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

what you would save on energy bills with new v old cheaper house would probably would probably enable any shared equity to be repaid within 5 years

it’s not “the funds” to worry about. It’s the councils and housing bodies buying everything.

I rented and used to feel sorry for people who had bought before the crash. Roll on just over a decade and i was the one i was feeling sorry for.

Not so sure about that one

1500 each for annual average gas and electricity, that's 15000 over 5 years.

Help to buy is only up to €500k, which rules out nearly every new property in Dublin.

The income tax stat is more a reflection of just how ‘progressive’ the tax system is here than the distribution of salaries. You go from paying almost no income tax at sub 40k income to paying an awful lot real quick once you enter the 48%/52% brackets. If you plot the effective rate of tax in Ireland vs salary it’s quite remarkable the shape of it.

The average income of a FTB (household) in 2023 was €88k. On average they borrowed 3.3x income and they were on average 35 years old. In dublin the average FTB household income is north of €100k I think.

For all the abuse the government take on housing I’m always so surprised how rare it is for the actual facts to be discussed. They don’t seem to be getting the positive messages out very well

I wonder if polled how many Irish people would know we are building more houses per person than any country in Europe - significantly more than double the average. Surely this deserves some credit? As well as being the biggest in absolute terms, we are also increasing our output faster than any other country. Remarkable.

https://www.ey.com/en_ie/news/2024/06/irish-housing-completions-forecast-to-be-strongest-among-19-european-countries-ey-euroconstruct

it is remarkable, but it doesn’t fit the narrative to acknowledge it, nor the insane fact that even though our population is the highest since the Famine, we have full employment, achieved within a decade of a catastrophic economic collapse, and a few years of a global pandemic. In any other country, that would be lauded.

I didn’t say it was unique, but the successes achieved should at least be acknowledged. There is a definite sense of entitlement, and a lack of understanding of just how well we have recovered from a dire situation. If anything, we have rebounded to well, too fast, and property development has not kept pace from a near standing start. I can’t help but think there are those who resent how good the recovery has been and that there are so many high paying jobs which mean young people haven’t needed to emigrate for work. Building houses will never keep pace with job creation in an environment which has been created in this country over the last 10 years.

Mention property taxes increasing to capture some of the huge price appreciation in the market and watch them try to play the poor man despite being paper millionaires!

I agree. The government is too active in the housing market - but this is because it’s the popular position now. Sort the homeless and the housing list is the main pressure they get. The government were losing serious ground to the SF mantra of social housing for all so have moved further left in their own position with no real right wing opposition to fend off.

The issue of the private market producing apartments to rent over purchase is just an economic/societal one. Young people in Ireland don’t want to buy apartments. They are very expensive to build. The only way they are viable is if they are build to rent.

What funny is that I think the best way out of the rent for anyone is to buy a 1 bed apartment and save the difference between the mortgage and the rent. Buy one as soon as you can get the loan for it. There will be less competition than for bigger apartments and houses. They are cheaper. You can afford one faster than you can afford a bigger place. And you would be renting one or a room share anyway if you didnt buy it, so its still an improvement.

Find a way out of the rent trap as soon as you can and then save the difference. Your mortgage will not go up at the same rate rent will. Save the difference and then trade up in a few years if you even need to. I think the last bit of value in the market is buying a 1 bed apartment if you are currently renting or sharing. I dont see that value staying too long though as they are going up fast now too.

I moved into a house this year that needs some work. I can do it all myself but it will take me a year or two.

My friends in my age group come up to visit and they are disgusted that it wasnt walk in brand new. One even asked me if i saw it before i bought it. Those same friends still moan that they will never be able to afford a house and they might as well not bother saving and blow all their money on holidays and restaurants.

Thats a sample size of n=1 or thereabouts?

My experience is most people who don't yet own a house would bite your hand off just to get a doer upper these days, such are the prices in the market right now.

I have never met anyone disgusted that a house was not new build

down the country it is far less e.g. 375k ruling out many of the new 430k houses - perhaps house prices are simply too high if FTBs are still struggling to buy them even with all the multiple government supports.........