Buy to Let Investors are Suffering Triple Whammy! Article www.independent.ie

Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

I think we are forgetting about #4:

Government giving away free/subsidised houses to the 'less well off'.

A triple whammy AND a punch from the referee.
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

a Triple Whammy And A Punch From The Referee.
:)

The premise of the headline seems flawed though - was buy to let EVER a "sure-fire" bet?
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

I think we are forgetting about #4:

Government giving away free/subsidised houses to the 'less well off'.

A triple whammy AND a punch from the referee.

But if the referree wasn't paying rent relief to so many 'less well off' in the first place where would many landlords get their tenants from?
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

Don't believe everything you read in the Indo.

Brendan
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

Isn't this a case of supply and demand, too many houses and not enough tennants? Interest rates and falling property prices just add to it
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

:)

The premise of the headline seems flawed though - was buy to let EVER a "sure-fire" bet?

property prices have a long history of beating inflation over any 5-10 year period
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

property prices have a long history of beating inflation over any 5-10 year period
I'm sure the Japanese would love to hear that little mantra of yours. :rolleyes:
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

I'm sure the Japanese would love to hear that little mantra of yours. :rolleyes:

we are talking about Ireland and the UK here not Japan
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

we are talking about Ireland and the UK here not Japan
Okay, how about UK property prices 1989-1999?
[broken link removed]
(See Long Term Real House Price Trend chart on Page 3).

Note that the long-term appreciation trend that the Nationwide use is 2.7%.

Average CPI over those years was 3.8%.


So even if houses had stuck to their 1989 price and increased by historical trend (2.7%) they would not have beaten inflation (3.8%).

Next random statistic you care to make up?
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

Okay, how about UK property prices 1989-1999?
[broken link removed]
(See Long Term Real House Price Trend chart on Page 3).

Note that the long-term appreciation trend that the Nationwide use is 2.7%.

Average CPI over those years was 3.8%.


So even if houses had stuck to their 1989 price and increased by historical trend (2.7%) they would not have beaten inflation (3.8%).

Next random statistic you care to make up?
check your charts again and you will find exponential growth the following years thus property stays ahead of inflation,always remember that property is a long term investment
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

check your charts again and you will find exponential growth the following years thus property stays ahead of inflation,always remember that property is a long term investment

You said over 5-10 years, not after 10 years of a lag!:confused:

The trick is wait until the Irish market spends 10 years falling and then buy, hoping to catch the exponential growth.
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

property prices have a long history of beating inflation over any 5-10 year period
Now I'm not stupid, I know Irish house prices are (were) higher than 10, 20, 30 years ago but I can't find any statistics to proove that they beat inflation. Do you have access to a house price index which charts Irish house prices over the last, 50 years, say? Here's the [broken link removed]statistics.

To my uneducated eyes I would suspect that Irish property prices didn't beat inflation in the 20 year period between 1971 and 1991. I'd certainly put my hands up and say I'm wrong if you could just point me in the direction those house prices stats.
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

To my uneducated eyes I would suspect that Irish property prices didn't beat inflation in the 20 year period between 1971 and 1991.

There are problems with the statistics, many years ago my father spend a weeks trying to work reverse out house price vs inflation for CGT, year by year. In end he was on the CSO and worked his way up the chain to one of the actuarys who compiled the figures. I don't remember the exact details, but the actuary could not explain the differences, except to assume they (the CSO) had changed (messed around) with how they calculated inflation over the years.
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

the actuary could not explain the differences, except to assume they (the CSO) had changed (messed around) with how they calculated inflation over the years.
So he had no evidence but concluded that they had messed up? Hmm.....
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

There are problems with the statistics, many years ago my father spend a weeks trying to work reverse out house price vs inflation for CGT, year by year. In end he was on the CSO and worked his way up the chain to one of the actuarys who compiled the figures. I don't remember the exact details, but the actuary could not explain the differences, except to assume they (the CSO) had changed (messed around) with how they calculated inflation over the years.

The CGT index rates are/were purely estimates used by the Dept of Finance for the purposes of administering a particular aspect of tax law. They could never be relied upon as an accurate measure of inflation.

Btw, I very much doubt if the CSO use actuaries to compile statistics? :confused:
 
Re: Buy to Let Investors are Suffering Triple Whammy! Atticle www.independent.ie

You said over 5-10 years, not after 10 years of a lag!:confused:

The trick is wait until the Irish market spends 10 years falling and then buy, hoping to catch the exponential growth.

thats hoping not investing,what if the market improves after three years?
 
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