Softening house market?

rob316 · 19-10-2022 8:56am

Lol it's going to end in tears again. 3.5 was the only thing keeping a lid on this, we are about to explode past Celtic tiger prices. The government have been lobbying the central bank to ease up for years, get this lot out now before anymore damage is done to housing.

thomas 123 · 19-10-2022 8:56am

https://www.boards.ie/discussion/comment/119763719#Comment_119763719

Security is the biggest factor by a long shot. Imagine having a baby then suddenly the landlords cousin comes back from Thailand and needs the house.

Maybe ten years ago renting and starting a family would be possible. Absolutely bonkers to try it now.

19-10-2022 8:58am

https://www.boards.ie/discussion/comment/119763718#Comment_119763718

Believe or not there are people who are not paying massive rent, my Wife and I included. We are renting a 3 bedroom house for €1200 per month. People that are renting for years are lucky, many landlords haven't been greedy particularly to good tenant's who respect their house and keep it clean. If we were to buy right now our mortgage would be significantly higher with negative equity awaiting us. We will wait and see, let the posters who say rent is dead money begin. I know people living in prefabs and mobile homes on sites where they are building their house which could take between 12 and 18 months. Yes it is possible to bring up a family this way....

19-10-2022 9:00am

https://www.boards.ie/discussion/comment/119763719#Comment_119763719

Yes, of course I realize this. This is the norm in normal circumstances, seeing as their is a crisis at the moment things are far from normal for many.

Cyrus · 19-10-2022 9:09am

https://www.boards.ie/discussion/comment/119763738#Comment_119763738

how long have you been waiting to buy?

Padre_Pio · 19-10-2022 9:10am

https://www.boards.ie/discussion/comment/119763738#Comment_119763738

Different strokes for different folks I suppose, and it depends on where you are and what you're looking for. I recently bought a house.

Our rent was the same as yours, and the mortgage is the same again. It's nice knowing that every month I'll own a few more bricks in the house. Negative equity is only a problem if you need to sell.

Renting is great, lots of flexibility, zero responsibilty. I've rented for the past 10+ years and barely spent a penny on house upkeep. The boiler and underfloor went last year, I doubt our LL made any money from us.

awec · 19-10-2022 9:20am

https://www.boards.ie/discussion/comment/119763738#Comment_119763738

You must surely realise that you are the exception, not the norm, right?

€1200 per month for a 3 bed house is insanely low in this market, this is absolutely not normal and a million miles from what the overwhelming majority of renters are facing right now.

What would you do if your landlord told you tomorrow they are selling?

RichardAnd · 19-10-2022 9:20am

https://www.boards.ie/discussion/comment/119763306#Comment_119763306

This is precisely it. The state is NOT making decisions to benefit the Irish people, and voting in another set of neoliberals or lefty useful idiots will change that.

Ireland 2022 is a pension fund with a flag,

AySeeDoubleYeh · 19-10-2022 9:20am

https://www.boards.ie/discussion/comment/119763738#Comment_119763738

Nobody said it was impossible, but nor is it the norm to have a great deal on a 3-bed rental tied up. It's great that it worked out for you - sincerely - but not everyone has been so fortunate.

AdamD · 19-10-2022 9:25am

https://www.boards.ie/discussion/comment/119763738#Comment_119763738

Believe it or not, many people haven't gotten a ridiculously under market rent like yourselves so your situation is borderline irrelevant to any family looking to buy.

AdamD · 19-10-2022 9:26am

https://www.boards.ie/discussion/comment/119763821#Comment_119763821

Well he's ruled out buying so apparently he'd be happy to rent again at 250% his current price, because that's what it would cost, if he even managed to find a 3 bed rental.

DownByTheGarden · 19-10-2022 9:28am

Heard an economist on the radio this morning pointing out that houses were the same price now as they were a decade and a half ago. The banks will all have their own stress tests anyway. This just puts people into a postition where their lifestyle and not just their income amount alone can help them get a mortgage.

maninasia · 19-10-2022 9:37am

This is just keeping prices high.

This government is an absolute joke , there is nothing they won't pull to keep house prices going higher. They speak with forked tongues.

Meanwhile the main bidder against you for most second hand houses....after you paying your taxes and preparing your stamp duties.....is the bloody government.

What a strange warped place.

Padre_Pio · 19-10-2022 9:38am

https://www.boards.ie/discussion/comment/119763870#Comment_119763870

"But houses are the same price they were the last time the market went mental! It's NORMAL!!!"

jimmybobbyschweiz · 19-10-2022 9:40am

https://www.boards.ie/discussion/comment/119763718#Comment_119763718

If they are a family that live in Dublin and need three bedrooms they need to pay €3k pm rent to get a basic 3 bed place. Not sure how that is sustainable for 99% of young, working families particularly if they had another €1k pm creche fee on top of it. At the very least they will not be saving any sort of cash to get out of the rental market anytime soon which means they would likely be pushing on to ages where they may never get a mortgage.

