Property Prices Good or Bad?

euroboom13

Volthar wrote: »

Quite simple. If you borrow say 200k over 30 yrs @ 4.7% your monthly repayments will be at €1037
If someone thinks they are about just to manage to pay it they must think what happens The interest rate goes up and I can assure you that sooner or later they will. If it only goes up to 5.2% monthly repayments will increase to €1098
At 5.7% - €1160

Funny thing is that theoretically your bank can change it at their discretion. However it hugely depends on ECB rates that curently are at historical low 0.05%. In 2008 they were at 4.25%

Imagine what will happen with your mortgage repayments whenwe are back at 2008 levels. Your bank will transfer increase in % rates directly to you. Instead of todays 4.7% you will pay 8.9% interest and that means €1594 per month versus todays €1037.

It is a grand scheme to rip you off and make you a modern slave.

Well put!
I wish everyone could see this and understand that we are in subsidised false market at the moment, that can cripple people at a whim.

Banks are getting 8% min deposited so buyers are taking all risks.
Any rewards can be controlled by the banks and added to their turnover!

DulchieLaois

Hence why people should go on Fixed Rate Mortgage rate if ECB rises their variable rate

euroboom13

Fixing will stabilise YOUR repayments but when less people can afford your home, your house may fall into negative equity.(trapping you in your own home) Also, buying now, at a low fixed rate, isn`t helping you because you are buying in an inflated subsidised market place.

So my advise .
Buy when all purchasers are paying a higher more normalised rate, you will have more price stability and if you have cash , you will get solid value for it.
Good luck

Volthar

DulchieLaois wrote: »

Hence why people should go on Fixed Rate Mortgage rate if ECB rises their variable rate

Sure but this is only available for couple of years and you pay higher rates compared to variable.

golfwallah

According to this Irish Times report, Dermot Desmond is backing a new company with €200m to investest in building residential property in Ireland.

The emphasis will be on economically viable deals - hopefully, moves like this will help bring stability to the housing market.

Volthar

golfwallah wrote: »

According to this Irish Times report, Dermot Desmond is backing a new company with €200m to investest in building residential property in Ireland.

The emphasis will be on economically viable deals - hopefully, moves like this will help bring stability to the housing market.

Nothing better than a good news on Monday. Thanks.

fliball123

euroboom13 wrote: »

Well put!
I wish everyone could see this and understand that we are in subsidised false market at the moment, that can cripple people at a whim.

Banks are getting 8% min deposited so buyers are taking all risks.
Any rewards can be controlled by the banks and added to their turnover!

This is wrong with the new insolvency legislation and the nuclear option of going bankrupt the banks are taking risks by giving people money if they are over leveraged and its not happening. At present they are strictly adhering tot a 25% LTV as in the person buying has to have a fair whack of skin in the game in order to get money some have put 10% but with the value being at the lower end as in under the 200k mark.

I am not trying to defend the banks far from it but put some perspective on it...The game is at present is set up to protect and keep occupier owners in their gaff no mater what the scenario is.

gaius c

golfwallah wrote: »

According to this Irish Times report, Dermot Desmond is backing a new company with €200m to investest in building residential property in Ireland.

The emphasis will be on economically viable deals - hopefully, moves like this will help bring stability to the housing market.

Hasn't anybody told him that it's impossible to make money on building houses in Ireland because they are selling too cheap?

Volthar

gaius c wrote: »

Hasn't anybody told him that it's impossible to make money on building houses in Ireland because they are selling too cheap?

I hope you are being sarcastic.

gaius c

Quite.

NAMA is preparing to offload sites around Dublin and Dermot rides to the rescue to buy them?
Good breakdown over on the pin.

golfwallah

I see Environment Minister Alan Kelly is including a levy of 3% on undeveloped, vacant building sites in his proposed changes to the Planning Acts - all aimed at improving the supply of houses and stabilizing house prices.

It looks like one more step in the right direction!

Even though land prices are just one component in the problem of rising house prices - I guess "every little helps".

Good luck to him with getting his proposals through - click here for Independent report

euroboom13

As a land owner ,it is a very threatening proposition.
As a citizen it is a very militant and unnecessary state power.

Up until recently the state couldn't remove money from your bank account and with this ,they can take ,a controlling interest of your land within a very short time.

The power to elevate yourself from a humble beginning, is slowly being eroded.
We will be reduced to being tenants of the elite, with lottery winners having the only ticket to a life of true freedom!

Volthar

euroboom13 wrote: »

The power to elevate yourself from a humble beginning, is slowly being eroded.
We will be reduced to being tenants of the elite, with lottery winners having the only ticket to a life of true freedom!

Isn't it the point of these in power? Indebt everyone, these who dare to actually own anything or save some money have to be deprived of it and of course indebted. Offering people re- mortgages at the hight of "the boom" was a brillant move.

euroboom13

Volthar wrote: »

Isn't it the point of these in power? Indebt everyone, these who dare to actually own anything or save some money have to be deprived of it and of course indebted. Offering people re- mortgages at the hight of "the boom" was a brillant move.

