View Full Version : Housing market crash
Not long to go now I reckon. Slow down in 2005 and I'm seeing over inflated properties that have been on offer for ages.
The bubble is about to burst. Get ready for the social and economic crisis.
CrazyLea
06-01-2006, 01:03
at the risk of sounding silly lol. whats housing market crash mean??
We are lucky here the markets strong
We are lucky here the markets strong
In ireland? Its an illusion. There's no wealth creation - everyone is horrendously in debt. Only those that sell now will make a profit. The rest are doomed.
I remember the dot.com boom. I couldn't figure out why people were investing on promises. I left the market well alone, thought it'll crash in a few months and it did. Now I look at the housing market. Everyone seems to be a landlord. But the buyers are no longer coming into the market. Rent is the same. Alarm bells are ringing already
at the risk of sounding silly lol. whats housing market crash mean??
It means the housing market will lose significant value
In ireland?
Northern Ireland is different :)
Northern Ireland is different :)
Hell, it worse. Its part of the UK market!
Hell, it worse. Its part of the UK market!
Well I can only speak about where i live houses only stay on the market fo two weeks
Well I can only speak about where i live houses only stay on the market fo two weeks
Just watch that two weeks turn around. It normally spreads from the south northwards. Last quater, the south was down on avg 1%
Just watch that two weeks turn around. It normally spreads from the south northwards. Last quater, the south was down on avg 1%
I will but we are still well ahead
Jessie Wallace
06-01-2006, 02:02
Does this mean that i might actually be able to afford to buy some where of my own at last?!?!
Does this mean that i might actually be able to afford to buy some where of my own at last?!?!
omg!!! looks like it will. I better get back to saving for that deposit then
Heres a good example of whats happened down here - I bought my house 10yrs ago for 42 1/2k (2 bed semi) brand new build, so your normal cardboard rubbish. They are now selling for 140k!!! Mine would actually sell for 180k because we have had it extended and is now a 3 bed (with a secret 4th bed in the loft lol). If we wanted to buy a 4/5 bed we are looking at a min of 250k. And this is Devon! We have the highest water bills in the country, one of the highest costs of living and some of the lowest wages. We have a shortage of properties because so many people either retire here or buy second homes here, making it impossible for first time buyers to get on the ladder.
There are going to be so many people in negative equity pretty soon, and with all of the borrowing that has happened of the past few years, interest rates are going to have to go up to cover the costs of the bank loans - banks are going to have to recover their costs somehow. There are going to be a lot of people in a lot of trouble (a bit like back in the 80's) - its not going to be fun and it will happen.
Jessie Wallace
06-01-2006, 10:04
I think i may just stay where i am for a bit longer, and wait and see what happens.
It would be the better idea Dawn - otherwise you could buy a place this year for £125k and then the market crash so for the next 10yrs it wouldn't be worth the money you paid for it....
Jessie Wallace
06-01-2006, 10:08
I'll just try and save instead, and then when it actually settles again, i might beable to afford something.
Heres a good example of whats happened down here - I bought my house 10yrs ago for 42 1/2k (2 bed semi) brand new build, so your normal cardboard rubbish. They are now selling for 140k!!! Mine would actually sell for 180k because we have had it extended and is now a 3 bed (with a secret 4th bed in the loft lol). If we wanted to buy a 4/5 bed we are looking at a min of 250k. And this is Devon! We have the highest water bills in the country, one of the highest costs of living and some of the lowest wages. We have a shortage of properties because so many people either retire here or buy second homes here, making it impossible for first time buyers to get on the ladder.
4/5 bed for £250K , you would only get a 2 bed apartment in Ireland for that.. My mum was offered €365K for a 3 bed house. Price in Ireland are growing and house are been bought before they are been built... it is madness
We're seeing what happened in Japan. During the 80s there was the biggest boom in history in their house market (sound familiar). Then all of a sudden it stopped and for the past 10 years its been in decline and now its below the level it was before the boom started. And the interesting think about Japan is, their debt levels are notoriously low as they don't believe in credit.
What's happened is that the market has turned into one big pyramid scheme. It needs new buyers to come int to sustain the market. But what if you can't afford to buy a house? The bottom of the market dries up and the crash happens. It doesn't have to be forced by interest rates - just the cost of living can cause a crash.
