Assetbacked wrote: » Ignoring the "property prices will always increase" outrageous claim;I would say measures as in a big increase in apartments and houses being built and being available for purchase by individuals as opposed to institutionals, as well as greater incentives for private landlords to enter the market again. If there was plentiful supply and it resulted in current house prices dropping around 40% of the current averages, this is surely a good thing? "Wealthy people" are not wealthy because they sit on mountains of cash, often it is assets which make them wealthy so I don't agree that an international recession would result in wealthy people snapping up all the property.
Assetbacked wrote: » "Wealthy people" are not wealthy because they sit on mountains of cash, often it is assets which make them wealthy so I don't agree that an international recession would result in wealthy people snapping up all the property.
beauf wrote: » Maybe you'll explain how they are sucking wealth from the younger generations??? Give it 30 yrs and consider its you, facing huge property tax, perhaps poll tax, rates etc and massive health insurance bills, nursing home fees of 100k a year, and all pensions raided until they are worth nothing. I think you might realise that is not the older generations, but the Govts you've voted in that are sucking your wealth from you.
Bluefoam wrote: » By measures, do you mean a massive recession? You do realise that a big drop in property prices (like 40%) would mean a huge economic crash & people like you will not benefit from that in the way you think. The wealthy people with more than you will benefit, and they will buy the cheap property. Before you know it the prices will increase through normal economic growth and you'll be back at square one. The fact is this... Property is selling, even though the price is high. people are buying it & can afford to buy it. People who can afford the property are driving the house prices. If that doesn't include you, then you need to become one of those people. Property prices will always increase. inflation will continue... until mother nature interjects and it won't matter anymore.
Assetbacked wrote: » ...Right now we have older people sitting in mortgage-free properties that are many multiples what they paid for them who are basically sucking the wealth from the current younge...
alwald wrote: » Why take a debt when there is a massive budget for housing overall? Shouldn't this miserable government use those funds to build more? Other than that I agree with the fact that this government isn't going to do anything and that next elections are key.
Assetbacked wrote: » If measures were taken now which resulted in current average house prices dropping 40% (which would be more sustainable), would you have an issue with that?
The Student wrote: As part of our bailout we can't take anymore debt on to our national debt. Even if we get interest free loans our debt would increase.
Bluefoam wrote: » WTF... I'm in the same boat. Trying to buy a house to live in. Difference is, that I'm not worried about what other people have and what I think I should deserve. I'm just working hard and struggling by like everyone else. Who the **** are you to complain about older people who are benefitting from a life of hard work?
Assetbacked wrote: » Truth hurts, clearly.
Jaster Rogue wrote: » Just out of interest, what would you consider a more stable investment than property?
Bluefoam wrote: » Oh FFS. Those people who are basically sucking the wealth from you have probably worked all their lives for what they have. They paid up to 18% interest rates and bought houses at very high prices in their day... Inflation was coming at incredible rates...Stop being so ****ing whiney. There is a miserable younger generation who think that they are being treated badly for the benefit of everyone else... Well, everyone has had it hard, get on with it, make your own way & stop moaning about what others have.
Assetbacked wrote: » The "Fast forward 20 years bit" is what makes this an emergency situation and which is why the housing crisis should be treated as such. Right now we have older people sitting in mortgage-free properties that are many multiples what they paid for them who are basically sucking the wealth from the current younger, tax-paying workers and future generations who themselves won't be the fat-cat landowners the current grey generation are as the State will not be able to afford the welfare required to sustain so many people in housing, healthcare, free travel etc. The governments measures need to be implemented on the basis that we are in an emergency situation and they are not adopting this attitude. The government needs to get rid of tax efficiencies for institutional landlords, reduce taxes private landlords pay and make it far easier to remove tenants for not paying rent. Unless drastic measures are taken, an international recession would be required in order benefit Ireland's housing crisis as investors pull their money and move to more stable investments.
Assetbacked wrote: » The "Fast forward 20 years bit" is what makes this an emergency situation and which is why the housing crisis should be treated as such. Right now we have older people sitting in mortgage-free properties that are many multiples what they paid for them who are basically sucking the wealth from the current younger, tax-paying workers and future generations who themselves won't be the fat-cat landowners the current grey generation are as the State will not be able to afford the welfare required to sustain so many people in housing, healthcare, free travel etc. The governments measures need to be implemented on the basis that we are in an emergency situation and they are not adopting this attitude. Therefore, an international recession would be required in order benefit Ireland's housing crisis as investors pull their money and move to more stable investments.
