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

People coming off 1.5% to 6% now, it's going to lead to some amount of defaults.

How long does it usually take for houses to go from for sale to sale agreed? Im currently interested in a property that has no bids after 2.5 months. It is expensive in a good location but other houses in its range have come and gone in the period. Sellers have no interest in budging from asking price which seems a little odd considering it is on the market for quite a while now but maybe they all take this long?

Sometimes people only want to sell for a particular price. They are probably not too pushed about selling it for lower and will hang on to it rather than go lower. We were like that when we decided to move. We said if we didnt get x amount for our old house then were happy to just stay where we were forever instead of moving. I think you'll see more of this if prices start falling. People might rethink their decision to sell.

You seem surprised that people would chose to shoot themselves in the foot and yet there are post after posts wishing for a recession in hope of cheap houses.

You must have gone to my school as you described my experience to a tee.

And out of that was borne the Family Home Protection Act 1976. Designed by the Govt to protect wives and children from being made homeless by a wayward husband/father. Whilst it was no doubt relevant back in the day, I wonder if it is today?

This legislation is what has restricted the banks for reposessing defaulters (especially post GFC) at scale, one of the main reasons (the other being capital requirements) why we have reduced competition in the mortgage lending market here. Our banks here are cr@p, are not innovative and have sh!tty customer service. My local branch still shuts at lunchtime - right when everyone else at work wants to do their banking! Even the Post Officeis open at lunch!

It also forces lenders to have policies that married couples must apply jointly for a mortgage, so that in the event either spouse has a credit issue, then they are generally excluded from getting a mortage with any of the main lenders, even if that loan can be serviced adequately by one salary. The banks simply wont consider an application which is unfair.

I’m not getting the 70’s 80’s mixed up…teachers strikes because of class sizes etc was the mid 80’s. All that I was pointing out is that buying a house on one person’s salary back then was common because it was a time when women were forced to give up work when they got married.

By the mid/late eighties alot of women were holding onto there jobs. I got married in 1991 and my better half hne er considered giving up her job.

However houses were much more basic. Friend bought a new house in the mid 1980's. The house had a back boiler on the open fire no oil or gas. It's was not painted, no landscaping builder was selling as he build so tarmac was not completed until all houses build( back then there was a 50/50 chance the builder would not do it).

There was no appliances supplied. Teak single glazed windows( lucky enough there was still builders doing softwood ones). There was no floor covering. Attic was insulated but walls were not and there would have been little insulation under the floor. Electrical points would have been minimal example sitting room a double on one side of the chimney breast and one on the back wall. A single in the hall. Bedrooms generally had a double point. There was no onsite.

There was a kitchen but it was a row of units along one wall the narrow one. No utility. I would have know a few of his neighbours ( I actually lived there for a few years and most of the women continued to work throughout there lives

Having near 20% unemployment also helps make housing cheap...

I'd say the 1 in 5 who didn't have a job don't look back on it quite as fondly as some in this thread

I know quite well what ESG is. My reservations come from my own belief that the people who are in charge (at least in the West) are not acting in the best interests of the people over whom they govern. I'm fully aware that I may be wrong, but after the last few years, I for one simply do not trust the state or global financial system.

Also, how can you be so sure that the policies that ESG espouses are indeed beneficial? All that I see in the West is an increasing costs, declining standards of living and society that is fragmenting.

I could be wrong, of course...

Conspiracy theory Forum is below this one. This is a final warning on this, there have been others on this thread before.

Do not reply to this post

grocery price inflation in UK running at about 16.5% - 17.2% according to Sky News are we any better here?

many house holds here now coming under pressure again with cessation of energy credits while still no sign of price cuts from providers

as one previous poster mentionned the real pain has yet to come when many short term fix rate mortgage terms expire and tens of thousands of mortgage holders brace themselves when they find they are on much higher rates costing hundreds extra every month

Far more teacher training days now than there were strikes in the 80's

Covid and the energy crisis have brought the coats back into the classroom

In the 80's mortgage lending was 2.5 times income 1 plus 0.5 times income 2 giving a total of 3 times income, we are now at 8 times (4 + 4) with new homes prices well out of reach of the median income. This is with ftb grant, shared ownership, and tax breaks for developers.

This pretty much underlines how one sector has held the entire economy to ransom in relatively short period of time. Pure dysfunction and cronyism

You mention Advant, but they only take the low hanging fruit by only accepting applications from absolute prime borrowers.

I dont know what Advant's market share is, but Finance Ireland and ICS Mortgages had 15% market share between them in 2022. Their lending has since stalled. FI is now 6.2% variable. If they cant source alternative source of funds to lend at comparable rates there is a risk they will exit the mortgage market, further consolidating the stranglehold AIB & BoI have on the market.