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Flash

Who'd Have Thought It?

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ok. So the angle here is, with interest rates going up, you are better off with our high rate cash account than the pitiful yield on that BTL in Ireland or elsewhere.

Even so, for a bank of any kind to have this sort of comment on its web site is pretty remarkable.

http://straighttalk.rabodirect.ie/rabobank...g/jillkerby.htm

If you are determined to spend your SSIA fund on property, whether at home or abroad, keep in mind that this is a global price bubble.

Hooray for Jill Kerby. :)

Edited by Flash

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Quote the article:

And there’s the rub.

The old complaint about rent as ‘money being poured down a drain’ doesn’t necessary hold water anymore when servicing mortgage debt costs more than paying rent. And when rental yields become so out of line with the asking price, it also suggests that the sustainability of house prices is reaching its tipping point: a slow down and perhaps even a dramatic price correction could be on the way.

So, if you are a first time buyer, is this the time to get onto the property ladder?

Well, that depends. If you need and want a home and you can genuinely afford to meet the mortgage costs, then now is as good a time as any. (See “Stress Test Your Mortgage” below)

However, I don’t share the endless optimism about the Irish property market aired by lenders and their paid economists, commission-earning mortgage brokers, estate agents and property supplement editors who all have vested interests in hyping up the market.

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"However, I don’t share the endless optimism about the Irish property market aired by lenders and their paid economists, commission-earning mortgage brokers, estate agents and property supplement editors who all have vested interests in hyping up the market"
.

Many of us on HPC share such sentiments. :)

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ok. So the angle here is, with interest rates going up, you are better off with our high rate cash account than the pitiful yield on that BTL in Ireland or elsewhere.

They're perfectly right as well.

Daft (Irish rental and selling website) just released their quarterly report, including an analysis of average yields for different types of property in different areas. The best is 5.7 percent, average a lot less, and for a lot of sizes and areas it's negative. See page 6.

http://www4.daft.ie/report/

We do still seem to have large YoY capital appreciation though which will keep sucking the idiots in for a while.

In the meantime I'm doing my own level best to lower yields by haggling my landlord's rent down :)

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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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