Numbers Game ? … index.html

Was looking at the Irish times property supplement
they seem to be listing several properties well into the millions ?

Is this an attempt to get people thinking again about massive
lotto number prices for houses.

I mean the one in D4 for 13.5 million that is 5.5 milllion more
expensive than three years ago and all they’ve done
is put in new carpets (not even a new kitchen) is a bit
of a joke !

They say it was bought for ‘around 8 million’ after auction. Was that 8.1 or 8.9? What gets me is that the owners seem proud about asking for a profit of 5 million for doing feck all. Up to 2006 owners in similar situations were getting 5 million for doing feck all. Lets see what it sells for this time around!

Indeed, they could have skipped the new carpets and it probably would not have made the slightest difference to the price.

I’ve seen this remarked on UK property programmes before. Some amateur developers spend a small fortune on renovating a house to their own personal taste. They’re chuffed to find that their property has increased in value, only for the presenter to point out that the increase was largely due to the market - they could have done nothing and still made a profit. Of course that strategy is not going to work now…

This really annoys me, the journalist underestimates the work the owners put in, just to dramatize the story.
How do we know the owners didn’t take Liz’s advice and paint the place bayish! that surely would have had the “eager” buyers out there willing to bid up the price to ridiculous prices!

It’s all in the timing isn’t it - after all, as values collapse, the opposing momentum effect comes into play, forcing prices dip well below the long term norm.
Experts seem undecided about the average size of this undershoot, but it seems with property now on average 70% above the norm, the dip could head to as much as 15-20% below, creating a superb purchasing window for cash buyers.
But that phase of the cycle probably won’t kick in until 2011 - 2012.