May be food for thought for those who think ever incresing house prices are a good thing.
Could some of that be falling food prices due to Lidl/Aldi?
Well it sure ain’t thanks to bloody Tesco or Dunnes Stores.
More than twice the cost and a house built in 1980 will probably still be standing when one built in 2006 has long since crumbled.
Something not consistent here
They say average household net income is €885pw
They say average housing cost was €148pw
Average 2009 house price approx €250k
My mortgage calculator tells me €148pw would service a €140k mortgage over 30 years at 3%, add 10% deposit (optimistic) would give us an average 2009 house price of €154k
To service a 90% mortgage on the actual average house price over 30 years (€225k) @3% would require €237pw which is 60% higher than the quoted figure for average expenditure on housing.
So, not sure how they have arrived at an average housing cost of €148pw when the cost of financing that average house in 2009 would be 60% higher at €237pw.
Did the average person buy in 2009?
I’m tipping the average person bought food in 2009.
Not much relevance lumping housing purchased in 1978 in with food purchased in 2009 and then comparing them directly?
How did they come up with their €148pw housing cost I wonder…
If the food cost is based on the cost of purchasing food in 2009, then the housing cost should be based on the cost of purchasing housing in 2009, if the intention is to accurately portray the cost of living in 2009.
In terms of housing cost, 2009 is a world apart from 2012.
Yes but that doesn’t explain the discrepancy in the figures €148 pw average housing cost in 2009. How was that arrived at?
As the biggest single component of household expenditure, they should have provided some rationale about how the figure was arrived at. It looks way too low to me.
But that wouldn’t accurately portray the cost of living. Because not everyone buys a new house every year. It’s an average. I’m guessing these figures are from the Quarterly National Household Survey, thus suggesting a survey, with a sample size representative of the population.
No, it would accurately portray the cost of living in 2009. Which is the purpose of the survey.
If everything else is being costed in 2009 terms (income, food, clothing, energy, fuel etc) what is the point of including housing from the 1970s…
40.07 Rent paid for primary dwelling
0.02 Second dwelling rent
66.31 Mortgage payment (primary dwelling)
0.92 Second dwelling - mortgage & house insurance
0.04 Purchase deposit on primary dwelling
5.75 Primary dwelling insurance
0.11 Water charges
3.69 Refuse/sewage collection & skip hire
1.57 Other services relating to dwelling
1.74 Paint, wallpaper, timber & plaster
0.77 Equipment hire & small material purchase (e.g. sandpaper)
1.46 Central heating maintenance
3.27 Other dwelling maintenance & repair costs
1.37 Central heating installation
17.36 Capital improvements (e.g. extension & room conversion)
1.55 Double glazing, kitchen units, sheds, etc.
0.23 Purchase of materials for capital improvements
1.08 Bathroom fittings
0.29 Carpets & rugs
0.13 Hard floor coverings
Yeah but they bought 2009 food with 2009 money.
People insist on buying [X] year property with [X+35] year money. People insist this risk must always work out in their favour.
But it wouldn’t, it would portray the cost of living for people who had just bought a house, which is a tiny subset of the population.
40.07 Daft Rental Report Q4 2009 Average National Rental = €765pm = €177pw
66.31 Daft Sales Report Q4 2009 Average Asking Price = €242,000 = €230pw (90% over 30 years @ 3%)
I’m guessing that overall 30% rent and 70% own to give an average weekly housing cost of €214
That is still 45% higher than the quoted figure of €148. That is a massive discepancy seeing as it is the largest single component of household expenditure.
Presumably it’s lagging the market - most people who bought 15+ years ago are playing relatively little at this stage, and before that, are probably mortgage free.
Is the daft figure private rent?
Rent here I imagine would include public rent which would bring that average down. I’d also guess that it is a total average of the 6000 households surveyed so brought down even further by those not actually paying any rent
So everything is in 2009 prices, including rent, but mortgages alone (the largest component of most budgets) are on some sort of 30 year moving average? Is this documented?
Does the daft report include local authority rentals?
I fail to see how this is not blindingly obvious. It’s an average of household expenditure. The average household did not buy a house in 2009, so their mortgage will be based on when they did buy. The kind of survey you are describing would achieve nothing as far as I can see.