Current public sentiment towards the housing market?

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2Pack said:
The dude will bank his profits to leverage his reentry to the market at or near bottom . He will get a non FTB property in a bette rlocation for less than his FTB property cost .....is that not the plan dude ???

Mrs 2Pack and I also considered selling but we live in a highly distorted micromarket with stonking planning permission difficulties restricting new builds with no enurement clauses .
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Oh right, they are going to time the market, great idea :rolleyes: .
 
SteelBlue05 said:
So what is your long term plan?

Seems a bit of bad decision to sell in order to pay rent which will be greater than your current repayments. Unless I just dont understand these things.

Are you now not going to be burdened by an even bigger rent repayment?
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I'm happy to take the hit on discretionary income because I know that it is a bill that will not rise much in the next few years. On the other hand interest rates will continue to increase.

However, the primary reason for selling is simply I don't want to be stuck where I am now. It's not somewhere I'd ever want to bring up kids (though such an event is probably a good few years away) so I'd prefer not to be stuck living here unable to sell because the market has tanked. It is the FTB market that will take disproportionately large hit when the market does actually collapse.

Also, I could if I wished simply park the gain in a bank and pay rent for about five or six years from it. I won't be doing that but it will be reassuring to have it there just in case. I'm expecting a substantial salary jump in the next year or so too, so that should definitely put me in a position to comfortably afford to rent a property I could never afford to buy.

I shall be happy to post here letting people know how I get on.
 
2Pack said:
The dude will bank his profits to leverage his reentry to the market at or near bottom . He will get a non FTB property in a bette rlocation for less than his FTB property cost .....is that not the plan dude ???
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Not necessarily. As I - and several others - have commented several times in this thread, property is not like stocks so any crash will likely play out over several years. I will consider buying when prices return to reasonable levels but until then I will be happy to rent, leaving the investor to subsidise my lifestyle.
 
room305 said:
I'm happy to take the hit on discretionary income because I know that it is a bill that will not rise much in the next few years. On the other hand interest rates will continue to increase.
.
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Just be careful about the assumption that rent will not increase much versus what a mortgage repayment would. I can imagine a lot of landlords trying to push up rents due to the increase in interest rates.

Anyways my point is that you cannot predict the property market\interest rates\rents and as long as you do what makes sense for yourself then you can't really go too far wrong.
 
room305 said:
I'm happy to take the hit on discretionary income because I know that it is a bill that will not rise much in the next few years. On the other hand interest rates will continue to increase.

However, the primary reason for selling is simply I don't want to be stuck where I am now. It's not somewhere I'd ever want to bring up kids (though such an event is probably a good few years away) so I'd prefer not to be stuck living here unable to sell because the market has tanked. It is the FTB market that will take disproportionately large hit when the market does actually collapse.

Also, I could if I wished simply park the gain in a bank and pay rent for about five or six years from it. I won't be doing that but it will be reassuring to have it there just in case. I'm expecting a substantial salary jump in the next year or so too, so that should definitely put me in a position to comfortably afford to rent a property I could never afford to buy.

I shall be happy to post here letting people know how I get on.
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Smart move. Not sure how much equity you are hoping to release but better to realise those funds now rather than be greedy and repent afterwards.

You should , if you have not already, max your pension contributions and any shortfall in montly needs can be topped up using your available cash.

This whole doom and gloom may be all talk but looks at a real living example http://www.askaboutmoney.com/showthread.php?t=33378
 
SteelBlue05 said:
Just be careful about the assumption that rent will not increase much versus what a mortgage repayment would. I can imagine a lot of landlords trying to push up rents due to the increase in interest rates.
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There is no relationship between a landlord's mortgage repayments and what the market dictates the rent to be. For example, I'm living in a town-house in Dublin 6 (built in 89) and am paying for one room what the landlord is probably paying on mortgage repayments for the whole house. Another example: My friend bought 75% of a 2-bed flat with his gf about 2 months ago. The place cost 430k and is in Summerhill near the Royal Canal. He is subsidising his tenants in the hope of capital appreciation while he's off working in London.
 
I agree wholeheartedly that todays FTB (in mid/outer Leinster somewhere scenario) will be left carrying the can and unable to afford an STB type area and property going forward because of illiquidity in their FTB area.
 
2Pack said:
I agree wholeheartedly that todays FTB (in mid/outer Leinster somewhere scenario) will be left carrying the can and unable to afford an STB type area and property going forward because of illiquidity in their FTB area.
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Room305, what area have you currently bought in?
 
Australia

Their bubble peaked a year and a half back, early on in a rate tightening cycle

[broken link removed]

"Sales teams are reporting a distinct lack of urgency among consumers, all at a time of an apparent rental crisis," he said.
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They owe about what we anbd the Brits do, per capita



Their Biffo, Mr Costello said

he Reserve Bank meets tomorrow and will most likely put interest rates up to 6 per cent, the highest level in five years. Treasurer Peter Costello sounded a warning yesterday, saying managing the economy was now proving difficult.
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But the Australians thought that they had engineered a 'soft landing' in the past 18 months. And then

[broken link removed]
 
phoenix_n said:
Your f***ed mate. Only joking :)

But you may be wise to cash in as soon as you can.
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:) Surprisingly nice area actually but I'd be unsure of bringing up a kid here should the market tank and I end up unable to sell my house. House is way too small for a kid anyway.

As I said, I'll keep people informed of how it's going but it'll be a few months yet before I sell up.
 
Thanks for that bloomberg article whathome.

I found the following snipets concerning: (emphasis mine)

"...The ECB is likely to raise interest rates this week for the fourth time in eight months to curb inflation fanned by record oil prices and the strongest economic expansion since 2000, all 34 economists surveyed by Bloomberg News said. It would speed up the pace of rate moves to every two months from quarterly...

...ECB President Jean-Claude Trichet prepared the ground for a rate increase at the bank's Aug. 3 meeting when he said on July 6 the bank will show ``strong vigilance'' on inflation. Trichet has used that language to signal the last three ECB rate increases. Policy makers probably will boost its benchmark rate to 3 percent from 2.75 percent...

...For now, investors expect the ECB to keep raising borrowing costs, boosting the benchmark rate to at least 3.25 percent by December, futures trading shows. The yield on the three-month futures contract for December was at 3.57 percent at 10:59 a.m. in Frankfurt today...

What effect does a 1/4% increase have on a 400k mortgage?
 
Yea but not 40,000 different people, I myself have probably viewed it a few hundred times...does that mean there are only about 80 of us going off in a rant about property...the other 4m are buying away, blissfully unaware of our talk!?
 
CapitalCCC said:
Yea but not 40,000 different people, I myself have probably viewed it a few hundred times...does that mean there are only about 80 of us going off in a rant about property...the other 4m are buying away, blissfully unaware of our talk!?
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Thats true but its in places like here where the first rumblings are heard.
 
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