Is NI economy going broke?

Mistral001

saverbuyer wrote: »

Building to rent. My god. Why would they thrown money away. What sort of yield are they getting there. Oh wait... It capital application again isn't it... The past 10 year has taught some people nothing. Houses don’t just go up in value. Still today’s “investors” are tomorrow’s bankrupts.

It is done in many countries, but I agree with you that it will never happen here. We just do not have strong enough tenancy agreements or a culture of renting privately long-term.

With commercial rentals, a landlord calls the shots and tenants just do not want to be held to ransom by landlords, especially since many landlords of commercial premises also have businesses outside of renting causing conflicts of interests with tenants.

Perhaps flatland in the urban areas make a fair return for landlords as they get a high turnover of students and other people sharing where their tenants do not really worry too much about security of tenure. That market will always be there as far as I can see, where the rents actually bring in a good income making the speculation side of things less relevant to the owners.

x12yhp

A.L.D.A wrote: »

I am referring to people who have no intention of selling now or in the near future, but who wish to increase their portfolio. People with money invested in long term rental return rather than short term gambling on property value.

Say I bought a 3 bedroomed terrace house in Carrick for £35,000 (or less) the potential return on rental looks sound unless you believe that that house will be worth less than £30,000 next year? Even if it does in the following year is it going to be £25,000? The only way I can see that happening is a total economic collapse, which is a possibility, but then nothing would be safe.

From about 2003 - 2004 houses like this were being sold for daft amounts and people simply would not listen as greed had kicked in. Banks were throwing money into the fire. I was a bear back then, few wanted to hear.

Now, at the low end, large falls are increasingly unlikely. Who cannot afford a mortgage on a house costing £35,000? There are quite a few houses now below £50,000.

From an architectural point of view I would be delighted if they sold for £1000 and development sites for the same. It would mean that people then had money to extend, modernise, invest or whatever. From a selfish point of view the last thing I want is money tied up servicing loans.

I am not honestly sure where you are going with all of this. Are you purely disagreeing with the notion that VIs predominantly desire a bullish market? We here are hardly the ones worth arguing with in that regard!

A.L.D.A

x12yhp wrote: »

I am not honestly sure where you are going with all of this. Are you purely disagreeing with the notion that VIs predominantly desire a bullish market? We here are hardly the ones worth arguing with in that regard!

I am pointing out that there are vested interests both ways, but in housing the assumption tends to be that VIs only talk a market up. As with other markets there are those who have an interest in talking the market down.

A.L.D.A

Mistral001 wrote: »

Perhaps flatland in the urban areas make a fair return for landlords as they get a high turnover of students and other people sharing where their tenants do not really worry too much about security of tenure. That market will always be there as far as I can see, where the rents actually bring in a good income making the speculation side of things less relevant to the owners.

I can't be specific, but there are quite a few niches that can potentially give good returns. One I have been considering myself is, self catering holiday lets and letting to businesses who have workers here on short term contracts. People like airline pilots, Or it could be accommodation for families coming back to Ireland for a week for weddings, funerals etc. There is always opportunities if you can spot them and make them work.

There is also the social housing market, which is substantial. Is it going to disappear or radically change? Certainly I can see returns declining with time, but I doubt if I will see a government that really gets to grips with much of what is wrong, a government that will radically reform the system. It is not a sector that I like or have much interest in

x12yhp

A.L.D.A wrote: »

I am pointing out that there are vested interests both ways, but in housing the assumption tends to be that VIs only talk a market up. As with other markets there are those who have an interest in talking the market down.

And I am making the point that is almost always the case and that your supposed 'low side' VIs have very little control or manipulative ability... in the same way that I have practically no ability to manipulate the price of a ferrari into my budget!