Areas in Dublin still ridiculously overpriced

Is this the house you are talking about in Glasnevin Yorkie?

myhome.ie/residential/brochu … -9/1611030

It went for €520k or so? As far as I recall the Iona house at Allsop’s went for over €700k. I know the houses are different but thats a big price differential (€700k vs €520k) for similar sized houses in the Iona area…interesting.

The link doesnt seem to be working is this the house…???

myhome.ie/residential/brochu … -9/1611030

yep, thats the one…

however its not a like for like property with the one on Iona Road…it is in location, and in size obviously, but considerably different in property type.

nonetheless…if you check the original pin commentary on this property…it is considerably out of sync with the actual market place.

I dont think anyone disputes that, it’s not meant to, thats the point.

oh…

I thought discussions here were about the real world…

oh well…

Leverage may kill but reality bites.

Oh they are, and the reality is that the market place is still in denial about where the country is

Simply put, everything being equal, a 20% fall means we’re 20% closer to the bottom.

However, things arn’t equal.
The market ‘bottom price’ isn’t static.
It is derived from the economic fundementals.

Higher taxes, lower incomes, rising unemployment, falling rents (once lower rent allowance kicks in) and higher interest rates etc. etc. all conspire to continuiously push the floor lower.

So, in reality, although prices may fall 20% one year, that does not necessarily mean we are any closer to the bottom, as the ‘bottom price’ itself may have fallen by a larger amount given changing economic conditions.

I put it to you that it is better to guage property prices by seeing how sustainable they are when compared to the overall economy, rather than where they were at a specific point in time.

What is this all about?

Either houses are overpriced or they are not.

If you are interested in a house, make what you feel is a reasonable offer, supported with as much information as you want.

Someone else may offer more, or not.

The vendor may decide not to accept and seek to hold out for more.

Hold to your position or change it if you wish.

You cannot force people to sell you their houses at what you feel is a reasonable price but they do not.

If the vendors have to sell, the prices will drop.

if the vendor does not have to sell or can afford to wait, then that is just a fact of life. You do not have a right to live in whatever house you want, only the house that you can afford and that will be sold to you at this price.

Whinging and complaining about overpriced houses or houses that you want but cannot afford or do not want to pay the asking price for will not change this. Only time will.

It is not dependent on or derived from economic or market fundamentals. It is based on what the market will pay, which is far from fundamental or rational, affected at it is by irrationality, imperfection and cognitive biases.

The boom taught us nothing was based on fundamentals. The bust just brings more people closer to rationality, temporarily. That is why booms keep recurring.

All very interesting, as indeed there are buyers out there who are sick of sitting on the pointy fence and not having a home to call their own, but jumping in now to buy could be a very big mistake. The world economic outlook is not just hazy: it’s gloomy - Greece, the Euro, China, US, etc.

Our own domestic market is limping like a blistered marathon runner with ten miles more to go. The Irish people have got the looming spectre of the BUDGET 2011 and what nasty surprises it will bring. Those surprises are thin edged harbingers of future “They can’t do that!” shocks.

What if all these overpriced sale hopers found the government had to re-introduce rates just like in many other countries? The current Dublin Co. Co. rate is 62.25 in the rateable valuation pound.

For instance, take a look at some properties mentioned on the Pin. Properties on Iona Road, Glasnevin have an old rateable valuation RV of roughly £21 to £29 so mid price is £25 and equates to 25 x 62.25 or 1,556 euros per annum. The buyer of no 7 would have to find that figure in addition to their normal (and likely to be increasing) income tax. That sort of figure would bite.

6 Bushfield Terrace, Donnybrook has a RV of £21 so would pay 1,307 pa
34 Mount Prospect Grove, Clontarf has a RV of between £22 and £29 (say 26) so would pay 1,618 pa
Ambitions for something a bit grander? Take Walford on Shrewsbury Road at £90.50 which means you’d have to stump up 5,633 each year.

Our leader Enda is going to address the nation before the Budget to set out the fiscal and economic position the country is in. It ain’t going to be good news methinks. Time to corner the market in hairshirts, and forget about houses 'til the real effects of the belt tightening are obvious.

Honemopog

Honemopog writes:

Speaking of mistakes. Given the gloomy economic outlook, might NOT buying a house be a mistake given the solidity of houses as an asset vs. bits of paper with 'promise to pay the bearer" printed on them.

Although I don’t think they print that on paper money anymore. With good reason perhaps.

very valid póint both fiat currencies and property are still in bubble territory… wonder what that leaves as a safe haven? :mrgreen:

This sums up exactly how I feel! I have noticed on here in the last 6-12 months a sort of sense of entitlement. Vendors who dont have to sell for a price wont. Fact of life

+1
Great post jxbr, the best in this thread. And I wholly agree with irishaberdeen’s observation about the emergence on the pin over the past 6-12 months of a sense of entitlement. I believe this sense of entitlement to be utterly misplaced and frankly it smacks of a spoiled brat outlook on life.

I don’t know. I would have said there’s a sense of entitlement all over the place in Ireland. But very little on the Pin.

A House in Glasnevin for €700k is 10 times a good salary in a declining economy with low availability of credit and few people with any equity?
“Ridiculous” is a pretty good word.

Im with the pragmatists above… but I find this comment intriguing…maybe deserves another thread

What if all these overpriced sale hopers found the government had to re-introduce rates just like in many other "countries? The current Dublin Co. Co. rate is 62.25 in the rateable valuation pound.

For instance, take a look at some properties mentioned on the Pin. Properties on Iona Road, Glasnevin have an old rateable valuation RV of roughly £21 to £29 so mid price is £25 and equates to 25 x 62.25 or 1,556 euros per annum. The buyer of no 7 would have to find that figure in addition to their normal (and likely to be increasing) income tax. That sort of figure would bite.

Ive no experience with old Rates system in Ireland hence my query. How does/did it work? The 62.25 rate… you say its current? and if so what is currently used for given there are no rates in Ireland. Who sets it?. “the old rateable valuation of £21-£29”. realise its a guess but how was that set?? purchase price? assessed value? Did it vary from Dublin city to County? what about greater Leinster etc…

intriguing. and worrying…

All very interesting. Certainly making me think…

Sorry but I’d disagree with you completely.

The market bottom is a single point in time level. Just as the market top was sometime in March - July 2007, when the average national house price reached €XXX,000, the market bottom will be reached at some point over the next 1, 3, 5,10 years…i don’t know when that point will be reached, I don’t know what level it will be at…but I do know it will be reached. My point is that each year prices fall 20%, we are definitely closer to the bottom…

I mean to say…if the bottom is €100k…how could €300k not be closer to €100k than €400k is to €100k.

Of course, economic conditions could get worse…they could also get better…these factors dictate where that single point in time market bottom will be.

JXbr and irish aberdeen are spot on. I’d also like to point out that people are suffering out there and we sometimes forget the human suffering that goes on behind those over priced hall doors.

Personally i disagree JXbr and irish aberdeen. Maybe there are a few posters (and sorry OP i have to include you for that first post) who expect to be able to buy in these areas and buy now. I have no such expectation. However it is a property based website in which posters comment on price and i fully concur with Blamegames example, i.e. prices are still out of whack. Hopefully they won’t always be. I think there is a big difference between sense of entitlement and commentary. Maybe some are losing patience and coming across petulantly.