25% of house sales in cash

Villa05

Karl Deeter on newstalk Business this morning mentioned that 25% of all home sales are now cash only (no mortgage). The data is from stamp duty returns buried in yesterdays monthly CSO house price survey. Interesting development but not unexpected considering the euro crisis and mortgage lending falling off a cliff.

Anyone know how up to date the CSO data is?

Rabidlamb

Bet some are sick they didn't wait until this budget, could flip it after 7 years with no CGT.
Either way, well done to them.

Treehouse72

Rabidlamb wrote: »

Bet some are sick they didn't wait until this budget, could flip it after 7 years with no CGT.

It's that "G" that's the fly in the ointment.

Zamboni

Treehouse72 wrote: »

It's that "G" that's the fly in the ointment.

True.
They should really bring in a CLR (Capital Loss Rebate) to assist people in to cover their losses in the past four years, based on the CGT they paid in the prior years.

NIMAN

Just goes to prove there are lots of folk/investors out there with plenty of money.

I would say the next year or two will provide a mountain of cheap property that could, if rented out fully, provide a nice little return.

Snakeblood

NIMAN wrote: »

Just goes to prove there are lots of folk/investors out there with plenty of money.

I would say the next year or two will provide a mountain of cheap property that could, if rented out fully, provide a nice little return.

It's possible. It depends on the rent allowance really. If that gets savagely cut, it's going to pull other rents down, and the yield will diminish. There probably will be things out there worth buying though, but it'd make more sense for the dust to settle. I'd rather pay a little more for a property in a market that's increasing at 1% or so a year (and that's being optimistic) than buy a property in a market dropping 15% a year in the hopes that the bottom of the market will be soon.

robd

NIMAN wrote: »

Just goes to prove there are lots of folk/investors out there with plenty of money.

I would say the next year or two will provide a mountain of cheap property that could, if rented out fully, provide a nice little return.

Don't forget that people trading down would be cash buyers.

Some would be investors looking for safety. The really strange thing is that, with Euro instability if you buy a heavily discounted place with decent yield from the likes of the Allsop auction, it's not a bad place to put some money.

Zamboni

robd wrote: »

Don't forget that people trading down would be cash buyers.

Some would be investors looking for safety. The really strange thing is that, with Euro instability if you buy a heavily discounted place with decent yield from the likes of the Allsop auction, it's not a bad place to put some money.

I don't know to be honest.
I think the long term picture for Ireland is remarkably bleak.
We can't control our finances, we don't really produce anything, we do not any competitive advantage other countries, our education system is overrated, our workforce is overpaid and our 'knowledge' economy is a myth.
Enterprise is met with beauraracy, success is met with taxation, incompetence is rewarded and we undertake unrealistic borrowings to fund a shoddy public service and the unemployed.
I think the medium to longterm future will see FDI diminshing, MNCs moving elsewhere to lower cost bases.
We will break and I forsee us becoming a second world country.

Treehouse72

Zamboni wrote: »

I don't know to be honest.
I think the long term picture for Ireland is remarkably bleak.
We can't control our finances, we don't really produce anything, we do not any competitive advantage other countries, our education system is overrated, our workforce is overpaid and our 'knowledge' economy is a myth.
Enterprise is met with beauraracy, success is met with taxation, incompetence is rewarded and we undertake unrealistic borrowings to fund a shoddy public service and the unemployed.
I think the medium to longterm future will see FDI diminshing, MNCs moving elsewhere to lower cost bases.
We will break and I forsee us becoming a second world country.

That might sound overly gloomy to some, but I am sorry to say I don't think you're exaggerating at all. Even after all that's happened I still don't think Irish people really get the bad shape we're in. We have, again I am sorry to say, nothing. Or at best, nothing much.

But if we want to mitigate this terrible situation I can think of one thing that would help: a final, complete crash in the property market. Meaning another 40% off or something. This would do wonders for our competitiveness and would improve the quality of life of our citizens enormously. Less rent, smaller mortgages...I really don't see who loses other than property investors and landlords, who are a tiny, tiny minority of all the people in the country and are expendable.

