Houses undervalued by up to 26pc... Time to buy buy buy!!!....again

comeback_kid

Theboinkmaster wrote: »

I wouldn't listen to anything Karl Deeter has to say.

he,s not what you would call a populist hack journalist or observer , as a foreigner , always got the impression he didnt adhere to any hive mindset

kennyb3

comeback_kid wrote: »

was in the farmers journal and the faming independant at the start of the year , if i can dig out a link i will , farming is booming right now and besides , farmers have plenty of money , they are experts at talking poor but have any amount when thier is a half million euro farm for sale up the road , i should know , i come from farming stock

Well we'll wait with baited breath for this evidence!

Kosseegan

desertcircus wrote: »

Anyone buying property to rent out at the moment needs to take a long, hard look at what they're doing. Yield might look good right now, but rent can fall just as severely as price. Rent allowance won't stay at its current level, and all of Nama's apartments will come onto the market eventually. Add to that the fact that property tax is only going to go up and you're faced with the fact that current yields are close to meaningless

A lot of NAMAs apartments won't come onto the rental market. The will be bought by owner occupiers. The activities of the banks at the moment are forcing many landlords to sell properties, so reducing supply. Many multi -unit houses are being de-converted because of increasing regulation and taxation. There are more rental units going off the market than going on. There is very little building and a growing population. If someone buys a property in a reasonable location and rents it, they have security of income with a strong possibility of rent rises on the way.

Theboinkmaster

comeback_kid wrote: »

he,s not what you would call a populist hack journalist or observer , as a foreigner , always got the impression he didnt adhere to any hive mindset

He's the same as Ronan Lyons and the other vested interests. He's full of shiit.

Theboinkmaster

comeback_kid wrote: »

land went up 25% last year in value

No it didn't.

kennyb3

Kosseegan wrote: »

A lot of NAMAs apartments won't come onto the rental market. The will be bought by owner occupiers.

Best of luck to them finding owner occupiers for the 8,000 apartments on their books, many of which were literally thrown up and are in the back arse of nowhere.

thewing

http://www.farmersjournal.ie/site/farming-Agricultural-land-prices-rise-by-9-13364.html

In fairness, we are talking about a very small segment of the market in both area and client terms.

IF you have the spare CASH to buy a house in SOUTH Dublin (D2, D4, D6) there would be a nice tidy yield to be had.

Take this place for example - http://www.daft.ie/searchsale.daft?id=650046 - if you had the cash, you could earn 10% yield per annum GROSS.

Not withstanding property taxes, maintenance fees etc. etc., you would still be clearing a nice yield.

HOWEVER, most of the market requires funding for such a property, and the max you could borrow for this (taken from AIB calculator) is 375000 (as an investment property). Your funding CURRENTLY would cost you about 27k per annum, so your 55k is halved (before you talk tax and maintenance). Also bear in mind that funding is at an all time low, so you could get nicely burned when interest rates rise (by which time you might be looking to offload this property, but it could only be worth 300k?!)

So essentially, if you have 500k to splonk, there are better options than stocks and bonds currently in certain areas of the property market.

But what fuelled prices - the fact they every Jim, Jack and Joe with an average salary could get the 520k needed to buy this property plus a few more to refurbish it. Those days are long gone, and while they are, we do not need to worry about house price stabilisation in the short to medium term.

Fair play to the Central Bank for trying to stabilise the market, knowing that NAMA has delayed offloading the taxpayers property portfolio, and the longer the slide goes on, the less chance of recouping the taxpayers money.

They got it wrong then, they got it wrong now and will continue to do so.

OAO

desertcircus

Kosseegan wrote: »

A lot of NAMAs apartments won't come onto the rental market. The will be bought by owner occupiers. The activities of the banks at the moment are forcing many landlords to sell properties, so reducing supply. Many multi -unit houses are being de-converted because of increasing regulation and taxation. There are more rental units going off the market than going on. There is very little building and a growing population. If someone buys a property in a reasonable location and rents it, they have security of income with a strong possibility of rent rises on the way.

Almost nobody in this country wants to buy an apartment to live in, and even fewer have a bank who want to lend them the money. Population increase will do nothing for the market as long as huge chunks of new adults are emigrating. Rent rises are a desparate hope in a market that currently has tens of thousands of cheap properties being held back and rent allowance defining the price floor.

