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ShedDweller

Irish Property Boom .. Anecdotal ..

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Mrs Sheddweller and I have had a disagreement .. For the umpteenth time since we were married her "dream house" has come onto the market, we would "only" need a mortgage of £110,000 ..

We "discussed" it and I made it pretty plain that I was not going to spend almost half a million quid or our money on a three bed ex council house (it's not exactly that but close enough) ... She has been told by a property expert (estate agent to you and me) that prices will never be this low again .. and that we may be priced out if we don't buy now .. We have been at this point repeatedly in the last five years .. to the point that I've repeated considered just chucking my savings away and taking out a mortgage just to make her happy .. but then I realise that if I do this and then the house loses 50-60% of it's value and would be hard to sell even at that would upset her even more ...

I was in the playpark with my youngest and met an Irish friend of mine with his youngest .. Irish friend is a couple of years older than me very similar work (self employed freelancers) and I guess similar income (£60-70,000 a year).

I told him I was in the dog house because of my continued refusal to buy a house .. he told me his story ..

Having lived outside Ireland since his twenties first in the States and then in the UK he had never got round to buying anywhere .. and four years ago when his wife was pregnant she got a mania about having SOMEWHERE and that it was unfair to bring a baby in the world unless you OWN somewhere to live .. So she started looking around in Ireland for a "Home" for them all .. they would have to rent it out at first as they were both tied to London for work .. but they would at least have a foot in the door of the housing market .. They found a new estate just outside Dublin and a three bed house for €425,000 and they arranged a mortgage changed all their savings to Euro's .. they had agreed to fly over to Ireland on the Friday to sign the papers and exchange contracts .. on the Thursday morning the estate agents rang all a flutter because someone had tried to gazump them and was offering €450,000. The EA was pretty sure that they would accept €437,000 because they were "established Purchasers". They were left with how to find €12,000 in 24 hours ..

Then the phone rang and it was a dream, they wanted him in Berlin for Monday morning .. and he had to prep over the weekend .. There was no way he could find the money for the Friday morning and do the job.

His wife almost had breakdown and he was worried that she would lose the baby, he got his sister in law to come over and look after her and went off to Berlin ..

The estate agent phoned on the Friday after they didn't turn up to sign the paperwork .. and they said they could not get the money together and the house would have to go to the other buyer .. Estate agent phones back in 15 mins .. Vendor will take €450,000 they can sign the papers on Monday ..

What follows is his wife almost having apoplexy as they try to arrange a way he can sign the papers .. and there is no way .. he will be away for five months and there is no way he can get to Ireland ..

In the five months he is away they are comprehensively priced out of the Irish Property Market .. and his wife accepts that they will never be able to own a house ... but it still really upset her and he would find her crying over their "lost house" on a regular basis ..

His brother was not so lucky and has a €1/2 million Mortgage on an empty BTL ..

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Mrs Sheddweller and I have had a disagreement .. For the umpteenth time since we were married her "dream house" has come onto the market, we would "only" need a mortgage of £110,000 ..

snip

In the five months he is away they are comprehensively priced out of the Irish Property Market .. and his wife accepts that they will never be able to own a house ... but it still really upset her and he would find her crying over their "lost house" on a regular basis ..

His brother was not so lucky and has a €1/2 million Mortgage on an empty BTL ..

ShedDweller - you have my sympathy. I expect a lot of us are in a similar situation. Men doing the rational, thinking thing and women doing the emotional, 'want' thing. Not helped by Mrs Pyracantha's well-meaning parents saying things like property only ever goes up etc. I am not a vindictive person but I have been so tempted to remind them that every one of the predictions I made (courtesy of this web-site) have come true (inflation, labour out and con-dems in etc...)

So the freelancer's wife - is she now grateful?

Edited for typo's

Edited by pyracantha

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Just found this quote on the BBC relating to S&P's forecasts for Ireland's public borrowing:

The agency now forecasts that net government debt - the sum of all borrowing - will rise to 113% of GDP in 2010. That would be a substantial increase on the 64% level recorded in 2009.

Shome mishtake surely. Either that or the mother of all understatements. :unsure:

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Mrs Sheddweller and I have had a disagreement .. For the umpteenth time since we were married her "dream house" has come onto the market, we would "only" need a mortgage of £110,000 ..

We "discussed" it and I made it pretty plain that I was not going to spend almost half a million quid or our money on a three bed ex council house (it's not exactly that but close enough) ... She has been told by a property expert (estate agent to you and me) that prices will never be this low again ..

