Celtic Tiger, property bubble

mariaalice

Someone I know is looking in east wall, based on proximity to their work and town plus the price, I drive up and down the East wall road on my way to and from work and have done for years but I wouldn't know the area very well.

Out of curiosity I looked it up and came across thread on board from 12 years ago basically saying 320k was a good price for a 2 bed that needed renovation!! and that it was an up and coming area. Today in a strongly recovering market, near the city centre in an area that has up and come, its anything form 210k to 260k for a renovated 2 bed.

Anyone else every come across Celtic Tiger prices for property and find it amazing.

Johngoose

mariaalice wrote: »

Someone I know is looking in east wall, based on proximity to their work and town plus the price, I drive up and down the East wall road on my way to and from work and have done for years but I wouldn't know the area very well.

Out of curiosity I looked it up and came across thread on board from 12 years ago basically saying 320k was a good price for a 2 bed that needed renovation!! and that it was an up and coming area. Today in a strongly recovering market, near the city centre in an area that has up and come, its anything form 210k to 260k for a renovated 2 bed.

Anyone else every come across Celtic Tiger prices for property and find it amazing.

The market is overheated at the moment.Down here in Cork its not uncommon for a house with a big price tag to require a further €60,000 to be spent on it,if you are lucky enough to get it in a bidding war.I hope Brexit brings some normality to our housing sector.Otherwise a house in London might make more sense than a house over here.

mariaalice

mariaalice wrote: »

..............

Anyone else every come across Celtic Tiger prices for property and find it amazing.

Yup, what I bought in 2005 :pac:

We seem to be no far off the 15 x annual rental income prices at the moment, in a time of inflated rent due to huge demand and low supply.

Time to buy was 2011 ish imo.

whippet

I bought in early 2012 ... the house was originally put on the market at €1.1m .. I paid less than €350k for it.

difficult to get a market value for it at the moment as its in an area where house just don't come on the market all that often. Semi-rural location.

zl1whqvjs75cdy

Yeah prices are all over the shop at the moment. The general consensus seems to be that the market is overpriced, but the lack of supply is only going to make things worse. I'm starting to save for the deposit now with a view to buying in 3 years. Hope to hit the sweet spot of supply meeting demand and not to pay as much as I would if buying now. Wishful thinking though maybe ha.

Gloomtastic!

East Wall has come along way in the last ten years. You now have an Aldi and Lidl. McD's and Starbucks opening soon. Central Bank will be open next year.
The houses are still a lot cheaper than neighbouring areas like Marino, where prices haven't moved in 18 months.

mariaalice

I just looked at the property price register for East wall and those from 2013/2014 are are interesting prices were as low as 120k for the same properties there seem to be a big turn over of property in the area.

riclad

Since the boom , prices went down 50-60 per cent.
Maybe the worst off are people who bought house in rural towns for 150k.
Which are now worth 70-80k .
Theres little chance of prices going back up in rural areas.
You can check prices in any area by looking at the house price register online.

elainep13

Does anyone know how much houses in Walkinstown/Perrystown were in the boom? I'm looking there at the moment and seems like prices are really on the up😭

Can only see from 2010 on property price register, sick looking at how much houses went for only a few months ago vs what we are bidding on😭

whippet

elainep13 wrote: »

Does anyone know how much houses in Walkinstown/Perrystown were in the boom? I'm looking there at the moment and seems like prices are really on the up😭

Can only see from 2010 on property price register, sick looking at how much houses went for only a few months ago vs what we are bidding on😭

why would you concern yourself with what the prices were in an artificial boom market.

You need to decide what you can afford, what you see as a market price and that you will be confident that you will be able to pay the mortgage.

bleary

I have been complaining that prices were back to Boom levels. Just going through an old book at the weekend and found a cutting of a sales piece from 2007. It was for a 2 bed house in Phibsborough no yard, renovated but needing redecoration. Perfect for FTB and 200,000 less than an equivalent house in Portobello according to the article.
They were asking 650,000.
Then again with the difference in Interest rates there may not have been a huge change in what is actually paid on a monthly basis between today and 2007.

whippet

Surely people are not stupid enough to buy something at boom time prices again? Or even close to boom time prices.

riclad

Prices were so high in dublin 200k plus ,people would buy houses in the country and drive to dublin every day.
People were told house prices will go up and up,
there,s no risk paying 150k for a house in athlone.
1000,S of people working in the building trade, it was just crazy.
It was so easy to get a loan .
Now we have the problem there,s little building going on.
I don,t think rural house prices will ever rise that high again.
Drive around dublin ,there s cranes to be seen,
i think its mainly offices that are being built .

elainep13

whippet wrote: »

why would you concern yourself with what the prices were in an artificial boom market.

