Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

coronavirus and the property effect

Options
24567…10

Comments

  • Options
    #32
    fliball123
    Registered Users Posts: 7,445 ✭✭✭fliball123


    ted1 wrote: »
    If you are taking a hair cut, the property you are buying has taking one too. ;)

    some people have more than one property?


  • Options
    #33
    landofthetree
    Registered Users Posts: 2,303 ✭✭✭landofthetree


    Heres Johnny wrote: »
    As a property owner I hope prices do not fall but if they do any house I might want to trade up to will surely fall as well so cost to change will not widen......although I am not in the market for trading up or down at the moment ..........so I, possibly selfishly, hope they dont fall as all my siblings and close friends own property and nobody is in the market I know.

    Anyone else I am not close enough with to wish a fall so they can buy.

    But as a property buyer after the last crash in 08 (I bought in 2010) it gives a great opportunity for those to buy if there is a crash but there will probably be a credit crunch again then so catch 22

    Only way for property prices to fall is in a reduction in demand, either by many either dying or emigrating and taking pressure off and letting supply catch up with or exceed demand

    On the flipside, housing output may contract as a result of this virus and crisis which will put upward pressure on prices

    One might cancel the other out, who knows?

    My suggestion is no, property prices will not fall significantly unless there is a massive and prolonged recession which I doubt, possibly a bad year for economy in 2020 but expect a bounce back very soon

    Good post. Hopefully prices fall in the medium term. But hopefully they will fall because the issue of affordability and supply are addressed and not a recession.


  • Options
    #34
    LuckyLloyd
    Registered Users Posts: 36,156 ✭✭✭✭LuckyLloyd


    I’m a buyer, we have obviously stopped looking over the past two weeks. The cash we hold may be needed for more important things.

    As much as it is tempting to imagine price falls and everything else staying the same, nobody (bar very specific economic areas) should assume that they will hold onto their jobs or the banks will lend what you planned to borrow when / if this virus comes under control.

    We are in completely uncertain waters.


  • Options
    #35
    TravelTiger
    Banned (with Prison Access) Posts: 18 ✭TravelTiger


    So if I'm reading some of the replies here right (and they look like well thought out ones too); there's going to be no 2008 style fall in prices?

    A global recession (and it's a thousand percent coming) can't even get the crazily inflated Irish housing market down :confused:


  • Options
    #36
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    beggars_bush wrote: »
    If you are gone sale agreed, what would you suggest?

    If your figures are all lined up and your happy go ahead.


  • Advertisement
  • Options
    #37
    wirelessdude01
    Registered Users Posts: 8,418 ✭✭✭wirelessdude01


    beggars_bush wrote: »
    If you are gone sale agreed, what would you suggest?

    We are waiting to drawdown. Solicitors and bank not returning emails over the past 3 days has kinda spooked us as to what is coming. We fully expect the bank to stall everything now to see what happens worldwide and locally within Ireland. If and when the lockdown in Ireland it put in place then all bets are off.


  • Options
    #38
    witnessmenow
    Registered Users Posts: 7,016 ✭✭✭witnessmenow


    wirelessdude01 wrote: »
    We are waiting to drawdown. Solicitors and bank not returning emails over the past 3 days has kinda spooked us as to what is coming. We fully expect the bank to stall everything now to see what happens worldwide and locally within Ireland. If and when the lockdown in Ireland it put in place then all bets are off.

    Ring your solicitor. Emails are much easier to out on a long finger than a phone call. Tell the secretary it's urgent if they can't out you true straight away. 3 days waiting for a response is pretty poor.

    Bank have made you a loan offer, your house evaluation is valid for a certain period, once neither of those things expire and your circumstances don't change they can't pull the offer.


  • Options
    #39
    El Gato De Negocios
    Registered Users Posts: 6,690 ✭✭✭El Gato De Negocios


    We are sale agreed on our own but havnt found anywhere. Starting to feel a bit twitchy about the whole thing. The consequences are going to get an awful lot worse before it gets better. There will be substantial job losses I think in the hospitality sector, I know someone very senior in a large hotel group and they have had huge drops in revenue. Lower end staff like kitchen porters have been let go. Manufacturing will take a hit if the supply chain drys up. Worrying times.


  • Options
    #40
    Ohmeha
    Registered Users Posts: 1,915 ✭✭✭Ohmeha


    After about 6 years of hard saving I finally just hit my deposit/expenses target this month and was planning to go for mortgage approval in May once I got a few personal things out of the way during next 2 months

    I'll be holding off and I'm sure the banks will be mostly holding off lending too. The strategic restriction of property supply was designed for scenarios such as economic shock like this so in the short-term I'd expect price stagnation or minor one digit percentage drops. If this pandemic is not going away come the Autumn then all bets are off because it will be beyond a catastrophic global economic crisis by then


  • Options
    #41
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    TravelTiger wrote: »
    So if I'm reading some of the replies here right (and they look like well thought out ones too); there's going to be no 2008 style fall in prices?