Most banks over here are doing 100% mortgages so people can afford to buy the houses.... but to afford a house you do have to be in a relationship with 2 people buy cause the money they offer for single person will only get you a shoe box
yeah that's only if your lucky you can get a shoe box round my bit youve got no chance
Exactly. People haven't got wealthy all of a sudden - its all from borrowing. We're in record levels of debt. Its not going to take much to trigger a housing market collapse. Infact, some economists believe the trigger has already happened.
Exactly. People haven't got wealthy all of a sudden - its all from borrowing. We're in record levels of debt. Its not going to take much to trigger a housing market collapse. Infact, some economists believe the trigger has already happened.
don't mean to sound bad, but I hope so.. i owe nothing, haven't borrowed anything and I struggle to make my rent every month with the bills and the kids and I have to watch people with flash cars, fancy houses, 3 holidays a year all on credit.... (sorry if I have described anyone here but I get a bit annoyed of these things) I won't get a loan for house or cars, I am not entitled to social welfare help and yet I see everyone either borrowers or on social having an easier time than me as I have to work my ass of for what I have...
don't mean to sound bad, but I hope so.. i owe nothing, haven't borrowed anything and I struggle to make my rent every month with the bills and the kids and I have to watch people with flash cars, fancy houses, 3 holidays a year all on credit.... (sorry if I have described anyone here but I get a bit annoyed of these things) I won't get a loan for house or cars, I am not entitled to social welfare help and yet I see everyone either borrowers or on social having an easier time than me as I have to work my ass of for what I have...
I think the same way as you, but then I stop and think of the social consequences. I still remember the last housing crash - divorce and suicides being common place.
I know far too many people that have million pound property portfolios who just believe that the market can't crash. I know unemployed people with four houses and flash cars, all from the equity on houses. And I think to myself: "hold on, there is something wrong here. Wealth isn't created this way." Everyone *thinks* they are rich, when in reality they are borrowing from the future. Debt has to be paid back.
In 1999 I had my eyes on a house going for £175K. But then I though, its overpriced by about 15k. That same house is back on the market for £550k. HTF is someone going to get half a million to buy that house? Its not like everyone is a multi-millionaire. Mainly because in 2004 the market shot up by 20%, putting most houses beyond the reach of most first time buyers.
Just before xmas, I had a lot off subtle pressure put on me to buy a house for the 'future'. I'm not one to jump in and the thought of paying inflated prices made me feel sick. So I did some research. The economists are telling us get ready for a crash, whereas those with a vested interest are saying the opposite. In 2005, the stock market out perfomed the housing market. The signs are there. Just sit back and watch it fall.
We bought a 3 bed room semi ex council house in 1999 (we didnt buy if off the council, the people before us did) for 42k, similar houses are going for about 200k in the same road. Madness!!. But although we got a great deal, at the moment we could not afford to buy anywhere bigger or in a nicer area as a bigger house would be around the 250k mark
Mortgauge lenders are offering people 7 time their salary, over a period of 40 years, they are the ones laughing.
Friends have just paid 130k for what i'd call a box
Even scarier, people are buying houses on interest only mortgages.
Even scarier, people are buying houses on interest only mortgages.
Thats pointless, you may as well rent
Agree with you NB... it is sad the suicides and divorces but they let themselves get into debt.. don't they stop and think about what happens if they can't afford it????? that is the first thing I think about, what if I lost my job, how would I be able to repay such a high mortgage????
The sad part is I can afford a mortgage at present, my rent is nearly double what you would pay back on a mortgage but I can't get one cause I am a single mum and we don't have the self accessed option in Ireland that you have in the UK...
It is quite a British thing though this "we must own a house"
It is quite a British thing though this "we must own a house"
I think it is an every where thing... over here if you are over 21 and don't own a house then there is something wrong with you.....
pookie1968uk
06-01-2006, 15:26
i remember what happened in the late 80's and in 1990 i got married and was trying to buy a flat and interest rates were sky high, we really struggled. we now own a house with a mortgage of £70,000 and the house is worth £130,000 so we should be ok but i have been thinking for a while that something bad will happen soon, the bubble will burst some time.
