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Dave Beans

The Ghost Estates Of Luxury Homes That Show Exactly Why Ireland Went From Boom To Bust

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http://www.dailymail.co.uk/news/article-1331380/The-ghost-estates-exactly-Ireland-went-boom-bust.html#

When Ireland's economy was roaring ahead in 2006, some 93,419 new houses were built as the country sought to exploit the booming market. The building didn't stop, but the good times have.

Indebted Ireland faces a grim future with its banks on the brink, vicious public sector cutbacks kicking in, unemployment on the rise and soup kitchens opening in the centre of Dublin.

And developers, who dived headlong into the property market with interest rates held low by membership of the euro, are hurting more than most.

In Dublin, towers sprang up on docksides and flood plains and fields became the sites of shiny new housing estates.

But a house once worth 300,000 euros (£255,000) is now worth about a third of that price and even the most conservative estimates predict that Ireland’s property prices will not return to 2008 levels until at least 2020.

Some estimates put the number of empty homes as high as 300,000, although yesterday a town planner, Bill Nowlam, claimed in the Irish Times said only 23,000 newbuilt houses remained unoccupied.

What isn't in doubt, is that bailout or no, these 'ghost towns' will provide a nasty reminder of Ireland's downfall for a long time to come.

Irish trade unionists today threatened a campaign of civil disobedience if the state's beleaguered government fails to call a general election.

Talks resumed today in Dublin between the government and representatives of the International Monetary Fund (IMF) and European officials on a bailout for the crisis-hit economy.

But in a display of anger at the performance of the Fianna Fail-led government, a leading trade union today called for a public campaign to force a general election.

Yesterday Irish prime minister, Taoiseach Brian Cowen, rejected calls for his resignation and said his government was continuing to work in the Republic's best interests.

The Technical, Engineering and Electrical Union (TEEU) met in Galway for its biennial conference where the agenda was topped by a debate on the feared impact of multi-billion euro cuts in public spending.

Members passed an emergency motion accusing the government of negligence in its handling of the economy, and added: 'If the government persists in clinging to power we call on the ICTU (Irish Congress of Trade Unions) and other civil society organisations to launch a campaign of civil disobedience to force an election on a regime that has no principles and no objective beyond staying in office for as long as possible, even at the price of destroying what is left of our economy and our society.'

TEEU general secretary Eamon Devoy said the government's forthcoming spending cuts would hit the most vulnerable sections of society.

'What we are witnessing is a dismantling of social welfare provision and pensions for older people and the unemployed, health services for the sick and open access to higher education for our young, while creating immunity from pain for the builders, property speculators and hierarchy of the banking system who are entirely responsible for the mess we find ourselves in,' he said.

'Over 440,000 are now unemployed and another 45,000, many of them highly skilled, forced to emigrate.'

He accused the government of 'floundering blindly through this crisis and dragging us all towards the precipice with it'.

Meanwhile, William Hague raised doubts about the future of the euro today, saying it was impossible to know whether the currency would collapse.

The Foreign Secretary, a vociferous and long-standing critic of European monetary union, said he 'hoped' that the euro would survive, but added: 'Who knows?'

His comments came as talks continued about the possible need to bail out debt-ridden Ireland, the latest crisis-hit eurozone member.

Asked whether the euro could collapse, Mr Hague told BBC Radio 4's Today programme: 'Well I hope not.

'No-one has pointed out more of the problems than I have over the years in having a currency where we lock together the exchange rates and interest rates of countries with different economies.

'But I very much hope not. Who knows?'

