Flash Posted March 13, 2006 Share Posted March 13, 2006 (edited) This is so beyond ludicrous that I wonder whether there is a conspiracy on behalf of certain powerful individuals to pump property, so that when the market collapses, it can be taken from distressed sellers at just cents on the Euro. Worth the investment?Edel Morgan 09/03/2006 The address: Number 7 Home Villas, Donnybrook, Dublin 4. The agent: Sherry FitzGerald The property: two-bedroom house for €775,000. The look: Victorian terraced red brick with appealing interior. The landscape: backs onto Herbert Park in what the agent calls a "leafy enclave" . Within a short walk of Donnybrook village. The features: A 72 sq m (776 sq ft) house with a livingroom with original floor boards and understairs storage. The diningroom has semi solid floors and an original fireplace. Two skylights make the fitted kitchen a bright space. The bedrooms are doubles with original fireplaces and built-in wardrobes. It has a 30ft back garden. Residential disc parking. How much for an investor? An investor requiring a 90 per cent mortgage at a PTSB tracker rate of 3.6 per cent over 20 years will have annual mortgage repayment of €48,975 . Interest-only mortgage repayments would be €25,110. The shortfall when the rental income of €15,000 a year (calculated to allow for one month's costs and one month's void) is taken into account would be €33,974, while the shortfall on an interest only mortgage would be €10,110 . On a 28 per cent mortgage at a PTSB tracker rate of 3.6 per cent over 20 years, an investor would break even on rent. How much to buy? An 80 per cent mortgage at PTSB tracker rate of 3.6 per cent will have annual repayment of €47,714. On an interest-only mortgage it would be €24,464. Potential: the house could be extended to the rear subject to planning permission. Verdict: good rental location of interest to an investor willing to hang in for long-term gains. Calculations by Simply Mortgages Edited March 13, 2006 by Flash Quote Link to comment Share on other sites More sharing options...
cupidstunt Posted March 13, 2006 Share Posted March 13, 2006 Verdict: good rental location of interest to an investor willing to hang in for long-term gains. i.e. 100 years Quote Link to comment Share on other sites More sharing options...
Duplex Posted March 13, 2006 Share Posted March 13, 2006 I don’t know whether to laugh in an hysterical mania, or break down in a flood of sobbing tears. Oooooooooooooooooohhhh the Humanity!!!!!!!!!!! I’ve chosen the former (and am presently dusting down me daddy’s suitcases) Quote Link to comment Share on other sites More sharing options...
Bedsprings Posted March 13, 2006 Share Posted March 13, 2006 My word when it collapses it's going to be so horrid Quote Link to comment Share on other sites More sharing options...
Scooter Posted March 13, 2006 Share Posted March 13, 2006 i.e. 100 years Comments like that (ok in the long term) rather suggest they know the game is nearly up... Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted March 13, 2006 Share Posted March 13, 2006 Comments like that (ok in the long term) rather suggest they know the game is nearly up... It's the stuff of legend right before your eyes. Cut it to show your kids in 20 years time, otherwise they won't believe you. Surely no economist can believe in the efficient markets hypothesis when this aberration exists? Quote Link to comment Share on other sites More sharing options...
cupidstunt Posted March 13, 2006 Share Posted March 13, 2006 I think they'd be better off investing in tulips Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted March 13, 2006 Share Posted March 13, 2006 So in Ireland they now advertise property based on how little money you will lose each month? This is crazy, you don't even need the benefit of hindsight to see the sheer ludicrousness of this! Quote Link to comment Share on other sites More sharing options...
BoredTrainBuilder Posted March 13, 2006 Share Posted March 13, 2006 I know my arch scepticism annoys HPCers but not on this occasion - my eyeballs are also rolling in their sockets. Would the same have happened here had we joined the Euro? Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted March 13, 2006 Share Posted March 13, 2006 Would the same have happened here had we joined the Euro? Both the Dutch and Spainish went HPI crazy too, so I doubt the UK would have been any different. Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted March 13, 2006 Share Posted March 13, 2006 Are you absolutely sure that this column isn't satirical? It sounds like the sort of thing you would see in Private Eye. Quote Link to comment Share on other sites More sharing options...
cupidstunt Posted March 13, 2006 Share Posted March 13, 2006 (edited) Heres another http://www.lisney.com/subnav.aspx?tabid=1&...roperty&ID=3065 I wonder what a semi WITH a garage goes for? Edited March 13, 2006 by cupidstunt Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted March 13, 2006 Share Posted March 13, 2006 Heres another http://www.lisney.com/subnav.aspx?tabid=1&...roperty&ID=3065 I wonder what a semi WITH a garage goes for? Dear lord, £1,717,992 for what looks like an ex-local authority semi! Surely this is just one big gag, those crazy, crazy paddies. Quote Link to comment Share on other sites More sharing options...
Duplex Posted March 13, 2006 Share Posted March 13, 2006 €1,750,000 for a semi in Dublin(with naff garage conversion) or €500,000 for a 10,000sq ft house on a couple of acres in Germany. Hmmmm Germany Quote Link to comment Share on other sites More sharing options...
