Irish Property Market chat II - *read mod note post #1 before posting*

Genuine question, I'm on a good wage and all together 22%(personal 15% and employer 7%) goes into my pension each month or over 1200 euro, in no way would I ever think that would be enough to cover current private rents during retirement, with this are they relying on a substantial decline in rents within a couple generations? What if pensions dont perform as well?

As an aside this scheme does help our "pension timebomb crisis" right?

New pension scheme needed to pay for 'generation rent' who will never own a home when they retire

I remember the smugness of people a decade ago talking the value they got renting and that renting was always better than buying.

I was one of them :)

Now over a decade later, I have reversed that opinion. Renting is 100% dead money imo. And its only going to get worse. And whats even adder is it is getting worse at a frightening rate. As landlords leave the market and people who had cushy below market rents for years it is accelerating.

We have passed the point of no return. People with controlled rents are in for some shock at what their new rent will be when their landlords sell up, and sell up they all will. You're only option will be REITs.

Loan to income (LTI) limits set the upper bound for what a couple can pay for a house. Due to building standards, its increasingly expensive to build new homes. Add in recent inflation in construction materials and land, and its getting more and more difficult to build new homes at a price they will actually be sold.

Construction is starting to slow down

You also have a likley SF in government looking over your shoulder too. You are the devil to their voters and will be punished. You may never see the inside of your own property again, l;et alone sell it at full market price, if they follow through with their stated plans.

He better get out with a trowel himself and build them :) Because they never going to get anywhere near whats even needed for Irish people. Never.

Australia introduced a defined contribution pension scheme 30 years ago. The basic system at present is that employers contribute 10% of salary to employees fund and is set to rise each year by 0.5% to 12% by 2025. According to wikipedia, "as of 30 September 2021, Australians have AUD$3.4 trillion in superannuation assets, making Australia the 4th largest holder of pension fund assets in the world".

We are very late to the party.....and the squeezed middle as usual will pay for it.

Hmm, I think that Ireland is not the kind of place where a right-leaning party would be able to flourish. The problem with right-leaning parties is that whilst some of them do indeed have a handle on the problems of globalism, they mingle these policies with social issues that are far too heavily influenced by old-style Catholic church teachings. No party is going to get far with that kind of thing.

I personally think that the "reaction" to the current mess will be the election of increasingly bizarre collections of economically illiterate lefties who will, as leftist often are, be played like a fiddle by the neo-liberal civil servants who sit behind the throne, so to speak.

Thus, I agree. the IMF will be here at some point once again.

That’s a great price if the location suits you. I’m not actively buying right now but have been going to open houses and so on in Galway city. Curious to see how the ODJ auction goes next week. We bought in 2020 and paid close to 350k for a 3 bed semi-d that needs a LOT of upgrading to get to the standard of a new build (1960s house). Got an estimate from an architect recently and it was eye watering. Hence going to viewings again.

I cant remember the last time i even heard of a winning bid for a house being below the asking price.

Hard to say what we’ll do but we probably wouldn’t let it out. Don’t think we’d get another mortgage. Though I haven’t really considered it until this moment.

Feels like there are no good options. We are seeing what we can scrape together and whether we could do a smaller job on the house. Problem is the location of the current house is perfect and our kids love it here so we’re very reluctant to move them.

Are the houses you’re looking at in the city? Just had a quick look on daft and I only see one development and it’s a good bit over €375k for a 4 bed.

‘Payment shock’ awaits US home buyers as mortgage rates climb

We have been actively looking/bidding for 18 months. Outbid on everything - one was a 2 bed ex-council house with no extension - went 70k over asking. Currently the highest bidder on a house in D7 (25k over asking). Our mortgate is with the local authority and engineer's report has stated need for substantial refurbishment so pretty sure they will not allow us to buy it. It's an absolute pain in the arse at the moment and very stressful. Waiting in a rental house for the axe to drop.

"Sharp slowdown in housing appreciation" - you have to admire the spin they put on it. Lipstick on a dying pig.

This is even before rate rises have happened. When they start to happen and the manufactured recession kicks off, it could get ugly.