As for a previous poster's question about whether anyone on rent allowance lives in Blackrock or Ranelagh: if you can find a place that provides 10% yield in either of those places I'll be more than surprised.

Spiritofthekop

http://www.herald.ie/news/experts-rubbish-banks-claims-that-homes-are-50k-underpriced-3096371.html

comeback_kid

kennyb3 wrote: »

Well we'll wait with baited breath for this evidence!

15% was the figure , my mistake

http://www.independent.ie/national-news/farmland-prices-buck-the-national-trend-with-15pc-rise-3023163.html

comeback_kid

kennyb3 wrote: »

Best of luck to them finding owner occupiers for the 8,000 apartments on their books, many of which were literally thrown up and are in the back arse of nowhere.

no one is refering to those properties

kennyb3

comeback_kid wrote: »

no one is refering to those properties

You ll see i directly quoted kosseegan in relation to a specific point he made!

kennyb3

comeback_kid wrote: »

15% was the figure , my mistake

http://www.independent.ie/national-news/farmland-prices-buck-the-national-trend-with-15pc-rise-3023163.html

You ll have to excuse me if i don't take the survey of an estate agent at face value given their vested interest.

Anyway this adds nothing to the discussion on house prices

Kosseegan

kennyb3 wrote: »

Best of luck to them finding owner occupiers for the 8,000 apartments on their books, many of which were literally thrown up and are in the back arse of nowhere.

If nobody wants to buy them, nobody will want to rent them either. Investors will not touch them. They will not affect the yields in good areas.

desertcircus

Kosseegan wrote: »

kennyb3 wrote: »

Best of luck to them finding owner occupiers for the 8,000 apartments on their books, many of which were literally thrown up and are in the back arse of nowhere.

If nobody wants to buy them, nobody will want to rent them either. Investors will not touch them. They will not affect the yields in good areas.

Not true: people will be a lot more willing to rent a lousy place than buy one, because there's so much less risk and because it's temporary.

And rents in places like the Grange will have a huge impact on rents in Blackrock.

snubbleste

Theboinkmaster wrote: »

I wouldn't listen to anything Karl Deeter has to say.

+1
Karl Deeter is definitely a vested interest. He's given advice on the airwaves to landlords not to rent out to rent supplement tenants due to some problems he had with his properties. So he is a mortgage broker with a BTL portfolio.

jmayo

comeback_kid wrote: »

There is still plenty of money in this country , take one section alone , farmers , they have always bought property in Dublin , land went up 25% last year in value , when they see houses in the likes of rathmines at 15 year lows , they will swoop , property was not a good bet for the last ten years as an investment ( let alone for living ) as yields were only a few.percent , there heading for ten % , with shares extremely volatile and interest rates at near zero , real estate looks profitable

For every farmer that can buy one of those houses, I bet I can point out 10 fulltime farmers that are only now getting back on their feet after the poor prices that preceeded the recent boom.
Also I can point out a hell of a lot of farmers who sidelines in construction related enterprises which have collapsed.
That is not even factoring in the farmers who are now helping out their kids who have lost jobs and are in serious debts.

comeback_kid wrote: »

does rent allowance apply in blackrock of raneleagh ? , thier is also a increase in dividend tax on stocks on the horizon in many countries

Do you have a clue ?
There are corporation houses in Blackrock.
Not everyone lives in a mansion. :rolleyes:
Any other reasons besides possible taxes on dividends which already exist
that makes property a better investment.

comeback_kid wrote: »

was in the farmers journal and the faming independant at the start of the year , if i can dig out a link i will , farming is booming right now and besides , farmers have plenty of money , they are experts at talking poor but have any amount when thier is a half million euro farm for sale up the road , i should know , i come from farming stock

Ah FFS.
For someone that comes from farming stock you really show a poor understanding of the area.
A farmer or farming family may have only one chance in a hundred years to purchase property that is near or ajoining theirs.
Thus farmers will move heaven and earth to purchase such land if it comes up.
Also buying agricultural land is actually supposed to be an investment in the business.

Of course you can carry on with the stereotypes. :rolleyes: