Condos in Miami for USD113k

ashleey

I know everyone is probably tired of the NAMA overpayment debate, but if this is what is happening in Florida:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aGXqRe2LuaBQ&pos=6

how much for the proverbial field of empty houses in Westmeath?
This isn't really about opening another dull thread on who's right or wrong in 10 years time, it's just an interesting contrast in approach for students of economics.

Sponge Bob

Not the same at all, the condo will cost you about €5k a year in taxes and €3k a year in management fees where the semi in westmeath will only cost €200 in property taxes .

Dannyboy83

Its a good point.
Given the expected inflation/hyperinflation in the dollar, they could be cheaper again next year.

As far as I'm aware though, Miami or Florida at least, was one of the worst affected places by the American bubble/collapse.

I remember my brother last year telling me some of the solicitors in Dublin were buying up massive apartments for substantially less money than that.
I think they were building a lot of retirement homes/houses, but since so many elderly people lost massive amount of money, the property became unflippable.

Anyway, its anecdotal, but there seems to be a pattern.

baalthor

At one point during the last decade houses in some parts of Northern England were on sale for around £10k despite Britain being one of the most densely populated countries in Europe and with an increasing population.

Now these were in rough areas with high crime rates and ethnic tensions but at the height of the bubble here houses in equally un-desirable areas were well over €100k.

And as was pointed out many times before the bubble here burst, prices in some parts of Tokyo (again not exactly poor or sparsely populated) fell by 90% during the Japanese house price crash.

Meanwhile we have a relatively sparsely populated country with thousands of houses no-one wants to buy located in areas where no-one wants to live, where banks have massively restricted lending, where one of the main reasons for buying (to make a packet) has disappeared, where rents are falling, where unemployment has trebled in a year,where the government is trying to impose historically large cuts in spending in order to manage the largest fiscal crisis in the state's history and we still have people like Tom Parlon claiming that house prices must stop falling because they've reached "cost price"!

ashleey

It seems like the point is to allow prices to fall to entice the vulture funds out of the woodwork to get things moving again. The old guys lose their shirts but the new guys have a chance. Compare and contrast that with here.

ei.sdraob

ashleey wrote: »

It seems like the point is to allow prices to fall to entice the vulture funds out of the woodwork to get things moving again. The old guys lose their shirts but the new guys have a chance. Compare and contrast that with here.

in US they have this thing called bankruptcy

you cant pay mortgage you hand over the key and walk away

not so here

that makes a huge difference to house prices


you can get 4bed mcmansions next to disneyland for 80K$ that wouldnt buy you a shed here, i had a thread before on this subject here

ashleey

as in the US is to make the banks think twice before they hand the money over that they may never get back. Then they invented securitisation to make it someone else's problem.

That's why the Irish banks haven't been playing the SPV game because they can chase you and your children and your children's children for the debt on a house that's worth sfa and also explains the low level of repossessions here.

Now the Govt. is trying to play the disintermediation game via the NAMA SPV to get the banks off the hook but leave the householder still with the liabilities.

If it wasn't so serious it would be laughable.