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Empty houses on an empty street in Belmayne, Dublin where the developer went bust. Only two houses have been sold on this street and construction stopped in 2008

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Houses stand vacant in the Castlemoyne development in North Dublin. This development is one of the many, so called, ghost estates that have been been largely abandoned and left unfinished

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A view of the unfinished Castlemoyne housing development in Dublin, as the IMF began talks with Irish finance officials to formally begin the marathon trawl of state coffers

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A view of the unfinished Castlemoyne housing development. rish, European and International Monetary Fund officials were involved in tough negotiations Friday over terms of a massive credit line

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There were few signs Friday of protest on the streets of Dublin, only private expressions of shock and disgust that Ireland's economy had been mismanaged so badly and fallen so quickly since 2008

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A view of the unfinished Castlemoyne housing development in Dublin. 'There's no point protesting. We've gambled away our sovereignty, and all we can do is try not to make matters worse,' said Eamon Delaney, a newspaper vendor

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Horses in a field in front of a new house which has been left unfinished in County Leitrim. Leitrim is the worst affected county in Ireland with a housing stock that it is estimated will take nine years to clear

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TEEU general secretary Eamon Devoy said the government's forthcoming spending cuts would hit the most vulnerable sections of society

Edited by Dave Beans

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Can we not build a 800mph train with one big fly-over bridge from these streets into central London? Strictly no other stops in between.

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Can we not build a 800mph train with one big fly-over bridge from these streets into central London? Strictly no other stops in between.

I can see the problem with buying right now - although the parking situation looks divine - but wouldn't picking up a large house for £100k on this estate in perhaps 5years when things start to pick up be quite a smart move for someone with a good job in Dublin or an older person with a generous pension selling a £300k house in S. England?

I bet they won't stay that cheap for long when the pain is over and money starts moving back in.

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Can we not build a 800mph train with one big fly-over bridge from these streets into central London? Strictly no other stops in between.

A tunnel under The Irish Sea might work.

I'm pleased I'm helping pay for this lot! How f*cked up is this?

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So you can pick up a 3 or 4 bedder for £80k...although there's no jobs to go to....

given the pics and state of ireland that still seems very expensive. I would have thought they would be taking anything they could get for them by now.

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given the pics and state of ireland that still seems very expensive. I would have thought they would be taking anything they could get for them by now.

If you could get a job working from home (via the web), then it could make good sense...Safe for your kids to play in the street & no unruly neighbours

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given the pics and state of ireland that still seems very expensive. I would have thought they would be taking anything they could get for them by now.

These are my thoughts exactly. I worked in Dublin during 2006 and everyone who owned a house wanted to tell you how much it was worth. I remarked, on numerous occasions, that the prices were too high given the amount of land available. I even advised one Irish lady to sell up but she insisted that property in Ireland was an investment. You only have to travel a couple of miles outside of Dublin and you're in empty countryside. The Irish thought that it would never end. Dublin was acting like it was New York, when in reality it's not much more than a big town. All the roads seemed to be paid for by the EU, so it makes you wonder what the Celtic Tiger actually did pay for...well except lining the corrupt Bertie Ahern's briefcase full of cash.

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These are my thoughts exactly. I worked in Dublin during 2006 and everyone who owned a house wanted to tell you how much it was worth. I remarked, on numerous occasions, that the prices were too high given the amount of land available. I even advised one Irish lady to sell up but she insisted that property in Ireland was an investment. You only have to travel a couple of miles outside of Dublin and you're in empty countryside. The Irish thought that it would never end. Dublin was acting like it was New York, when in reality it's not much more than a big town. All the roads seemed to be paid for by the EU, so it makes you wonder what the Celtic Tiger actually did pay for...well except lining the corrupt Bertie Ahern's briefcase full of cash.

Apparently, Dublin is more "important" than LA, Washington, Jo'Burg, Barcelona & Melbourne..hmmmm...interesting.....

http://en.wikipedia.org/wiki/Global_city#GaWC_studies

Edited by Dave Beans

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I suggest we send some our homeless to Ireland or Spain.

I have coped two comments from the Daily Mail in response to their article

Tina writes..'Send some of the people to Ireland (particularly asylum seekers who do not have roots in this country) and give them animals to start farms..'

Thanks Tina, but eh, no thanks.

We've enough problems without taking having to take on the experimental social mess that is already way too evident in the UK.