    A global recession (and it's a thousand percent coming) can't even get the crazily inflated Irish housing market down :confused:

    I suggested earlier they won't crash but I, like everyone else, haven't a clue really. I understand the factors involved though. A virus doesn't affect house prices directly, supply and demand do. How the virus affects people's decisions on those 2 things is key.


  • Advertisement
  • Options
    #42
    ParkRunner
    Registered Users Posts: 3,010 ✭✭✭ParkRunner


    I’m just about to close a sale in Dublin for a 3 bed. I wouldn’t have been surprised if the buyer stalled or pulled out but they’re going ahead with it thankfully. Hoping to buy myself in a few months so it’ll be interesting to see the impact this all has. The market has been slow the last few months anyway so I don’t see much change in the short term.


  • Options
    #43
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    Essentially the beauty of Fiat money is that in theory there is unlimited liquidity in the system. Paper money that everyone spends their days fighting for is essentially worthless and in reality only toilet paper except everyone thinks it has value. Likely if everything shuts down the central banks will offer unlimited funds to banks to help mortgages/business working capital etc and then if it gets bad it will be 'written off' ie helicopter money.
    I signed contracts yesterday and paid 10 percent against solicitors advice and a property pro I know. I'm very comfortable with the decision simply as I'm looking5-10- 20 years down the road. All this helicopter money will just create a spurt of inflation at some point depreciating the mortgage over time.


  • Options
    #44
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    wirelessdude01 wrote: »
    We are waiting to drawdown. Solicitors and bank not returning emails over the past 3 days has kinda spooked us as to what is coming. We fully expect the bank to stall everything now to see what happens worldwide and locally within Ireland. If and when the lockdown in Ireland it put in place then all bets are off.

    So you usually get instant response from them? Even normally it's can take few days even a couple of weeks to get response.

    Would you not expect some delay as people and businesses set themselves up to deal with how to operate under these conditions.

    I would expect after a short delay business will proceed as normal unless you are in an industry directly effected.


  • Options
    #45
    wirelessdude01
    Registered Users Posts: 8,418 ✭✭✭wirelessdude01


    beauf wrote: »
    So you usually get instant response from them? Even normally it's can take few days even a couple of weeks to get response.

    Would you not expect some delay as people and businesses set themselves up to deal with how to operate under these conditions.

    I would expect after a short delay business will proceed as normal unless you are in an industry directly effected.

    Yes, generally good for responses. This isn't how they have been conducting business so far so it makes me wonder.

    On a separate note, I've heard something else about the bank's but won't be posting it online unless it becomes more public knowledge


  • Options
    #46
    stinger31
    Banned (with Prison Access) Posts: 72 ✭✭stinger31


    wirelessdude01 wrote: »
    Yes, generally good for responses. This isn't how they have been conducting business so far so it makes me wonder.

    On a separate note, I've heard something else about the bank's but won't be posting it online unless it becomes more public knowledge

    Ah you cant do that hahaha..... is it about all the people who are cleaning out their accounts to hold cash under the mattress? I've heard this a lot today already


  • Options
    #47
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    wirelessdude01 wrote: »
    Yes, generally good for responses. This isn't how they have been conducting business so far so it makes me wonder.

    ...

    Forums have endless threads about poor communication from solicitors and banks for years.


  • Options
    #48
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    stinger31 wrote: »
    Ah you cant do that hahaha..... is it about all the people who are cleaning out their accounts to hold cash under the mattress? I've heard this a lot today already

    more likely he said she said


  • Options
    #49
    ittakestwo
    Registered Users Posts: 1,646 ✭✭✭ittakestwo


    Statutory Ape wrote: »
    We are sale agreed on our own but havnt found anywhere. Starting to feel a bit twitchy about the whole thing. The consequences are going to get an awful lot worse before it gets better. There will be substantial job losses I think in the hospitality sector, I know someone very senior in a large hotel group and they have had huge drops in revenue. Lower end staff like kitchen porters have been let go. Manufacturing will take a hit if the supply chain drys up. Worrying times.

    If I was sale agreed on my place I would be praying the buyer does not pull out. I might expect the buyer even to try and negotiate a lower price if we had gone sale agreed over 2 weeks ago given what has happened since then.


  • Options
    #50
    El Gato De Negocios
    Registered Users Posts: 6,690 ✭✭✭El Gato De Negocios


    ittakestwo wrote: »
    If I was sale agreed on my place I would be praying the buyer does not pull out. I might expect the buyer even to try and negotiate a lower price if we had gone sale agreed over 2 weeks ago given what has happened since then.

    I'm not overly concerned tbh, it's at the lower end of the scale price wise so we wouldn't have much hassle finding someone else, there were 4 separate parties involved in the bidding process.


  • Options
    #51
    Slydice
    Registered Users Posts: 10,501 ✭✭✭✭Slydice


    Statement: Minister Murphy on Tenants impacted by Covid-19 crisis
    Published on Friday, 13 Mar 2020
    https://www.housing.gov.ie/housing/private-rented-housing/statement-minister-murphy-tenants-impacted-covid-19-crisis

    Minister Murphy and the Department of Housing, Planning and Local Government have been focused on ensuring critical service areas under the department’s remit including water, homeless services and fire and emergency services are prepared to deal with the Covid-19 crisis.

