More tha 95% house in Ireland has doubled in value every six years since the 1950's. A family member sold a 3 bed detached house in Galway for IR£7000 in 1970.
[For ease of calcultion, let's say that is €9,000 (Euro)]
Thus, the property will be worth over €1.1M in 2012.
This rough guide to valuation can be applied to a house anywhere in Ireland. The exceptions to the rule are where environmental circumstances have drastically changed. If your house in Dublin is 200 metres from the recently constructed Luas, then you are on a winner. If your house is along the river Dodder which bursts its banks a lot recently, then it will be a hard sell. The same can be said about a new Shoppping Centre opening nearby or a new prison or dump. Certain elements will dictate prices.
Nevertheless, all other circumstances being equal, your house will double in value in six years.
There have been corrections/soft landings/whatever before, most notably in the late 1980's when there was a stalemate, but prices will go up.
10/08/2006, 11:16 AM
Reality Bites
Paddyfield the Japenese Housing market has been steadily falling for the last 14 years, so it not beyond the realms of possibility that we may for the time being have reached a plateau or softening that may led to a fall in the market, already in west dublin house guide prices of 400,000 have been reduced by 20,000 euros in places this has not happen in years!.. There is strong anecdotal evidence in existence suggesting that the house market has most definitely taken the foot of the accelerator for the time being..
10/08/2006, 12:06 PM
Reality Bites
From Itulip.com
I think it would be madness to Buy Property in Ireland at the moment!
IMF: House prices may crash in Ireland
August 9, 2006 (IMF Report)
The International Monetary Fund (IMF) has warned that Ireland's personal debt levels and the spiralling cost of houses threaten to undermine future prosperity.
The IMF said the property market faces an "abrupt" downturn, and warned that the loss of competitiveness is undermining future trading prospects.
"Bank credit to property-related sectors has grown rapidly and now accounts for more than half of total bank lending. Household debt as a share of household disposable income rose to about 130% in 2005, among the highest in Europe," it said in a report.
"Growth has become increasingly unbalanced in recent years, with heavy reliance on building investment, sharp increases in house prices, and rapid credit growth, especially to property-related sectors."
AntiSpin: Could the IMF warning on Ireland's housing bubble apply to the US? Here in the US, housing related loans also represent more than half of total bank lending. In 2005, home mortgage debt outstanding amounted to $9.1 trillion. While this represents a hefty 75% of the $11.7 trillion in total depository bank assets in the US, it represents less than 25% of the $40 trillion of total credit market asset holdings. more
