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

1 Because with cost of funding increasing, competition will be eying those deposits. Trade Republic are offering 2% on demand savings to Irish savers. 100k guarantee applies.

2 up to 5% return available on short term state backed US bonds. The dollar exposure is worth the risk as a recession would strengthen the dollar v euro. You get the yield and currency gain. Bit of a no brainer in current environment

Ref long term bonds, agree a little more risky, but with risk comes a much greater potential return as the bonds you hold increase in value in a large scale switch. That large scale swith is beginning though so caution advised. Much better to catch the start of a trend than the end

Potential return

Yield plus capital appreciation plus favourable exchange rate

Short term US bonds are a no brainer. Go long term for a greater return with a bit of calculated risk. Better than investing in property or stocks right now.

I don't disagree there, but I have an issue with these sentences:

"I think the states interests are fairly transparent. They want as many people in secure housing as possible before the next election."

It may seem pedantic, but I think that we need to not conflate the words "state" and "government". Governments comprise politicians, and these people come and go. The state is something far larger; it's the government, the bureaucracy and all that goes with it. The state does not change with election cycles, and no senior civil servant is worried about losing his or her job because the public are unhappy.

This is largely why I for one have no faith that voting for one party of the other will resolve the housing situation. The state as a whole has created this crisis, it perpetuates it, and it seems to have no interest in doing anything other than pumping money into the market or driving up demand in other ways. At the this stage, we need some sort of black swan event that will knock the stuffing out of the whole thing, but I don't know what that could be.

You'd indulge me some dramatic language on a Sunday morning I hope: may God have mercy on us all.

"Market analysts are projecting that commercial property values across retail, industrial, logistics, office and residential units will fall between 10 and 20 per cent this year.

the expected downturn in commercial property means between €5 and €10 billion could be wiped off the overall value of the market in 2023."

follow on from last week's irish life property fund stopping withdrawals

Do county councils generally buy housing on the more 'entry level' pricing? Say upwards of 400k, or does it matter?

Anyone looking for some detail on what happend to SVB and also what ripple effects it may have, here is a good vid:

https://www.youtube.com/watch?v=H7C9oXK0-70&t=1363

I follow this guy on YouTube. I always feel like he gives an unbiased view. Please don't try and convince me otherwise like the newspapers I read 😅

Interesting to see US has decided not to bailout SV Bank many startups and investors in tech sector rattled by collapse of the bank

Yellen: No Federal Bailout for Collapsed Silicon Valley Bank

Silicon Valley Bank is the nation’s 16th-largest bank. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008.

https://www.usnews.com/news/business/articles/2023-03-12/yellen-says-no-federal-bailout-for-silicon-valley-bank

At this stage the real question is already "what supply".

I've a feeling Ffg might crash the economy before anyone else gets a chance

Anecdotal but an in law is selling a property in Wicklow and the asking is 460k. Highest bid was 430k. Suddenly the concil swooped in with a bid of 460k and its gone sale agreed. No accountability for public funds, why not offer 435k and see what happens. All those 30k differences will add up over time across the country, but sure its only public money so why would anyone in the council care. So much for the market setting the price.

One of the best tricks when buying is a killer bid it's often cheaper than bidding in steps.

An ordinary buyer will seldom counter bid to a killer bid but if you came in 5k above they might follow you for another 50 k. It also stops the temptation of owners to counter bid the property up.

The LA come in with one bid if anyone beats it they buy it

Where is the disinformation, the State is effectively raiding peoples wages and using it to outbid them in their efforts to secure a home for their families, effectively driving prices and rents up and making the problem worse.

It's that simple, the government is the problem and the only way to stop this is to cut the money supply to the fools/gangsters because they will not stop.

Why can't they use that raided money to increase supply rather than price

I agree with you - but the IMF coming to town again is not the kind of black swan event I would be in favour of.

Austerity didn't do me any favours.

What's your three point plan to solve the housing crisis in five years or less?

Another bank bailout in the us.

summary: you’re mad selling property for cash. Same will happen in EU with endless funding for “green issues”. Anyone believing a word powell/lagarde says is an idiot

“Translation: the Fed's hiking cycle is dead and buried, and here comes the next round of massive liquidity injections. It also means that the Fed, Treasury and FDIC have just experienced the most devastating humiliation in recent history - just 4 days ago Powell was telling Congress he could hike 50bps and here we are now using taxpayer funds to bail out banks that have collapsed because they couldn't even handle 4.75% and somehow the Fed has no idea!”

For a large percentage/majority of people in Ireland, things are not that bad. Why would middle aged/older people who own their homes, or younger people with well paying jobs who have just bought their homes want to burn the system? SF may be popular with in the polls, will they have a majority of TDs after the next election? I very much doubt it. When voters start hearing about changes that can affect their property ownership, raise their taxes etc, then only those with nothing to lose can be counted on to support them.

Can you see the pyramid scheme in your post. Remove blinkers and look closely

Look back in history, How would things pan out if the madness stopped in 02/03