Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

When will we see a normal functional property market?

Options
  • 03-08-2013 2:00pm
    #1
    yoloc
    Registered Users Posts: 375 ✭✭


    When will we see a normal functional property market again here in ireland where we have house's in same location going for roughly the same amount, all the repossessed properties of the banks books.

    I have been looking on daft.ie and see theres houses in same street,not much difference in interior and theres 50k difference in prices. Have seen some rural properties a mile or 2 apart and same again, not much difference in house type and ones selling for 150k and others in the 300k price range.

    I know were now into our fifth year of the crash, If things like i mention above havent corrected themselves by now, surely it will in next 5 years.


Comments

  • Options
    #2
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    yoloc wrote: »
    I have been looking on daft.ie and see theres houses in same street,not much difference in interior and theres 50k difference in prices.
    It really depends on how much of a deposit they put in, and how much they can afford to lose. Added to that, how much they value their house and their contents. Although they may look the same, some may have added insulation.

    In regards time, I'd say more like 10 years.


  • Options
    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    I'd echo this- I'd say at least 10 years.
    Repossessions are coming down the line- probably tens of thousands
    RAS scheme is to be massively extended- however at lower rates
    Private sector is to be underpinned by long term council contracts- also at lower rates

    The government expects councils to pay rents perhaps 20-30% lower than they are paying at present to private sector landlords.

    Until these levels equate with an ROI (keeping tax etc in mind) of at least 6% and preferably 7.5-8%, normalisation will not occur.

    At the pace things move at here- I'd hazard that 10 years is a conservative guess.


  • Options
    #4
    Duckjob
    Registered Users Posts: 2,859 ✭✭✭Duckjob


    yoloc wrote: »
    When will we see a normal functional property market again here in ireland

    Short answer - just as soon as the government stop meddling with it - which is probably never.


  • Options
    #5
    camphor
    Banned (with Prison Access) Posts: 202 ✭✭camphor


    yoloc wrote: »
    When will we see a normal functional property market again here in ireland where we have house's in same location going for roughly the same amount, all the repossessed properties of the banks books.

    I have been looking on daft.ie and see theres houses in same street,not much difference in interior and theres 50k difference in prices. Have seen some rural properties a mile or 2 apart and same again, not much difference in house type and ones selling for 150k and others in the 300k price range.

    I know were now into our fifth year of the crash, If things like i mention above havent corrected themselves by now, surely it will in next 5 years.

    Just because asking prices are different doesn't mean that the market is not functioning normally. In a normal market people buy the lower priced house. That is what is to be expected and there is no evidence that anything other than that is happening.


  • Options
    #6
    NIMAN
    Registered Users Posts: 33,621 ✭✭✭✭NIMAN


    Depends what is considered normal?


  • Advertisement
  • Options
    #7
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    NIMAN wrote: »
    Depends what is considered normal?

    I suppose its all part of the equation- of having a normally functioning government, a normally functioning tax regime, a normally functioning banking sector, a normally functioning employment market, a normally functioning external market- and lots and lots of other factors. The property sector can't really be examined in isolation of the other factors that directly impact on it.

    You could blithely suggest that the average house selling for exactly 3.5 times the average salary, is a normal housing market- its not though. Some blinkered view like this has no cognisance of how easy it is to raise the 3.5 times gross salary- what do you do if the banks aren't lending? It has no cognisance of the average house now being a suburban apartment with massive additional costs of ownership- both financial and social, it pays no heed of property tax and how Mary and Joe with their 3 kids in a small apartment with no garden are subsidising a road in Connemara to a little cottage at the end of a long and winding road.......

    Social cohesion is part of all of this- as are lots of other intangible factors. We all think the grass is greener on the other side- more often than not, its just that people have different sets of problems, nothing more, nothing less.

    What is the first plank in a return to 'normality'? Is it defining what normal is? Is it trying to rebuild things as they once were? Is it waiting for the global economy to improve so anyone with a modicum of common sense has somewhere to emigrate to? Who knows- probably a mix of all of these- and a hell of a lot more........


Advertisement