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

07-10-2022 06:22AM

https://www.boards.ie/discussion/comment/119711148#Comment_119711148

The banks argued, with justification, that difficulty in repossessing a property in Ireland compared to other countries meant that there are higher risks associated with lending here, and therefore higher rates are necessary to offset the losses incurred by not being able to recover the asset if the borrower stops paying.

pinksoir · 07-10-2022 07:11AM

https://www.boards.ie/discussion/comment/119711195#Comment_119711195

They offered 2.4% 5 year fixed. Along with Avant money they also offer longer term fixed (think they do 30 years, definitely 20) which was a shake up at the time.

pinksoir · 07-10-2022 07:15AM

https://www.boards.ie/discussion/comment/119710327#Comment_119710327

https://www.ft.com/content/c11421ff-5f85-48d4-b93d-1b6b0dc48185

Yes. The rate rises are a massive massive positive for banks as shown in this FT piece.

flexcon · 07-10-2022 07:16AM

https://www.boards.ie/discussion/comment/119708015#Comment_119708015

The figures are the monthly payments on a 3 bed house. So he is finding it hard to justify the extra sudden 500 a month on his mortgage compared to what was expected for the past 2 years. house keeps getting delayed over and over.

07-10-2022 07:28AM

https://www.boards.ie/discussion/comment/119711618#Comment_119711618

Why are you linking a page behind a paywall?

pinksoir · 07-10-2022 07:35AM

https://www.boards.ie/discussion/comment/119711637#Comment_119711637

Can you access it from here?: https://twitter.com/ftbrussels/status/1559389782228213763

PommieBast · 07-10-2022 10:12AM

https://www.boards.ie/discussion/comment/119711637#Comment_119711637

It seems a good portion of the people in this thread have FT subscriptions, so there isn't the aversion to them like there is in other forums.

07-10-2022 11:14AM

It would be great if funds targeted places like this -https://www.daft.ie/for-sale/terraced-house-14-liffey-street-inchicore-dublin-8/4263029

Do some good while making a profit.

Mic 1972 · 07-10-2022 11:17AM

https://www.boards.ie/discussion/comment/119709450#Comment_119709450

Italy

house prices going up for the first time in years

Mic 1972 · 07-10-2022 12:25PM

https://www.boards.ie/discussion/comment/119702514#Comment_119702514

I rented my apartment through a company called Relocity, they help connect landlords with people who come from abroad and already have a job, usually a highly paid one. Relocity gets paid by the tenants employer, not by the landlord.

I have been very happy so far with the tenants I got. Only requirement, your property must be located in a decent neighborhood

drogon. · 07-10-2022 01:00PM

https://www.boards.ie/discussion/comment/119712511#Comment_119712511

Any reliable sources for this as I couldn’t find any.

Considering Italy would certainly feel interest hikes painful due to their Debt to GDP ration.

Mic 1972 · 07-10-2022 01:03PM

https://www.boards.ie/discussion/comment/119713025#Comment_119713025

I have first hand experience because I own property in Italy that i've been considering selling for the last few years, but prices were stagnant for a long time. They have picked up some steam from beginning of the year

https://tradingeconomics.com/italy/housing-index

Mic 1972 · 07-10-2022 01:16PM

Looks like Spain and France are still seeing price increases too

SPAIN https://tradingeconomics.com/spain/housing-index

FRANCE: https://tradingeconomics.com/france/housing-index

IRELAND: https://tradingeconomics.com/ireland/housing-index

07-10-2022 01:36PM

https://www.boards.ie/discussion/comment/119713046#Comment_119713046

Those figures are up to July? We are in October now....

maninasia · 07-10-2022 01:57PM

https://www.boards.ie/discussion/comment/119712801#Comment_119712801

Yep, I can see that being a safer bet.

maninasia · 07-10-2022 01:58PM

If eurozone interest rates continue going up no way you will see big price increases.

dontmindme · 07-10-2022 06:58PM

https://www.boards.ie/discussion/comment/119711621#Comment_119711621

Ah yes, I didn't read what you wrote correctly but still the point stands - comparing the new repayment amounts to what your friend is currently paying in rent? Also if that loan offer was with Finance Ireland, there are still many other lenders with lower interest rates.

dontmindme · 07-10-2022 07:15PM

https://www.boards.ie/discussion/comment/119712501#Comment_119712501

That's Ballyfermot, Dublin 10 all day no?

