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

There's bidding on a house in Clare at the moment that has (so far) gone 35% over asking - and I think it will keep going a bit more. Pent up demand for sure (there's 5 active bidders), but part of the problem is the EA setting the "asking price" way too low. It was obvious from the get-go that it was only set to get as many people as possible to the open viewing (which worked), and that asking + 150k was the real starting point.

We're trying to move from a perfectly fine 4 bed semi-d to something a bit bigger with more space inside and out. We have what we thought was a very good budget. But there's clearly a good number of people out there with bigger ones. We're having to reset expectations.

You're right, it is extremely disheartening.

Data harvesting, everyone of those viewers is a weapon for the estate agent in driving up future sales

Came in to post that story from The Journal

€15k cash and €15k of home improvements. A casual €30k for making an objection.

No wonder nothing gets built in this country with multiple objections.

Hopefully Revenue goes after this one and makes an example of her to stamp out this crap. And they should audit the living bejaysus out of the developer too.

FG local candidate suspends campaign after report she received money to withdraw planning objection
https://jrnl.ie/6391740

We went through that so many times. We then came up with a plan that as soon as a house we liked came on the market we went straight in 50k over asking with the thinking that it would scare everyone else away when they saw it jump 50k on day 1 and that the vendor would bite our hand off. And that, like all the other places we bid on, we would eventually end up there or higher if we bid in increments anyway, so why not just put our single bid in at the start.

Anyway it worked (we went a little over 50k over asking after a few phone calls) and it was sale agreed in less than a week and we have our house now. I think if we were bidding in smaller increments it would still be going and looking at a house across the road that went for 100k more that is exactly the same but with a smaller garden a couple of months later, i think we did the right thing and got lucky.

You make it sound like all grand parents are struggling. If they are happy and willing to live in their property like they have all their lives, then let them do what they like with the house they spent their lives buying and blood, sweat and tears making it a home.

So let the ones on limited incomes who cant afford it make their own decision on whether if they want to downsize. Any who have the means, well let them keep the fruit of their lifes labour, if they want, I say.

Mania phase, househunters have my full sympathys

Dont feel sorry for me. I am in charge of my own destiny. If there is a crash, there is a crash, but at least im in my own house during it and not renting. You should make some money for yourself with you knowledge of the future though :)

I'm assuming if you've purchased your not a househunter, therefore that particular comment was not directed at you but those that come after you

Spot the many outcomes of a dysfunctional property market in this one short comment

1 No properties for a large homeowner to downsize to

2 those that are available cost more or very close to the price of a 3/4 bed. No incentive for efficient allocation of housing

3 children probably earning proportionatly significantly more than parents were, are living far away from parents and enduring long commutes

4 families in hotels and tourists in residential homes leading to unaffordable hotel rooms killing the tourist trade

the only trouble with the 26% wage increase is most of it goes on taxes, combined with 17-30% general price rises very little of any wage increases are ending up in consumers pockets - people are really starting to feel the stretch

Maybe, but as Datadude says the issue is shortage of homes. If 3 of those 4 points were worked on there would be alot more homes available

Yes good point on the tax piece. Standard rate cut off has only gone up 18% and the highest rate of USC hasn’t moved at all in that period! Tax credits only up 13%.

Amazing really that the tax burden has not kept pace with wage inflation during a period of record surpluses!

Don’t necessarily agree on the inflation elsewhere piece. I think CSO has inflation since 2020 at c.20% so we’re now at a point where wages have gone up by more than prices, so people on average should have more disposable income (except for the taxation piece you mentioned)

Yep, was an early bidder on that but had to bow out. Agreed, was undervalued but their tactic absolutely works. You try to think rationally but you go to the viewing thinking, "Maybe this time it wont go crazy!" Being a FTB does not bring any benefit at all anymore either, it seems a lot have cash on hand.

You'd think that a person practicing what is effectively extortion would be keeping a low profile and quiet but it appears she had solicitors letters sent to the developer when the work promised as part of the deal was delayed because of covid lock downs. Letters published on The Ditch

https://x.com/wereontheditch/status/1795435538125873611?t=ji1NWOOjCBCrYvJDWZRGQw&s=09

If people could just invest in stocks and shares affordably in Ireland they would be less tempted to enter the investment property market.

In Germany the taxes on shares for gains or dividends are about 26% which is reasonable. It is then up to the investor to invest for growth or dividend.

There are cost obstacles to exiting the property market as CGT of 33% hits which is a strong psychological disincentive to sell.

A lot of shabby rental properties should be sold on to owner occupiers who will invest the money to spruce them up.