Flash
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Posts posted by Flash
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Is it that simple though?
Realistically, it would have to get phased in gradually, which would simply mean that rents would rise gradually as well.
The landlord would simply put up the rent.
Therefore some of the extra expense would be passed onto the tenant.
What choice does the tenant have? pay the higher rent or buy a house?
No, rents would not necessarily go up. The rental market is a very simple supply and demand story. Landlords would love to charge more rent already. But they can't because the market cannot stand it. If the landlord suffers increased taxes and attempts to pass these costs on, the tenant just says FU and moves out.
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Time to learn cantonese I guess
...or mandarin.
http://www.speakalanguage.com/chinese/mandarin-cantonese.htm
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Having bought land in Berlin Im now looking at perhaps an indirect investment in a company such as Speymill.
Let me know when Speymill becomes available please.
See my previous post (one before yours). It started on AIM last Friday, symbol SDIC. It is essentially a closed ended fund, so you can just buy shares in it like any other company.
Reuters comment: http://today.reuters.com/business/newsArti...ryID=nL14522140
Speymill themselves (the investment managers) are also traded on AIM, symbol SYG - I already have shares in that one.
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ok. So the angle here is, with interest rates going up, you are better off with our high rate cash account than the pitiful yield on that BTL in Ireland or elsewhere.
Even so, for a bank of any kind to have this sort of comment on its web site is pretty remarkable.
http://straighttalk.rabodirect.ie/rabobank...g/jillkerby.htm
If you are determined to spend your SSIA fund on property, whether at home or abroad, keep in mind that this is a global price bubble.
Hooray for Jill Kerby.
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So the BOE is saying in very a diplomatic way that it considers official government inflation figures to be total b******s. About time.
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Speymill (already AIM-listed) will be the property manager of the fund which will float around March 16. There was an article on it in the FT last Friday, but I can't find a reference to it on the web either. If I find out any more, I will be sure to post it here.
Flash
As promised. Trading in the new fund started on AIM on Friday.
http://www.investegate.co.uk/Article.aspx?...03170752009674Z
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The MPC really are showing themselves to be barely competent. First they nearly force an HPC by sending rates too high
TTRTR, I may not have read all the squillions of posts you've made on this site (who could possibly?). But I had never realised that you were so worried about the prospect of a crash.
Perhaps you still are - after all, it is all in the hands of the MPC.
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...only to come back with a sun tan and the deeds to an off-plan apartment.
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Is there going to be a crash?.
Not according to the ODPM, and various other organisations. They predict higher divorce rates, and people living longer as the reason. They have yet to factor in the 57,000 houses per year as a result of immigration, that alone will add another 50% to demand as we built 160,000 houses last year.
When it comes to house prices, affordability is the rub, not immigration or divorce rates. At the moment a basic house for the average person is not affordable without taking on a loan at around five times income. Affordability is stretched to the max NOW, at very low interest rates. Just a couple of interest rate rises will push it over the edge. (In the UK anyway)
Remember that the immigration predictions are based on the premise that those same immigrants will find that living in the UK is affordable enough for them and will stay.
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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.
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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.
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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
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The general reaction to articles such as this is "yeah, yeah, they've been saying that for years".
This is true of course. In the eyes of many, property bears in Ireland look extremely silly because, despite all their ranting, house prices have kept going up.
It's been going on for so long that there's a sort of air of invincibility around, much like the drunk driver who continues to take wheel because he has never yet been caught.
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Smart money might be drifting into equities? BTL looks decidedly poor with low yields, more regulation, higher IR and a flat market.
When the FTSE-100 breaks through the magic 6,000, the media will jump on the bandwagon and trumpet the stock market as a good investment once more. Then private punters will pile in. The professionals, who have made a fortune over the last two to three years, will only be too happy to sell to them. That's just the way it goes.
Still, it will be another nail in the coffin for BTL.
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UK rates will be down in April continuing the downward trend - the markets have alreadfy factored this in.
