Hello Condor,
Your warning is valid, in as much as property shouldn’t be viewed as a way to make a quick buck. Also, young people gambling their life savings on a market they probably have little understanding of, is foolhardiness on their part, alright.
However, I still think that it’s a secure long-term bet. Even someone who bought to let in London in the late eighties, prior to prices falling 40% would still be making money now, and be securing their retirement, as long as they could find tenants for it. Then again, that’s a big if . . .
I haven’t seen any predictions of a 20% rise in the Dublin market myself, but they may well be out there. You are correct in saying that estate agent’s price predictions should be taken with a pinch of salt, however, even they are saying that prices in Dublin are likely to moderate over the next six months.
Over the longer term though, I’d still view it as a much safer bet than equities. So there’s probably little need to encourage an exodus from bricks and mortar.
Its interesting to see the shoe shine / bell boy story being raised again. I’ve seen various wealthy men being quoted in that story: last time it was Rockerfeller, and once I even heard Warren Buffet as the sage investor. That's the first time that I've heard Joe Kennedy cited though. Does anyone know the truth behind it ?