So where can money be made in property now?

Kipperhell

As there have been boom and busts before and people survive where can money be made now? I know I heard of people buying property while things were going down in London and then made money when prices recovered. So given it does happen where or what kind of property would people buy if they had the money?

Before anybody starts going on about how it will never happen or take forever bear in mind we can accept some people think this but I am talking about a positive of where or what and assume it will happen at some point.

Oafley Jones

Out of curiosity, what do you think will be the driving factors which will make a decent return on Irish - and I assume it's Irish - property?

Kipperhell

Oafley Jones wrote: »

Out of curiosity, what do you think will be the driving factors which will make a decent return on Irish - and I assume it's Irish - property?

The same factors that did it every other time around the world I am assuming it will happen. There are plenty of other threads you can go to to say it will never happen if you want.

Oafley Jones

Kipperhell wrote: »

The same factors that did it every other time around the world I am assuming it will happen. There are plenty of other threads you can go to to say it will never happen if you want.

You mentioned London, do you understand the reasons why that boom occurred? I'd also like you to give an example that's analogous to Ireland - which would validate your theory as to why this would be a good idea.

I just want to know why your willing to invest in Irish property? If you're so postive about this then you should be able to back it up as to the reasons why.

DTrotter

Wasn't one of the problems in Irleand that people were thinking of their home as an investment? If you bought a place for 250 k and sold it for 350 k (assuming dublin) couldn't you only buy a similar place as the majority of places go up at the same rate?

antoinolachtnai

They say that was the problem. But a core problem was the attractive tax advantages arising from owning rental property. This advantage has been eroded by a change in the recent budget.

leonardjos

If house prices drop to a low enough level, I'd like to see investors buying whole crappy old housing estates, and levelling them. In well located areas, such as close to the city or close to Luas or DART stations, these could be redeveloped into modern city living spaces.

Obviously this would need to be coupled with tight planning regulations and quality architechitural designs. But lots of people want to live in or rent townhouses and apartments in these kinds of areas. Of course I wouldn't invisage developers make super-normal profits from this, just normal profits (as economists would say!)

Maybe this type of development coupled with quality new light-rail routes will be the next phase of development. I hope so.

DTrotter

antoinolachtnai wrote: »

They say that was the problem. But a core problem was the attractive tax advantages arising from owning rental property. This advantage has been eroded by a change in the recent budget.

Also disn't these tax advantages drive prices up initially?

antoinolachtnai

For sure, and I'd be the first person to say that. But removing the price supports after the prices have begun to fall seems the wrong way around to be doing things.

The thing that will slow future development is that we already have enough living space. We are just not going to be developing more for quite a while.

The way to build value in property now is by putting in the amenties that will make them attractive and will make our towns and cities into attractive places to live. In particular, transport can make the difference.

DTrotter

antoinolachtnai wrote: »

For sure, and I'd be the first person to say that. But removing the price supports after the prices have begun to fall seems the wrong way around to be doing things.

The thing that will slow future development is that we already have enough living space. We are just not going to be developing more for quite a while.

The way to build value in property now is by putting in the amenties that will make them attractive and will make our towns and cities into attractive places to live. In particular, transport can make the difference.

Definitely, it seems (I don't have any party affiliation) that the government just coasted along on the good times with no plans for the future.
About 4 or 5 years ago my main worry was that no-one seemed to think when the saturation point would come with houses and how a small former basket case of a country could sustain the growth.
I remember a work colleague telling me about the great 30 year tracker mortgage he was getting and I was going along with him and I didn't know the ins and outs of tracker mortgages and couldn't see what was so good, just another fancy sales slogan I guess.

antoinolachtnai

Well, it could turn around quite quickly. If this were a nice place to live, a good quality of life, and fairly low cost of living, plenty of people would like to live here.

RATM

If you want to make money in property at the moment you need to be investing outside of Ireland. Period.

Parts of Baghdad showed increases of up to 50% last year, excelent investment IMO.

Also there is an Irish lad who has just set up a company which specialises in distressed sales in places like Florida and Spain. He wont touch anything unless the seller is real desperate and I hear he is turning over some bargains. Business & Finance did an article on hom a few weeks back, he might be worth getting in touch with if you are keen to invest.

But I still say Baghdad (and other parts of Iraq) is the way to go. A country emerging from a war will always show good returns and when that country has bags of oil those returns can be accentuated.