I hope you haven't got money riding on that.
http://www.bloomberg.com/apps/news?pid=100...VOZcS4&refer=uk
The bank kept its benchmark interest rate at 4.5 percent on March 9 for a seventh month and investors. The pick-up in output prices this year reinforced expectations borrowing cost will remain on hold through the rest of the year. The yield on the interest-rate future maturing in December was at 4.76 percent at 09:35 a.m. in London, a gain of 0.29 percentage point this year. -
Nice to see I'm not the only one who thought that the daft.ie report was far from healthy.
http://www.housepricecrash.co.uk/forum/ind...l=daft\.ie
Austin Hughes (IIB Bank) was on Dublin's Newstalk talking about the report and how everything was fine. :angry:
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From the blog
http://www.thisismoney.co.uk/news/article....18&in_page_id=2
However, Ray Boulger of mortgage advisor John Charcol,is more confident of a cut. He said: 'The Bank's view of the likely strength of the UK economy over the next few months is significantly more bullish than that of most outside economists and it appears the MPC will wait for further evidence of a slowdown before sanctioning a rate cut. However, we firmly believe this is a question of when, not if.'keep hoping Ray....I suppose you have to admire him, putting his credibility on the line like that.
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Property developer A & J Mucklow (Capitalised at £275m) had their interim results yesterday. The Chairman's statement was very cautious.
Aggressive bidding amongst investors and developers and a dwindling supply of available stock, has resulted in another reduction in property yields and further increases in capital values.We are still finding it difficult to justify some of the high prices being paid for sites and investment properties, particularly when they occupy secondary locations and offer limited growth prospects. We have been diligently pursuing a number of prime development opportunities, in order to replenish our investment portfolio, but remain selective and careful not to overpay.not exactly bullish....they seem to be looking for prices to fall.
http://www.companyannouncements.net/cgi-bi...700464518Z.html
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HPI in spain, and eastern europe is a great way of getting money into the country and increasing and improving housing stock, when money runs out prices should fall back to normal salary multiples seen in these countries. Ofcourse this wont be to original levels as salaries will have increased in these countries because of this new money....
I suppose the bankrupt amateur property investor will at least draw some comfort from the fact that they helped to improve the economies of formerly destitute Eastern European states.
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But summer homes have been singled out as at risk from a slump, whether in rural Ireland or sun spots like the South of Spain.
So only second homes in rural Ireland are risk? - implying that your primary residence in Dublin is never under threat. How stupid is that?
Much equity withdrawal, as in Ireland, is being ploughed back into the housing market via contributions to children's house purchase and the buying of second and investment homes," the report notes.The debt monster is biggest in Ireland, and it has the most to lose from rising rates.
Anecdotal: A receptionist where I work, has bought an "up-market" apartment in Bulgaria. She doesn't really know where, you see neither her or hubby have ever been to Bulgaria. In fact, she doesn't know much about the country. They bought because "lots of their friends have" already.
On the radio this morning, one property development commercial actually claimed:
"Property in Turkey goes up 20%-30% a year" - no caveats or warnings, nothing. These guys can really say what they damn well like, just to get you to throw tens of thousands of borrowed Euro at them.
If you made a claim like that about AIB shares, the regulator would cut off your gonads with a rusty cheese wire. It makes me sick. :angry:
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With a forward from Austin (The BubbleMeister) Hughes, this report covering Q4 2005 is out today, telling us "what a healthy housing market" we have.
http://www.daft.ie/report/DaftReport-Q42005.pdf
Turn to page 5 - Investor Analysis and Affordability Calculator. What a joke! Look at those negative returns! - with more interest rate rises coming through it's only going to get worse!!
If that's a sign of a healthy housing market, then I'm Austin Hughes.
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Until now politicians have seemed reluctant to address the consumer debt problem. Perhaps, this will become a key part of the Lib Dem's campaign going forward - it could capture the votes of the younger apathetic non-voters and could get support from the richer, older people who see their children struggling with debt.
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Eurozone retail sales surprise on the upside, with Germany providing the big boost.
Next rate rise in May?
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Two words: Currency Risk.
With the ECB now raising rates, one would expect sterling to fall over the next year if the BOE fail to follow suit.
It is very dangerous now to be a leveraged Euro investor in the UK market. The way I see it, the UK housing market is now highly likely to fall, either in nominal terms if the BOE raises rates, or against other currencies if it doesn't.
Estate Agent Jokes
in House prices and the economy
Posted
What have a goose and an estate agent got in common?
They can both shove their bills up their ar5es.