House prices are riduculous now though. My sister is engaged, and wants to live with her boyfriend before they get married, but she hasn't got a hope in hell of getting a house, because shes at uni. Getting a one bed flat is hard enough. My mums boyfriend brought a one bed flat in Oxford for £160000. Its stupid. People can't get on the property ladder now, and when they do, they are put into so much debt. It can't last forever, as you said. Or at least, we hope so.
theres a house on my road for half a million. I dont understand its not even that nice
theres a house on my road for half a million. I dont understand its not even that nice
if it is a corner house they usually sell for more... my mum's is a corner house and she was offered 100k for the garden alone
no mine is the corner house and its on the market for 315. This is an ugly looking black and whitething slap bang in the middle of the street.
where I live the house prises have gone mad,as everyone that works at heathrow wants to buy round here.I brought my house in 1982, still paying mortgage.I paid £37,000. I havent a clue what it is worth now,its a three bedroom semi,so I expect its worth quite a bit.
pookie1968uk
06-01-2006, 18:48
i ber your house will be worth a huge amount now hazey, probably a lot more than you think
willsmummy
06-01-2006, 19:17
We bought our first house in 1995. I am so glad I am not young now, as there's no way on this earth we could ever get a mortgage now.
I bought my first flat back in 1988 and it was £37K - this was a 2 bed flat in the centre of Edinburgh.
The house I live in now has gone up in value by 75% since I bought it in 2000. I don't consider this to be real money, because if I moved back into Edinburgh I would have to pay a lot more for an equivalent house than I do where I stay now.
I bought my first flat back in 1988 and it was £37K - this was a 2 bed flat in the centre of Edinburgh.
The house I live in now has gone up in value by 75% since I bought it in 2000. I don't consider this to be real money, because if I moved back into Edinburgh I would have to pay a lot more for an equivalent house than I do where I stay now.
my mum and dad have done the reverse.. they have a house in Dublin city and they are selling to move to the countryside so they make a large profit on the house..
house prices in Ireland are so much better than the ones here. My dad was looking at some in County Mayo and They were like double the size of my house and on the market fo half the price. Its crazy.
house prices in Ireland are so much better than the ones here. My dad was looking at some in County Mayo and They were like double the size of my house and on the market fo half the price. Its crazy.
he hasn't tried Dublin then... you are looking at more than Uk is asking... The irish country side is a lot cheaper, the further away for dublin and the more remote, the cheaper the houses
Dublin is crazy though its like London here. My nan was saying how a friend of ours starting salary in London is so much greater than everywhere else but it works out about the same as the living expenses are so much greater. I think Dublin is an amazing place to live if you had the money, and Mayo is pretty far away from Dublin.
Dublin is crazy though its like London here. My nan was saying how a friend of ours starting salary in London is so much greater than everywhere else but it works out about the same as the living expenses are so much greater. I think Dublin is an amazing place to live if you had the money, and Mayo is pretty far away from Dublin.
I am use to the prices in dublin and it was only when I went to germany for christmas that I realised how expensive Dublin actually is.. I lived in london for a year and i was paid more cause I lived closer to the city center... I found clothes/food cheaper than dublin
A cousin of mine finds London Cheaper, she is currently spending a Year in London after spendiong Last year in Dublin.
A cousin of mine finds London Cheaper, she is currently spending a Year in London after spendiong Last year in Dublin.
there ya go.. Dublin has to be offically the most expensive city in the EU
there ya go.. Dublin has to be offically the most expensive city in the EU
Dublin is expensive, but the Govt and Banks have encouraged people to borrow like never before. I think its the most debt ridden country in the EU. As I say, get ready for the crash.
Dublin is expensive, but the Govt and Banks have encouraged people to borrow like never before. I think its the most debt ridden country in the EU. As I say, get ready for the crash.
god don't I know it... the banks are handing out cash all over the place.. I got a call to say I was pre-approved for any loans up to €20,000 and I was thinking," I don't need it but maybe I could just get ....... " and then realised that is what they want, for you to owe them money
If it crashes, the bank is going to be left with a lot of cars and houses...
god don't I know it... the banks are handing out cash all over the place.. I got a call to say I was pre-approved for any loans up to €20,000 and I was thinking," I don't need it but maybe I could just get ....... " and then realised that is what they want, for you to owe them money
If it crashes, the bank is going to be left with a lot of cars and houses...
Here's part one (http://www.counterthink.org/016209.html) and part two (http://www.counterthink.org/016241.html) of an article I read on the crash.
