wrote: »

Only the rich can avail of the help to buy..

You either don't understand the help to buy scheme, or have a bit of a distorted view of what "rich" is.

I don't like the Help to Buy scheme. But it's something that's aimed at and most impacts the middle-class, not the rich.

hometruths

PropQueries wrote: »

Ok, did anyone spot anything in the budget that may impact on the property market in either direction? HTB was already well flagged. Seems to me, nothing much has changed from the situation that existed last week.

Normally there's small items that aren't noticed but do make an impact. But, from a quick look, nothing seems out of the ordinary.

Government taking an equity stake in people's houses:

The affordable purchase measures will be constituted as a shared equity scheme and will account for €75 million.

The details of this are still being worked out, and will be announced in the coming weeks.

However, it is understood that the Department is in dialouge with the pillar banks to put in matching funding, bringing the total to €150 million. This will also need State aid approval.

This will not end well.

PommieBast

Kasey_Don wrote: »

Housing crisis started in 2013. Nearly 8 years later and this is the state of the housing market. A new build in Leixlip for ****ing 385k.

Back in 2013 the political pressure was to get people out of negative equity. Things won't be fixed unless this changes.

wassie

Smouse156 wrote: »

HTB = Help The Brickie!

A Brickie won’t get help on a second hand house. Inflating already overpriced property is almost as bad as a shared ownership scheme (putting people into houses they fundamentally can’t afford)

Government intervention always distorts the market, whether intended or not.

hometruths

Kasey_Don wrote: »

Can you explain what this is?

You only have to fund 80% (for example, depending on % of govt share) of the purchase. Govt funds the remainder. You buy the government out at some point in the future, or when you sell.

I guess in practice it will be a bit more complicated, but that's it in a nutshell as I understand it.

MacronvFrugals

schmittel wrote: »

You only have to fund 80% (for example, depending on % of govt share) of the purchase. Govt funds the remainder. You buy the government out at some point in the future, or when you sell.

I guess in practice it will be a bit more complicated, but that's it in a nutshell as I understand it.

In other words what desperate things can we come up with to keep property prices inflated.

hometruths

MacronvFrugals wrote: »

In other words what desperate things can we come up with to keep property prices inflated.

Indeed. it sort of seems like once the public gets hooked on high property prices, it is difficult to wean everybody off them. And the longer it goes on the more people don't realise that high prices don't actually make anybody better off.

Except the builders obviously.

PropQueries

Cyrus wrote: »

i was more of a PDs voter personally, im a floating voter now but i wont ever be floating sinn feinns way

Never thought We actually have something in common.

PropQueries

Cyrus wrote: »

let me guess, is the answer they are all going to become social housing?

You're probably not actually not far off the mark:

"The Department of Justice has announced plans to lease 35 properties in Galway city centre to house asylum seekers. The apartments and town houses are located on Dominick Street and on Munster Avenue. The properties in question have been used for student accommodation and short-term tourist rental purposes in the past."

Link to article on RTE 23/09/2020: https://www.rte.ie/news/connacht/2020/0923/1166889-asylum-seekers-housing-galway/

PropQueries

schmittel wrote: »

Government taking an equity stake in people's houses:



This will not end well.

It never does. Let's hope they don't decide to include second-hand homes in that...

Taylor365

calfmuscle wrote: »

I'm a first time buyer trying to buy solo, the market it flying up around here. Iv rang asking about 3 houses priced 215 to 245 all went by 15k to 40k over the asking price. Its a nightmare and unless there is a crash I'll never get a home.

I would say "Nay worries, renting for life isn't a death sentence", but in this country it really is :pac:


Rent, artificially inflated and regulated into oblivion for the small time LL, will never be at an acceptable level while evictions take so long and big business can keep units sit empty.

Smouse156

PropQueries wrote: »

It never does. Let's hope they don't decide to include second-hand homes in that...

I just don’t understand the heavy social housing spend! They all vote for SF/IRA anyway and will just drive away any potential voters out of the FTB group

PropQueries

MacronvFrugals wrote: »

In other words what desperate things can we come up with to keep property prices inflated.

