Irish Property Market chat II - *read mod note post #1 before posting*

Wanderer78

https://www.boards.ie/discussion/comment/117944870#Comment_117944870

yup, we re caught in whats called a 'positive feedback loop' in regards pricing, this is becoming an extremely serious problem for us all, and im not sure we truly know what to do about it, but clearly, we just need to crack on with building, but even thats now a serious problem. this is extremely worrying stuff, i think a more involved state is truly the only solution, but even that wont be easy

cnocbui

My personal belief is that only individuals should be allowed to buy, own and invest in residential property. Allowing commercial interests a look in was a huge mistake. Governments listen to corporations a lot, and their constituencies, not at all.

Pussyhands

On RTÉ's Morning Ireland Mr Davitt said that low interest rates and fixed interest rates with longer terms are encouraging more people to get on the property ladder.

He said buyers "don't mind paying extra because they are paying it over the long term".

Very interesting words and exactly what I thought. People happy to pay way over the odds just to secure a property. Price doesn't even matter anymore. Not exactly a sign of a healthy market...It's an irrational market. And it will become rational again.

Wanderer78

https://www.boards.ie/discussion/comment/117944922#Comment_117944922

https://www.boards.ie/discussion/comment/117945235#Comment_117945235

yup, the joys of democracy(plutocracy)!

you gotta love the lobbyists from the fire sectors! any chance you can show us examples of rational markets, particularly in relation to property?

mcsean2163

https://www.myhome.ie/residential/brochure/garden-cottage-tinnahinch-enniskerry-co-wicklow-a98-x899/4532421

€1.8 million for site in enniskerry. It's a beautiful garden....

JimmyVik

Berlin voting to compel investors to sell properties.

Where does that lead to i wonder?

awec

https://www.boards.ie/discussion/comment/117945511#Comment_117945511

Given that almost every photo is of the garden I am betting that the house isn't looking too great inside.

Villa05

https://www.boards.ie/discussion/comment/117945235#Comment_117945235

The rent bubble, if your paying 2k in rent, 2k in mortgage repayments seems logical

Problem is your locking record high rent prices caused by a supply issue for the rest of your lives.

Supply issue has to be resolved, what happens rents when it is?

We are in a property bubble caused by choked supply. How long more can we accept choking supply, eventually the numbers locked out of housing are greater than those that own

Can't see the current political parties being in power much longer.

Varadkers comments last week ref balance between landlord income and renters plight particularly insightful. Foreign Corporate landlords tax free and citizen landlords paying rates of up to 50%+, while renters are squeezed for every available penny. A wholly disappointing leader from a position of considerable potential.

Pussyhands

https://www.boards.ie/discussion/comment/117945803#Comment_117945803

Exactly. Buying a house at any cost looks like good business at this point.

But 8% p/a price rises are not sustainable.

Amadan Dubh

https://www.boards.ie/discussion/comment/117944533#Comment_117944533

It's a ridiculous projection. The 30 year projected population growth is primarily due to immigration. 30 years of strong demand? 30 years ago we had net emigration up until 25 years ago. Only 7 years ago we had net emigration again!

At the same time, if housing supply ramps up based on these large projected population growth numbers that is fine by me! Oversupply is a good thing.

fliball123

https://www.boards.ie/discussion/comment/117946231#Comment_117946231

Well bringing the time down that will allow refugees go from undocumented to documented from 8 years to 4 months is going to bring a flood of people here. We are currently ranked 2nd in quality of life by the UN. So people can say what they want about Ireland but it is also one of the safest places in the world to live. It also offers welfare at one of the highest rates in the world when you take every thing into account. We are also currently in need of expansion in our public servant numbers and going gang busters in ares like IT and Pharma. Companies are importing talent as the head count is not here. I can see population growth continuing to rise due to emigration inwards and our birth vs death rates have always swayed heavily on the birth rates even during a global pandemic which killed thousands.

Pussyhands

https://www.boards.ie/discussion/comment/117946231#Comment_117946231

The ESRI, who's job it actually is to research things and make projections projected in 2020 that house prices would fall by 12% in 2021.

And we have guys out here making 30 year projections. 🤡🤡🤡

fliball123

https://www.boards.ie/discussion/comment/117946275#Comment_117946275

Just are ridiculous as the doomsdayers on here saying we need a recession as they cant get on the property ladder and others projecting year on year that next year the crash is coming.😎

javaboy

https://www.boards.ie/discussion/comment/117946275#Comment_117946275

Historically, it’s actually probably been much safer to make long term predictions than short term ones. There’s a fairly generous margin of error on a 30 year prediction compared to short term predictions.

That 12% fall though … 😂

Wanderer78

https://www.boards.ie/discussion/comment/117946497#Comment_117946497

yup, our short term approach is effectively failing in nearly everyway we ve done it, its why we re truly in our current mess, again lyons himself realised this many years ago

Jmc25

https://www.boards.ie/discussion/comment/117946497#Comment_117946497

For as long as I've paid attention to these industry/think tank predictions, it's generally been a case of if prices are currently going up, the predictions are that they will continue to do so, and if they're going down, the predictions are that they will continue to do so.

