IT Property supplement page 3

The Irish Property Bubble The Republic of Property
#1

An excellent feature appears in the Property Supplement today - page 3. The premise is that 4-5 EAs are asked to nominate a house they think reflects the present “good value” available in the market. Each is described and then an decent analysis is made of who might be able to afford to buy.

Just a taste:

A dreadful looking tiny terrace (looks like a council house) might be a prospect for an engineer earning €75,000 per annum and with €40k saved, but only if they really stretch their borrowing capacity significantly and shop around for an accomodating (i.e. more desperate) lender.

In general it hammers home the point: this “good value” is simply ludicrously expensive".

PS MortgageMan gets a mention.

#2

Is this the article? irishtimes.com/newspaper/pro … 94367.html

#3

That’s it.

But the big photos in the paper add to the impact. As in:

A qualified engineer on €75,000 would stretch to own that???!!!???

#4

When you say “Mortgage Man” I am thinking brightly coloured spandex and a cape maybe even some brightly coloured goggles.

So I presume you mean “Mortgage Broker” :wink:

#5

You are referring to his mild-mannered alter-ego. :wink:

#6

That house on Shelmartin Rd has an asbestos ceiling. I went to see it and pointed this out to the EA. His reply was ‘I’ve lived in Marino 13 years and I’m OK’.

It would have been churlish to point out that asbestos related illnesses can take 20 years to present and that asbestos work can only be carried out by 3 contractors in town and costs an arm and a leg.

I made my excuses and left.

#7

:laughing: :laughing: :laughing: :laughing: :laughing: :laughing: :laughing: :laughing:

#8

I love the bit that alludes to the headline being total c*ck, the bit that goes from just after the headline to the bottom of the page.

So the Engineer will get over 100% from First Active while being encouraged to spend over half his take home pay on his gaff.

The couple in their forties will piss away 2,700 a month and their hard earned 300k on a holiday home in Cavan.

The buyer in Monkstown only needs to stumble across an extra 1 million quid and somehow be offered a 100% increase on his 200k salary for the privelage of paying 9,700 quid five years into his retirement.

And the most ridiculous of them all, a couple in their mid thirties need to SELL their house in order to buy in Sandymount. Good luck with that.

#9

even better, you get to see Ken McDonald’s dodgy racket exposed for all to see later on in the self-same supplement

take a look

#10

I love how many E1m+ homes are being considered “good value”

The Upper Rathmines Road one in particular.
Considered an option for BTL… where the mortgage repayments are 5,250e a month over 25 years … and that is after stumping up 500k.
Now how many renters are out there looking at paying 5k + a month? Or more to the point… how many punters are willing to share with 6 mates and still pay close to 1k each a month in rent?
Lunacy… it’s only when you look at this “good value” that you begin to see how insane things still are.

#11

what in the sweet name of jeasus has happened in ireland with wages since I buggered off to germany?

110k a year in Cavan? Mint! Where do I apply for one of these jobs?

Should I move back home pronto for one of these (non specified) well paid jobs or what?

Oh- I forgot, that is written in the Property (Fantasy) pages isn’t it.

#12

Wow… they set out to do an article about “de value” and this is the best they could come up with?

I particularly like the Villa in monkstown, where the solution is “If they had an additional €1 million for the deposit and the businessman was earning double (€400,000 a year) what he was currently making”

GUBU!

THE HOUSE

€625,000 four-bedroom house with 1.75 acres 6kms from Cavan.

THE BUYER

husband earns €110,000 a year and the wife doesn’t work.

They have €300,000

THE HOUSE

€385,000 126 SHELMARTIN Road, Fairview, Dublin 3 is a three-bedroom terraced house in Marino that needs updating.

THE BUYER

first-time buyer - an engineer earning €75,000 a year He has set aside €35,000 in cash

The problem with this borrower is that their income is fairly tight. Being a “professional”, AIB and Bank of Ireland may approve a higher LTV mortgage.

THE HOUSE

MONKSTOWN Victorian terraced house €2.95 million
On a price per square foot basis, this could be considered value. The house has over 353sq m (3,800sq ft)

Agent: Lisney

THE BUYER

55-year-old businessman who earns €200,000 a year. He has cash of €1 million

A mortgage of this scale would equal 11 times his annual income, and no lender would be willing to provide a mortgage on these terms.

“The problem is that income is too low and the maximum loan term is too short,” he says.

If they had an additional €1 million for the deposit and the businessman was earning double (€400,000 a year) what he was currently making…

THE HOUSE

190 UPPER RATHMINES Road €1.35 million. It’s got seven bedrooms in the 243sq m (2,616sq ft)

THE BUYER

Let’s say an investor would be willing to put up €500,000 in cash to buy this property and borrow the remainder to make up the purchase price of €1.35 million.

THE HOUSE
three-bedroom pre-war semi at 44 Farney Park in Sandymount, Dublin 4 €1.1 million, though the owners are open to offers.

THE BUYER

a couple in their mid-30s has a combined income of €175,000 and a lump sum of €300,000 from the sale of their first house

#13

Forget the idea of paying 30K to run a full page ad to show the stupidity that’s out there.

It’s already been done.

This is maddness. A professional earning €75,000 has a problem buying a bog standard house (that supposedly represents good value) because his income is “tight”.

A Business man earning 200K with €1,000,000 of a deposit, needs to not only double his deposit, but also his salary.

In the Name of Rolf Harris, what planet are we on.

-Rd

#14

That article is so hilarious you have to wonder whether the journalist was being tongue in cheek.

#15

I thought that was the point.
I thought it was supposed to be Ironic. :confused:

-Rd

#16

I think the journalist (a Finance correspondent) is pointing out that most house prices are currently about double what they should be. A 50% fall on the way, is my reading of it.

#17

Genius. Fantastic agent provocateur work from Mr. Carswell. Shocked this is in the property section.

#18

I have always been convinced that there was a subversive element at work in the IT property section that was pointing out the maddness in subtle ways that did not endanger their careers. The best example of this was the “Take five” featue comparing Irish ex-council houses to medditeranian villas of the same price.

#19

It’s clearly a piss take or at least a way of subtly telling people that houses are approx 50% overpriced:

Translated into FTB speak, if you magically doubled your money overnight and somehow got a 100% raise, it then may make sense to buy.

#20

aha! :blush:

I just thought it really was a case of being hung by your own petard.