- maxindublin, dublin ireland, 20/11/2010 16:38

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Read more: http://www.dailymail.co.uk/news/article-1331380/The-ghost-estates-exactly-Ireland-went-boom-bust.html#ixzz15tyXvinf

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Exactly right if you look on this in the long term now is the time to be buying. Even if there are some more drops it wouldn't matter in the long term as this is near bottom now.

A friend of mine has recently purchased an Irish speciality gourmet business that was in receivership, invested in it, reinvigorated it and it now has legs again. It’s not going as quick as he would like but it has started up again and the long term outlook for this business is very positive.

It is true that one time to buy an asset is when things look their bleakest.

I prefer to look for the beginning of a genuine upturn though, not having a huge amount I can confidently tie up for years.

Interesting story on the gourmet business though personally I would find that forcing suppliers to write off/down existing liabilities to enable a fresh start would leave a bad taste.

Mind you - I'd buy a repo. so that makes me a right hypocrite!

My bear status is based on outlook, not philosophy, and will turn bull at some point.

I realise some on here see long term low prices as social good, and it would be, but I just don't see the pre-condition of the release of millions of acres for development ever being met in the UK.

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the other big lie in this story is the denial from the Irish - they suggest that most of these estates are actually occupied - note not sold. EXCEPT, just about very single golf course/hotel complex in Ireland has an estate of brand new houses on its edge, and these have all been put up for rent these days - as 'holiday cottages' - you tell me, are these holiday cottages, or a developer that failed to sell....

http://www.mountwolseley.ie/holiday-lodges.html

too far to commute, too close for weekend homes.

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Exactly right if you look on this in the long term now is the time to be buying. Even if there are some more drops it wouldn't matter in the long term as this is near bottom now.

Only you could be bullish on house prices in a country where 20% of houses are empty.

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Only you could be bullish on house prices in a country where 20% of houses are empty.

If only Bardon was bullish in these circumstances we wouldn't be in the mess we are.

Unfortunately perhaps 80% of the western world are bullish about property irrespective of the point in the cycle, and most of the rest are neithers.

Lots of them will be temporary bears for a year or so as this plays out but will switch back to bull very easily.

Even a depression won't help. By the early 50s Americans were already bullish on property again despite up to 95% falls in Manhattan apartments during the 30s and a World War!.

Basically most people are rubbish at economics and desperately want to be 'winners'.

Maybe its our genes but I thought we were supposed to be able to use our brains to override primal urges.

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Can we not build a 800mph train with one big fly-over bridge from these streets into central London? Strictly no other stops in between.

Have actually been in these estates a few times. Problem is though that there are no facilities or no sense of community. No local shops or sports clubs etc.

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I can see the problem with buying right now - although the parking situation looks divine - but wouldn't picking up a large house for £100k on this estate in perhaps 5years when things start to pick up be quite a smart move for someone with a good job in Dublin or an older person with a generous pension selling a £300k house in S. England?

I bet they won't stay that cheap for long when the pain is over and money starts moving back in.

Think those houses will be standing that long?

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Hi

from the 'pin...

"Anyone know which bank gave that couple their mortgage? Never knew thinks were quite as mad as THAT."

Ha ha, why the long face?

That house looks like if fell off the back of a lorry.

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....

Unfortunately perhaps 80% of the western world are bullish about property irrespective of the point in the cycle, and most of the rest are neithers.

.....

Sadly that percentage is enough to be a self fulfilling prophesy. Things have stalled now as people cannot afford to buy, not because they don't want to (look at all the losers on here that are desperate to buy - waiting for 10% drops or some nonsense like that...)

BTW I misread your sentence as "all the rest are nutters" - I think it reads better that way :D

Ireland will see another 30% or more off IMHO.

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Sadly that percentage is enough to be a self fulfilling prophesy. Things have stalled now as people cannot afford to buy, not because they don't want to (look at all the losers on here that are desperate to buy - waiting for 10% drops or some nonsense like that...)

BTW I misread your sentence as "all the rest are nutters" - I think it reads better that way :D

Ireland will see another 30% or more off IMHO.

A lot more than 30% i would think.

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  • 140 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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