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Arthur Daley
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It was so quiet here for a few days I thought the bears had gone into winter hibernation...........
As far as the BOI report on Newstalk it seems it's just Mad Mclaughlin trying to ramp things up again. It is strange indeed that a 17% increase in 2006 could 'slightly decline' to 2-3% in 2007.
The piece on eastern european house prices was from NCB stockbrokers. As people generally comment (wrongly I think) that stockbrokers are always trying to talk down the property market to sell equities, I don't think anything can be read into to this in terms of a tactic by VIs to shore up the market here by stopping foreign property purchases. I think it was a straight bit of economic analysis borne in reality. I know I know... we're not used to a bit of straight talking about property investment in Ireland in recent years.
As far as the BOI report on Newstalk it seems it's just Mad Mclaughlin trying to ramp things up again. It is strange indeed that a 17% increase in 2006 could 'slightly decline' to 2-3% in 2007.
The piece on eastern european house prices was from NCB stockbrokers. As people generally comment (wrongly I think) that stockbrokers are always trying to talk down the property market to sell equities, I don't think anything can be read into to this in terms of a tactic by VIs to shore up the market here by stopping foreign property purchases. I think it was a straight bit of economic analysis borne in reality. I know I know... we're not used to a bit of straight talking about property investment in Ireland in recent years.
This is a very good point. The level of mortgage debt in Ireland is currently over 100 billion euros (and growing). At 4% interest rates the cost to service this debt is 4 billion euros annually....
Every percentage increase of the interest rates means another billion euros gets sucked into this black hole annually.
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DoNotPassGo
Guest
I've added a track of new homes/developments as reported at daft.ie on http://daftwatch.atspace.com/. I'm not sure how useful it is, since one entry might be a single house while another is a whole estate. If the numbers keep climbing, though, it would suggest either that there are more new developments being built, or that they're taking longer to sell.
Already, the primary graph of homes for sale shows a steady daily climb. In one week (including a bank-holiday weekend), the for-sale backlog has risen 3.5%. For dramatic effect and exaggeration, at this rate there'll be 136,000 homes for sale this time next year
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plaudit
Guest
€1700pm to mortgage them Artane apartments though. They would be cheap at half the price.
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phoenix_n
Guest
So for 1700 a month you get a depreciating asset which will start costing you 1800 a month next year.
Where is the logic.
There's no logic.
Considering Daft has 2 for rent at 1100 and 1350 (way to high IMO). they're worth (at 7% Gross Yield) between:
205k and 231k
Yep I'm sure there's arguments as to why they're worth more. IMO that's what they are worth. I certainly wouldn't pay more than 250k even to live in this as my PPR.
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phoenix_n
Guest
"say the economy is not growing, but inflating"
Interesting take on our 'growing' economy.
Assume an investor who buys into the property hype bought one of these at €560k. With stamp duty and other expenses he is facing an immediate loss of €100k plus the possibility of subsidising a tenant.
Some might say hold longer term for capital appreciation ? At these freak price levels? Best of luck mate!
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miju
Guest
so in other words Bank Of Ireland have admitted prices will fall in nominal terms next year
great bit of marketing , house price growth will slow to 3% but they'll still rise , shame they didn't meantion our current inflation figure though
nope - it refers to 2 bed apartments. It's the exact same advert as yesterday but with a lower price.
Here's an AAM link listing the prices from Feb : http://www.askaboutmoney.com/showthread.php?t=22376
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SteelBlue05
Guest
The ad states.."Southmede is a fantastic new development of 1, 2 & 3 bedroom apartments.......Prices from €495,000"
Sounds like 495 relates to 1 beds. Which does sound rather high for a one bed. Must be for 2 bed.
Well even if it does - it means that one beds dropped from €560,000 yesterday to €495,000 today. Either way it's a significant drop.
The advert hasn't changed - the price has.
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phoenix_n
Guest
Ok..........I phoned up to get the lowdown.
They had some cancellations so whilst they have a 2 bed for 560 and one for 580 they have now have a couple for 495 as contracts were returned.
Got the impression they were priced to sell...
So they are 2 beds! I've heard of a lot of cancellations on new developments lately - interested parties are happy to pay a booking deposit, not so happy to go through with the deal.
Interestingly, 2 beds in this development started at €520,000 in February so these "priced to sell" apartments at €495,000 are now cheaper than Feb prices.
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