Flash Posted March 13, 2006 Author Share Posted March 13, 2006 Are you absolutely sure that this column isn't satirical? It sounds like the sort of thing you would see in Private Eye. Sadly no. To be honest I quite enjoy Edel Morgan's articles. I've even kept one or two. My alltime favourite was the one a few months back when she asserted that smart people were now buying houses because in future they will all be bulldozed to build apartments. Tell people that in a few years time and they won't believe you. Quote Link to comment Share on other sites More sharing options...
Bubble Pop Electric Posted March 13, 2006 Share Posted March 13, 2006 Absolutely incredible. It makes the UK market look almost sane by comparison. Quote Link to comment Share on other sites More sharing options...
BillyShears Posted March 13, 2006 Share Posted March 13, 2006 Are you absolutely sure that this column isn't satirical? It sounds like the sort of thing you would see in Private Eye. I must agree with this. Surely nobody could write that with a straight face. It must be satire. Shurely shome mishtake. Billy Shears Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted March 13, 2006 Share Posted March 13, 2006 Absolutely incredible. It makes the UK market look almost sane by comparison. Indeed. London is expensive, but you can still get a great 6 bed house in a very good area for £1.7m....... Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted March 13, 2006 Share Posted March 13, 2006 (edited) Sadly no. To be honest I quite enjoy Edel Morgan's articles. I've even kept one or two. Keep 'em all, you're quite right, in a few short years nobody will believe this nuttyness, nobody will want to Edited March 14, 2006 by BuyingBear Quote Link to comment Share on other sites More sharing options...
Flash Posted March 14, 2006 Author Share Posted March 14, 2006 Another Edel Morgan Classic, this time from May 26, 2005. What else could we really expect from a leading property correspondent in the world's madest property market? One can only surmise what the average millionaire will be able to buy in Dublin in another nine years.A pokey one-bed apartment in the outer suburbs? Or maybe a townhouse on a new development bought under the local authority's affordable housing scheme? Will the semi-d become the preserve of the multimillionaire while only the super rich will afford the luxury of living detached? She is just brilliant. I really look forward to Thursday's Irish Times. Quote Link to comment Share on other sites More sharing options...
newbie Posted March 14, 2006 Share Posted March 14, 2006 This is so beyond ludicrous that I wonder whether there is a conspiracy on behalf of certain powerful individuals to pump property, so that when the market collapses, it can be taken from distressed sellers at just cents on the Euro. So let me get this straight, the owner of this house can sell it, put the money in the bank and for the interest he/she can almost rent TWO of these houses in the same street! Or, he/she can sell, put the money in the bank (yielding about 25k), rent the house (for 15k) and still have an annual income of 10k from the interest on his bank deposit. This is crazy. The rational thing for every real estate owner in Dublin to do right now is to sell. Ireland is doomed. Quote Link to comment Share on other sites More sharing options...
walktothewater Posted March 14, 2006 Share Posted March 14, 2006 So let me get this straight, the owner of this house can sell it, put the money in the bank and for the interest he/she can almost rent TWO of these houses in the same street! Or, he/she can sell, put the money in the bank (yielding about 25k), rent the house (for 15k) and still have an annual income of 10k from the interest on his bank deposit. This is crazy. The rational thing for every real estate owner in Dublin to do right now is to sell. Ireland is doomed. Yes but you're forgetting that "rent is dead money". "property prices don't go down". "property is a long-term investment", etc etc ad nauseam. I've said it before- the VAST majority of Irish people simply don't accept that prices can fall in any meaningful way. It's a marginal, crazy, looney, 'begrudging' element of society that thinks prices will crash. This is what drives behaviour here-- €2.5m semis? what else would be rational if you believe prices cannot fall... If any UK bear is feeling a bit unsure or is second-guessing themselves about where this is all leading, I advise you come over to Dublin for a refresher. You will see a situation far worse than London. I could market it as the The Bear Refresher Weekend!! Quote Link to comment Share on other sites More sharing options...
RobertPaulson Posted March 14, 2006 Share Posted March 14, 2006 the link plenty of other jems on there. Quote Link to comment Share on other sites More sharing options...
newbie Posted March 14, 2006 Share Posted March 14, 2006 It's Ireland's middle class that will be destroyed by this. The geniunely wealthy will benefit as, although the book value of their assets will go down, they will be able to snap up more of the assets in the ensuing fire sale. I think the outcome will be similar in other markets. Quote Link to comment Share on other sites More sharing options...
jghurley Posted March 17, 2006 Share Posted March 17, 2006 In a coup for common sense, the modest semi-d with the nice address in Dublin (http://www.lisney.com/subnav.aspx?tabid=1&tabindex=1&inc=resProperty&ID=3065) went yesterday at auction for euro 3.7 million, nearly 50% over its AMV (advised minimum value) of euro 2.5 million. See http://www.unison.ie/irish_independent/sto...&issue_id=13819 .... "The successful middle-aged bidder, who arrived early and positioned himself at the front row in the auction room, quietly outbid his main rival, an unassuming 30-something man who bowed out when the bid hit €3.7m." Quote Link to comment Share on other sites More sharing options...
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