07-10-2022 08:09PM

https://www.boards.ie/discussion/comment/119714820#Comment_119714820

Absolutely. The only part of Ballyfermot that might be gentrified though IMO. It's a 10 minute walk to the Memorial Gardens in Island Bridge, not much further to Kilmainham.

IWW2900 · 07-10-2022 11:10PM

Friend of mine got house valued at 580k a few months ago. But was told it could achieve over 650k if things two parties really wanted it.

They finally decided to put up for sale at 550k to attract bidding war. No bids yet.

Well and truly turning.

IWW2900 · 07-10-2022 11:14PM

https://www.boards.ie/discussion/comment/119715963#Comment_119715963

I predict after ECB raise rates again end of this month, will be when the general population really begins to become aware of levels of property price drops we are seeing\facing.

jimmybobbyschweiz · 08-10-2022 08:33AM

Meta/Facebook has cancelled internships in London due to start in 2023 as part of cost cutting measures - interns being cut is desperate times. This forms part of its broader hiring freeze policy implemented. Definitely we will see significant cooling for the new build rentals looking for €2k+ per month (which is basically all of the new builds) as the tech sector goes through a recalibration process.

Once the rental bubble starts deflating I think it will move quite quickly compared to the home buying/selling market and we will see, sooner rather than later, new mortgages and rents move closer together in terms of the monthly repayments with rents probably being lower than the cost of paying a new mortgage in the not too distant future.

Jmc25 · 08-10-2022 09:46AM

https://www.boards.ie/discussion/comment/119715963#Comment_119715963

I keep on at this point, but whatever about the drops in asking prices which has already been reported, the drops in sale agreed prices between spring and now must surely be larger in order to warrant a drop in asking in the first place.

Very very few properties went for less than 20k over asking in spring so any drops in average asking prices wouldn't reflect the additional unwritten 20 to 30 over asking that EAs were telling vendors to expect.

I predict that the property price register data will show drops by the end of the year and by next summer we'll be talking about 5 - 10 per cent.

MacronvFrugals · 08-10-2022 12:58PM

The prime D2 market isn't doing great, noticed while out last night theres lots of "to lets".

Ozark707 · 08-10-2022 02:13PM

https://www.boards.ie/discussion/comment/119715963#Comment_119715963

You might have expected a bid of 10% below asking if it is on the market for a while. Interesting times ahead...

jimmybobbyschweiz · 08-10-2022 06:25PM

https://www.boards.ie/discussion/comment/119717307#Comment_119717307

I think I read that no commercial property transaction in D2 happened in Q1 of this year. Commercial property has been on the decline for over two years but I think it has a lot more road to run as companies start to reconsider their leases when the time comes as returning en masses to the office never happened. It seems to be 3:2/2:3 as standard which is effectively 40-60% less office space required than before.

I've said it many times but Green REIT exiting the market in 2019 was definitely the top of the market and commercial property, like the residential rental market, was in a huge bubble - we all know what happens with bubbles. Residential rental market next.

drogon. · 08-10-2022 07:38PM

Curious, what are people's take on this situation ?

https://twitter.com/saloreilly/status/1578297676697063424?s=46&t=dF1O1dBqlDTdChU6S_wspg

Timing belt · 08-10-2022 08:14PM

https://www.boards.ie/discussion/comment/119718877#Comment_119718877

It’s just the property moving legal entity…it’s not a sale on the open market. PPR is full of anomalies like this…whether it is a property being sold for less than market value when moving between family members or multiple properties being sold and the sale price for the lot being recorded on only one property.

Umaro · 08-10-2022 09:43PM

My guess would be that the house has a long-term lease with the council and that comes packaged into the purchase price.

Add up 30 years of guaranteed rent (which is inflation-linked)... plus the value of the house... plus the fact you don't have to do any maintenance... plus the council has a responsibility to hand it back in A+ condition at the end of the lease... suddenly you start to get close to that €875k present value. Also the high likelihood that when those 30 years are up, a new 30 year lease will be signed because we still haven't built enough houses.

It'd be funny if it wasn't for the fact that it's our taxes being hoovered up by investment funds. 🤷

drogon. · 09-10-2022 07:57AM

https://www.boards.ie/discussion/comment/119719017#Comment_119719017

Odd thing is, there are no other properties sold for that date around that area.

Also ability to register multiple properties in one transaction doesn’t seem sensible, considering the purpose of a price register is to see what a single property sold for.

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

Comments

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