Property Crash

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Originally Posted by dahamsta

I just got a cracker in east Cork, 4 bed for €850/month.... 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.

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East Cork city or countryside?

Sorry to kind of hijack the thread with this post, but I've been looking to leave Japan in the next few years (or even sooner, maybe this year), and Ireland is one of the places we're considering, obviously.

But some of the prices I've seen listed here, and on any other site I've checked, are shockingly expensive, more so even than a decent sized apartment in Tokyo.

Does the rent get much cheaper in rural areas, or is it uniformly expensive no matter where you are? I have to say that my plans of coming home have been dealt a real blow with all these prices.

EDIT : Can anybody point me in the direction of a website which will give me a decent idea of prices in Ireland?

www.daft.ie

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Originally Posted by osarusan

East Cork city or countryside?

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County. It's a 30-45 minute commute, depending on time of day.

adam

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Originally Posted by osarusan

Sorry to kind of hijack the thread with this post, but I've been looking to leave Japan in the next few years (or even sooner, maybe this year), and Ireland is one of the places we're considering, obviously.

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If you are intending to find a place through the usual official channels (i.e. letting agent) you will find that they cant do the usual background checks on you which may be an additional obstacle to finding a place. Landlords who use rent-guarantee insurance will not be able to get cover for your tenancy. To get around this, for example, you may be asked to pay 6 months rent in advance :eek:

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Originally Posted by dahamsta

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

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Yeah, I deal with a few investors from Cork who reckon its easier to let in Letterkenny but Cork is making much better money.
€850 per month would get you as real quality let up here at present. Average price is roughly €700 pcm.

Alot of my business comes from the net alright, mainly through Let.ie. Local paper adds still would bring in the majority of tenants.

Think I'll stick with east Cork tbh. Letterkenny'd be a bitch of a commute. :)

Why Let.ie I wonder? I would have ranked the property sites with Daft on top and MyHome a lagging second; wouldn't even have ranked Let.ie tbh.

If you don't mind answering of course!

adam

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Originally Posted by dahamsta

Think I'll stick with east Cork tbh. Letterkenny'd be a bitch of a commute. :)

Why Let.ie I wonder? I would have ranked the property sites with Daft on top and MyHome a lagging second; wouldn't even have ranked Let.ie tbh.

If you don't mind answering of course!

adam

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I got a pretty good deal ;) I know someone who knows someone :cool:

Sure if ya don't mind a 7 hour drive to and from work then Letterkenny would be ideal.

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Originally Posted by Sam_Heggy

I got a pretty good deal ;) I know someone who knows someone :cool:

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Ah I see! That's how to do it alright!

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Sure if ya don't mind a 7 hour drive to and from work then Letterkenny would be ideal.

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Well, I was talking to a guy yesterday who commutes from Wexford to Sublin every day, so there must be something in it. Not for me though!

Thanks for the info.

adam

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Originally Posted by dahamsta

Well, I was talking to a guy yesterday who commutes from Wexford to Sublin every day, so there must be something in it. Not for me though!

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:eek: Jebus he must be getting a euro per mile to make that journey worth it.

He's the CEO of a brand name you'd all be aware of, the cost isn't an issue. :)

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Originally Posted by Sam_Heggy

Yeah, I deal with a few investors from Cork who reckon its easier to let in Letterkenny but Cork is making much better money.
€850 per month would get you as real quality let up here at present. Average price is roughly €700 pcm.

Alot of my business comes from the net alright, mainly through Let.ie. Local paper adds still would bring in the majority of tenants.

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Maybe it's easier to rent in Letterkenny because of the student population.

Would that be a factor Sam?

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Originally Posted by onceahoop

Maybe it's easier to rent in Letterkenny because of the student population.

Would that be a factor Sam?

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Tbh, I would only have maybe 5/6 properties (out of approx 130) rented to students. The area around the LYIT (Gortlee) would be popular for students but there rest of the town wouldn't really be convenient for most students.

Eastern Europeans (polish, Slovakians, Lithuanians, etc) would be in the high percentages in the local population, I would have around 20+ properties let to them. (I know it sounds bad to label "them" but its just easier to say "them")
There is other agencies in town that would except "undesirable" tenants, the council would pay the majority of their rent so it suits the agent better. Personally I'd prefer to have the place empty.

Just to come back to this thread in the light of todays ESRI findings that we are in recession.

The concept of a "Soft Landing" is the construct of bankers, estate agents and other "interested parties" whose predictions seek only to serve their own interests.

There has never been a soft landing before, anywhere. All economies go in cycles, where a downturn follows expansion. The amplitude and length of the cycle varies, but its still a cycle.

Of course the same people will blame the recession on the US and the credit crunch, when this is very much a secondary effect.

Expect interest rates to rise over the summer at least once and probably twice.

Very gloomy outlook.

Shame to see Estate Agents Lisneys ask staff to take a 10% pay-cut, I guess the free drinks in Ron Blacks on a Friday night are a thing of the past!;)

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Originally Posted by Reality Bites

Shame to see Estate Agents Lisneys ask staff to take a 10% pay-cut, I guess the free drinks in Ron Blacks on a Friday night are a thing of the past!;)

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Its an interesting approach, quite socialist.

If I worked there I'd prefer them to get rid of the bottom 10% as many US companies do (GE etc.).

At any rate, the sale of loud chalk-stripe suits, purple ties and Mini Coopers must have crashed.:D

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Originally Posted by OneRedArmy

Expect interest rates to rise over the summer at least once and probably twice.

Very gloomy outlook.

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I was in a bank on friday last discussing a mortgage and was told they're expecting 3 interest rate hikes and consequently they have already bumped their rates by .4% in anticipation.

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Originally Posted by Lionel Ritchie

I was in a bank on friday last discussing a mortgage and was told they're expecting 3 interest rate hikes and consequently they have already bumped their rates by .4% in anticipation.

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The recent mortgage rate rises were due to the dislocation of the interbank funding rate from the ECB rate (increasing risk premia due to credit crunch). This has particularly manifested itself in the tracker mortgage market which is now priced aboved the standard variable rate.

That doesn't mean they won't go up again when the ECB raise rates though!

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Originally Posted by Lionel Ritchie

I was in a bank on friday last discussing a mortgage and was told they're expecting 3 interest rate hikes and consequently they have already bumped their rates by .4% in anticipation.

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Which bank told you that? As ORA just said, banks are increasing their own mortgage rates due to the increased cost of borrowing on the interbank market. Banks will only increase their rates again when the ECB rates go up and I'd say they will go up .25% in July and at least one more time before the end of the year.

Lending conditions have stiffened and there's now a lack of resources in the banks to lend out the cash. All this is going to shrink the supply of cash available for the Irish public to throw at properties and help force prices to decrease as they have been doing for some time now.

The Crash is getting even crashier.

how does property crash,whos driving it,they must be very careless as it rarely moves.When i am out and about i rarely have to look out for carelessly driven properties