Property Market 2020

wassie wrote: »

Nonsense. Perth market peaked in 2014 and has declined or stagnated year on year.

One provincial, backwater city. The East coast, comprising most of the population, has not seen a slump. I'm from Perth, by the way. House pricees in Perth skyrocketed by 94% in three years, at one point. Think about that for a moment. It was caused by a massive boom in the mining industry and the development of the FIFO (Fly In, Fly Out) work culture where mines attracted labour by allowing them to commute by air from Perth to the mine sites. My brother in law was a paramedic and earned a lot of money flying up to a mine site, spending a couple weeks and then back for a week or more off, all for high wages. A friend of mine who was an excellent Chef with an award winning restaurant, complained to me his business was in trouble because he couldn't afford to hire staff as they were all off FIFOing and working at the mine sites for silly money. This happened all across Perth. Small businesses that relied on staff suffered or failed, even offices emptied of clerks and such who all flew off to the mines for unbeatable pay. Slightly built young women - not your typical vision of mine workers - were in on it, earning an absolute fortune driving tiny little trucks, like this lady:

The demand for labour from the mines was near insatiable, and with the FIFO culture, that meant living in Perth with it's amazing amenities was practical, and people were earning enough in a year or two to buy a house for cash.

All that created a huge demand for housing in Perth, which supply couldn't satisfy with people drawn to the honeypot from the eastern states. When the honey pot emptied, the demand went away and prices crashed. But overall, Australia has not seen a meaningful housing price slump since the 1960's:

There have been dips - but that's all you can call them, lasting a few years at most, not like the 12 year running 50% slump catastrophe Ireland's property market has been.

Empty_Space wrote: »

We keep hearing about supply. The reality is it is trivial.
People don't understand what a real downturn is as they have no memory of one.

Homes will be built based on how many are needed regardless of whether we are in a upward trend of growth that can never end.

Once things collapse, cost of building will normalize too. What will end is the never ending upward trend of housing. The seemingly sure investment.... The reality is those who have benefited for years will jump ship first.

A 50% drop in house prices isn't a downturn? I don't understand it even though I have lived through it? What planet are you on? You are right about jumping ship, can't wait. And wrong about supply...

fret_wimp2

Empty_Space wrote: »

We keep hearing about supply. The reality is it is trivial.
People don't understand what a real downturn is as they have no memory of one.

Homes will be built based on how many are needed regardless of whether we are in a upward trend of growth that can never end.

Once things collapse, cost of building will normalize too. What will end is the never ending upward trend of housing. The seemingly sure investment.... The reality is those who have benefited for years will jump ship first.

Theres the scenario where the skills simply disappear.
Cost of building didnt normalize the last time. People with building skills either moved to where they could get the most for thier skills or retrained.

Yes the country will limp along, people will stay in accommodation unsuited to their needs but the fact that they have to means houses they need are not available, by either being too expensive, not being built or sellers doubling down until things settle.

After 2007-2008, a lot of the tradesmen left for Oz and NZ. I looked for a German Plumber and rang his umber but he had presumably choofed off back to Germany with his Irish wife.

cnocbui wrote: »

A 50% drop in house prices isn't a downturn? I don't understand it even though I have lived through it? What planet are you on? You are right about jumping ship, can't wait. And wrong about supply...

Property.

This time will be a true depression.

Hubertj

Empty_Space wrote: »

We keep hearing about supply. The reality is it is trivial.
People don't understand what a real downturn is as they have no memory of one.

Homes will be built based on how many are needed regardless of whether we are in a upward trend of growth that can never end.

Once things collapse, cost of building will normalize too. What will end is the never ending upward trend of housing. The seemingly sure investment.... The reality is those who have benefited for years will jump ship first.

What costs do you think will collapse? Just prices? Building costs? Tradesmen salaries? Why do you day supply is trivial? If there aren’t enough apartments or houses for people to live in I would say supply is more than trivial.

Computer Science Student

Bass Reeves wrote: »

Are you looking at the mechanism of selling or buying

Buying. There are a couple of interesting properties listed over there but I would prefer the traditional format.

TheSheriff

Empty_Space wrote: »

I'm starting to see first signs of a crash.
People are realizing the real state of world economy.

I expect the more things get back to normal, the more Irish prices will reflect reality and begin to crash.

Another wave will delay and worsen impact.

Funny, I am seeing the opposite*

* I'm also not going to back up my statement with any real facts either.

wassie

cnocbui wrote: »

One provincial, backwater city. The East coast, comprising most of the population, has not seen a slump. I'm from Perth, by the way.

