Comments

  1. Vincent ÓConnell

    I think it is sickening to see that mortgage brokers, estate agents, bankers and property orientated solicitors continue to suffer from the same delusion that things are good only if property prices are vastly over-valued. Nobody else believes this. That is why you have an excess of unsold property. Wakey wakey! This has been your raison-d’étre throughout the boom and continues to be. A house that cost around 50,000 euro in 1993 reached about 350,000 two years ago. The same house is for sale for 280,000. It’s hardly rock bottom.
    As long as the parasitic practices of the boom continue, and as long as our society accepts the implict idea that the family home is now a luxury item your house prices will continue to rise again, but people will continue to feel peryed upon. I’d rather be mugged in a side street than let an auctioneer feed off of my efforts.

  2. Hi Vincent,

    I think owning a home (as opposed to renting) has always been somewhat of a luxury item rather than a commodity. Prices are relative to several things beyond nominal increases, inflation, supply, demand etc. price is not only about what you pay, its an interpretation of many other things that go into creating a product. In any case, bubble prices are not sustainable, but I also don’t think we’ll see prices go back to 1993 +CPI either.

  3. Sandra

    Hi Vincent,

    thanks a lot for your post. I think one of the most important things is really to look at the prices of property not as great sales offers but to really ask you if they are worth it. I believe that there is a quiet high negotiation potential and this might bring the prices down to a more realistic level.

    I was wondering what your thoughts on investment property are. What do you think about the future of renting prices to re-pay a property?

    Thanks,
    Sandra

  4. Jim

    “We are capitalists”, LOL. Your economy is reliant on your status as a tax haven and a regulatory dumping ground. 2 years from now when Europe is still crawling out of this crisis, the mood abroad will be very different and I’d me amazed if Ireland is let continue these policies – which in the long run has actually badly hurt your economy(wait and see). Even without Ireland facing the worst recession in OECD history house prices were due for a stiff correction. Morgan Kelly (one of a few credible Irish economists) predicted a 60 – 80% drop from peak to through and it’s quite likely.

    For anyone’s planning to do as Sandra suggests;
    It only (barely) makes sense to buy a house if you can gross it’s value on 15 years of rental income i.e. a house which generates 1000 rental income a month is worth around 180K, at the moment such a house in Ireland today will still cost you 300K and up I think.

    Otherwise your just speculating and if thats the case your at least 5 years too early.
    Ireland has ‘enjoyed’ 10 years of insane house prices, the next 10 will likely be the opposite.

    Also some required reading before you blow your money:

    http://www.rgemonitor.com/us-monitor/256774/housing_bubbles_around_the_world_looks_pretty_bad

    http://www.demographia.com/dhi-ix2005q3.pdf

    http://trueeconomics.blogspot.com/2009/03/oecd-report-blasts-irish-policies.html

  5. Hi Jim

    When you say Ireland is a ‘tax haven’ what in particular do you mean? We have plenty of taxation here! If you are referring to our Corporation Tax then it is kind of skewed because (for instance) some EU countries have higher corporate tax but if you start a company there it pays no VAT for the first 5 years etc. while the same one here would be paying 21.5% so that sounds like populist rubbish to me.

    Your other points are really valid, the sites you have listed are really interesting too, come by again!
    cheers
    karl

  6. Finbar

    Hi Folks,

    I fervently wish that the people of Ireland would simply refuse, point blank, to entertain the ridiculous prices still being asked for property. Reduction? Price falls? Reaching the bottom?
    Look here! Residential property is still being offered at ludicrous prices and if nobody pays them, the real crash (not the mini-crash we’ve seen so far) will come.
    Residential property asking for 500K should be half that!
    Don’t pay it folks! If nobody buys, the real crash will come.

    Finbar.

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