Irish Property Market chat II - *read mod note post #1 before posting*

In the boom and even pre boom you could afford a house despite being out for pints every weekend, nowadays some people even forego that and still cant afford!

Discretionary spending is not affecting house affordability unless you're pissing away your money on foreign holidays and cars, which most would-be homebuyers are not.

How did the older generation pull the ladder up , please explain?

Also go and ask your parents how many car upgrades they had while saving and buying their house along with how many holidays a year they had and how many phone upgrades..

The generation today want things a lot quicker than the generation before that. (not a bad thing, but usually it costs more money to want what you want right now)

Also I take issue with that bland statement about a couple on the median income without any fact or figures. So lets dig into that one. You can afford to buy a house with 2 people on the median wage but you have save your 10% deposit and also not expect live somewhere that is high demand. The math is outlined below with verifiable figures.

Median wage is 38500. Multiply by 2 (couple on median wage) = 77k , then going on the 3.5 times salary (which is very small in comparison to most other countries where you can borrow higher multiples) = 269.500 . Add in your 10% deposit = 296340. So this is the most this couple can afford at the top end of their budget as such. Now average house prices in Ireland in 2021 was 290,998. Meaning your fictional couple would have about 6k left over for solicitor fees, stamp duty and to put some furniture in and guess what repayments currently on bonkers for 4 year fixed repayments are about 1150 a month as well also your couples take home pay amounts to 5200 a month meaning that about 20% of their wage is going on paying their mortgage. To me thats affordable all day long. Also I didnt even add in the 30k FTB grant..Kind of really skews things way more towards the realm of affordability.

Median wage

Average house price Ireland

https://www.rte.ie/news/2021/1229/1268970-property-prices/

I was going to reply with a warning not to talk about self restraint and denial as it wouldn't go down well, which is what happened when I tried it. But no need, the predictable rections beat me to it. Boomers got'a keep quiet.

Exactly, taxpayers money is used to drive up house prices and rents using all those schemes you mentioned.

So the significant cohort of working poor pay higher and higher rents.

In truth it benefits nobody except the large landlords but there is a perception that these policies increase my house value so that's OK

The first rule of the state must be House prices must never fall, everything else is secondary regardless of the consequences

Once again how is this the older generation pulling the ladder up, if the younger generation are or were to naive to see this is that not their own fault. You also have to look at the demographic that vote this goes up as the age rises, we have all heard of the the grey vote.. So once again I don't see it as the older generation pulling the ladder up I see it as the younger generation knocking the ladder over before they climb up it.

Pretty much the story of Irish housing. Our citizens are economically nullified in the struggle to buy or rent a home.

Listen to the last 10 minutes of the stand podcast with Paul Somerville. He pretty much sums it up very well

 this current lot are too used to getting everything they want when they want it.

any evidence for this? or are you just going to bleat on about how they cant save due to buying a few takeaway coffees and a night out down the pub?

young people in '22 being told by those who purchased at the height of the boom when 100% mortgages were a thing, that they have no patience is laughable.

A lot of my family built in the early 00s, 100% mortgages, holiday homes , piss ups etc. Not much evidence of patience there if you ask me.

and look how that ended up? At least the central bank and the constraints put on banks with lending rules will not allow the same sh1tshow happen again. Prices were going up and basically ignored the supply vs demand rule everyone wanted a couple of properties and the supply was through the roof people building ghost estate after ghost estate. So now its 2022 and the small landlords have been leaving the market in their droves as it is not worth staying in the market, taxes and the rules make it an absolute nightmare to be a landlord. Which means renters are going to be at the mercy or vultures funds in the not to distant future, these boyos wont care if you cant afford it they will be able to leave vast swaths of properties idle in order to protect the price and eventually someone will come in and pay it.

Also what needs to be taken into consideration while debating the generational debate is if you asked a 20 year old back in say in the 1980/1990s what would you deem as a necessity to live these days. Most would of said shelter and food and if they have a vice like drink/smokes...Roll on 2022 you would have all of these on the list but you would also hear broadband, a phone and one foreign holiday a year would be on the list. Not saying this is wrong but people need to understand the worlds attitude has shifted for what people see as being the essentials and peoples standards of living has gone right up around the world and the cost of these essentials and standard of living are a lot higher. Yet when this is pointed out to the current generation its scoffed at. This all feeds into people saving and getting on the ladder if they want to get on the ladder. I don't blame them for doing it by the way when I was in my 20s I would of loved to have been free from a mortgage as it gives you a certain amount of freedom to buy or do what you want. A lot of our social constructs also mirrors this live fast and pay later attitude you only have to look at the disposable relationship online websites for an example of how vastly differently the younger generation process and value things then their parents did.

so basically the capital where probably the majority want to live? People have to understand if you want to live in a major city there is a premium to be paid this is how it is throughout the globe unfortunately