Here's part one (http://www.counterthink.org/016209.html) and part two (http://www.counterthink.org/016241.html) of an article I read on the crash.
wow.. I was looking at interest rate and mortgages repayment on houses today and for me to get a 3 bed in dublin I will be repaying €1350 but my rent on the same house will only be €1000
wow.. I was looking at interest rate and mortgages repayment on houses today and for me to get a 3 bed in dublin I will be repaying €1350 but my rent on the same house will only be €1000
Exactly. All those people that have jumped on the bandwagon will get burned eventually.
Exactly. All those people that have jumped on the bandwagon will get burned eventually.
thing is a would like to buy a house and now there is no point until all this pops
thing is a would like to buy a house and now there is no point until all this pops
You're going have to be patient Siobhan. I'd rent and save for the next couple of years.
Having said that, any economic variable could tip the balance and we could have a crash within six months. Best analogy I can give is imagnie a huge oil tanker changing direction. It takes time, but once it starts, there's no stopping it.
You're going have to be patient Siobhan. I'd rent and save for the next couple of years.
Having said that, any economic variable could tip the balance and we could have a crash within six months. Best analogy I can give is imagnie a huge oil tanker changing direction. It takes time, but once it starts, there's no stopping it.
oh well.. best start looking to rent then.. maybe if it does crash and I am renting a nice house, the owner will sell to me
Whilst a crash might not be good for those of us who own their own house, it would certainly mean that those earlier unable to get their feet on the property ladder would have a better fighting chance !
Whilst a crash might not be good for those of us who own their own house, it would certainly mean that those earlier unable to get their feet on the property ladder would have a better fighting chance !
it would be good news for me!!!!
Once every 3 months of so I compare my rent against how much I would pay if I had a mortage.. Over a 30 year period I would be paying €400 more a month.. When this thread started in January, it was only €150 more.. that is a lot of hike in 9 months
Once every 3 months of so I compare my rent against how much I would pay if I had a mortage.. Over a 30 year period I would be paying €400 more a month.. When this thread started in January, it was only €150 more.. that is a lot of hike in 9 months
I hope the people in Ireland are ready to feel the pain as IRs are rising and we are seeing the final stages of the bubble.
From another site:
The seven stages of a property boom:
Stage One – Displacement
Every financial crisis starts with a disturbance. It might be the invention of a new technology, such as the internet. It could be a shift in economic policy. For example, interest rates might be reduced unexpectedly. Whatever it is, the world changes for one sector of the economy. People see the sector differently.
Irelands experience:
Rapidly falling interest rates due to correction to become part of EMU
Stage Two – Prices start to increase
Following the displacement, prices in the displaced sector start to rise. Initially, the price increase is barely noticed. Usually, these higher prices reflect some underlying improvement in fundamentals. As the price increases gain momentum, people start to notice.
Irelands experience:
People start to notice neighbours getting big prices for houses, and start going into estate agents to get quotes on their own homes.
Stage three – Easy Credit
Increasing prices are not enough for a bubble. Every financial crisis needs rocket fuel and there is only one thing that this rocket burns - cheap credit. Without it, there can be no speculation. Without it, the consequences of the displacement peter out and the sector returns to normal.When a bubble starts, the market is invaded by outsiders. Without cheap credit, the outsiders can’t join in.
Cheap credit is the entrance ticket for outsiders. For example, gas prices have risen sharply in recent years. However, banks aren’t giving out loans so that people can store gas in their garages in the hope that the price will double in three months. The banks, however, are prepared to give loans to people with poor credit to hold condos in the hope that they can be quickly flipped.
The rise in easy credit is also often associated with financial innovation. Often, a new type of financial instrument is developed that miss-prices risk. Indeed, easy credit and financial innovation is a dangerous cocktail. The South-Sea Bubble started life as new-fangled legal innovation called the limited liability joint stock company. In 1929, stock prices were propelled into the stratosphere with the help of margin calls. Housing prices today accelerated as interest-only mortgages emerged as a viable means for financing overpriced real estate purchases.
Irish experience:
Continuing poor performance in the Eurozone in part due to German re-unification, drives interest rates even lower in a bid to kick-start economic growth. German investors have nowhere to get a decent return on huge accumalated savings. Irish banks loan out the money cheaply. Anyone who wants a loan gets one, no matter what the size. Former need for deposits on houses disappear as banks begin giving out 100% mortgages.