2 million people in the greater Perth region ain't exactly a backwater.

And that was my point - you painted Australia as a homogeneous market when clearly its not. Each city/state is really its own market and they do not always run in unison as you suggested.

Something akin to, albeit different to Dublin and the rest of the country.

TheSheriff

Starting to see alot more supply come on stream now in Dublin which is great to see. Not noticing any decrease in demand, which I think at our price point (400k-500k) is reflected in the CBs info that tax returns have been marginally impacted. Lockdown simply didn't impact the majority of those competing in this bracket.

Prices would be the same as pre Covid. No drastic increases. Harder to get viewings organised however. You can't just rock up out of nowhere for an open viewing anymore, which we regularly did.

We were at two viewings this morning and I can sadly report things are as competitive as ever. Strict time limits enforced for viewings. The next couple were waiting outside as we left.

Did someone say supply was trivial ??

Ozark707

TheSheriff wrote: »

Starting to see alot more supply come on stream now in Dublin

I have probably noticed about a 10% increase in supply since restrictions were lifted about 3 weeks ago. Are you seeing more than that?

TheSheriff wrote: »

Starting to see alot more supply come on stream now in Dublin which is great to see. Not noticing any decrease in demand, which I think at our price point (400k-500k) is reflected in the CBs info that tax returns have been marginally impacted. Lockdown simply didn't impact the majority of those competing in this bracket.

Prices would be the same as pre Covid. No drastic increases. Harder to get viewings organised however. You can't just rock up out of nowhere for an open viewing anymore, which we regularly did.

We were at two viewings this morning and I can sadly report things are as competitive as ever. Strict time limits enforced for viewings. The next couple were waiting outside as we left.

Did someone say supply was trivial ??

Don't let the herd fool you my friend.

Villa05

kippy wrote:

I wouldn't necessarily agree with your last piece of advice. It would strongly depend on the variables but using the same estate agent could work in your favour, especially in a competitive market.

Hubertj wrote:

Why would you advise against using the same agent? Is it because while they will try it maximise the price they get for you they will do same for property ya are purchasing?

1 in the art of negotiation, information is power. If the estate agent knows you have 580k and your looking for a 2 bed apartment, they would be confident of extracting more out of you

2. To an estate agent price is secondary the most important thing for them is to achieve a sale. Remember EA are either fixed fee or a small % of the sale. Getting a sale is far more important than getting an extra 20k for your property

I've only purchased once and in our searching you could see estate agent leading downsizers on a merry dance. There was even one incident where I bid on a house, another bid came in which was not communicated to me and the next report I got was when I saw it sale agreed on daft
The estate agent was the agent for both the property the downsizers were selling and buying

Achieving a sale is far more important than getting a little extra for the seller

Bass Reeves

Computer Science Student wrote: »

Buying. There are a couple of interesting properties listed over there but I would prefer the traditional format.

If you are buying online you need to set up an account and lodge the equivalent of the deposit before bidding. It's an auction so when the hammer falls you have go buy it no matter what issues you find after.

Expect in general for properties to go 20-50% above guide prices

Villa05

TheSheriff wrote:

We were at two viewings this morning and I can sadly report things are as competitive as ever. Strict time limits enforced for viewings. The next couple were waiting outside as we left.

What happened? you seemed confident of ending your search with a purchase a few weeks ago

neutral guy

Guys,do not forget that houses are built on site which cost money also.As said one ex big man from NAMA last year : The sites which was bought by builders was bought ant sky high prices and he wish them Best of Luck make money on them.The timber frame 3 beds could be built at 80K price without wardrobes in it,the question is how much will cost site for it.

TheSheriff

Villa05 wrote: »

What happened? you seemed confident of ending your search with a purchase a few weeks ago

Wil update on this properly when not on the phone... Basically radio silence from the sellers side the past month.

Vikings

A 4 bed semi D in Lucan with an asking for 450k just went sale agreed for 500k today, 50k above asking.

As someone with credit available to them and looking to trade up to a bigger home in the same area, hard to know what to make of that one!

Being an accidental LL for the past decade and had decided that as soon as current tenants will move out, I'll put the place up for sale. They will be out next week. I have been in 2 minds whether I should put place up for sale or not as wasn't sure what the market is like out there. There are 4 apartments for sales in the block. I called all the agents and 3 of the apartments got sale agreed in last 1/2 weeks 20K (10%) more than the asking price. This tells that there are buyers out there.

What would you guys suggest in this regard?

If you sell it, can you invest the money, less CGT, at a rate of return that's equivalent to the rent?

Do you have an urgent need and intended use for the proceeds?

