Softening house market?

I was in the market for an apartment in specific areas in Dublin for about 18 months, and had been following new developments for maybe 2 years prior to that, didn't see a single one go to market. I bought (second hand) about a year ago and even since I've gotten a few responses to queries I had made previously and they were all brochures for renting.. (i.e. build to rent). Huge developments in Dundrum, Harold's Cross, Milltown, Newmarket, all straight to rent.

Of course the country only collectively lost their **** when a housing estate in Kildare didn't go to market.

Will be interesting how much of this rise is passed on.

Though P Lane thinks it might be too much of a jump...

https://www.ft.com/content/2f43d51f-2863-40b0-bf6d-05fa0cf161a2

These build to sell apartments were listed today in D18, pricey for Cabinteely imo which is ok but not a particularly great spot by any stretch of the imagination.

One thing to note is the standards for BTS are much higher than BTR and thats clearly evident with the dual aspect etc.

The below 1-bed plonked into Milltown would be probably closer to 600k, couldnt imagine they'd find many takers for that somehow.

What of it?

Many tenants in apartments are sharing and couldn't pay a 90% mortgage for the apartment. The apartments wouldn't have been built at all on a speculative basis for sale to individual purchasers.

They are being replaced by the supermarket tray. At one stage there was a quality difference between Supermarket and butcher now there is not. Especially at the higher end of beef the AA and HE brands qs well as 30 day ages beef has changed the market.

As well in the city the rent of retail units is colossal. You need a couple K margin/week before you have a bob for yourself. The lads that are surviving ate the ones that own there own premises

There is two side to every story. However the deposit is 10%, on new houses the government gives HTB which is 30k ( that is approximately the tax paid by a couple both earning 40k over three years)

Ya if you are buying secondhand you need to save it yourself. But even a 500k house probably needs about 60K between deposit and legal fees and odds and ends on a second hand house.

On a new house taking the 30k in tax refund it leaves the necessity to find another 30k. The biggest problem is supply. There are some on here that think supply will magically restart in 3-6 months time. Or if the LA start building it will add to supply. The limiting factor is labour. In Dublin that is exasperated by the fact that 50% of that labour travels in and out every day adding 3-400/unit minimum in extra cost. This in turn sets the Dublin labour rates.

Prices are probably sustainable outside Dublin as the cost of traveling is not a factor. There is huge pent up demand outside Dublin. If materials prices drop 20% and labour costs slightly then building will continue and refurbishment and extensions will take off.

But for Dublin its a different issue. It's hard to fit a round peg I a square hoke

I would argue that Cabinteely is a great area, at least for a family. Good transport links, excellent schools and green areas/sports clubs aplenty. For 2nd hand homes it offers what passes for decent value in this market.

Agree that those apartments are way overpriced, though - you can get a house in Cabinteely for the price of that 2bed 2bath!

40 years ago a 25 year old could be 10-12 years working, today a 35 year old might be similar. It was common for so e young lads to start apprenticeship's at 14-15 years of age.

Because comparing a new house now to 40 years ago is comparing apples and oranges.

Back then houses were as CH described. A lot of work was carried out after the house was purchased. Lawns, painting, boundary walls and fencing etc. People often started with second hand furniture. People who did a self build moved in with 3-4 rooms completed, a single bedroom, kitchen bathroom. Using polybond on floors to stop the dust rising.

People now often drift through there twenties. Relationship's are away easier to start and some people ended up starting family's in rented accomodation without considering the conquences.

The product you get now is totally different. Most new houses will require no money spend for 10+ years and even then it will be lifestyle choices

Mandated to buy every apartment going, sounds like the government is actively bailing out investment funds that want too offload apartments. I think we will look back in anger at how the golden goose of high corporate tax was absolutely pissed away by stupid decisions the last few years.

A builder has to take chances when taking on a job. he has to risk things going wrong through his own mistake or that of his employees, mistakes by suppliers that he ends up paying for and customers refusing to pay. When margins are too tight there is a risk of working at a loss or earning little or nothing. Dole may well be a better option particularly if the occasional risk free nixer comes by.