Comments on: Ireland’s sovereign wealth fund announces investment in small and medium-sized businesses

By: seniorpropertyobserver

seniorpropertyobserver — Wed, 09 Jan 2013 15:18:27 +0000

MC Actually it was Morgan Kelly who predicted the 80% drop.Its hard to blame people for asking for as much as they can for their properties as in some cases(those who purchased after 1996 and later)probably have large mortgages and need to discharge them.But over time the price must drop as income is constantly dropping in every succeeding budget and as NWL rightly predicts I believe each household will see their income reduce by €5,000 over the next 3 years.-we aint seen nothing yet!

By: Miriam Cotton

Miriam Cotton — Wed, 09 Jan 2013 08:16:57 +0000

I think it was David McWilliams who said that property prices needed to drop by 80% from peak before the economy could begin to recover – too much disposable income is devoted to it. Even now, asking prices for property are absurd given the current climate.

By: rich

rich — Tue, 08 Jan 2013 21:52:56 +0000

There is no credit in the banks, new mortgages remain at 5-10% of 2006 levels in terms of value, sales volumes are at similar fractions of 2006 sales , banks are still insolvent if loses were realised, there is too much debt at individual, government and business levels, unemployment would be much higher than 15% without emmigration, 25% of all mortgages in arrears, everything that could go wrong has gone wrong economically, there is simply no upside only hope. Baring a world class oil find or a new episode of unregulated credit availability how could houses maintain a paper value that has no support in the real world. Eventually the market will reengage but only when true value for housing in one of the least populated most peripheral smallest European economies, returns to 2nd world prices in line with our 2nd world status and 2nd world future incomes

By: Patrick

Patrick — Tue, 08 Jan 2013 18:05:19 +0000

On Thursday 200 Acre Farm in Toberslane Carrigans Co Donegal Sold for Record Price of 3.1million,The Biggest Deal for Land In Countys History,Buyer is Understood to be a well Known Farmer from the Local Area

By: namawinelake

namawinelake — Tue, 08 Jan 2013 18:04:13 +0000

@John F, correct, that is not an unusual request to a valuer, they’ll examine the evidence at the valuation date and produce their valuations.

By: John Foody

John Foody — Tue, 08 Jan 2013 18:01:10 +0000

Does that me independant valuers around the country, if called upon by the owner to value the property, will be producing statements of value for the past?

By: machholz

machholz — Tue, 08 Jan 2013 17:57:42 +0000

Reblogged this on Machholz's Blog and commented: Well spotted, Only last week we the gullible Irish were told that property prices in Dublin had risen 2.5% .Of Course they didn’t! and they are not likely to rise anytime soon. If you are tempted to purchase an apartment just think about this, 200 of our fellow countrymen are leaving the country every day and the gangsters in Lenster House would have us believe that unemployment is not growing anymore (Fiddlesticks) .Fact : You can’t give away apartments in some places in the country and even Dublin is experiencing massive problems in sales as a large number of complexes are just not insurable because of the public liability calms and not to mention the constant hikes in outrageous management fees. The latest hikes in property tax has all but destroyed the rental of such properties! Prices for a one bed roomed apartment in Dublin will have to come down to around 40K before one could realistically consider buying! Remember the Government is the largest property owner in this state and they have a vested interest in conning the public to put their hard cash into their hopelessly overpriced shoeboxes! My advice stays away for now!!!

By: Carson

Carson — Tue, 08 Jan 2013 17:41:55 +0000

The average house price (as estimated by this website) is now around 4x average earnings which I don’t think is excessive when you consider the historically low mortgage rates. I’d be surprised if we get back to a 2.5x multiple without interest rates increasing significantly.

@ Anthony Behan. There is a second flaw in your plan, revenue will not come asking you for a valuation of your home. They will be telling you their estimate.

By: seniorpropertyobserver

seniorpropertyobserver — Tue, 08 Jan 2013 16:29:31 +0000

Well here we go again another ratings agency(Fitch)predicting a further drop of 20% in property prices-how right they are.To bore ye again- from 1959 to 1996 (a period of 37 years)the average price of a 3 bed semi was 2.5 times the average industrial wage.From 1996 to 2007 the so called peak,this ratio jumped by almost 9 times the average industrial wage.Prices must return to 2.5 times again before stabilasition.Thus a 3 bed semi on average should cost about €80,000- a far cry from the CSO average price as published.However as mentioned previously the Property Register will I believe show a further 10%(approx.) to the reduction making for an overall 25% reduction in 2013/14 before the bottom is reached.Of course properties at these prices are available 9if suitable)if one can purchase from the Allsop Space auctions which do exhibit the most realistic prices in Ireland at present.

By: Anthony Behan (@technopolitics)

Anthony Behan (@technopolitics) — Tue, 08 Jan 2013 15:33:49 +0000

@NWL rats, foiled again.