It could actually benefit first-time buyers who are interested in the second-hand home market by removing people from the demand side for second-hand homes towards new builds. That's assuming they don't include second-hand homes.

hometruths

PropQueries wrote: »

It could actually benefit first-time buyers who are interested in the second-hand home market by removing people from the demand side for second-hand homes towards new builds. That's assuming they don't include second-hand homes.

Surely if you're a first time buyer who can avail of 30k HTB and not have to fund whatever portion of equity the govt are buying on a new build, you'd need your head examined to buy a second hand house?!

L1011

Smouse156 wrote: »

I just don’t understand the heavy social housing spend! They all vote for SF/IRA anyway and will just drive away any potential voters out of the FTB group

Politics to the politics forum - this applies to everyone. Impact of the budget is fine to discuss but specific party politics are a no.

Hubertj

schmittel wrote: »

Surely if you're a first time buyer who can avail of 30k HTB and not have to fund whatever portion of equity the govt are buying on a new build, you'd need your head examined to buy a second hand house?!

Sorry I don’t follow. Why would you always choose new vs 2nd hand?

HotDudeLife

Nice to see the government bailed out landlord<SNIP>. The addition of nearly 10k social housing units is welcome.

More supply is a good thing, even though some insist low supply = high prices, this is not true. We had historical levels of low supply between 2010-2013 and that is around the same time we witnessed the lowest prices.

brisan

schmittel wrote: »

Surely if you're a first time buyer who can avail of 30k HTB and not have to fund whatever portion of equity the govt are buying on a new build, you'd need your head examined to buy a second hand house?!

Why
if the second hand house is in an area you want ?
Buy the worst house on the best road you can afford
You can change everything about a house except its location

HotDudeLife

schmittel wrote: »

Surely if you're a first time buyer who can avail of 30k HTB and not have to fund whatever portion of equity the govt are buying on a new build, you'd need your head examined to buy a second hand house?!

In areas close to me, the new builds were whipped up in ridiculous locations and prices well above what they are worth, plus a good chunk of them are allocated to social housing so chance they may become ghettos.


Also who wants to work hard and pay for a brand new house only to have some leech move in next door for free. If something is for free/highly reduced, they won't value it and these areas will turn into dumps.


Second hand houses in mature areas are the way to go.

TheSheriff

brisan wrote: »

Why
if the second hand house is in an area you want ?
Buy the worst house on the best road you can afford
You can change everything about a house except its location

Have to agree here, we ruled out new builds early on in our search. I'd love one (purely for build quality), but give me an established park rather than the pot luck new build estates any day of the week.

HotDudeLife

calfmuscle wrote: »

I'm a first time buyer trying to buy solo, the market it flying up around here. Iv rang asking about 3 houses priced 215 to 245 all went by 15k to 40k over the asking price. Its a nightmare and unless there is a crash I'll never get a home.

Patience my friend, play the long game. This house of cards won't be standing much longer, huge crash coming in 2021-2022.

awec

HotDudeLife wrote: »

Patience my friend, play the long game. This house of cards won't be standing much longer, huge crash coming in 2021-2022.

Huge crash coming next year*.

* repeat every year.

TheSheriff

HotDudeLife wrote: »

Patience my friend, play the long game. This house of cards won't be standing much longer, huge crash coming in 2021-2022.

Every few months it gets further and further away......

Cyrus

TheSheriff wrote: »

Every few months it gets further and further away......

Yes and some of the more prolific doom merchants have left the thread , they will be back as soon as there is any glimmer that their prophecies of utter economic devastation are coming to pass, I see them thanking the odd post.

hometruths

TheSheriff wrote: »

Have to agree here, we ruled out new builds early on in our search. I'd love one (purely for build quality), but give me an established park rather than the pot luck new build estates any day of the week.

Personally I'd never live in a housing estate of any vintage but it strikes me that the bulk of FTBers are driven to spend the max they can afford based on the amount of deposit saved + lending limits etc.

I could easily envisage a scenario in which most FTBers feel like it is an unwise decision to buy a 250k second hand house when for the same outlay they could buy a 320k new build.