More bullshit progaganda from the Indo. It conventiently neglects to mention that interest rates are at a record low of 1% (ECB), which is probably NOT going to last for even a year, never mind the the life of a mortgage.
Rubbish. Buying an averag eDublin house this year will GUARANTEE a loss of an average Dublin salary by next year .
Against that guaranteed loss a years rent is a pittance.
Web address tells you all you need to know…
“Lifestyle”, “Property-plus”… Yick…
Sheesh, Ronan that was some poor stuff! How about advising people they are likely to be taking on an additional mortgage of anywhere in the region of 30-100k (or more) than they need to and that will cost them far more over the lifetime of a mortgage than renting for a year…
I’m “let agreed” on a place…rent €850 a month. Identical gaf 2 doors down on the market for €348k.
BOI online calculator - deposit 20k, 25 year term, repayments range from €1430 to €1800.
Unfortunately Ronan has been producing some extremely dodgy stuff lately ronanlyons.com/2009/05/15/is-it-cheaper-to-buy-or-rent/
After the last DAFT report he claimed he’d been misinterpreted in the media reports but he’s come out as solidly as pro-purchasing since then.
The fact that the major factor in keeping buying cheaper than renting at a time of practically zero interest rates is a tax break shows just how insane buying is. To say “buying is cheaper than renting” is the worst kind of lying with statistics. Using one’s own economic knowledge and familiarity with numbers to convince another round of young people to sign up for financial ruin in order to support a bunch of VIs who should be in jail is completely reprehensible in my book.
Ronan comes across as quite a shyster, maybe he’ll come on to defend his statements.
All the places I’ve viewed lately are considerably cheaper to rent then buy. This rings particulary true with higher value houses.
Unemployment is rising (8000 more since May)
House Prices are falling (and not showing any signs of stopping)
Rents are falling (and similarly not showing any signs of stopping)
With the first point in mind-who in their right mind would want to buy now?
Why would you when you can also see the other two points are clearly evident on dafts own website?
Whats the rush?
Rents in South Dublin have collapsed over the past 6-12 months.
Last year dundrum 2 beds were c1500pm, now 1200pm.
Similarly ballsbridge 2 beds were c1650pm, now 1250pm.
You will get slightly more if you rent to students (because few do, hence the student supply is low).
Students will also be 4 to a 2-bed.
So prices are going to drop 40% more but you are still better of buying than renting Ronan?
Sorry, I don’t follow…
Lets put this in context.
If my rent was 1200pm and my interest repayment was 1100pm, then it would make sense to buy.
So long, of course, that property prices wern’t falling, as that would mean a capital loss that could potentially wipe out the €100pm saving (and far more besides) … but sure that would never happen !
Put the closing 3 paragraphs at the start of the article at the start and the headline could say:
“Rents and house prices to halve from their peak”
However the rag in question is an agenda paper rather than a news paper, so you get the big spin.
It looks like that independant article wasn’t written by Ronan Lyons. It was written about his blog of 15 May 2009 which they directly take quotes from. You can see it from the link sharper posted:
ronanlyons.com/2009/05/15/is … y-or-rent/
If you want to discuss it with Ronan, it looks like he’s even still answering comments on the blog. He just replied on it today:
Alternatively, considering he has come here before, use his contact page to get in touch and let him know about this thread:
In one, I’d say.
Less of the personal attacks on other posters please (not directed at you Bogman… the rest of you, you know who you are…).
Whats the average price of a 3 bed in dublin? 300k?
Save €7,000 a year buying???
Or rent for a year and save a multiple of that figure?
There is no by-line on the Indo piece that I can see. Not sure why people are saying it’s by Ronan Lyons.
No one is saying it is written by Ronan but it quotes him and is presumably on record.
Read his blog, it’s no better.
I’ve already said it probably isn’t by Ronan Lyons:
So they are admitting that house prices are going to continue falling?
Yet they are trying to convince us that buying a house is in any way a good idea…
I presume they are basing this stuff on 35/40 year mortgages?