JDD wrote: » I think there's going to be an issue if four or five REITs end up owning 50-60% of new build rental apartments in the cities. Think of couples in their early thirties just starting families. In the past, these would be the couples buying first-time starter homes. Except those starter homes are €500k now and they don't have the salaries to cover the mortgage. So they look to buying a two or three bedroom apartment. When there's such price power amongst a small number of REITs (most of whom are foreign-owned) they can price fix the rental amounts. High rents attract more investors to the apartment markets - pushing the selling price up of those apartments. Suddenly, Joe and Josephine can't afford the apartments either, even if they could find a developer that is going to sell to the owner occupier market. So they continue to rent, paying €1500-2000 a month on 2 bed apartment. They have two kids, paying upwards of €2000 a month on childcare. Nothing left over to save more so that they have the increasing deposit required to buy a property. At some point prices will drop. The economy will contract. The REITs will sell. And inevitably, banks will become more conservative in their lending. But J&J are now forty, and the repayments on their now shorter term mortgage (because they are older) and their outgoings on two children means the bank will only lend them enough to buy a property on the outskirts - a starter home. They know they are forty, and wherever they buy now is where they are going to live for the rest of their lives. Their kids are in the local school. They've put down roots where they are renting. So they decide to stay. There are loads of single people, couples and families like this that I know. Fast forward 20 years, when they retire, we are going to have a MASSIVE problem. Their pensions (if they have one) won't cover continuing to pay rent. Even a gold-plated pension with 40 years service only pays 2/3 of your salary, on the assumption that your mortgage will be paid off. There's going to be a lot of people turning to social welfare, and not enough workers to subsidise that. So you, and me, in 20 years are going to be forking out a ****load more in tax to cover this. And the REITs will have well gone back to the Canada and the UK, rolling in their rental cash. So no, I don't think block-selling to a small amount of REITs for the purposes of providing supply to the rental market is a solution to anything.
Dolbhad wrote: » When I was looking at the new build off plans we had budgeted for an engineer to be engaged before snagging and to go out to the property once or twice as it was going up as that was a concern of mine and it was something our solicitor recommended we do. I’ve had friends buy new builds recently with issues and there are some builders in Cork I’d have no issue buying off and some I would. The economy is doing well so the old excuse of no cash to invest and build on the governments side isn’t washing anymore. And I would hope since it would be for FF/FG they will have to deal with that at some point down the line that planing would take place now, it seems very unlikely.
beauf wrote: » Building is quality is not down to the age of the building or the regulations. Its a self regulated industry. So its really down the the quality of the builder. Which is one estate will be well built and the next one not. Different builders.
alwald wrote: » This is one of the reasons...the burden in the state in the future will be huge. Look at how some Nordic countries are currently struggling with the portion of their population that are retired.
Bluefoam wrote: I think you're missing my point... why would they bother funding or building affordable housing? Let people rent instead. You are working from an outdated model where people would expect to own their houses. The current model would be to use big business to fund building and provide for the masses...
Dolbhad wrote: But as another poster said, this will have a big effect in 20 years. People will have to retire, may not have a pension or paid off a mortgage and still need to rent and we are living for longer. And this puts pressure on the system to accomdate.
JDD wrote: » The sound insulation is brilliant too. It makes me feel that these houses are built to last (touch wood) and not just whacked up with crappy foundations and fire hazards all over the place, like what was built before the financial crisis
alwald wrote: » ...it's clear that the current government doesn't have a clear and solid strategy to tackle the housing crisis ....
hmmm wrote: » The blocks won't be built. Developers don't have the funding, and aren't going to take the chance when it's safer to build low density houses. The only people who will benefit are existing landlords and property owners as supply dries up.
alwald wrote: » You criticise other posts but you start yours with "I believe"...facts are facts and, putting aside sentences that start with "I believe", "I wish" and any other nonsense, it's clear that the current government doesn't have a clear and solid strategy to tackle the housing crisis as a whole both for first time buyers and renters. They did put in place a number of measures but those didn't include building or increasing the current supply which is what's required - especially around affordable housing.
JDD wrote: » So no, I don't think block-selling to a small amount of REITs for the purposes of providing supply to the rental market is a solution to anything.
Bluefoam wrote: I believe it's a strategic move from the government... Once they have met or closed in on demand, they will close the loopholes and we'll return to a more regular market.
