Softening house market?

farmingquestion

Ah lads. It's depressing for young people trying to buy.

I'm not that young, early 30's but I have a load of savings. That's from 10 years working and not having any major purchases in that time. I haven't lived a wild life at all but a lot of that is just down to me naturally not wanting a lot.

But it's what you get for the money now too. All I could get is some tiny, old 2 bed apartment and I'd have to spend 40k deposit probably.

It's really hard to find a partner. Most couples I know met in college. Now, how can you have someone over when you're house sharing? You can't have the kitchen to yourself for a few hours or the living room.

Beigepaint

https://www.boards.ie/discussion/comment/119924871#Comment_119924871

Well twenty years ago they would have drank the **** out of it and rented a mansion in Montenotte for 150 punts a week. Have you considered buying a new car in cash?

Claw Hammer

https://www.boards.ie/discussion/comment/119920324#Comment_119920324

Why only almost. It is presumed when you engage someone you will pay them If you don't pay within a reasonable time the inference is that you never intended to pay.

Donald Trump

https://www.boards.ie/discussion/comment/119925279#Comment_119925279

Is that presumption built into this UK legislation?

kaymin

https://www.boards.ie/discussion/comment/119923830#Comment_119923830

Whatever about keeping an eye on the bidding but to bid on 4 houses at the same time is going to raise the prices for everyone - prices would spiral upwards if everyone adopted that approach.

Marcusm

https://www.boards.ie/discussion/comment/119925279#Comment_119925279

Establishing a dishonest intent to a “beyond reasonable doubt” standard is much greater than an “inference”. You’d be better off stopping digging. You have been consistent only in derailing the thread. The reason why non-payment is a less significant issue in the U.K. is because of the baiiiff system and not a misunderstanding as to the criminal law.

drogon.

Honestly this chat lately of how young people aren't saving or can't save enough to put a deposit together had me thinking. Who really can blame them ? we had the Central bank more or less encouraging people to spend rather than save with zero and then negative interest rates for the last 9 years!

Even the ones that did want to save, found they were getting little to no interest on their saving, hence you had loads of people looking at other stuff like Crypto, NFT's and stocks where they hoped they could make some decent returns on their money. Unfortunately a lot of them would have lost so much, especially in the crypto space.

Here's hoping the ECB banks have learnt their lesson and don't go down the route of zero or negative interest again.

straight

https://www.boards.ie/discussion/comment/119924871#Comment_119924871

You've got to get yourself out there to get the women. I'd say if you get the hints out there about all your savings the women will be queuing up. Be careful what you wish for though.....

I'd say just buy the plush pad and the woman will follow....

Fantana2

https://www.boards.ie/discussion/comment/119925649#Comment_119925649

Sorry re read my post and my wording was poor, I meant I’d have the option to bid on any of the four. So would keep in the loop with the agent on all of them and bid on the cheapest.

Eclectic Econometrics

LOL at the hanging the flat screen TV story earlier in the thread.

I am watching houses just under 7 figs to around 1.4 and these houses still seem to be flying off the shelves. I can't say whether they are going for the listed prices, yet, but the speed with which everything looks to be going sale agreed would suggest there are no discounts. I am also not seeing listed houses removed then returning, again suggesting that there has been no cold feet/rate change impact on the sales in the last couple of months.

farmingquestion

https://www.boards.ie/discussion/comment/119926398#Comment_119926398

Oh that's true. Friend bought a house recently and he's got a woman right away.

From the look of me you wouldn't think I had much...drive an old car (good enough for me) and went on a date with this one. She was kinda cool in the messages after so I knew she wasn't that interested but then she asked my job and I told her and she said I must have money and I could imagine her sitting up in her chair then. The texts became longer, and more interested 🤣

I'd rather be single than have someone be with me for the money

DataDude

https://www.boards.ie/discussion/comment/119927248#Comment_119927248

Interesting. I’d been observing the opposite. We bought in that range about 6 months ago and I still keep somewhat of an eye. North Wicklow area.

Still terrible supply but literally nothing has gone sale agreed in the last 2 months. Few crackers had price reductions too like this one, which would have gone miles over original asking (1.4) a few months back.

https://www.myhome.ie/residential/brochure/2-lisboy-killincarrig-delgany-co-wicklow/4638172

Mr Hindley

I have a hunch - and it's nothing more concrete than that, just based on observation - that things might actually be picking up again a little. Certainly, the better properties are still going sale agreed quickly, and if anything, it feels like fewer properties are lingering than before. I don't have anything solid to back that up, though.

Supply certainly trending back down.

herbalplants

https://www.boards.ie/discussion/comment/119927415#Comment_119927415

Me thinks Eclectic Econometrics needs to go to Specsavers.

markodaly

https://www.boards.ie/discussion/comment/119922084#Comment_119922084

Arent, you contradicting yourself?

"Buy NOW!"