    “The minister understands that some tenants living in rental accommodation may be concerned about their ability to pay rent in the coming weeks if their income is reduced. A range of income supports are available from the Department of Employment Affairs and Social Protection, and the minister would ask that landlords demonstrate forebearance.

    “The minister is working with Government Departments, industry stakeholders and regulatory bodies to identify further actions that can be taken to protect tenants who may be impacted either through a requirement for self-isolation, a confirmed medical diagnosis or a reduction in working hours.”


  • Advertisement
  • Options
    #52
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    Slydice wrote: »
    Statement: Minister Murphy on Tenants impacted by Covid-19 crisis
    Published on Friday, 13 Mar 2020
    https://www.housing.gov.ie/housing/private-rented-housing/statement-minister-murphy-tenants-impacted-covid-19-crisis

    This is a classic case of the chickens coming home to roost. Landlords who were trapped under the rent cap for years, now have an opportunity to get rid of tenants. It is hard to see how any landlord trapped with an artificially low rent can now be asked to show forbearance. Had landlords been treated fairly and equitably up to now there might be some logic to the Minister's request.


  • Options
    #53
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    Slydice wrote: »
    Statement: Minister Murphy on Tenants impacted by Covid-19 crisis
    Published on Friday, 13 Mar 2020
    https://www.housing.gov.ie/housing/private-rented-housing/statement-minister-murphy-tenants-impacted-covid-19-crisis

    where has there ever been restraint from thus government with regards to landlords ?


  • Options
    #54
    LuckyLloyd
    Registered Users Posts: 36,156 ✭✭✭✭LuckyLloyd


    Claw Hammer wrote: »
    This is a classic case of the chickens coming home to roost. Landlords who were trapped under the rent cap for years, now have an opportunity to get rid of tenants. It is hard to see how any landlord trapped with an artificially low rent can now be asked to show forbearance. Had landlords been treated fairly and equitably up to now there might be some logic to the Minister's request.

    Are you reading the same text as me? The government will suspend rent / evictions for those affected by the virus. It's coming. Everyone has to take a hit. This is about a collective national effort.


  • Options
    #55
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    LuckyLloyd wrote: »
    Are you reading the same text as me? The government will suspend rent / evictions for those affected by the virus. It's coming. Everyone has to take a hit. This is about a collective national effort.

    The Dail would have to be recalled to debate legislation for that to happen. It won't. What will simply happen is that sittings of the RTB will be stopped and applications to the courts for possession orders will be stopped. Rent Allowance or something similar will be introduced to enable tenants pay their rent. There is no question of landlords simply having their rent confiscated nor being allowed to terminate the tenancy is of nonpayers.


  • Options
    #56
    ebayissues
    Registered Users Posts: 446 ✭✭ebayissues


    What will happen to those in th hospitality sector who can;t pay rent? The brazillians, mexicans working in resturants, hotels, the delivroo drivers? Will the government assist them? Airline staff as well are in this bracket.



    If lockdown is increased, construction will stop, will workers get paid?




    Those working at the forefront in financial markets, if investors request funds due to whatsoever reasons, there will be redemptions which will mean liquidating positions especially for the L/S equity funds.


    The next 6 months will be interesting. If the effects of CV19 is contained, we can see a tempoaray slow, if not God help us all.


    Apologies for spelling issues.... keyboard sucks


  • Options
    #57
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    You don't have to guess what will happen you can see what happened in China.

    https://www.google.com/amp/s/www.cnbc.com/amp/2020/03/13/coronavirus-batters-china-restaurants-as-millions-struggle-to-return-to-work.html


  • Options
    #58
    Ardillaun
    Registered Users Posts: 2,542 ✭✭✭Ardillaun


    I see Seattle has temporaily banned evictions:

    https://komonews.com/news/coronavirus/seattle-to-issue-emergency-moratorium-on-evictions-due-to-covid-19


  • Options
    #59
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    LuckyLloyd wrote: »
    Are you reading the same text as me? The government will suspend rent / evictions for those affected by the virus. It's coming. Everyone has to take a hit. This is about a collective national effort.

    Considering it takes a year or two or longer already I can't see it will make much difference.

    Be interesting if they suspend buy to let mortgages or indeed other business loans where income shrinks.


  • Options
    #60
    stinger31
    Banned (with Prison Access) Posts: 72 ✭✭stinger31


    if i could like that comment a 100 times i would,......forebearance ......get real


  • Advertisement
  • Options
    #61
    OttoPilot
    Registered Users Posts: 540 ✭✭✭OttoPilot


    Claw Hammer wrote: »
    The Dail would have to be recalled to debate legislation for that to happen. It won't. What will simply happen is that sittings of the RTB will be stopped and applications to the courts for possession orders will be stopped. Rent Allowance or something similar will be introduced to enable tenants pay their rent. There is no question of landlords simply having their rent confiscated nor being allowed to terminate the tenancy is of nonpayers.

    Many people said that about Irish banks in 2008. How many evictions did we see in the end? One? Landlords won't have a leg to stand on because as you have noted the system wont help them. It will grind to a halt.


Advertisement