Stage Four – Over-Trading
As the effects of easy credit kicks in, the market starts to overtrade. Overtrading stimulates volumes and shortages emerge. Prices start to accelerate, and easy profits are made. More outsiders are attracted, and prices run out of control. Accelerating prices attract the foolish, greedy and the desperate to enter the market. As a fire needs more fuel, a bubble needs more outsiders
Irish experience:
Not enough houses being built for new couples, immigrants, returning migrants. Emigration from Ireland goes to almsot zero. Investors see money in property and pile into the market. People buy houses as pensions. Dutch auctions by estate agents. Buying off plans.
Stage Five – Euphoria
The bubble now enters its most tragic stage. Some wise voices will stand up and say that the bubble can no longer continue. They put together convincing arguments based upon long run fundamentals and sound economic logic. However, these arguments evaporate in the heat of the one over-riding fact – the price is still rising. The wise are shouted down by charlatans, who justify insane prices by the euphoric claim that the world is different and this new world means higher prices.
Irish experience:
Central Bank and IMF shout warnings. People like Frankie shout them down. Sure can't everyone afford 6 apartments in this great new Ireland.
Addendum to stage 5
Of course, the “new world” claim is true; the world is different every day, but that doesn’t mean that prices run out of control. The charlatan wins the day and unjustified optimism takes over. At this point, the charlatans bolster their optimism with the cruelest of all lies; when prices finally reach their new long run level, there will be a “soft landing”. The idea of a gentle deceleration of prices calms the nerves.The outsiders are trapped in knowing denial. They know that prices can’t keep rising forever, but they rarely act on that knowledge. Everything is safe so long as they quit one day before the bubble bursts.Those that did not enter the market are stuck in a terrible dilemma. They can not enter but neither can they stay out. They know that they have missed the beginning of the bubble. They are bombarded daily with stories of easy riches and friends making massive profits. The strong stay out and reconcile themselves to the missed opportunity. The weak enter the fire and are damned.
Stage Six - Insider Profit Taking
Everyone wants to believe in a new brighter future but a bubble takes that desire and turns it upside down. A bubble demands that everyone believes in a brighter future, and so long as this euphoria continues, the bubble is sustained.However, as madness takes hold of the outsiders, the insiders remember the old world. They lose their faith and start to panic. They understand their market, and they know that it has all gone too far. Insiders start to cash out. Typically, the insiders try to sneak away unnoticed, and sometimes they get away with it. Other times, the outsiders see them as they leave. Whether the outsiders see them leave or not, insider profit taking signals the beginning of the end.
Irish experience:
Last year the Bank of Ireland and AIB sold off substantial amounts of their property assets. So did the ESB.
If property is such a long term investment (and who would know better than the banks), why did they suddenly divest ?
Stage Seven - Revulsion
Sometimes, panic of the insiders infects the outsiders. Other times, it is the end of cheap credit or some unanticipated piece of news. But whatever may be, euphoria is replaced with revulsion. The building is on fire and everyone starts to run for the door. Outsiders start to sell, but there are no buyers. Panic sets in; prices start to tumble downwards, credit dries up, and losses start to accumulate.
Irish experience:
Watch this space.
http://www.idorfman.com/Charts/sentiment_cycles.jpg
Dr. Tangliss
21-09-2006, 10:50
I personally think house prices are stupidly high! We brought our house in 2002 of X amount, and when we had it valued in 2004 it had doubled in value!:eek: We are lucky though as our area was very low compared to most of the country when we brought our house, so I don't see a huge drop in the market, at least I hope not, for us.
Saying that, if that is the case, I welcome it as I have been wanting to move closer to uni but the house prices in the ok areas of Nottingham are through the roof, which means we are stuck in our two bed on the outskirts of Notts unable to afford to move to a much needed 3 bedroomed which sucks big time :(
Unless we have rampant wage inflation, all I can see is the housing market collapasing. It's got to a point where everyone knows the prices are ridiculous, but those with the multiple properties are hoping for more increases and not willing to sell to capitalise on their gains.
So when the housing market does crash, I won't be shedding a tear for all the greedy BTLers ...
Dr. Tangliss
21-09-2006, 15:03
You seem very clued up on the whole topic.
