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Chatting to an old mate in Dublin and he told me this.Where he lives,on a council estate,a 2 bedder house has just fetched £350,000{500,000 euro}.Now I cannot understand how over the long term this is going to be affordable,wages would appear ot be quite a bit lower than say London.How`s it done?What is going on?

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Chatting to an old mate in Dublin and he told me this.Where he lives,on a council estate,a 2 bedder house has just fetched £350,000{500,000 euro}.Now I cannot understand how over the long term this is going to be affordable,wages would appear ot be quite a bit lower than say London.How`s it done?What is going on?

Easy, they hold onto the property for a year, and then sell it for £400,000. The new purchaser holds onto it for a year then sells it for £470,000. The new purchaser holds onto it for a year and then sells it for £550,000. And everyone gets rich!

Billy Shears

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I think Ireland will be very interesting over the next two years. Clearly, that is unsustainable and when sentiment turns I believe there will be a huge crash. I don't think there will be any fannying about like in the UK with the 'will it' 'won't it' crash...

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The country is on an SSIA Buzz at the moment even our Taoiseach (pron. "tea shock") is blinded by the ruinous debt we are taking on.

No indication of property downturn, says Ahern

http://www.ireland.com/newspaper/front/200...HM1NEWBERT.html

Anyone who dares talk down property or question the wisdom of this mania is ignored or rubbished.

its almost like "How dare you?", "Hah, you're not on the ladder how can you expect to get ahead?"

The only commentator (David McWilliams) who regularly points this madness out is laughed at.

"Sure, he's been saying that for years and it has not happened yet"

More information on the Special Savings Incentive Scheme (SSIA) which starts to mature this year.

The SSIA was orginally bought in to take money out of the economy in order to cool inflation.

http://oasis.gov.ie/personal_finance/gover...ngs_scheme.html

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SSIA is something which I have been told about.However I have been told that when that kicks out retailers are expecting a bonanza.

Billy,I understand what you are saying but does nobody there feel that this may well be ``pass the parcel`` but in reverse.so when the music stops someone will be holding a pile of overpriced sh-te.A game only for the brave imho.

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I think Ireland will be very interesting over the next two years. [Jason]

Not sure about the next two years, but when it does go it'll certainly provide crash connoisseurs with some first class spectator sport.

The SSIA was orginally bought in to take money out of the economy in order to cool inflation. [Green Bear]

Is there any replacment so punters can roll their investment over?

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SSIA is something which I have been told about.However I have been told that when that kicks out retailers are expecting a bonanza.

Billy,I understand what you are saying but does nobody there feel that this may well be ``pass the parcel`` but in reverse.so when the music stops someone will be holding a pile of overpriced sh-te.A game only for the brave imho.

aren't these very similar to the TESSA accounts launched in the UK when john major (remember him? - me neither) was chancellor in the early 90's?

i remember at the time retailers were rubbing their hands when they matured a few years later

nothing happened...

Edited by gasket37

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Billy,I understand what you are saying but does nobody there feel that this may well be ``pass the parcel`` but in reverse.so when the music stops someone will be holding a pile of overpriced sh-te.A game only for the brave imho.

My best guess for what people are thinking in Ireland is that some of the purchasers probably believe that this is "pass the parcel", but they believe that they are the smart ones who will not be left holding the parcel at the end and lose. Sort of like how pretty well everyone believes that they are an above average driver.

As has been discussed on here before, many people would buy a Mars bar for £1000 quid if they were 100% certain that they could sell it for £1200 next week.

Billy Shears

More information on the Special Savings Incentive Scheme (SSIA) which starts to mature this year.

The SSIA was orginally bought in to take money out of the economy in order to cool inflation.

http://oasis.gov.ie/personal_finance/gover...ngs_scheme.html

A number of banks in the UK have just introduced (what I presume to be) loss-leading "regular savings accounts" which pay 10% and where you can put in a maximum of £250 per month. I've just set one up for myself. Are the banks worried about inflation leading to higher interest rates, and are trying to cool things down themselves?

Billy Shears

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My best guess for what people are thinking in Ireland is that some of the purchasers probably believe that this is "pass the parcel", but they believe that they are the smart ones who will not be left holding the parcel at the end and lose. Sort of like how pretty well everyone believes that they are an above average driver.

As has been discussed on here before, many people would buy a Mars bar for £1000 quid if they were 100% certain that they could sell it for £1200 next week.

Billy Shears

A number of banks in the UK have just introduced (what I presume to be) loss-leading "regular savings accounts" which pay 10% and where you can put in a maximum of £250 per month. I've just set one up for myself. Are the banks worried about inflation leading to higher interest rates, and are trying to cool things down themselves?

Billy Shears

If I've worked it out right after 1 year you will have invested 12x250 and receive around £137.50 gross interest. So the real rate is more like 4.6%

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If I've worked it out right after 1 year you will have invested 12x250 and receive around £137.50 gross interest. So the real rate is more like 4.6%

I've gone back to the investment forum to answer this.

Billy Shears

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If I've worked it out right after 1 year you will have invested 12x250 and receive around £137.50 gross interest. So the real rate is more like 4.6%

You are ignoring the interest you would earn in another account for those months when the money is not in the new account.

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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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