But then you admit it was a mistake.

markodaly

https://www.boards.ie/discussion/comment/119922547#Comment_119922547

I think that poster has been found out and wants to show off. Why? I do not know, considering he messed up his own experience on the property ladder.

markodaly

https://www.boards.ie/discussion/comment/119923061#Comment_119923061

I dont believe you.

In 2006 you would have been 26, yet you saved 50k, while also drinking the **** out of it and travelling the world?

While you had a starting wage of 12,500 pounds and spend 500 a month on rent?

Sorry, it doesn't compute.

Donald Trump

https://www.boards.ie/discussion/comment/119927639#Comment_119927639

I don't think they were showing off. I think they just weren't appreciating the change in environment, and maybe over-attributing their own achievements to some "sacrifices" they felt they made

Donald Trump

And I wouldn't be taking any glee from anyone else having difficulties in the property ladder. Someone in their mid-20's who has grown up in the middle of an asset bubble where things are going mental and everyone is pushing money at them left right and centre isn't necessary well placed to realise any risks. That is why certain lending rules were brought in. You shouldn't need lending limits if the banks were lending responsibly. They were not though.

As I mentioned above, I know someone who left college with bank loans totaling multiples of 5 figures. Interest rate was over 10% on those loans which was penal at the time. It wasn't that the money was needed for survival, just that the Bank kept offering more and more and it was a very easy trap to fall into.

herbalplants

https://www.boards.ie/discussion/comment/119928139#Comment_119928139

The issue with new generation is rent. Rents are too high. The big culprit is the tax. If taxes for landlords will be lowered to 20-25%, the rents will come down. Plus proper regulation to protect landlords. This will improve the current situation.

bamayang

https://www.boards.ie/discussion/comment/119928288#Comment_119928288

I don’t think they would come down. That additional ‘profit’ would go into the landlords pocket. It would surely improve supply, as more would rush to get onto the ladder, but that supply would take years to materialise.

but in the short term I think there would be no reduction in rents, and house prices would likely increase as landlords would buy more homes.

Donald Trump

https://www.boards.ie/discussion/comment/119928288#Comment_119928288

Not at all. If tax comes down then it just makes renting out houses more lucrative. Which will just increase the price of houses

herbalplants

By the way, I am not a landlord.

The rent market is extremely dysfunctional. Madness with strangers sharing rooms for exorbitant prices.

There should be a way of building small units flats with communal areas and rented at appropriate prices (obviously lower). This way, would allow people to save for a home.

mcsean2163

I think the problem is the risk associated with being a landlord.

It can be 2 years to evict a tenant that decides not to pay and destroys a house. This badly affects good tenants as they are paying for that risk too. A situation has now evolved where REITs are taking the risk and the money instead of going intro the Irish economy to be taxed and reinvested ends up in Canada or elsewhere.

Tenants decide not to pay, should probably be 6 months max. The tax of landlords in Ireland could then go to building state accommodation to house tenants that refuse to pay rent so they don't end up homeless.

drogon.

https://www.boards.ie/discussion/comment/119928771#Comment_119928771

 A situation has now evolved where REITs are taking the risk and the money instead of going intro the Irish economy to be taxed and reinvested ends up in Canada or elsewhere.

The same way how Ireland has become a tax heaven for MNC to funnel all their EU revenues through their Irish shell companies ?

In terms of risk, all these REIT's can make a killing when the economy is doing well, with all their apartments easily bring in over €2k rent a month. I read not too long ago that Ireland was the third largest place for REIT's to invest in the world, crazy to think for a small country like ours. Assuming if/when **** hits the fan, will be interesting to see how these REIT's get along. IT article was saying about 31% of assets owned by these REIT have borrowing of over 60%.

Not to add by another figure from last year that over 40% of renters get some sort of support/subsidy from the government. All great stuff, as long as the corporate tax from these MNC keeps flowing in as we more or less are spending everything we get and have nothing put aside.

bamayang

Do reit’s pay 12% corporation tax on rental profit?

Donald Trump

https://www.boards.ie/discussion/comment/119928977#Comment_119928977

Regardless of what any company pays on its profit, when any of that profit is disbursed to the shareholders, it is taxed at their marginal rate when it hits their pocket.

There is a complaint alright about non-residents and double taxation treaties, but that is besides the point.

drogon.

https://www.boards.ie/discussion/comment/119928977#Comment_119928977

You’d be surprised but most don’t pay any tax. It is quiet complex mess as usual, but the below article explains how REITs can pay no tax here and foreign shareholders/investors of said REITs can more or less write off most of their tax obligations too.

https://www.rte.ie/brainstorm/2021/0513/1221319-ireland-housing-property-reits-tax-investment-funds/

Jonnyc135

Talking to a guy who does mortgages for AIB, he reckons alot of people are waiting till January to get the new bollox 4 times limit. He reckons prices will go up again come start of year regardless of interest rates due to this. He also said it was one of the worst decisions the Central Bank could have made.

Donald Trump

https://www.boards.ie/discussion/comment/119929164#Comment_119929164

Many might not pay any Irish Income Tax. They will be subject to tax in their home country though.