Sunday, January 10, 2010

Property cheerleader Brendan O’Connor feeling sorry for himself

There's no use cursing the day we mounted the property ladder

House Price Indices used to be much more fun. Every month some agency or other would put out a press release saying that prices had gone up another 10% or so. Some years you would discover that you had made more money just by owning your house than you had earned by working. Indeed, some people took that thinking to its logical conclusion, decided to stop doing anything productive in their working lives and just fooled around with property, making millions. These days we curse the day we ever got on the ladder. Most of us lost more money on our property last year than we earned through work. The new reality is that house prices are not going to "recover" to previous levels in the near future. We can only hope that when inflation does come, it will wash all our debt away with it.

Posted by little professor @ 05:08 PM (14484 views)
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6 thoughts on “Property cheerleader Brendan O’Connor feeling sorry for himself

  • We all have a part to play in accepting the new reality. The Government needs to get rid of stamp duty on residential property. They should do it for a year and then they should probably do it for another year. The banks need to start lending in a reasonable fashion and they need to create mortgage products that reflect the new legacy-cost-base nature of home ownership. They need to create longer-term mortgages and perhaps even mortgages that would allow people in negative equity to move out of properties they currently own and into homes in which they will live long term.

    And meanwhile we can all only hope that when inflation does come, it will wash all our debt away with it.

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  • What a c%nt.

    So he wants to absolve himself of his property perma-bullishness and dodgy property deals gone bad by getting savers to foot the bill through inflation, while he gets to keep his properties. W*nker.

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  • little professor says:

    @Novice Pete – if you think that’s bad, have a read at one of his articles from early 2007, when the Irish crash was already well under way:

    Shout from the rooftops: house prices are rising

    This is not a popular thing for any newspaper to say, and indeed journalists have been lynched by their colleagues for less, but – whisper it – property prices are going to be OK.

    This is a controversial and upsetting thing for many of you to hear but I’m afraid it could be true. You should be sitting down for this: the price of your biggest asset, which you struggled to buy and which you still struggle to pay for, is not going to go down this year.

    In fact, according to most people making actual specific predictions based on the reality of our situation, as against people just generally muttering darkly, the price of your house will probably go up.

    And it’ll be five or six per cent this year, which is more than it would cost you to service the loan if you borrowed 100 per cent of the price, which means that in economic terms your house will pay for itself this year, at the very least.

    Articles predicting gloom and doom are generally written by academics .Does the phrase “if your [sic] so smart why ain’t you rich?” not come to mind here?

    If these guys are such hot shots at predicting the markets, how come they spend their time in a job with no consequences? Where is the courage of their convictions? Why the disparity between the location of their money and their mouths? The consequences of their reckless article writing are all ours in the form of unfounded panic.

    Furthermore the economy looks healthy, demand for houses will increase as we continue to add about 100,000 people a year to our population, and as there are less people per household, more households are needed for the same amount of people. And job creation continues apace too.

    All of these actual factors point to a healthy property market. And by healthy we mean house prices going up, not some people’s idea of healthy, which is house prices going down.

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  • little professor says:

    He also says he is cursing “the media that encouraged this madness.” Yet he was one of the chief cheerleaders in the media, a true property porrnstar. (credit: from the AAM thread)

    The smart, ballsy guys are buying up property right now

    SO THE sky is falling in again. The level of property horror stories is at an all-time high and everyone is tripping over each other to predict even greater gloom than the next guy.

    Tell you what, I think I know what I’d be doing if I had money, and if I wasn’t already massively over-exposed to the property market by virtue of owning a reasonable home. I’d be buying property. In fact, I might do it anyway. You don’t even need money to buy property these days. Imagine if you walked into the bank and said, “Listen, guys. I want to gamble a million on the stock market. I have 100 grand myself, will you guys lend me 900 grand at really low rates and I’ll pay you back over 40 years? In fact I won’t even pay off the principal, I’ll just pay off the interest.” They’d laugh you out of it. But substitute gambling on the property market for gambling on the stock market and they’ll fall over themselves to give it to you.

    Every smart, rich bloke I’ve spoken to for the last few years has been hoarding cash, waiting for this. And now they’re around picking up bargains. Some of them might be waiting a little while more, in the hope that we haven’t reached the bottom yet. But lots of them know that the trick is to buy and sell stuff a little bit too soon. Lots of guys have gone broke waiting for the actual top or bottom of the market.

    Not only is property better value now than when everyone was barrelling into it a year ago, it also provides better returns.

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  • Every few months or so some website or building society or estate agents — we didn’t care who — would put out a press release announcing that property had gone up by …

    That is happenening in the UK, unsolicited financial advice from organizations with interests in property going up: This should be made ilegal because too many people have been fooled on the property ladder this way.

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  • mark wadsworth says:

    @ Novice Pete, you had me worried there – I didn’t realise that you were quoting his drivel!

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