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Major Irish Property Auction - will true value of property there be established?
Comments
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HAMISH_MCTAVISH wrote: »Why? Supply and demand are what determines house prices in the long run. As the Irish have just discovered in no uncertain terms.
The timing of events may have been different for Ireland without as much credit, but if they built 17% more houses than they had the people to fill them, the end result would have been the same.
Destruction of their banks, economy, and the prospects of a generation.
We were also "pumped full of cheap credit". Yet we have a massive housing shortage and had a tiny crash by comparison... so credit obviously isn't the main issue.
Well, Ireland's oversupply has devastated their economy. Glad we don't have that here.
Oversupply will only "devestate" an economy if the economy relied too much on cheap credit fueling a boom in the prices of the oversupplied property. Had Irelands borrwing frenzy been directed towards real business investment, it is arguable that it would have been less vulnerable to devestation if property prices had not rocketed through blind speculation. An oversupply of anything is not so bad if it hasn't had too much money "gambled" upon it.
Take DVD players (or any other "cheap" consumer technology). We love oversupply, as it means most of us can enjoy the pleasure of owning and using a DVD player. DVD players were expensive when they first came to market (not just due to supply and demand, but due to manufacturers trying to recoup development costs, I suspect). As supply met and outstripped demand, prices tumbled, and it did not devestate any economy. Now let's say that 20 years ago, cheap credit was available, and "the message" was to invest in DVD players. Although manufacturers would soon be able to meet or excedd demand, people would still think they were a great investment, so manufacturers and vendors would increase the asking price. This could carry on for a very long period of time, unless the cheap credit dried up. All of a sudden, people would realise that it was the cheap credit that kept prices increasing, not lack of supply. Up pops Hamish and says "see - undersupply is better than oversupply". It isn't the oversupply of property that is Ireland's problem, it was their actions while credit was cheap. Flock mentality - "best to invest in bricks and mortar".30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »Apparently not enough to fill a third of a million houses.
Owning more than one place is quite common in other places. Finland for example.
If the price were low enough I would consider buying an Irish property as it is not really hard to get there for a holiday.0 -
chewmylegoff wrote: »Ermmm....no. It will reach 100% of its market value methinks.
My thoughts exactly, when I heard it earlier.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
i wouldn't pay £1 for it, because no matter how cheap it is, it is still in ireland.0
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HAMISH_MCTAVISH wrote: »The Solution
Just a little bit of "subtle" market interference ?
The solution was to control the credit before it went ti*s up.
No, I got that wrong, it isn't the solution, it's the prevention.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Did anyone, apart from me, know that the celtic tiger would soon require emergency treatment at the vet's ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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HAMISH_MCTAVISH wrote: »The Problem
The Solution
These properties will never be lived in.
There aren't enough people in Ireland, and their population is falling.
The only solution is to bulldoze them, or they'll take down what's left of the banks and economy with them.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Just looked at the map. Dublin's near the seaside. It's probably a great place to move to if you're self-employed, work from home, don't need to get a job.... could get a nice little place overlooking the seaside and make money knitting leprechaun charms or something.0
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I think it's outrageous to bulldoze them. Surely they can find people to live in them, if the rent's right. Say £100/month for a 4-bed house and they'd fill in no time.0
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PasturesNew wrote: »I think it's outrageous to bulldoze them. Surely they can find people to live in them, if the rent's right. Say £100/month for a 4-bed house and they'd fill in no time.
From the BBC article......If the country immediately used them to house every person on the social housing list, there would still be hundreds of thousands left over.
When you have too many houses, it doesn't matter how cheap you make them, they'll still be empty.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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