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Why A House Is A Liability

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A family that lives in our street are having trouble with their next-door neighbours. The house is rented and occupied by some young folk who make too much noise and are generally antisocial. The family would like to move away.

But here's the problem. The stamp duty on an equivalent value house is 9% or 63,000 Euro. Ouch!

House prices have risen more than 10% in the area since last year. But this "appreciating asset" that they are sitting on, is actually a prison, that it would cost a small fortune to move from.

We are told that rising house prices have made people wealthy. Is this real wealth?

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We are told that rising house prices have made people wealthy. Is this real wealth?

Of course not. How can it be? It would be great if someone here can actually argue that it is though!

Edited by Mags

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Of course not. How can it be? It would be great if someone here can actually argue that it is though!

nobody in Ireland wants to think about prices falling or even stagnating because everyone knows that it cant possibily bode well... being able to avoid massive stamp duty will be the last thing on peoples minds when the economy grinds to a psychological halt....

i dont think the inevitable correction will be orderly, it will drag the wider down economy with it. Having said that, 2006 will see a strong increase in house prices in Ireland, perhaps 10%+. The banks will promote the idea of locking in rates now to avoid high rates later (on a 100% mortgage of course). The 'race against rates' in 2006 will define the final spike... personally I dont expect to be in Ireland when the music stops...

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Housing booms are caused by favourable economic factors.......but as they progress the cause and effect relationship reverses and the economy becomes dependent on the housing market rather than the other way round........This has always happened in Britain but never to the extent it's now reached in Ireland.

I think i read somewhere that a quarter of the workforce in Ireland are directly employed in home building and that with a population of 15 times Ireland's only 1.5 times as many homes are built in Britain...in other words 10 times as many houses are built in Ireland per annum per million inhabitants....

The crash there will be very messy..........I'm thinking Germany 1923 rather than Britain 1976

Edited by Michael

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A family that lives in our street are having trouble with their next-door neighbours. The house is rented and occupied by some young folk who make too much noise and are generally antisocial. The family would like to move away.

But here's the problem. The stamp duty on an equivalent value house is 9% or 63,000 Euro. Ouch!

House prices have risen more than 10% in the area since last year. But this "appreciating asset" that they are sitting on, is actually a prison, that it would cost a small fortune to move from.

We are told that rising house prices have made people wealthy. Is this real wealth?

Hey Flash, sounds like you have fallen on hard times. 9% = 63k. Property price = 700k Euro

What is that? A studio flat in Ballymun? :P

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A family that lives in our street are having trouble with their next-door neighbours. The house is rented and occupied by some young folk who make too much noise and are generally antisocial. The family would like to move away.

But here's the problem. The stamp duty on an equivalent value house is 9% or 63,000 Euro. Ouch!

House prices have risen more than 10% in the area since last year. But this "appreciating asset" that they are sitting on, is actually a prison, that it would cost a small fortune to move from.

We are told that rising house prices have made people wealthy. Is this real wealth?

If they've been living in a house worth £435,000 (the minimum for the 9% rate to kick in) and house prices have risen by 10%, then surely they can afford the stamp duty out of their equity? This example doesn't sound like one I'd have a huge amount of sympathy for as it is hardly a 'prison' situation - with that sort of money, you always have options.

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A family that lives in our street are having trouble with their next-door neighbours. The house is rented and occupied by some young folk who make too much noise and are generally antisocial. The family would like to move away.

But here's the problem. The stamp duty on an equivalent value house is 9% or 63,000 Euro. Ouch!

House prices have risen more than 10% in the area since last year. But this "appreciating asset" that they are sitting on, is actually a prison, that it would cost a small fortune to move from.

We are told that rising house prices have made people wealthy. Is this real wealth?

Is STR illegal in Ireland?

They are not in prison.

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If they've been living in a house worth £435,000 (the minimum for the 9% rate to kick in) and house prices have risen by 10%, then surely they can afford the stamp duty out of their equity? This example doesn't sound like one I'd have a huge amount of sympathy for as it is hardly a 'prison' situation - with that sort of money, you always have options.

Unless they are mortgaged to the hilt.

Also, they will have to buy a house worth E63k less than what they have at the moment, plus expenses.

Bit of a kick in the nuts having to spend E70k + to get away from some unruly tenants next door.

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Is STR illegal in Ireland?

:lol::lol:

It might as well be in Ireland.

(Sorry I couldn't decide whether or not that was sarcasm)

Hey Flash, sounds like you have fallen on hard times. 9% = 63k. Property price = 700k Euro

What is that? A studio flat in Ballymun? :P

:lol::lol:

No. That'll be 2007 prices. :P

Edited by Flash

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  • 302 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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