Property Crash

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Originally Posted by Paddyfield

Rents are increasing in locations that are much sought after.
Rents are not increasing in areas that are not greatly sought after.

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Setting aside the fact that you're quoting from "Economics 101: Supply and Demand" for a moment, if you flick back through the thread you'll find the post where I started this discussion with a comment on rental rates for 3 beds in county Cork. I'd hardly call either the area or the house type particularly sought after or in short supply. Rental rates are going up across the board, although whether people are actually paying the ludicrous rates landords are asking is quite another matter. They'd be mad to, and I hope they don't. The people that are panicking into putting their second and third and nth houses onto the letting market deserve exactly what they're getting.

adam

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Originally Posted by Paddyfield

Rents are increasing in locations that are much sought after.
Rents are not increasing in areas that are not greatly sought after.

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No.
They.
Aren't.

Correct rents are gone to pot, before x-mas it was easy to rent out a room now its become very difficult with little interest! mainly due I am told to the fact that developers and investor have let out properties which hitherto were supposed to be for sale!!

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Originally Posted by Reality Bites

Correct rents are gone to pot, before x-mas it was easy to rent out a room now its become very difficult with little interest! mainly due I am told to the fact that developers and investor have let out properties which hitherto were supposed to be for sale!!

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Well thats good to hear hopefully they will drop the prices. I think the nearer we get to a place where people see property as their home rather than as an investment we will be a much better society.

The sub-prime mess explained, American style.

133 Units sold in Ongar/Hansfield by Manor Park the weekend before last, 3 bed semi-d's for 299,000!! unheard of in 2006!!! the cavaet the being the quality of finish is ****poor and I hope I don't offend here but Ongar is a wart on the Arse-end of West Dublin a testament to poor planning and urban sprawl perpetuated by greedy Developers

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Originally Posted by strangeirish

The sub-prime mess explained, American style.

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There's a very good explanation of it by John Bird and John Fortune.

Quality is definitely dropping alright, developers and speculative buyers are pushing them out the door in whatever state they're in just to get them sold or let.

adam

The banks are putting the squeeze on builders and developers to reduce stock quickly, so no surprises that prices are dropping and unfortunately that corners are being cut.

Hooke McDonald announced that there would be a shortage of houses in the need future because Builders had ceased development! mmm EA coming out with this let me think is there a hidden agenda in sight!!!:rolleyes:

Shortage of houses my hole.

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Originally Posted by Reality Bites

Hooke McDonald announced that there would be a shortage of houses in the need future because Builders had ceased development! mmm EA coming out with this let me think is there a hidden agenda in sight!!!:rolleyes:

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Snake oil salesmen have more credibility.

A) builders haven't ceased development

B) second hand market is falling over with supply

The estate agents don't seem to realise (or won't believe) that the Irish obsession with property has run its course.

I have a letting agency/ property management company in Letterkenny. Basically the last 3/4 years have seen a steady drop in the price of rentals in the area, yet the sale of properties was growing stronger and stronger.
Now for the first time in 5 years the price of renting is increasing and the sales side has dropped. Value of houses are decreasing due to lack of investors coming in.
The balance was just not adding up, it will take a year or so at least to sort itself out.

Sam_Heggy, are you finding that people are paying the let prices asked, or haggling? The asking prices seem very high to me atm.

adam

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Originally Posted by Sam_Heggy

I have a letting agency/ property management company in Letterkenny. Basically the last 3/4 years have seen a steady drop in the price of rentals in the area, yet the sale of properties was growing stronger and stronger.
Now for the first time in 5 years the price of renting is increasing and the sales side has dropped. Value of houses are decreasing due to lack of investors coming in.
The balance was just not adding up, it will take a year or so at least to sort itself out.

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In Dublin rents picked up about 2-3 years ago and are now falling again.

I'm paying 50% less in rent in Dublin than I did in London for an apartment thats valued at 50% more. I can't reconcile it at all. And I work in banking.

Story of what's going on in the Kildare Market.

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Originally Posted by strangeirish

Story of what's going on in the Kildare Market.

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The commuter belt market is very easy to explain. People moved out of Dublin to get a bit of space to start families and didn't take too long to realise that they didn't really like having no social life and sitting in their cars for 4 hours a day.

I'd be surprised if these areas stop falling at 20%, whereas anywhere near Dublin City Centre I would say should be relatively protected (ie shouldn't drop much beyond 20%).

in my job we have seen a spat of properties being offered to us as security for long term mortgage which were due to be sold on completion. Developers cant shift what they have built and the numbers of new completions is way lower than even worse guesses. The credit crunch has also had the impact of lowering demand and common sense prevailing. There is certainly value to be had at the moment and I reckon things will hit bottom by september and then start to level. WIll all come down to location etc if houses are to keep some form of value.

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Originally Posted by dahamsta

Sam_Heggy, are you finding that people are paying the let prices asked, or haggling? The asking prices seem very high to me atm.

adam

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The majority of people are paying the rent asked.
Its extremely busy at the minute. I had 2 people work for me up until Christmas hols, I now have 4 to help cope with the extra demand.
The average time a house spent vacant in Letterkenny last year was roughly a month, its now around a week. (obviously depending on the property)
The prices are dropping rapidly of late for purchasers so when it stops to drop then is when I predict the market to level itself out. We're talking about people taking maybe €20k less for their property than they did this time last year.

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Originally Posted by OneRedArmy

In Dublin rents picked up about 2-3 years ago and are now falling again.

I'm paying 50% less in rent in Dublin than I did in London for an apartment thats valued at 50% more. I can't reconcile it at all. And I work in banking.

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Oooohhh Derry fan AND a banker :eek: Must be tough to make friends.

I just got a cracker in east Cork, 4 bed for €850/month, but yerman was dying to shift it and they love us as tentants because we're a lovely stable couple. (Little do they know!) Should have gone for €950, which is what a lot of 3 beds in the same estate are listing for! I don't think people willl get that though. That being said, I reckon going by what you're saying the market is a lot different down here at the moment. Some lets - good lets - are sitting on DAFT for yonks.

Purely out of curiousity because I'm in the (web) industry and working on a property-related project, how much of your business comes from the web these days? I get the impression that it's quite a large majority, am I mistaken in that?

adam