It's basically like the weather forecaster telling you it's going to keep raining because he looks outside and sees rain.

Obviously to justify their existence the authors of these reports dress them up with language that makes them sound authoritive. But the truth is no one actually knows what's coming around the corner and if economic crashes could be predicted we probably wouldn't have any.

And yeah, the one time the ESRI deviated from the "is it currently raining" method they couldn't have been much more wrong....

Wanderer78

https://www.boards.ie/discussion/comment/117946632#Comment_117946632

no we cannot accurately predict future outcomes such as crashes, and we may never be truly able to, but mainstream economic predictions are woefully wrong, disturbingly so, but it is true, 'all models are wrong, but some are useful'

Timing belt

https://www.boards.ie/discussion/comment/117944133#Comment_117944133

According to the central bank statistics Irish Private debt in the banking system has been falling since 2009 and is now at the same value it was in 2003.

If you look at Loans for house purchases the total outstanding amount at July 2021 was 68.8 Billion the same level it was back in Sept 2004. It peaked at 123.9 Billion in oct 2008 and has been falling ever since which means more money has been repaid on mortgages than has been lent out on new mortgages.

It's the public debt and debt outside the banking system that has been on the rise and it is both of these areas that are helping to push up prices on property.

Marius34

https://www.boards.ie/discussion/comment/117946275#Comment_117946275

They failed quite a lot on their projection.

But on other note, their projection was between 0% to 12% fall, which average to 6% of fall between 2020 Q1 and 2021 Q4.

6% of a fall would be considered as to optimistic in this group. So their projections was bad, but it's relatively good, when compared with most members of this group, and many other forecasts.

JimmyVik

Nobody, Not even experts whos job it is, can predict property price changes.

Funny though how everyone thinks they can. :)

.42.

Well Im 50% sure that the prices will drop next year.

Marius34

https://www.boards.ie/discussion/comment/117949240#Comment_117949240

In nominal value? If so, in general the guess that you would be wrong is more than 50%.

https://www.boards.ie/discussion/comment/117946269#Comment_117946269

There is no such thing as an undocumented refugee. If you're going to try blaming foreigners for our property issues, at least learn about immigration correctly.

There are more properties coming on the market, I'm still seeing lots of properties that were sale agreed coming back. I'm not sure why, could it be vendors thinking they will get higher prices?

Jmc25

https://www.boards.ie/discussion/comment/117949636#Comment_117949636

I've been to see a couple coming back to the market and generally the bidding has been lower than the sale agreed price. That's not to say the final price won't be the same or more, just that it doesn't seem to be guaranteed that a vendor would actually get more money.

fliball123

https://www.boards.ie/discussion/comment/117949636#Comment_117949636

Did I put the blame on foreigners? NO so relax I am just highlighting policies we are enacting which will cause the housing supply to worsen and the fact is the time taken to process undocumented/asylum seekers/refugees is going to be cut drastically and we will see more people coming into Ireland ergo we need more housing. I don't blame them if I was living in areas such as Syria or the Lebanon I would be looking at Ireland and going chaching.. The main reason why we have a housing crisis is lack of supply. We cant blame Johnny foreigner on that.

Timing belt

It looks like John Lewis and Lloyds bank are entering the build to rent market in the UK.

I wonder will we see similar in Ireland with the Irish banks doing similar as their ability to generate profit decreases due to excess liquidity and negative rates.

https://uk.finance.yahoo.com/news/build-to-rent-housing-market-lloyds-230133623.html

Villa05

https://www.boards.ie/discussion/comment/117944098#Comment_117944098

https://www.boards.ie/discussion/comment/117957436#Comment_117957436

There is something very disturbing about that article. Banks bailed out by taxpayers as 20% hikes in annual rent are celebrated with the parasite banks aiming to be the beneficiary.

It is abhorrent that our taxes and state assets are used to facilitate this extortion in our own country

Villa05

https://www.boards.ie/discussion/comment/117944098#Comment_117944098

This is why the EU brought developing EU countries to Dublin as a case study on how planning and developing can go so wrong.

Our most expensive children's hospital in the world by some distance is about to be complimented by the most expensive social housing as the state outbids workers with their money and pushes them further away from their place of work.

Given the power the drugs gangs have over social housing areas in Dublin, I really fear for our capital city. Ballymun on steroids incoming.

No wonder people are selling up and leaving

enricoh

I wonder how much longer the state will be outbidding ordinary couples on houses?

I heard the economist colm mc carthy on telly the other day saying the budget in October will be the last giveaway budget for a very long time. Everything is stacking up negatively against the government finances imo. I don't think buying apartments for 750k and renting them at 2500 a month for social housing is going to wash with the ordinary voter next year.

Ozark707

https://www.boards.ie/discussion/comment/117958216#Comment_117958216

Why not? It has been going on for a number of years now and there is little pushback on it. If anything I can seen them ramping up HAP to keep the likes of the homeless figures down.