Why are people buying houses when prices are on the way down?

di2772

oceanclub wrote: »

Hands up those using the "Ireland is better than Germany" argument predicted a 50% price drop?

Quite.

P.

And another mis-quote.

Who said "Ireland is better than Germany". Certainly not me. I love the country. But i cant live or work there - Dont have any German and i have a good job here anyway.

ei.sdraob

di2772 wrote: »

But you were the one who used the, "I've heard the Ireland is different argument before", to try to say that someone else was saying just that, and yet you ovelooked that the comment was more "Ireland is not like Germany at all".

It was a poor effort on your part.

look Ireland is different from the point of view that we are more deluded

we are not different from the point of view that somehow property assets in this country should be worth more than just about anywhere else in the rest of the world

you understand me now?



and btw im currently building a house myself, no mortgages or anything, the 3000sq ft place im building is on budget to come at under 200k (including land), which is alot less than the average asking prices in the country or galway for that matter, if that puts a perspective on how crazy the prices still are, i dont need to commute and can work anywhere in world, so for people like me a comparison with other countries is quite apt



if you want more comparisons and examples how crazy the irish property market was then look at this OECD document

http://www.oecd.org/dataoecd/41/56/35756053.pdf

do note that its up to 2005 only and some scales are logaritmic not linear



the whole "The difference is were Irish" should be put on the same shelf as "House prices can only ever go up" line of thinking

/

The_Conductor

Delusion is all relative- if you look at some other bubbles including the historic tulip example- the Irish bubble, while large in modern terms- is dwarfed in comparison to some historic bubbles.

I am very very worried by comments from the Minister of Finance that he somehow imagines that our property collapse has bottomed out, and nominal growth will return in the short to medium term (he is suggesting a 10% increase on today's prices, over the next 10 years- and using the argument that as this will be much lower than headline rate of inflation- that its entirely possible.

There seems to be ongoing delusion eminating from Merrion Row.......

stepbar

smccarrick wrote: »

There seems to be ongoing delusion eminating from Merrion Row.......

Considering there's only 2 qualified accountants in the place, it's no suprise :rolleyes:

The_Conductor

stepbar wrote: »

Considering there's only 2 qualified accountants in the place, it's no suprise :rolleyes:

There are 2 accountants who are officially there in a professional capacity- there are however plenty of qualified accountants in the admin civil service staff there (I'm personally aware of at least 4 or 5 qualified accountants at AO and AP level)- however- as appears to be the norm in the civil service- they aren't in sections where they are in a position to make good use of their qualifications. One of the APs has put in for early retirement- in sheer frustration- as for everyone else- their souls have been destroyed. Lots of good people work in the Department of Finance- but the norm is people have the best of intentions in the world- but after giving it their heart and soul for a few years- and getting absolutely nowhere- they give up.

We need serious structural reform in the civil service- which has to include a comprehensive documentation of people's qualifications and skillsets- and a sincere effort to move people into areas where they can actually use their skills.

stepbar

smccarrick wrote: »

We need serious structural reform in the civil service- which has to include a comprehensive documentation of people's qualifications and skillsets- and a sincere effort to move people into areas where they can actually use their skills.

I agree. There's plenty of places like that. One being the financial sector. It seems to be an Irish thing. Foreign companies don't seem to have a problem identifying the best workers and promoting them.

Zamboni

I'm no economist but surely these strands of news could only contribute to the property market continuing its downward spiral?

http://www.rte.ie/news/2009/0922/cso1.html

http://www.rte.ie/news/2009/0922/cso.html

bangersandmash

Zamboni wrote: »

I'm no economist but surely these strands of news could only contribute to the property market continuing its downward spiral?

Another interesting nugget which runs contrary to the "demographic fundamentals" that was (and still is) regularly touted.

Children don’t buy houses. The figs imply substantial out-migration of adults, at the rate of about 7 to 8000 per quarter recently.

The 20-24 group fell, between April 2007 and April 2009, from 347,800 to 304,800, that is, by 12.4% in two years. Difficult to see how estimates of strong underlying flow demand for housing can be sustained.

http://www.irisheconomy.ie/index.php/2009/09/22/demographics-and-housing-demand/

oceanclub

Zamboni wrote: »

I'm no economist but surely these strands of news could only contribute to the property market continuing its downward spiral?

http://www.rte.ie/news/2009/0922/cso1.html

http://www.rte.ie/news/2009/0922/cso.html

Da fundamentals *belch* are sound *fart*

P.

Zamboni

oceanclub wrote: »

Da fundamentals *belch* are sound *fart*

P.

Astonishing contribution.

The_Conductor

Behave guys.....