Major Irish Property Auction - will true value of property there be established?

WhiteChristmas

The 1.29M equestrian centre went for 470k.

Ouch.

JanCee

Jimmy_31 wrote: »

It doesnt really matter to a lot of the people who still made a fortune even though the houses didnt sell and jumped ship with a fat bank balance before the economy troubles.

.

How do you reckon the people who built the houses made a fortune, even though they didn't sell?

This isn't a trick question, I am genuinely interested in how you think building lots of houses and not selling them would give you a fat bank balance.

de1amo

PasturesNew wrote: »

Somebody on the "how old were you" thread, (how old were you when you bought your first house/how much) has posted their information (about £37k from memory), then added that they sold it in 2004 for £120k and have now seen it for sale again with an asking price of £80k.

that was me --you plaguerist lol i bought it for 24750 in 1986 and sold it to a developer who had big plans for the block(another storey on top)-i got the market value and his plan fell through(as i knew it would)-i sold for 120k and saw it back on the market in an estate agent online for 80k so that's the top price--i am tempted to make some silly offer because it has a good rent yield for price!(i was charging 650pcm back in 2004).--that's an interesting thread to read!

Degenerate

JanCee wrote: »

How do you reckon the people who built the houses made a fortune, even though they didn't sell?

This isn't a trick question, I am genuinely interested in how you thing building lots of houses and not selling them would give you a fat bank balance.

If you offloaded your stake in the construction company at the right moment you could achieve this. It would come down to timing/dumb luck.

nomoreboomandbust

StevieJ wrote: »

A guy I know has gone back to Poland with his girlfriend even though he had a good (proper) job with training package etc for a large IT multi national, must say I was surprised.

Wasn't the whole point of shipping in loads of Eastern europeans was that they came already trained. There was an owner of a construction company on tv the other day who has just taken on 2 polish carpenters, the reason he gave was because they didn't need any training :mad:

Generali

Degenerate wrote: »

If you offloaded your stake in the construction company at the right moment you could achieve this. It would come down to timing/dumb luck.

Even if you just paid yourself a handsome salary in the good years and had a company with limited liability then you can do very well from a company that ultimately fails, even as the owner.

Graham_Devon

HAMISH_MCTAVISH wrote: »

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.

Why did they build them?

Greed. Thats why. Greed trying to make the most of a boom.

You only have to step one step back from your oversupply argument to find that the oversupply was caused by a boom in prices.

This isn't a problem with oversupply per se. It's a problem with greed and a property boom. Investors were buying up stock, didn't even care if anyone lived there, but to make profits on the asset value. It's no real surprise that the investors are now suggesting, while people are still on waiting lists, the buildings should be bulldozed to save their rears.

Well, Ireland's oversupply has devastated their economy. Glad we don't have that here.

No. A property boom did that. Again, if it was oversupply, prices would never have reached the highs they did....because, erm, of the oversupply.

DervProf

Graham's point about oversupply not preventing price rises does show that there can be situations where price levels can be become somewhat detached from pure supply & demand.

Yes, you could say that although there are 1000 houses for sale, and only one buyer pays £200K for one of the houses, that it was "demand" that determined the price. In a boom, it's just the single buyer's idea that the house will be worth £250K within a year or so that determines the price.

DervProf

Generali wrote: »

Even if you just paid yourself a handsome salary in the good years and had a company with limited liability then you can do very well from a company that ultimately fails, even as the owner.

Is this what Grant Bovey did ?

nomoreboomandbust

almost, except it seems he paid it to Anthea, his wife:)