House prices cut by €140,000 as homes lie empty

Maybe I have forgotten how to do my primary school maths because neither of these represent a 40% cut, more like a 20% and 28% cut. I think the person preparing these figures fell into the trap that a 40% increase is the same as a 40% decrease, a house increasing from €360,000 to €500,000 is almost a 40% increase.

Surely myhome giving out this information is a breach of privacy 8)

i feel sorry for the folks on the losing end of this but I think they will be rewarded for their move. It is a brave move financially to chop prices down towards market clearing levels, the likelihood is that their properties will sell faster than those where prices are not being dropped, if they sell them then they are more likely to survive and that is the reward. Other firms who keep holding out will be faced with a market where the price drop will have to be even larger to attract buyers (because buyers who were confident at earlier price drops bought houses at that time) and the sentiment at that point will be low enough that even if the new price represents value they may not be able to get them sold - as well as that rental prices will have come down further due to oversupply making the purchase proposition less attractive. anyway, the point is that developers who have the courage to do these write downs should be commended because they will help force the shift into the rest of the market, on the flipside they should have done it earlier!

Alot of guys still wont reduce prices to a clearing price as this would mean a guaranteed loss and finish some of them off. So they choose to hang on as long as the banks will let them and hope things recover.
The end story will be the same. Either they sell now or the banks will sell for them 12mos from now
It doesnt matter to them whether waiting means double the loss. So they are hanging out for that optionality so to speak, ie that small small probability the market recovers enough for them to get out with their shirts still on their backs!
Why take a guaranteed loss now if waiting means a small chance of a profit

cypress- you are dead right but the interest roll ups will hit them eventually and banks will go for a repo before seeing negative margin loans, they are already going to margin call many builders. the difference between taking the hit now or later is that compounding interest effect, the ones who face up to the market now rather than later will likely survive and be seen as credit worthy next time, the ones who didn’t manage the storm will not, even if both are bankrupt i would lend to the guy who did a better job of it given they both worked in an industry where going bang was so prevalent.

3 bed townhouses for €360K? Is that a typo, they can’t be worth more than €160K?

Sympathy for Castlethorn and Menolly? Are you taking the mick? Then again you are a mortgage broker…
:angry:

daft.ie/searchsale.daft?id=397516

FANTASTIC DEAL - FOR THE REMAINING 10 HOUSES IN THIS DEVELOPMENT, THE BUILDER WILL CONSIDER TRADE INS AGAINST THE PURCHASE PRICE.
ALSO BRILLIANT DEALS ON CONTRACT DEPOSITS.

Never heard of this - not aimed at the FTB so?

They did this in the UK when the SHTF in 1990/1991. Sadly, I can’t remember how it worked out exactly - I have a feeling the bonus for the builder was that he got a nice run-down redbrick that had a higher intrinsic value than the cardboard cutout house he sold and he didn’t have to reduce his price.

remember 1. no glee policy
2. there are lots of lives and working people with kids and families who go bang when companies go under
that warrants sympathy. If they fail due to an insane market or a bad business model the effect is ultimately
the same, job losses and hardship for a lot of people

so no, i’m not taking the mick.

The guys at the bottom will get done anyway, the guys at the top who make the decisions to cut prices will protect themselves.

Nothing to do with the glee policy mate…

Nothing to do with the glee policy mate…

questioning the fact that i have sympathy [asking if i am taking the mick] for people going out of business pangs of it to me, if i am wrong then what way should that be interpreted? are people genuinely surprised that a person might have any compassion?

and the ‘people at the top’ are protected? granted they might not end up on the dole but their losses will be (in many cases) in the 100’s of millions. as a percentage they probably lose even more. And then of course nobody remembers the jobs they created, only the jobs they lose and entrepreneurs of yesterday become the pariahs of tomorrow, we saw the same thing during the dot com bust, having said that people didn’t stop sending emails and living in a house/apartment still seems to be quite popular versus other forms of accommodation.

entrepreneurs of yesterday…thats pushing it a bit don’t you think.

Beneficeries of (deliberate/paid for) govt. policy would be more accurate.

questioning the fact that i have sympathy [asking if i am taking the mick] for people going out of business pangs of it to me, if i am wrong then what way should that be interpreted? are people genuinely surprised that a person might have any compassion?

and the ‘people at the top’ are protected? granted they might not end up on the dole but their losses will be (in many cases) in the 100’s of millions. as a percentage they probably lose even more. And then of course nobody remembers the jobs they created, only the jobs they lose and entrepreneurs of yesterday become the pariahs of tomorrow, we saw the same thing during the dot com bust, having said that people didn’t stop sending emails and living in a house/apartment still seems to be quite popular versus other forms of accommodation.

So not having sympathy implies glee? Ironically i said on another board that it wasn’t as simple as seeing the fat cats done but that there are huge knock on consequences in these companies going bust. The country doesn’t need, and no-one should really be hoping for, an implosion in the construction industry. That might be too late!

If the guys at the top didn’t legitimately cream off multi millions for themselves in the boom time then tough. Most losses will be absorbed by limited companies and the 100’s of millions will be paper losses on property that was quite simply overvalued. Entrepreneurs? Speculators are no such thing. Gamblers, yes.

the only ones who won out of the whole bubble cashed out long ago. the rest including our economy is roadkill.

I love the way ‘paper loss’ is so easily used, fact is that even ‘paper’ was financed somewhere! And that implies somebody losing out.

And the absence of sympathy for people in trouble must mean you have either no sympathy or its glee, there are only two other options left, and in my book no sympathy for a person in trouble may as well be glee as the effect of it is roughly similar, the end result is an absence of concern for your fellow man.

I feel niether glee nor sympathy, although if i had to chose I’d be closer to sympathy than glee.

I don’t take pleasure in a business failing.

But if a business fails it’s more often than not down to poor business acumen on the part of the owner.

And in this case Property Developers took huge risks on the pretense that the only ways was up.

Property developers took a risk and it failed, it is that simple for me.

Am I glad they are lowering their prices in a bid to mimimise losses/increase sales, yes. Both for the developers and potential customers.

Will I feel sympathy for Developers that hold out and ultimately lose more…certainly not.

independent.ie/lifestyle/pro … 18567.html

I actually went to this sale. It was madness. High turnout, people were acting like it was an “Everything Must Go sale”. Agent said they had several sale agreeds.

To put things into perspective. 3 Bed Duplex, 120 square meters, castlegate. In October 2008 they went from €500,000 to €360,000. Today they were €260,000

Per the Echo,7 out of 10 residents are happy with life in Adamstown echo.ie/news/Adamstown-bags-award.4962114.jp

I feel sorry for the 30% that are not happy and may want out. Especially this one daft.ie/1332623

[mod edit , highlight all the text and click the QUOTE button on top to wrap it in in quote tags , then we see what is quoted and what is your own work , simply in the interests of clarity. Good Spot BTW :slight_smile: ]