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

They more than likely still know more than you or I about selling and marketing houses.

I know ive bought one. Never sold any. My brother has bought 3 and sold 2. Id say he is left in the dust by someone who is doing it every day, surrounded by others doing it for many years too.

Tánaiste defends price of Coolock affordable homes scheme

.. very hard to be defending 475,000 euro "affordable" homes in coolock the country is in serious trouble...

https://www.rte.ie/news/2024/0627/1456965-oscar-traynor-coolock/

hopefully john who is working will qualify for his caravan .. god help anyone who is not working ....

.. no wait they are the genius ones getting the free homes

lucky for us we have FFG who are going to help the people who get up in the morning to go to work

Spot on. Sheer madness.

Using underhanded and immoral tactics of course.

Oh, and my father has sold many a property, and he has very little good to say about EA's. Bunch of spoofers, he would call them.

They need to go out and get a 2nd job to pay the taxes to cover the costs of this scheme for the few that qualify for it

They might qualify for a tent on the canal bank

the question must be is there are any other country doing housing better and how can we replicate that ..

we have a serious problem here if we have to provide 300k in state subidies to provide a 275k 1 bed apartment........

there is more to life that expensive accomodation the people and irish children have to be able to live their lives too

One particular EA around my area has sold 3 houses within a 5 minute radius recently. All 3 bed semi-Ds.

320k asking price sold for 370k.

A few doors down asking price 350k sold for 420k.

Down the road asking price 360k sold for 420k.

Large number of bidders on each, sucked in by the lower asking price that's within their budget. If the prices are set at 'market value' of ~395k each, how many bidders are there? Where is the bidding war?

Cash buyers only?

104k will just as likely be a working couple in there thirties, with children that are renting maybe even with HAP at present. Or young couple starting out. 100k is not astronomical wages for a couple. Not many professionals earning 100k will be buying these. Unlikely any single person in the 100k+ bracket will be buying these.

Some here are forgetting that these earning limits are targeted at couples in fairly ordinary jobs who cannot afford a house otherwise.

In Limerick at present the larger MNC are paying a basic of 50k+ to shift workers there total earning are in the region of 80k+. Daughter is a teacher teaching about 6-7 years next September her earning will be 55k ish.

People give out about the price of housing. A friend of my better half was home from Manchester. She is separated about 8-10 with one child. They sold there orginal house when they separated and it made 500k, it recently sold again for a nearly a million sterling. The house she bought a small 3 bed semi in a decent area cost nearly 300k, sub 900 sqft with the obligatory box room no Dermot Bannon extension it is worth in the region of 500k now.

Manchester is the UK's third city probably double the size of Dublin but not a capital city. Ireland has the fastest growing population of the wealthiest EU countries, the UK population was rising before Brexit and probably still is. They have much the same issues as Ireland.

As DavidMcWilliams said about housing 5 years ago in a podcast

"never let the perfect get in the way of the good"

The economic growth depends on Ireland being competitive and if €100k is a low household income for Ireland then it is only a matter of time before something somewhere breaks. Effectively the government has mandated that €100k is a low household income. Businesses will be undoubtedly wary of where the country is headed as the housing market is getting less affordable which means that they will need to keep increasing salaries. It’s so shortsighted by the government to implement policies that mainly seek to push up house prices with housing supply and affordability as well as economic growth being seen as collateral to successfully prop up the housing market.

Absolutely; and I think it is actually worse for families that work and rent as 3 beds to rent, from a high level scan of Daft, cost at least €2500 per month and that seems to be Tallaght/Finglas etc so probably €3k pm and more to get something in a bit of a nicer area for the family.

This would take up around 40% of a €150k annual salary. While we think owning a house is for the wealthy it is actually renting which requires you to be earning good money!

And posters were cribbing about the prices in Coolough

An independent look at the effects of UK's Help to buy scheme over a decade similar to Ireland's Shared ownership which is now impacting the market

help-to-buy scheme “inflates prices by more than the subsidy value” and does “not provide good value for money, which would be better spent on increasing housing supply....

Worse still, they found that the policy actively stimulated construction “in the wrong areas”.......

the government’s own evaluation of the policy showed that only two in five help to buyers actually needed the programme.......

Helping out the comfortably-off and lining the pockets of developers may have been a calculated part of the Tory policy. But help to buy has also had a major unintended consequence: leaving many buyers trapped in negative equity.....

Hamptons last year found that people who bought a new-build home were twice as likely to sell it on at a loss than second-hand homeowners. This is a consequence of help to buy having created massively inflated premiums on new-build homes – which quickly evaporated once the home had been lived in.....

Fairburn, the then boss of Persimmon, was notoriously awarded a bonus of £82m, one of the largest such bounties in British corporate history, and was forced out as a result. Defending his payout, Fairburn was frank about the cause of the vast sum: “It’s supply and demand, and the demand has been created through the help-to-buy scheme.”

Friend bought a 3bhk for 415 k two months back..another similar listed for 390k and sold for 455k…south Dublin !

I posted links previously that describe the economic reasoning and theory behind why EAs under quote on the property that is trying to elicit a herd mentality when purchasing a property.

But here you are still doing the good ol "Whatabout" tactic, in ignorance of everything that has been discussed before.

no no…we had many months of price drops, and then the central bank changed the borrowing limits…

A lot has changed economically also. If you scroll back to 2022 even on this page you’ll see talk of mass closures of business, households unable to heat their homes over the winter, interest rates hitting double digits, tech sector crash destroying the Irish corporation tax base, SF government instability.

Summer 2024 - inflation largely under control, energy prices falling, interest rates have peaked, record employment levels, wages increasing quickly (now surpassing price growth since COVID), tech stock indexes breaking new record highs, corporation tax take surging to new highs, FF/FG likely remaining another 5 years.

The economic picture is a lot lot better than most expected in 2022.

I’m afraid I can’t explain it as it seems all the bids occurred during a very short period on the one I looked at.

Yes, it's the same for them all, that's the way the market is currently, frantic bidding.

I think this view is backed up by the fact that similar trends were seen across the worlds. Drops in 2021/2022 on rising rates. Quickly re-accelerating and re-peaking now. The moves were more pronounced than ours in countries with looser lending limits (and therefore more sensitive to interest rates)

This is an unusual take. The vast majority of people buy as a couple. The vast majority of women work these days work. You’re appear to be painting this as a bad thing?

In how many first world cities could two below median income workers buy a brand new 3bed house 6kms from the city centre?

I don’t think many people would argue it’s harder than ever to buy a house and significantly so vs decades ago. Maybe a few would but not anyone who’s actually thought about it.

But purely in the context of this affordable housing scheme which is getting tonnes of negative attention in the media and from opposition parties - In 2024, it is remarkable that two teachers can buy a new house so close to the centre of a thriving capital city.

I think the government should get credit for this but instead emotion has again taken over the narrative with articles referring to surveys of ‘people’ saying they should be under €300k. All logic out the window…just ‘because’.

An expectation of any Irish government magically making new 3 bed houses in the capital city be 5x average income, completely ignoring that this isn’t the case anywhere in the world, takes the same level of head in the sand ignorance as the boomer talking about avocado toast.