You need to decide what you can afford, what you see as a market price and that you will be confident that you will be able to pay the mortgage.

Just out of interest! To gauge how far off prices are in the specific area from the boom. Feeling frustrated with the market at the moment, just want to make myself feel better really😂

We are approved with no exception to central bank rules, so shouldn't be stretching ourselves too much at the max we were approved for, we pay high rent and save on top of that.

The Mulk

Plus in the boom you had stamp duty, I was looking to move house in 2007 bid 440k on a house and was looking at over 40k in stamp duty and fees if I remember correct. Changed my mind thank god.
I think stamp duty and fees would be about 12k if I was to go for similar house now

elainep13

The Mulk wrote: »

Plus in the boom you had stamp duty, I was looking to move house in 2007 bid 440k on a house and was looking at over 40k in stamp duty and fees if I remember correct. Changed my mind thank god.
I think stamp duty and fees would be about 12k if I was to go for similar house now

Did first time buyers pay stamp duty? There was mortgage interest relief that reduced monthly payments a lot. So even though house prices are lower now, there is no mortgage interest relief, stamp duty relief.

L1011

elainep13 wrote: »

Did first time buyers pay stamp duty?.

Only cut to 0 towards the end of the boom. Was a last ditch attempt to keep things going; previously they had a limit of 317.5k which was being exceeded virtually anywhere near Dublin and when you went 1c over it was 3% on the lot.

440k property would have been 6% for an FTB and 7.5% for a mover. MIR was capped at 3,200 a year max and that was an FTB couple; single mover got a huge 600 a year.

MIR for that period of purchase now is capped at 6k - 3k single regardless of property type and 20k/10k single for an FTB after 2010. Also its 33% of the interest when it was 20% so everyone gets more now than they did then. Nobody after end 2012 gets any though.

The Mulk

L1011 wrote: »

Only cut to 0 towards the end of the boom. Was a last ditch attempt to keep things going; previously they had a limit of 317.5k which was being exceeded virtually anywhere near Dublin and when you went 1c over it was 3% on the lot.

440k property would have been 6% for an FTB and 7.5% for a mover. MIR was capped at 3,200 a year max and that was an FTB couple; single mover got a huge 600 a year.

MIR for that period of purchase now is capped at 6k - 3k single regardless of property type and 20k/10k single for an FTB after 2010. Also its 33% of the interest when it was 20% so everyone gets more now than they did then. Nobody after end 2012 gets any though.

Yeah I remember a lot of houses shooting up to 317 over night when the budget came out.
My mate bought a house for 317 and paid 2k fixtures and fittings to avoid the stamp duty. I think he got a set of blinds for the 2k!!

L1011

The Mulk wrote: »

Yeah I remember a lot of houses shooting up to 317 over night when the budget came out.
My mate bought a house for 317 and paid 2k fixtures and fittings to avoid the stamp duty. I think he got a set of blinds for the 2k!!

Yeah - any ceiling limit causes ridiculous playing around it. The current limit at 1M is a bit beyond normal houses and the jump isn't likely to break you if you're able to pay 1M anyway.

The FTB grant was canned in 2002 partially as an effort to cool the market down a bit but caused the prices of 'starter homes' to drop by 3.5k immediately (and temporarily). Builders just saw it as guaranteed extra profit.

AlmightyCushion

The Mulk wrote: »

Yeah I remember a lot of houses shooting up to 317 over night when the budget came out.
My mate bought a house for 317 and paid 2k fixtures and fittings to avoid the stamp duty. I think he got a set of blinds for the 2k!!

Paying 2 grand for a set of blinds would normally be crazy money but in his case they were probably the best value set of blinds he'd ever get in his life.

newacc2015

There is no comparison between now and 2007. The increase in house prices now isnt being fuelled by credit. In fact Q2 of this year as the first time in nearly a decade where banks lent out more money than was repaid ie the amount of borrowed money in economy is declining month to month. The economy has a third less debt than 2007.

What was considered a bad area in 2007 is totally different now. Look at Stoneybatter, which was considered a **** hole 10 years ago. Now it is full of great bars and restaurants. Huge amounts of the city are unrecognisable due to rapid gentrification. White middle class Irish are moving in areas they havent lived in decades or never lived there in the first place. My friend lives near the Fatima mansions and he said literally a third of the houses were gutted in the last few years. The street has plenty of Audis and BMW's. When you have middle class families moving into 'poor areas' house prices will go up in the area. I guarantee in 10 years the liberities will be as middle class most of the city.