With 300+k worth of savings you could go to live someone cheap in ex-USSR without having to work ever again. 5-7k a year would see you living a pretty decent life in a medium sized city. And ... you will have an endless supply of stunning 25 YO girlfriends and I stress the 's' because its common place over there for any man whos not destitute to have 2 or 3 girlfriends at once or maybe a wife and a mistress or 2 according to your preference.

OK just pointing out that you have options if wife gets arsey :rolleyes: , seriously though you need to grow a spine. Tell your missus shes welcome to get a mortgage herself or find another mug to throw away his money. Also, to be brutal about it, by buying a house with a live-in wife you are putting yourself totally at their mercy for ever more - they can on a whim divorce you and force you to move out, yet still pay the mortgage for them while you rent some squalid bedsit. Think about that carefully before you sign on the dotted line.

This is undoubtedly one of the reasons why women are so keen to buy - it gives them vastly more power in the relationship.

Edited by goldbug9999

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With 300+k worth of savings you could go to live someone cheap in ex-USSR without having to work ever again. 5-7k a year would see you living a pretty decent life in a medium sized city. And ... you will have an endless supply of stunning 25 YO girlfriends and I stress the 's' because its common place over there for any man whos not destitute to have 2 or 3 girlfriends at once or maybe a wife and a mistress or 2 according to your preference.

OK just pointing out that you have options if wife gets arsey :rolleyes: , seriously though you need to grow a spine. Tell your missus shes welcome to get a mortgage herself or find another mug to throw away his money. Also, to be brutal about it, by buying a house with a live-in wife you are putting yourself totally at their mercy for ever more - they can on a whim divorce you and force you to move out, yet still pay the mortgage for them while you rent some squalid bedsit. Think about that carefully before you sign on the dotted line.

This is undoubtedly one of the reasons why women are so keen to buy - it gives them vastly more power in the relationship.

To add, make sure the Eastern Euro city is not served by a cheap airline. I have frequented such places for over 10 years and I must say the deterioration of these paradises on earth is rapid. The locals loved the Brits 10 years ago now they despise them. But get off the beaten track track and you should be sweet. Anywhere in Russia would always be awesome because it's too darn hard to get there for your average ned.

However you always end up in the same place. Eventually you fall for one of these beauties and then before you know it she's moved in....doh!!!!

Edited by steaky

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My wife was always going on about buying a house. I thinked she was listening to her parents too much "renting is dead money" blah blah blah.

Not in a falling market i kept telling them!

Luckily she has seen sense and realises prices in our city are still falling while we sit back and add to our deposit (we are FTB)

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Given that alot of my work is Eastern Europe (mostly The Ukraine) I have once or twice suggested in jest we should live there .. Seriously though my wife is just the same as 99% of the population .. NOBODY EVER REGRETTED BUYING A HOUSE .. EVER the house always wins .. And that's true as long as you have no skin in the game .. Yes we should have bought a house for 1/2 million five years ago .. and on a 100% mortgage .. and we could have walked away when it turned nasty ..

For my Irish friend it has turned out pretty rough as it happens .. because his brother needs financial support until the Irish housing market recovers ..

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Just found this quote on the BBC relating to S&P's forecasts for Ireland's public borrowing:

The agency now forecasts that net government debt - the sum of all borrowing - will rise to 113% of GDP in 2010. That would be a substantial increase on the 64% level recorded in 2009.

Shome mishtake surely. Either that or the mother of all understatements. :unsure:

Ireland is an interesting case, to put it mildly, at the moment. Being in the euro straitjacket currency devaluation is not an option hence the internal devaluations of public service and wage cuts to attempt to regain competitiveness. The sad fact is that Ireland had a good economy up to the election of Bertie Ahern and his Fianna Fail government who were notorious pimps for the property industry. Ahern was a brilliant politician in the sense of his cunning and guile but utterly disastrous for the country. He handed a decent export lead economy over to the property barons in what effectively amounted to a coup d'etat, according to one commentator.Ahern introduced a myriad of tax reliefs to continuously inflate the bubble: there were even incentives for building in seaside resorts to name but one.When they ran out of ideas to incentivise the residential market they started doing the same thing with commercial property. e.g. the hospitality industry where one analyst recently estimated Ireland now has a surplus of about 60,000 rooms. Ahern was presented to the public as an honest working class Dublin lad, who enjoyed the football and a few pints.It was an image that tso many twenty and thirty somethings fell for, believing he would neved mislead them on property.In 2005 he scoffed at those who suggested house prices might actually fall. Four years ago, in a famous speech to the comrades of the Irish TUC he suggested, to thunderous applause, that those who questioned the fundamentals of the economy should "commit suicide". Ahern and his buddies labelled anyone who went against the consensusy as "talker downers". As I refused to buy property in Ireland I when I moved to Dublin I was abused with this label on many occasions. Sheddweller's tale t is a very accurate account of what went on here in Ireland for the last decade. Sadly, it has a huge impact on Irish life. Being naturally gregarious we in Ireland are now reduced to sitting at home in overpriced hovels sipping cheap beer at the weekends. All this is having a huge impact on mental health. And ironically, given Ahern's comment, I fear it will be those who were suckered into the property scam who may end up being most at risk at suicide. The banks will survive I have no doubt, but only at the expense of the social fabric of the country.

