Gorgeous and still expensive.
Oh, I don’t know… Maybe I’ve lived abroad in too many different countries, but I’m not sure if any standard semi-d in Dublin can be termed ‘gorgeous’ anymore. These are very standard houses with a few interesting features, but shouldn’t be anywhere near 800,000k. That’s absolute insanity.
You are most likely correct. All of our brains are so fried here that even uber-bears like me still probably over-value houses massively.
800k for a very ordinary red-brick terraced 3 bed (with some nice features) still seems like Celtic Tiger land. 400k would be closer to the mark. Some sellers still need to get real.
I try to value houses by who is likely to live in them, what they earn and what can they borrow.
I imagine someone with good credit can get 4 times salary but i have heard of a hospital consultant only managing to get 650k out of one of the banks. He’s on about 225k.
In any case, in the long run if I was earning 200k a year I would not be living here.
Agreed, heading for 400-500k mark.
fitw, you’re absolutely right.
Somebody on 200k a year would not want to live in a 3 bed terraced in a pleasant but not exceptional neighbourhood. This house’s fundamental value is half of what it’s advertised for. For around 450 - 550k, you can already find similar to this house.
There’s a tendency to forget that the p/s pay cuts and tax hikes hit consultants and other p/s higher earners (>€120k or so) very significantly indeed. I’d expect lending multiples to drop for that bracket based on that alone.
That certainly seems a low salary multiple - just wondering if it is down to the individual’s age (repayment term) that the small multiple was offered?
now sale agreed