They are getting to good at robbing us!

After income tax , mortgage/rent, energy bills, health ,transport, and vat/water/waste, we only have about 10% to spend on food/ entertainment/investments.
We are definitely like rats in a wheel.

As oppose to 75yrs ago ,poor times but we only hand back 10% and lived on 90%, no wonder were in bother!

OMD

Volthar wrote: »

Quite simple. If you borrow say 200k over 30 yrs @ 4.7% your monthly repayments will be at €1037
If someone thinks they are about just to manage to pay it they must think what happens The interest rate goes up and I can assure you that sooner or later they will. If it only goes up to 5.2% monthly repayments will increase to €1098
At 5.7% - €1160

Funny thing is that theoretically your bank can change it at their discretion. However it hugely depends on ECB rates that curently are at historical low 0.05%. In 2008 they were at 4.25%

Imagine what will happen with your mortgage repayments whenwe are back at 2008 levels. Your bank will transfer increase in % rates directly to you. Instead of todays 4.7% you will pay 8.9% interest and that means €1594 per month versus todays €1037.

It is a grand scheme to rip you off and make you a modern slave.

You seem to be forgetting two points
1. You only pay interest on the outstanding portion of your debt so unless you believe interest rates are immediately going to jump to 8.9% then your figures are way off. While typical rates may reach 8.9% it may be worth pointing out that in the last 20 years that hasn't happened although I accept we cannot predict the future.
2. Secondly you fail to take account of inflation. This reduces the actual amount you are paying in real terms. So at 2% inflation that means that after 10 years a monthly repayment of €1000 becomes around 800 a month.

Also, but separately the interest rate is not hugely dependant on ECB rate. We have many tracker mortgages linked to ECB rates but that is not what you are talking about. Variable rates are not linked to ECB rates.

golfwallah

euroboom13 wrote: »

As a land owner ,it is a very threatening proposition.
As a citizen it is a very militant and unnecessary state power.

Up until recently the state couldn't remove money from your bank account and with this ,they can take ,a controlling interest of your land within a very short time.

The power to elevate yourself from a humble beginning, is slowly being eroded.
We will be reduced to being tenants of the elite, with lottery winners having the only ticket to a life of true freedom!

Of course landowners won't like it - nobody wants new taxes that directly impact on their own pockets.

But the interests of the majority have to come first - not those of a privileged minority who own land and are in a position to hoard and profit from it. Far better, IMHO, to tax unearned income from simply owning land than tax income from work. It's more beneficial for the economy that people produce goods and services for a living as opposed to just sitting on vacant land until they consider the price in "right".

This is some of what the Economist has to say about the issue of land taxes:

Taxing land and property is one of the most efficient and least distorting ways for governments to raise money. A pure land tax, one without regard to how land is used or what is built on it, is the best sort. Since the amount of land is fixed, taxing it cannot distort supply in the way that taxing work or saving might discourage effort or thrift. Instead a land tax encourages efficient land use. Property developers, for instance, would be less inclined to hoard undeveloped land if they had to pay an annual levy on it.

Frank Lee Midere

euroboom13 wrote: »

As a land owner ,it is a very threatening proposition.
As a citizen it is a very militant and unnecessary state power.

Up until recently the state couldn't remove money from your bank account and with this ,they can take ,a controlling interest of your land within a very short time.

The power to elevate yourself from a humble beginning, is slowly being eroded.
We will be reduced to being tenants of the elite, with lottery winners having the only ticket to a life of true freedom!

As a landowner you are sitting on land you hope will go up in value at the cost of somebody else's pocket. Nor are you an ordinary man - most people are not landowners. Even right wing economists agree that a tax on land, particularly idle land, is the best form of taxation.

Frank Lee Midere

Volthar wrote: »

Isn't it the point of these in power? Indebt everyone, these who dare to actually own anything or save some money have to be deprived of it and of course indebted. Offering people re- mortgages at the hight of "the boom" was a brillant move.

The land owner is not your friend. In general land owners are not normal people. In the UK 1% own 70% of the land.

euroboom13

Frank Lee Midere wrote: »

As a landowner you are sitting on land you hope will go up in value at the cost of somebody else's pocket. Nor are you an ordinary man - most people are not landowners. Even right wing economists agree that a tax on land, particularly idle land, is the best form of taxation.

Land speculation and land ownership aren`t the same thing.(in fact most land owners value land more than money)

Any Man has the opportunity to own land!(only you are restricting it from ORDINARY man) All men are equal!

Do you want salt and vinegar on that??

lolosaur

chopper6 wrote: »

There was never any "boom"...it was a bubble caused by speculation in property.

This is what you seem to want to see happening again.

Look, this is the kind of silly post I would expect on Facebook.

Ireland had probably the biggest boom in the western world. We went from a 3rd world country to a 1st world one from 1988 to 1996 and there is nowhere on earth that has the ear of both the u.s. and Britain the way we do. The microcosm Ireland exists in is one of the most intruiging and volatile environments on the planet and people really lack an understanding on how it works.