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Flash

Irish Radio Commercials For Property Investment

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On Dublin’s Newstalk Radio, the commercial breaks are flooded with property investment ads: “Invest in….Spain….Turkey….Bulgaria….Shanghai….Manchester (yep, Manchester! :blink: )”. It’s becoming an assault.

There are no caveats or warnings, as you would expect if you were being sold other investments and I am pretty sure these agents are not regulated.

They talk of “guaranteed rental yield” and “projections for capital growth of x%” etc. They even quote prices, such as: “Turkey starting at JUST €90,000”. I can’t remember the exact price to be fair, and anyway it doesn’t matter - how am I supposed to know if €90k is good value for that area of Turkey? It might be a total rip-off.

It all reinforces to me that these commercials are aimed at pretty unsophisticated people, and that worries me. It worries me a lot. Most people are just ordinary folk, trying to get by, holding down a job, whilst raising a family and they are sucked in by soundbytes like “secure YOUR future”. Remember, this is not about just putting a few thousand in. This is serious money, much of which will be borrowed. People could be ruined if it turns sour.

Some neighbours of mine have bought property in Turkey very recently. I admit I don’t know the financial details, but I am worried for them as they are a lovely family and I would hate it to go wrong them.

Am I worrying too much? Maybe I should say “Stuff it. Let people make their own mistakes”. But I guess I’m not that sort of a person.

:unsure:

Edited by Flash

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Never offer financial advice unless asked for and even then exercise caution.

Most people only ask for advice as a way of reinforcing their own decisions, if you go counter to their ideas and they follow your advice, and things then go wrong, who do they blame?

Yup, you.

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any development offering guaranteed yields or even to pay your first year's rent is merely offering this in lieu of a price cut on an already inflated asking price...............

eg ''we'll pay your 1st year's rent'' is effectively just knocking 5% off the asking price.........

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Never offer financial advice unless asked for and even then exercise caution.

Most people only ask for advice as a way of reinforcing their own decisions, if you go counter to their ideas and they follow your advice, and things then go wrong, who do they blame?

Yup, you.

Absolutely right. I only ever give one-on-one investment advice to immediate family and even then I am very cautious.

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They even quote prices, such as: “Turkey starting at JUST €90,000”. I can’t remember the exact price to be fair, and anyway it doesn’t matter - how am I supposed to know if €90k is good value for that area of Turkey? It might be a total rip-off.

Considering that the average ANNUAL wage in Turkey is just under €6,000, I think it highly likely that that property is overpriced cr@p targeted at clueless foreigners thinking in Paddy prices: "Wow, €90,000! You couldn't get a shed in Dublin for that amount! What a bargain!"...

I've got news for you pal-this ain't Dublin. :rolleyes:

Edited by IPOD

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Considering that the average ANNUAL wage in Turkey is just under €6,000, I think it highly likely that that property is overpriced cr@p targeted at clueless foreigners thinking in Paddy prices: "Wow, €90,000! You couldn't get a shed in Dublin for that amount! What a bargain!"...

Agreed. It is likely to be all the overpriced stuff. You never hear ads for areas where property is generally better value, like Germany or Japan - Hmm...funny that. Perhaps we will in a few years time, when the real money has already been made.

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On Dublin’s Newstalk Radio, the commercial breaks are flooded with property investment ads: “Invest in….Spain….Turkey….Bulgaria….Shanghai….Manchester (yep, Manchester! :blink: )”. It’s becoming an assault.

There are no caveats or warnings, as you would expect if you were being sold other investments and I am pretty sure these agents are not regulated.

They talk of “guaranteed rental yield” and “projections for capital growth of x%” etc. They even quote prices, such as: “Turkey starting at JUST €90,000”. I can’t remember the exact price to be fair, and anyway it doesn’t matter - how am I supposed to know if €90k is good value for that area of Turkey? It might be a total rip-off.

It all reinforces to me that these commercials are aimed at pretty unsophisticated people, and that worries me. It worries me a lot. Most people are just ordinary folk, trying to get by, holding down a job, whilst raising a family and they are sucked in by soundbytes like “secure YOUR future”. Remember, this is not about just putting a few thousand in. This is serious money, much of which will be borrowed. People could be ruined if it turns sour.

Some neighbours of mine have bought property in Turkey very recently. I admit I don’t know the financial details, but I am worried for them as they are a lovely family and I would hate it to go wrong them.

Am I worrying too much? Maybe I should say “Stuff it. Let people make their own mistakes”. But I guess I’m not that sort of a person.

:unsure:

A ramping up in the number of this type of advert is sure sign of a market top.

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Ireland is a bubble state, the closest parallel I guess would be The Netherlands in the seventeenth centaury during Tulipmania. The Irish invested in Spain until prices started to fall, they invested in apartments (thats flats) in the UK until prices started to fall, not to mention Florida, and New York. They’ll invest in Bulgaria and Turkey until prices start to fall.

In Spain and the UK many Irish Investors bought property only to find out that their ‘investments’ don’t self finance and not only that, prices are falling and they can’t sell as the following waves of Irish 'investors' decide to loose money in Turkey, Bulgaria and all points east. These 'investors' have made the fatal and costly mistake of thinking that the bubblmania that has gripped Ireland is somehow the norm in other more rational investment markets.

We (the Irish) as a homogenous group are without doubt the most unsophisticated participants in any investment market since the Albanian Ponzi scheme of the 1990’s. The degree of financial illiteracy is shocking, the understanding of property investment issues is non existent, Once the Irish start buying in any market you know its time to bail out.

Having tasted wealth for the first time in millennia, I suppose its understandable if people loose the run of themselves and get drunk on illusory easy money, but the hang over, the hang over ……………..

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Having tasted wealth for the first time in millennia, I suppose its understandable if people loose the run of themselves and get drunk on illusory easy money, but the hang over, the hang over ……………..

.......has yet to happen !

The accidental property millionaires in Ireland (and there are so many of them! ) seem as smug today as they were a couple of years ago. And why wouldn't they be ?

It's the bears who have to endure the trend moving against them in Ireland - still !

Prices are getting so high that it's going to take a very significant crash to bring them back to reasonable levels and my concern is the bigger the crash required the lower the probability of prices returning to "normal".

The banks seem undetered in flooding the country with cheap money. ECB raising rates is a real contender of ending the party but those guys are as slow as molasses.

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A ramping up in the number of this type of advert is sure sign of a market top.

I have heard similar ramping ads on US radio, for real estate.

But I have also heard a lot of ads ramping gold as well. Market top?

frugalista

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The banks seem undetered in flooding the country with cheap money. ECB raising rates is a real contender of ending the party but those guys are as slow as molasses.

ECB members are spending a lot of time with the media at the moment warning of the need for higher rates. This is what central bankers should do - i.e. telegraph to the markets a change in fiscal policy well before implementation.

So, with inflation in Euroland rearing its head, rates will be heading up, and I would say by at least .75% over the next year. I wonder what effect this will have on a mortgagee who is maxed out at 3.5% ?

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  • 301 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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