Has property gone mad again

AsianDub

Barnavave wrote: »

mloc123 wrote: »

I just love this smug response from people whenever this pops up... Spoken no doubt from somebody that owns their home and doesn't have to worry about the current rental crisis.

No spoken by someone old enough to have been through this twice now and can see the same mistakes being made all over again.

What's your alternative?

sasta le

Was at an open viewing today in a good area of Limerick City and i was the only one there i couldnt believe it

MSVforever

Unfortunately it has gone crazy again.... New development beside IKEA.. 2 bed apartments from 285k, 3 bedroom houses from 340k.... Let's see if people are queuing for them overnight as launch is tomorrow.

With crazy rents, housing shortage.... It's not a surprise really.

listermint

AsianDub wrote: »

What's your alternative?

Buy sensible.

I've seen a few try to buy stupid

Its that simple

MayoSalmon

listermint wrote: »

Buy sensible.

I've seen a few try to buy stupid

Its that simple

Agreed

If buying in and around Dublin I think the main thing that will protect your house valuation during the next downturn will be proximity to the City Center mainly via public transportation in the form of train/dart/luas

I am seeing new builds for sale in Kilcock and Newcastle for example and just can't see these places holding their current value once the downturn comes again.

djPSB

Let the property prices go mad.

The real mad ones are those who pay the crazy prices for average properties.

Mr Starman

............ and an imaginary house made from fake bricks that was featured in this weeks Sunday Times for a complete steal at €380k.

Have we learned nothing?

m'lady

It has gone gone crazy, exactly like what happened before in the boom. A house in the same development that we bought last year has now been sold for 40k more than we paid,(house in similar enough condition than what ours was) absolute madness!

Tombo2001

Regarding the title of this thread.

I bought a house in 2005.

I am just this year back square on what I paid 12 years ago.

For me - I dont really think you can say prices are going mad, if they are the same price they were 12 years ago.

o1s1n

I sold a house in Bray in 2015 for 280,000 and it sold again last month for 345,000. Says a lot really.

A neighbours house sold on the same street in 2012 for 170,000!

MayoSalmon

Tombo2001 wrote: »

Regarding the title of this thread.

I bought a house in 2005.

I am just this year back square on what I paid 12 years ago.

For me - I dont really think you can say prices are going mad, if they are the same price they were 12 years ago.

I wouldn't say they have gone mad yet either, overpriced yeah but not mental territory or anything experienced back in the boom.

In 2005 when you bought your house we built 95,000 houses that year alone. Statistics say we built only 15,000 last year and that is disputed due to the ESB connection criteria.

There is a long way to go here I think!

Cuddlesworth

Tombo2001 wrote: »

For me - I dont really think you can say prices are going mad, if they are the same price they were 12 years ago.

People don't make any more money then a decade ago. And prices were mad a decade ago.

So whats different?

Tombo2001

Cuddlesworth wrote: »

People don't make any more money then a decade ago. And prices were mad a decade ago.

So whats different?

Firstly, I dont know if thats true.

I'd say wages on average have gone up since 2005 in the Dublin area.

If you have the stats to prove me wrong then please share; otherwise we are both guessing.

The likes of Google, Facebook, all the big banks have driven wages up amongst professionals.

As mentioned earlier - supply is significantly different.

And - there is 12 years of people saving in between.

Second - I bought the house in 2005 - prices went up another 30% between when I bought and the peak. At one point 18 months in I significantly up on the purchase price and briefly thought about selling.

Barnavave

Tombo2001 wrote: »

And - there is 12 years of people saving in between..

Yes, everything was rosy for those 12 years and saving was our No.1 priority, well those of us who didn't have to emigrate, or those of us who didn't have to sign on, or whose property lost more than half it's value.

...And Justice

djPSB wrote: »

Let the property prices go mad.

The real mad ones are those who pay the crazy prices for average properties.

Well here's one for ya. I asked an auctioneer to value my property. It's a 3 bed semi in a very good area just 12km outside Dublin. He valued it at 275>300k. He came back with 7 offers two days later reaching 380k. He thought we could push it to 400k.....

bleary

Tombo2001 wrote: »

For me - I dont really think you can say prices are going mad, if they are the same price they were 12 years ago.

Except in 2005 credit was much looser and cheaper, you also had subsidies like mortgage interest relief and longer mortgage terms .
I'm paying 50% more than friends for the Same loan amount,I've no tracker and I'm paying 3 times the interest rate and no interest relief.
And salaries have not increased since 2005 ,I think we still have less people employed with much higher taxes.

djPSB

...And Justice wrote: »

Well here's one for ya. I asked an auctioneer to value my property. It's a 3 bed semi in a very good area just 12km outside Dublin. He valued it at 275>300k. He came back with 7 offers two days later reaching 380k. He thought we could push it to 400k.....

And who will people blame in 5 years time if they're struggling with mortgage repayments due to change in circumstances. People need to assess the risks before signing the dotted line.

Barnavave

djPSB wrote: »

People need to assess the risks before signing the dotted line.

It's Ireland, it'll be grand. What could possibly go wrong?

con1982

I was at a viewing this morning in Dublin city centre. The estate agent reckons the market has reached the top. He said there has been a significant increase in sales falling through due to mortgage issues, when the house comes back on the market, it usually sells for less.

Not sure why he offered this information. He seems fairly experienced.

It is something I have noticed also in the last few months. Im only looking in the city centre but several properties have come back on the market.

soirish

bleary wrote: »

Tombo2001 wrote: »

For me - I dont really think you can say prices are going mad, if they are the same price they were 12 years ago.

Except in 2005 credit was much looser and cheaper, you also had subsidies like mortgage interest relief and longer mortgage terms .
I'm paying 50% more than friends for the Same loan  amount,I've  no tracker and I'm paying 3 times the interest rate and no interest relief.
And salaries have not increased since 2005  ,I think we still have less people employed with much higher taxes.

Interest rates are at their lowest in the past 2000 years, maybe that could have helped? 
https://tradingeconomics.com/ireland/interest-rate

EmptyTree

con1982 wrote: »

I was at a viewing this morning in Dublin city centre. The estate agent reckons the market has reached the top. He said there has been a significant increase in sales falling through due to mortgage issues, when the house comes back on the market, it usually sells for less.

Not sure why he offered this information. He seems fairly experienced.

It is something I have noticed also in the last few months. Im only looking in the city centre but several properties have come back on the market.

Finally some good news. This is the most reassuring thing I've read in a long time. However true it may be, at least I'll sleep a bit better tonight. I'm sick to death of waking up to another Daft.ie report, what feels like every other morning at this stage, talking about house prices going up.

AsianDub

con1982 wrote: »

I was at a viewing this morning in Dublin city centre. The estate agent reckons the market has reached the top. He said there has been a significant increase in sales falling through due to mortgage issues, when the house comes back on the market, it usually sells for less.

Not sure why he offered this information. He seems fairly experienced.

It is something I have noticed also in the last few months. Im only looking in the city centre but several properties have come back on the market.

Perhaps mortgage rule exceptions have run out or close to running out for the year? I've seen this happen over the years and think great prices will fall now and they just go up again in the new year.