Roberto_gas wrote: » Rent is 18k per year ! Job is well secured... ! If markets correct 30-40% i wont need a mortgage ! sorry for disappointment !
milhous wrote: » Nvm the billions of euro invested in loan books that "vulture funds" have bought up. These will be offloaded as their investors start trying to take their money out. The trillions of euro taking out of the European economy and the same in America which will all come down to huge job loss. I'm not saying it won't recover eventually, but to think that the property prices here won't be effected too much here is ludacris. I'd be waiting to buy.
Roberto_gas wrote: » 36k so far
beauf wrote: » If you want to buy the type of properties that REIT invested into thats fine. You''ll have to choose your timing, some will get out quickly others will stay for the long term.
beauf wrote: » I assume all building activity will be the first to stop. This the supply of new property will also stop. So you've got supply, demand and finance all shrinking together. I can't see demand thats built up over a decade or more shrinking as fast the other two. I think the housing crisis will still remain. I don't think population will shrink as fast as it grew either.
Donald Trump wrote: » Don't forget to deduct the interest you would have paid (if you were getting a mortgage) For cash, deduct whatever interest you received. Would be small, especially after DIRT, but you have to count it too. And also allow for any wear and tear/repairs you saved yourself.
gimmeshelt1er wrote: » After a while passively observing i thought i would chime in on our current situation and give some a perspective. 10 days ago (Friday before last) we viewed a property that was listed for 395k, we both thought it was a tad bit over priced and would need some love so we made an offer of 330k at the end of the viewing to the estate agent. The estate agent gave us a look of disdain and replied with, i quote " that is too low in fairness, we wouldn't want to make the seller angry and ruin a deal ". Just 1 hour ago the same estate agent rang me and informed us that the seller would like to proceed with the 330k offer. We haven't told him no yet but we have a 175k down payment as we sold our property last August and are currently renting until August this year at 1300 pm month so we are in no rush.
SozBbz wrote: » Exactly. You can't compare this to 2008 because this is more akin to a natural disaster. in 2008, it was build on borrowed "wealth". People thought they were rich because they had apartments in Bulgaria and were building investment property in Leitrim. Very little equity, everything was based on prices going up, and people just assumed that prices would always go up. Yes, huge numbers of people have lost jobs but many of those jobs will come back once we've broken the back of this. It will probably get worse before it gets better, but it will get better. People wont suddenly have lost the desire to go out and socialise in bars and restaurants, take holidays, buy consumer goods. Speaking personally, I will definitely want to get out and support small businesses as soon as possible. What I see coming is inflation, the likes of which we won't have seen since before the crash, due to governments printing money to get us beyond this crisis. That could actually make nominal house prices go up, and decrease in real terms the value of the borrowing made by existing home owners. Too early to say if this would mean houses are actually more affordable in real terms , I'm not sure. Obviously there will be no volume of sales for the coming months - but I don't see why anyone would drop their prices to force a sale (outside of the 3 D's - Dead, Divorced, Desperate)... to be honest I'm not sure it would work anyway, as if the banks stop allowing people to draw down until things return to a more certain footing, then it would be moot anyway. We won't know anyway because the one thing that is certain is there won't be any significant number of sales going through to establish what values are looking like.
Pheonix10 wrote: » Is this in Dublin? Seems an outrageous bargain but fair play to you
Donald Trump wrote: » Professional investors are quicker to cut losses and get out. Even if they want to stay in the market long term, they can get out now if they think the market will go down in the short term, and get back in on the way back up again
listermint wrote: » Job activity i.e acquisitions will stop too. The notion the demand will remain as is has no basis in reality.
landofthetree wrote: » Inflation will cause long term unemployment btw.https://www.economicshelp.org/blog/3404/economics/does-inflation-cause-unemployment/
SozBbz wrote: » That article you linked actually says inflation can cause unemployment, not does cause unemployment. Also I don't think it applies because this would be inflation brought about by govt stimulus, not because of growth. Also the point re competitiveness is moot because Ireland are not uniquely affected, governments all over the world will be pouring money into their economies to restart them. Competitiveness is only impacted if Irelands rate of inflation was outstripping those around them.
beauf wrote: » They can't get out quickly due to the tenancy laws. Unless they sell with sitting tenants. Who will buy a property with sitting tenants who don't pay rent and can't be evicted. They may or may not decide they will lose less by staying in. Who said demand will stay the same. If you have 8 customers who want apples and 6 apples. if you have 3 customers and one apple. Maybe no customers and one apple. Demand and supply do not operated independently.
The Belly wrote: » Where is all this inflation going to come from?. People save not spend in a crisis the only money that is spent is on essentials. Japan is a classic example. Irish Times Aricle 2010 Savings by households more than tripled in 2009 compared to 2008, according to figures released by the Central Statistics Office (CSO) yesterday. Households were saving almost one-eighth of their total disposable income last year. The net savings rate of 12.3 per cent represented a massive increase on 2008, when just 3.9 per cent of disposable income was saved. In 2007, the figure was zero.
landofthetree wrote: » https://www.bbc.com/news/amp/business-52000219?__twitter_impression=true OECD say it will be worse than 2008. We are looking at the great depression II.
Mic 1972 wrote: » Needless to say, China will come out of it completely unaffected
Mic 1972 wrote: » ....Think about professional LLs who can no longer rent at profitable rates .....
beauf wrote: » What in your head is a profitable rent. Also what is a "professional LL"
The world economy is guaranteed to enter its worst recession since the financial crisis in the first half of this year with a recovery subsequent months likely but not assured, according to Bloomberg Economics. In a report released Monday, Chief Economist Tom Orlik said “a lot needs to go right” for global growth to rebound after the coronavirus leads to a severe first-half contraction. For now, they are predicting a 0.2% GDP decline for the whole year.
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