This is going to be a massive issue in the next 5 years as a result of the seeds sown the last five years where no effort was made to make affordable, suitable housing available to workers. The alternative I suppose would be to never have a family and then at least have some financial security but then in 10 years onwards, without sustained mass immigration of young workers, the pension timebomb will decimate the country and leave a generation or two of retirees in abject poverty. There is little long term planning in Irish politics and even among a lot of the Irish public people are not overly willing to make much of a sacrifice to their own life in order to facilitate longer-term economically sustainable policies. On the one hand I understand the frustration when we see how public monies are squandered by FF and FG but then at the same time we do live in a democracy so you pay for what you get by voting them in!

maninasia · 19-10-2022 9:41am

Exactly.

And the massive obsession almost everybody has here with housing and housing as their ONLY investment is nuts.

Again the govt created the policies to foster this with crazy Communist level 33% and 40% Capital gains taxes on stocks and ETFs. In the meantime they will offer a company or multiinational 15% or less corp taxes . And gave REITs 7 years no capital gains tax. But you get to pay up to 40%.

Irish people have been brought up in this system so many seem to have little clue about how weird this all is. They are like hamsters on the wheel scrambling to find a roof over their head and get on the 'property ladder'.

jimmybobbyschweiz · 19-10-2022 9:47am

https://www.boards.ie/discussion/comment/119763910#Comment_119763910

Exactly - normalcy bias in the extreme and there are absolute spoofers and charlatans among us claiming that this is somehow sustainable, even somewhat legitimate commentators are caught up in the notion that Celtic Tiger levels of house prices were actually not that bad as this is necessarily the position one needs to have to claim they are sustainable now!

The only way this whole charade keeps going is because of FF and FG's ridiculous policy measures that are designed to keep house prices high by suppressing supply and fuelling demand - this is 100% a manufactured state of affairs our housing crisis - it is absolutely not the result of a booming economy!

straight · 19-10-2022 9:49am

https://www.boards.ie/discussion/comment/119763821#Comment_119763821

Nobody knows the figure for average rent in this country. Only new rents are reported. I have a 3 bed semi let in cork city for 1100. New tenants moved in 3 months ago. Nothing at that level gets advertised now. It's friends of the previous tenants that generally move in.

19-10-2022 10:04am

https://www.boards.ie/discussion/comment/119763960#Comment_119763960

This is exactly my point, you never hear about this though as people on want to talk about the extreme levels of rent.

tonycascarino · 19-10-2022 10:05am

The new rules are clearly going to drive up property prices even more than before as now people can borrow more and therefore bid more on a particular house to secure it. Some Irish people are unbelievably thick though. Many forget that borrowing money is the easy part but paying it all back to the bank is where the problems are. Good for you if you pay way way over the odds for a house and then have to hand the keys over to the bank in a few years.

19-10-2022 10:05am

https://www.boards.ie/discussion/comment/119763858#Comment_119763858

I guess you are assuming our LL is going to put us on the street. As I said not every landlord is greedy, lucky for us.

19-10-2022 10:07am

https://www.boards.ie/discussion/comment/119763858#Comment_119763858

Also, I'm assuming when you say 250% our current rent, that's near 3k a month, right? These are obviously Dublin rents you are talking about, you do realize there is other places and counties to rent outside Dublin for half the price?

19-10-2022 10:12am

https://www.boards.ie/discussion/comment/119763783#Comment_119763783

Excellent point, I know renting is not for everyone but the flexibility is great. If we decided tomorrow to emigrate it would be no big deal and wouldn't lose out on anything here. Now obviously renting for us will end in the next 12 to 18 months, we will decide then what to do. We have lived in 3 different location / cities in Ireland the last 10 years and its been great to be honest.

19-10-2022 10:14am

https://www.boards.ie/discussion/comment/119763821#Comment_119763821

As I said to AdamD, its not insanely low outside of Dublin, I think people on here assume everyone is paying Dublin rents. With remote working etc there are many options in terms of location.

yourdeadwright · 19-10-2022 10:16am

The housing market here is joke ,

To many people making big money out of it to be bother trying to fix it for the less well off,

I was in Liverpool over the weekend in a lovely area 20 minutes outside of the City & your looking at 200 grand for a nice 3 bedroom house, That's about 230 euro , You'd barley be able to afford a house dump in Dublin ,

Our neighbour recently sold there house which hasn't been touched or done up since the early 1980's for 670 grand, The prices are out of control its just insanity to be paying that money for that house, The area is decent area but nothing special , where does it end like ,

I'm not sure why young people of this country are bothering to stay here,