Is now the time for cheap home boom?

Tipsy Mac

As the price of land has collapsed and skilled labour is in relatively cheap supply from what it was during the boom it would seem to me that if a developer was to buy land and build new houses they could make a killing selling homes for 50% of the price similar properties are on the market as their costs would be tiny compared to what other developers costs were.

mrgaa1

I don't think it would make any difference - the issue is getting mortgages. Read this article - http://www.tribune.ie/archive/article/2009/nov/01/first-time-buyers-offered-loans-but-theres-a-catch/

mrgaa1

mrgaa1 wrote: »

I don't think it would make any difference - the issue is getting mortgages. Read this article - http://www.tribune.ie/archive/article/2009/nov/01/first-time-buyers-offered-loans-but-theres-a-catch/

So with the Greens planning on strictly limiting one off housing and NAMA buying up entire estates from developers to hoarde - as they have let it be know - they have made no secret that the plan is to hold onto it until they can get as much for it as possible. And your article there about the banks lending the only conclusion is:

......the whole thing is rigged.

bangersandmash

Recently the IHBA claimed "current prices are not sustainable and companies will not resume house building until prices reflect the costs of inputs and a reasonable return on investments". Sounds like an invitation for just what Tipsy Mac is suggesting.

mrgaa1 wrote: »

I don't think it would make any difference - the issue is getting mortgages. Read this article - http://www.tribune.ie/archive/article/2009/nov/01/first-time-buyers-offered-loans-but-theres-a-catch/

So BOI have a minimum value policy of €175k for Dublin. Not too many new build family-size homes in Dublin are going to fall foul of that rule just yet.

The idea that substantially lowering prices won't make any difference to the market is nonsensical.