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Realistbear

Irish House Buying Frenzy Turns Into Crazed Euphoria

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http://www.businessworld.ie/livenews.htm?a...rollingnews.htm

December tops the year for record loans

Thursday, February 23 15:12:55

(BizWorld)
December of last year saw the highest ever growth in private sector borrowing with a rise of E6bn in the month and making
2005 a record year for loans
, the latest Central Bank of Ireland statistics revealed today.
December's rise brought the overall annual increase in borrowing in 2005 to E59bn, over E22bn higher than the 2004 increase, the report said.

Mind boggling increases--HPI is clearly a debt driven frenzy as opposed to a value driven market. Trouble may lie ahead?

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...

Mind boggling increases--HPI is clearly a debt driven frenzy as opposed to a value driven market. Trouble may lie ahead?

Trouble MAY lie ahead? I'd say definitely - Ireland is going to implode at some point!

crude

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Trouble MAY lie ahead? I'd say definitely - Ireland is going to implode at some point!

crude

2006 will be a blow-out year... 8-10%+ price growth MINIMUM... we have a major govt saving scheme expiring (SSIAs), a 'race against rates' with the ECB, jobs, GDP, spending, and consumer confidence indicators all on the up... there are a few cracks here and there (manufacturing jobs going) but insufficient to raise concerns, there is NOTHING to change expectations about prices, if anything expectations about future prices are gettting more bullish...

...on the weekend we had people queuing up overnight to pay whatever price the developer asked for a 'new town' called Adamstown in west dublin... there was an incident reported on the radio where one prospective buyer put €5,000 deposit down on a €300k+ place only to be told hours later that the price had gone up €25k, take it or leave it... the bubble here is truly awesome to behold...

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prospective buyer put €5,000 deposit down on a €300k+ place only to be told hours later that the price had gone up €25k, take it or leave it... the bubble here is truly awesome to behold...

That is called hyperinflation from any perspective.

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Yes, it'll probably be good this year for the reasons you mention but it just can't go on for much longer.

Affordability is stretched to the absolute max for FTBs.

The only people buying now for the first time are those on 3x average salary or greater (and some I know in that bracket have turned their noses up at the stock available in the 3.5x salary range) or those who've thrown all caution to the wind.

Have you seen what they're charging for 2 bed flats in the docklands area now? They start at Eur400k. Insane.

Surely once the drops in Aus and the US start to sink in this'll be questioned more. Already we're seeing more bearishness, there seems to be a weekly uberbear article from David McWilliams and others are starting to pitch in fairly regularly. Gimpman Hobbs has been at it quietly a long time too. When we see Rip Off Houses Republic we'll know it's underway :)

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Yes, it'll probably be good this year for the reasons you mention but it just can't go on for much longer.................

Surely once the drops in Aus and the US start to sink in this'll be questioned more. Already we're seeing more bearishness, there seems to be a weekly uberbear article from David McWilliams and others are starting to pitch in fairly regularly. Gimpman Hobbs has been at it quietly a long time too. When we see Rip Off Houses Republic we'll know it's underway :)

A few more rate rises from the ECB should set the cat among the pigeons. Blood everywhere :ph34r:

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This must be the best possible time to sell in Ireland. With another 6 months to a year of frenzied price rises in store, a fine profit would be realised on anything bought in the last year or before.

Buy low and SELL high. Most people make the mistake of buying low and hanging on too long. Take your profits and rent is the message to Irish home owners/speculators/BTLers. But do it before everyone thinks of the same idea! Timing, timing, timing is key.

Edited by Realistbear

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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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