What I would do would depend on the answers to the above.

Springy Turf

bbari wrote: »

Being an accidental LL for the past decade and had decided that as soon as current tenants will move out, I'll put the place up for sale. They will be out next week. I have been in 2 minds whether I should put place up for sale or not as wasn't sure what the market is like out there. There are 4 apartments for sales in the block. I called all the agents and 3 of the apartments got sale agreed in last 1/2 weeks 20K (10%) more than the asking price. This tells that there are buyers out there.

What would you guys suggest in this regard?

1.Don’t take Advice from randomers in the internet
2. Unless your apartment is just a small part of a diverse set of investments you should sell
3. I am a randomer on the internet. Don’t listen to me.

cnocbui wrote: »

If you sell it, can you invest the money, less CGT, at a rate of return that's equivalent to the rent?

Do you have an urgent need and intended use for the proceeds?

What I would do would depend on the answers to the above.

Thank you.

It will be sold less than what was purchased for - no CGT.
Net proceeds will be used to pay off PPR mortgage.
I am very clear in my head that I am selling it. Its the timing of it I'm concerned about.

bbari wrote: »

Being an accidental LL for the past decade and had decided that as soon as current tenants will move out, I'll put the place up for sale. They will be out next week. I have been in 2 minds whether I should put place up for sale or not as wasn't sure what the market is like out there. There are 4 apartments for sales in the block. I called all the agents and 3 of the apartments got sale agreed in last 1/2 weeks 20K (10%) more than the asking price. This tells that there are buyers out there.

What would you guys suggest in this regard?

Sell, there will be a small window now while prices hold.
Get rid of it now and you can peacefully watch as prices plummet.

bbari wrote: »

Being an accidental LL for the past decade and had decided that as soon as current tenants will move out, I'll put the place up for sale. They will be out next week. I have been in 2 minds whether I should put place up for sale or not as wasn't sure what the market is like out there. There are 4 apartments for sales in the block. I called all the agents and 3 of the apartments got sale agreed in last 1/2 weeks 20K (10%) more than the asking price. This tells that there are buyers out there.

What would you guys suggest in this regard?

Sell, there will be a small window now while prices hold.
Get rid of it now and you can peacefully watch as prices plummet.

ebayissues

Yup, market is very very competitive with so many thoughts going through buyers and sellers head including mine.

Supply & Demand are both big factors. If Demand for properties in desirable areas is greater than supply, people will pay a premium. This will be my bracket in 8/10yrs time.

If there is less supply of properties in cheaper areas and demand is high, properties will go sale agreed at premium over asking. I'm in this bracket now.

I'm certainly not confident the government will build enough houses in the future. Even if they did, it'll take three years for this to happen. Buy now or wait and piss away money on rent.

When I spoke with the 1st agent, he said its right time (small window) to sell and i thought he is just being a sale man. All the other three said the same.

neutral guy

ebayissues wrote: »

Buy now or wait and piss away money on rent.

Same boat.
I dont see the difference pay the rent or waste money paying bank interest.
I sure that prices will fall and all money I spent for rent I will get back paying smaller price for the house.
At the moment I see too much talks about house prices what shows that prices will fall.
PA use usual ways to create booming atmosphere on dying markets and media journalists getting regular hamburgers working on PA orders.
The funniest things that people never learn and continue believe to miracles same as 2007.

The Belly

ebayissues wrote: »

Yup, market is very very competitive with so many thoughts going through buyers and sellers head including mine.

Supply & Demand are both big factors. If Demand for properties in desirable areas is greater than supply, people will pay a premium. This will be my bracket in 8/10yrs time.

If there is less supply of properties in cheaper areas and demand is high, properties will go sale agreed at premium over asking. I'm in this bracket now.

I'm certainly not confident the government will build enough houses in the future. Even if they did, it'll take three years for this to happen. Buy now or wait and piss away money on rent.

The opposite could happen. If we are heading into a prolonged down turn worse then 10 years ago you could be in negative equity for the next 10-15 years. If it very bad there are few jobs outside the public sector that wont be affected. This my not be a problem for everyone but for some it will.

We are just coming out of lockdown and it will take another few months to get a complete picture of where the economy is going both here and abroad. As a open economy what happens abroad is every bit as important as what happens here.

I doubt property is going to shoot upwards by much in that time.

Waiting to see how things go over the next few months might be the right course of action for some.

neutral guy

There will be SUPPLY only and no demand when people will dont have jobs ! Talking about Supply and demand dont forget talk about buying force ! I perfectly remember 2009 when nobody did not build and nobody did not buy !