I agree there are some greedy blighters out there who are in for a shock one the market drops, and it will serve them right too.
The Housing Market here in N.I. still shows no sign of crashing. Most properties are increasing by £15 - £20,000 a year. It would need to completely collapse before it would affect us as we are in our hose eighteen years and have seen its value increase by 5 times what we paid for it.
Where I am living, and I have been here 2 years, the first time I moved here house prices where €215k, they are now €385k for a standard 3 bed house.. in fact I seen one 4 bed house in my area sold for €775K.. I checked the photos of the house and there was no gold taps or marble staircases.. that is pure madness..
Dr. Tangliss
21-09-2006, 16:36
:searchme: :eek: That is madness! How could people living where you are afford to buy a house for the first time!?!
:searchme: :eek: That is madness! How could people living where you are afford to buy a house for the first time!?!
Well they have 100% mortgages which basically means the bank own your ass for the rest of your life
Dr. Tangliss
21-09-2006, 16:43
Well they have 100% mortgages which basically means the bank own your ass for the rest of your life
But to get that much money for a mortgage you have to be earning a fortune, and like N.B states wages are not increasing with increasing house prices.
Well they have 100% mortgages which basically means the bank own your ass for the rest of your life
We can beat you on that one easily Siobhan. We have 120% mortgages, where they give you money to buy furniture, car etc. Madness.
With these 100%+ interest only mortgages, most people don't even have a repayment vehicle in place or even realise that they need one. Absolute madness.
But to get that much money for a mortgage you have to be earning a fortune, and like N.B states wages are not increasing with increasing house prices.
Not if you've lied on a self certification or its an interest only mortgage
i'm thinking of buying a house at the moment and it's just riduculous. i really don't want a 100% mortgage but it's looking like my only option. i'm going to wait until jan and see does the bubble burst. (i've been saying that since last year but it has to happen soon.) 20% of housing developments are meant to be given to the local Council as affordable and social housing but the big deveolpers are giving the Councils money instead to get out of this. our government needs to sort this out.
that affordable housing is nigh on impossible to get.. I have been trying over a year now and everytime I apply they said "oh such and such is out of date" so I get a new one, apply again and then something else is out of date...
Dr. Tangliss
21-09-2006, 16:50
We can beat you on that one easily Siobhan. We have 120% mortgages, where they give you money to buy furniture, car etc. Madness.
With these 100%+ interest only mortgages, most people don't even have a repayment vehicle in place or even realise that they need one. Absolute madness.
Not if you've lied on a self certification or its an interest only mortgage
120% mortgages, who gives them??
As for self-certification, there lies dangerous ground.
But to get that much money for a mortgage you have to be earning a fortune, and like N.B states wages are not increasing with increasing house prices.
not really.. my nephew and his girlfriend got 100% mortgage and they are only on around €23k (roughly £18k) and they only had to pay a deposit of €2k
i've just received a phone call saying that the affordable sites i've been trying for for 3 years are being allocated in december. fingers crossed. :thumbsup:
although knowing my council they'll be allocated in december but you won't be able to begin work on them until the 12th of never.:angry:
120% mortgages, who gives them??
As for self-certification, there lies dangerous ground.
Northern Rock for a start!
When we bought our house this year (2 bed semi for 95k) we were actually offered £125k by the mortgage company for "extras"!
With these 100%+ interest only mortgages, most people don't even have a repayment vehicle in place or even realise that they need one. Absolute madness.
I know and younger people are getting excited about cause they feel that they don't have to give out the big lump sum at the start so it will be easy.. how wrong they are when they find they cannot afford the interest rates on top of that and have not plan if they lose their job...
Northern Rock for a start!
When we bought our house this year (2 bed semi for 95k) we were actually offered £125k by the mortgage company for "extras"!
See and people will jump at this not realising they might have to pay back way way over the amount.. I know everyone says rent is dead money but it what I can afford at the moment and it keeps a roof over my head.. I can also save while doing this (as it is €400 cheaper per month) and wait for the market to crash
120% mortgages, who gives them??
As for self-certification, there lies dangerous ground.
Here for a start:
http://www.mortgagearrangers.co.uk/120mortgage.htm
I bet I could find some 150% mortgages. In fact, that last I heard, they were planning on letting the mortgage to pass on to your children, which is absolutely disgraceful. Your kids are now born into a life of perpetual debt.
