combat14 wrote: » Angela Merkel today warning about biggest european recession since WW2 and talk of all the hotels, bars, restaurants, cinemas, hairdressers etc. putting up their prices here doesnt bode well either when in many cases they are over priced already ......
Ush1 wrote: » Friend of mine just went sale agreed. Asking was 460k, his first bid was 425k and they accepted.
TheSheriff wrote: » Great for your friend! Can you provide an info on general area of the house? Condition etc (If you know it...)
jrosen wrote: » We found the same when we were looking. Spent a long time really hoping to buy an older house, excited at the prospect of a renovation but in the end we couldn't afford too. Our budget was high but the properties we looked at were all pushing 425k and needed insulation, new flooring, kitchen, bathrooms, doors, windows.
JimmyVik wrote: » My old man said to me. "Back in my day we had no floor or paint or grass when we bought houses. People lived in them for years as we whipped them into shape. Nowadays people want everything on day. Notions." Id like a walk in with nothing to do myself.
The_Conductor wrote: » There is a cool 120 billion sitting on deposit in Irish financial institutions. Its not earning any interest (and in some cases, is actually loosing nominal value when fees are factored into the equation). People are looking for other places to drop their cash. There is still a constraint in the housing sector here- it might not be as tight as it once was- but it is still constrained. People are looking for other places to put their money- and there are lots of people out there with plenty of cold hard cash.
19233974 wrote: » that would be incredibly frustrating for people who would like to buy a new build apt as opposed to the frankly sh*te apartment stock thats for sale in dublin. What was it? 93% of new build apartments owned by reits in the last 3 year, bounced around international investors while irish citizens are stuck in a perpetual rental trap. they really need to sort that out (and i understand they are required to an extent to bring new stock to the market, but there has to be some balance)
c.p.w.g.w wrote: » Just doing my usual looking around on daft/myhome...There is a serious amount of houses listed for high enough prices that need a whole lot of work... My sisters estate, has a house got sale agreed for €185,000...genuinely reckon it needs €25,000 minimum and that's not including fixing the floor plan it has 2 rooms on the ground-floor without windows or skylight... My mates just closed a purchase for €290,000 ish...the amount of work needed is crazy, cracked underfloor pipping, roofing issues...and the location is a very busy road and the main road into the nearest city/town is always busy...All of these were known issues too... Then i saw a house in similar condition to my mates, a bit bigger, more land and same distance for same town/city with less traffic problems for €215,000... Its all very strange altogether...all those are in Munster area
JimmyVik wrote: » If any do sell them it will probably be to another big international investor. They are unlikely to sell individual apartments.
19233974 wrote: » It will be interesting to see if the big international investors actually start to sell off some of the rental stock. There is so many of those apartments on daft, together with tons of student accommodation. Would be interesting to see how long they would sit on them as they have done previously, but a different prospect now economically post - covid
GocRh wrote: » https://www.irishtimes.com/business/personal-finance/housing-who-are-the-cash-buyers-and-how-come-there-s-so-many-of-them-1.3224402
If they only accounted for about a fifth of the market or so, as was typically the case, it may not be so much of an issue, but figures show that more than five in every 10 purchases in the residential property market is by a cash buyer.
Springy Turf wrote: » A 1300+ mortgage is a reality for most people buying in Dublin.
GocRh wrote: » Did a quick search, back in 2016 according to Savills cash buyers accounted for 10% of FTBs (link below). I'd imagine this number to be now much lower for apartments in Dublin priced around 350k (which was the segment I was referring to). Volume of transactions have also gone up recently and so did mortgage approval rates, which should bring the overall cash buyer numbers down.https://www.irishtimes.com/business/personal-finance/housing-who-are-the-cash-buyers-and-how-come-there-s-so-many-of-them-1.3224402
Cuddlesworth wrote: » I think property prices rising fast during a global recession sounds very like us, this will be a interesting year for the residential property market. Commercial is gone though, it was on its legs towards the end of last year before any of this started.
cnocbui wrote: » Cash buyers may or may not be a small fraction of FTBs, but they are absolutely not a small fraction of buyers in total. They can typically account for 50% of sales of residential properties and it's been as high as 60%.
GocRh wrote: » I don't have any figures to back this up, but I'd reckon a not insignificant cohort of FTBs buying apartments under 350k will be couples, earning each around 40-50k (slightly over industrial earning average). I suppose a few, even if not directly employed in tourism or hospitality, may be on industries that are not doing that great. Factoring all that in, I do think that once the pent up demand dries up, apartments in this price range will be difficult to sell. Yes, cash buyers can be FTBs, but I think that we can all agree that's a tiny proportion of FTBs Most FTBs struggle to even get a deposit when paying rent.
lastusername wrote: » I don't see the connection between FTBs and those more likely to be in more Covid-affected industries though, sure anyone can be working in tourism or hospitality, etc. Also, cash buyers can be first-time buyers too
lastusername wrote: » Yep, I reckon so and certain areas will always command a premium or be higher-priced. Not sure on apartment prices but I reckon they will stay around the same. I think a lot of people out there will have realised they want a house vs an apartment due to all the time spent at home the last while, so it may just be another factor leading to higher house prices over the next couple of years at least. I don't see the connection between FTBs and those more likely to be in more Covid-affected industries though, sure anyone can be working in tourism or hospitality, etc. Also, cash buyers can be first-time buyers too
OwlsZat wrote: » The central bank report linked a few pages back spelt out how we are more exposed than 90% of the EU countries to the impending commercial property collapse. David McW was sounding the alarm on this long ago when "smart money" was leaving the market and commercial rents were 3X that of Barcelona. We love boom-bust economics in Ireland.
GocRh wrote: » Also worth considering the price range of the properties that are seeing significant bids over asking - perhaps properties on the higher end (i.e. over 450k) will likely be the least affected by COVID as bidders are higher earners and not as likely to have been financially affected by COVID?
GocRh wrote: » Anyone following apartment prices in Dublin? I'd reckon apartments under 350k would see some stagnation as it's more likely that buyers would be first time buyers (not a cash buyer), and more likely to be employed in industries that were impacted by COVID?
Villa05 wrote: » You do know that all these elephants in the room that we are throwing a carpet over will at some point wake up (at the same time) and trample us. We should be sorting out these issues in the good times, leaving them to when the bad times come again will destroy us all.