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In those bubble years for homes, when real estate was increasing at 10-20% a year.. this insane idea came up that if you don't buy now you will be priced out forever.

But someone who makes £60-70,000 a year is far above the average income. How is it possible they could be permanently priced out of real estate?

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To add, make sure the Eastern Euro city is not served by a cheap airline. I have frequented such places for over 10 years and I must say the deterioration of these paradises on earth is rapid. The locals loved the Brits 10 years ago now they despise them.

My g/f is from a popular stag destination in Eastern Europe. They do dislike the Brit stag nighters, but it puzzles them because the image they have of the Brits is still the 1950s gentleman - good manners, well dressed, intelligent. If you can live up to that expectation they will like you. They don't tend to see the stag crew as 'real' British apparently.

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In those bubble years for homes, when real estate was increasing at 10-20% a year.. this insane idea came up that if you don't buy now you will be priced out forever.

But someone who makes £60-70,000 a year is far above the average income. How is it possible they could be permanently priced out of real estate?

I know that .. but 99% of population believes it's possible .. There's no logic to it ..

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because his brother needs financial support until the Irish housing market recovers ..

:blink:

There's something amiss at the end of that sentence SD.

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ShedDweller - you have my sympathy. I expect a lot of us are in a similar situation. Men doing the rational, thinking thing and women doing the emotional, 'want' thing. Not helped by Mrs Pyracantha's well-meaning parents saying things like property only ever goes up etc. I am not a vindictive person but I have been so tempted to remind them that every one of the predictions I made (courtesy of this web-site) have come true (inflation, labour out and con-dems in etc...)

So the freelancer's wife - is she now grateful?

Edited for typo's

Many [most?] women are like that. My wife is fixated on borrowing the maximum amount we possibly can based on joint salary. Every £1 we that we save, in her view, rather than putting us that bit closer to buying with a small mortgage, increases the total 'budget' we have to spend on a house by £1. Similarly every £1 payrise that either of us gets increases the amt we should borrow by £3X. All very upsetting.

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Funny that. You have 1/2 million quid net worth, but the spotty EA kid, is the "expert".

:lol:

We've had a larf about this type of thing loads of times, such as why do hundreds of thousands of wealthy, intelligent? people entrust the City pimps with their money - on the 'promise' to make them wealthier (Warning prices can go DOWN as well as up!)

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Many [most?] women are like that. My wife is fixated on borrowing the maximum amount we possibly can based on joint salary. Every £1 we that we save, in her view, rather than putting us that bit closer to buying with a small mortgage, increases the total 'budget' we have to spend on a house by £1. Similarly every £1 payrise that either of us gets increases the amt we should borrow by £3X. All very upsetting.

+1

Mine too, still, atleast she shut up about finding a house pretty soon after the situation became obvious and is now resigned to renting until I am ready not to. It helps that since the beginning I was right and she, her father and collegues were all wrong, we had many arguements early on and she thought i had lost the plot but in light of the developments is now quiet.

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+1

Mine too, still, atleast she shut up about finding a house pretty soon after the situation became obvious and is now resigned to renting until I am ready not to. It helps that since the beginning I was right and she, her father and collegues were all wrong, we had many arguements early on and she thought i had lost the plot but in light of the developments is now quiet.

No "Round Here" there is only one single topic of female conversation .. mostly along the lines of "I can't believe we didn't buy the dip" ..

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I checked the spelling can't see anything wrong ..

Your spelling is perfect SD.

I was referring to the assumption that the property market would recover.

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Your spelling is perfect SD.

I was referring to the assumption that the property market would recover.

Of course it will ..

Assume that the price of this property falls to about €100,000 (which is probably pretty much what it's always been worth ..) and remember that the great thing about the euro is that it guarantees low inflation pretty much fixed at 2% (that's why it's so cheap to borrow Euros) then in 81 years it will be back at €500,000 ..

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  • 246 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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