See and people will jump at this not realising they might have to pay back way way over the amount.. I know everyone says rent is dead money but it what I can afford at the moment and it keeps a roof over my head.. I can also save while doing this (as it is €400 cheaper per month) and wait for the market to crash
Nah, rent is not dead money in an inflated market. The wise are renting now, and buying when the market hits bottom.
Dr. Tangliss
21-09-2006, 17:11
Scary stuff knowing you can borrow way over your level of income. I was always under the impression you could only get 3.5 to 4 times your salary. You learn a new thing everyday.
I know this is an old thread but again in just 6 months the difference between renting a 3 bed and buy in Ireland is up to €600. When this thread started it was only €150 of a difference.. this is mental
Jessie Wallace
13-03-2007, 20:02
And here's why at 29 i'm still living at home with my parents!
And here's why at 29 i'm still living at home with my parents!
Someday a rich Mr Right will come for you Dawnie:wub:
Pinkbanana
13-03-2007, 21:59
And here's why at 29 i'm still living at home with my parents!
Someday a rich Mr Right will come for you Dawnie:wub:
Well is he has a brother who is as equally rich, send him my way...:cool:
Jessie Wallace
13-03-2007, 22:11
And here's why at 29 i'm still living at home with my parents!
Someday a rich Mr Right will come for you Dawnie:wub:
Well is he has a brother who is as equally rich, send him my way...:cool:
Here's hoping Alan, And if he has a rich brother too I might have to consider Bigamy! :lol:
And here's why at 29 i'm still living at home with my parents!
Someday a rich Mr Right will come for you Dawnie:wub:
Well is he has a brother who is as equally rich, send him my way...:cool:
Here's hoping Alan, And if he has a rich brother too I might have to consider Bigamy! :lol:Tell you both what. If he has a rich sister I might consider polygamy:rotfl:
Jessie Wallace
13-03-2007, 22:27
:lol: If there's a rich anyone in the family, i might have to get all the money, by making it look like my husband murdered them all and then i can have all the money to me.
Anyway i'm going way off topic now, so i'll shhhh.
Ok.. it was 5 months since I last check this out... for a house worth 350K (euro), which would get you an OK house over here, the repayment over 30 years is costing: 2K per month.. this is now a gap of 700 euro between renting and buying.... That is an extra €100 in 5 months..
Now compare to Germany.. average house price (we are talking 5 bedroom here) is 120K...
Ok.. it was 5 months since I last check this out... for a house worth 350K (euro), which would get you an OK house over here, the repayment over 30 years is costing: 2K per month.. this is now a gap of 700 euro between renting and buying.... That is an extra €100 in 5 months..
Now compare to Germany.. average house price (we are talking 5 bedroom here) is 120K...
Check this link (http://www.arandomwalk.com/2007/08/31/new-homes-lose-100k-in-days/) out Siobhan. Losing 105k in a flash over in Ireland.
Also check this link out - the same thing happening in USA (Florida)
And the recent stock market turmoil has been caused by all this cheap credit, mainly concentrated on the sub prime (i.e. giving mortgages to people who can't really afford it). We have the same problem in Ireland and the UK, more commonly known as self certification.
Its a bit sick when you see Bush saying he's going to help those that can't afford to pay when really he is making sure his corporate friends don't make losses.
The great thing about Germany is the tenancy rights. Being a landlord there is tough. Given the fact that Ireland and Germany are in EU and their interest rates are tied, Ireland is heading for a crash whereas Germany is about to boom. I'm thinking of buying in Germany myself.
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The great thing about Germany is the tenancy rights. Being a landlord there is tough. Given the fact that Ireland and Germany are in EU and their interest rates are tied, Ireland is heading for a crash whereas Germany is about to boom. I'm thinking of buying in Germany myself.
I have checked this out, you will have to pay taxes on the house but it is not so high... Depending where you want to go, I have found land about 1hour from Cologne for €27k and House to build on it for €91K (4 bed with sauna)... or you can buy land and house (family home has 4 beds) for €125K..
If you go to Berlin/east Germany, you are looking at €50K for 5 - 9 bed house
I know I started this thread a while back, but looks like I called it right. 2006 was the top of the market. I think it'll be around 2010/2011 that we see the bottom of the market.
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