As it happens I don't think prices will fall that much because there are too many vested interests and existing contracts to necessitate it happening (and unless we're forced to do it, it won't happen). That said, if ever sanity comes our way - perhaps via external pressures - that degree of falls are by no means impossible. A rational argument for prices that low can certainly be made.

arikv

Treehouse72 wrote: »

That might sound overly gloomy to some, but I am sorry to say I don't think you're exaggerating at all. Even after all that's happened I still don't think Irish people really get the bad shape we're in. We have, again I am sorry to say, nothing. Or at best, nothing much.

But if we want to mitigate this terrible situation I can think of one thing that would help: a final, complete crash in the property market. Meaning another 40% off or something. This would do wonders for our competitiveness and would improve the quality of life of our citizens enormously. Less rent, smaller mortgages...I really don't see who loses other than property investors and landlords, who are a tiny, tiny minority of all the people in the country and are expendable.

As it happens I don't think prices will fall that much because there are too many vested interests and existing contracts to necessitate it happening (and unless we're forced to do it, it won't happen). That said, if ever sanity comes our way - perhaps via external pressures - that degree of falls are by no means impossible. A rational argument for prices that low can certainly be made.

Both your statements only apply if everyone is struggling.
Many people around me are still working and saving, one specifically is in the building sector (Based in Dublin but works nationwide) he still makes money (not as good as before). which means that the country is not gone yet if people can still make life here and have quality of life to suit their income.
BTW, I'm a "non national",the country I'm from is currently booming but I stil l wouldn't fancy going back there as Dublin had grown on me (plus the many years left on the mortgage)
Kids not in school yet so creche fees apply and I'm looking forward to that expense to go away (only to be replaced by other school related charges.

odds_on

Zamboni wrote: »

I don't know to be honest.
I think the long term picture for Ireland is remarkably bleak.
We can't control our finances, we don't really produce anything, we do not any competitive advantage other countries, our education system is overrated, our workforce is overpaid and our 'knowledge' economy is a myth.
Enterprise is met with beauraracy, success is met with taxation, incompetence is rewarded and we undertake unrealistic borrowings to fund a shoddy public service and the unemployed.
I think the medium to longterm future will see FDI diminshing, MNCs moving elsewhere to lower cost bases.
We will break and I forsee us becoming a second world country.

+ 100%

Are you sure we ain't there already?

coup1917

odds_on wrote: »

+ 100%

Are you sure we ain't there already?

Mr Karl Deeter was back on Newstalk again this morning...
He is usually fairly on the money with his predictions........and then he mentioned he could see a levelling out in the price drops of property this year.........then again he is chairman of the Irish mortgages association ( or something similiar ) so no surprise really..

I would love to know where he sees the optimism in this market...? This country is years away from any meaningful employment. The only way the dole figures will drop will be from people emigrating from this sinking ship. There is absolutely nothing to differentiate this crash from the 80's where property prices were a fraction of what they remain at now. Maybe we had a celtic tiger but we didn't learn anything. Talk of a smart economy would make you laugh if it weren't so tragic.

There is still a sizeable section of society working here & with a decent quality of life/income, but the majority of the country is in major trouble.

Having sold our house in 2009, we have been on the lookout for something since. I prefer the idea of buying a house rather than to stay renting, but I cant ignore the fact I've been on the Oz / New zealand forums recently which is telling me something....!!

It looks like it will take us a few more years to realise property is overpriced. Much of what is for sale right now is not the best to say the least, apartments, rundown estate houses, generally the excesses of the boom or people's problems...... Its a waiting game right now for us...!

who_ru

coup1917 wrote: »

There is still a sizeable section of society working here & with a decent quality of life/income, but the majority of the country is in major trouble.

that income and quality of life will be declining in tandem with property prices for the foreseeable future, the amount of money gathered in taxation required to repay the national debt over the next decade is only going to increase meaning more and more cuts to services and incomes, as already discussed in various media in only the first 4 days of 2012. so in terms of a decline in incomes/quality of life well, the party is only getting started.
we will be officially back in recession early this year, the odds on a emergency budget this year must be falling as fast as tax receipts will.