On The Ugly Subject of Specuvestor Panic

We all know ( around here anyway ) that there are 10s or 1000s …nay likely even 100s of 2000s of homes around Ireland that are owned by specuvestors and were acquired for that magic Capital Appreciation that Irish Homes are so prone to.

It seems that Florida attracted the same shower of Cannys and Savvys, not all of them Irish I must admit .

The overhang of no longer appreciating property is what has crashed the market there. **It appears that the much better statistical data available to the Americans did not show up the tsunami of flippers that infested Florida during the bubble.
**
Bar the fact that its easier to simply walk away in the States, there is no real difference and this is what we would be looking at here in teh second half of this year .

Via Usenet form the WSJ apparently comes a very ugly article.

Had the banks knows that the properties were not bought as intended primary residences they would have charged more for the risk involved. They undercharged, however. They incorrectly priced the risk .

This also seems very familiar in Galway . Lots of alleged owner occupiers went to Australia or rented in Galway City while claiming a country ranch as their PPR . Sure they couldn’t lose. Some are bankrolled entirely by their parents I would observe.

But now they do. These are not houses or homes, they are flipping opportunities , thats all.

This also sounds very very very familiar :frowning: And now to the known unknown in Ireland and Florida both!

And we all know how many real investors there were in the frothy 2006 market. *What we know not is the REAL number of flippers pretending that the homes were their PPRs .
*
We will have a much clearer picture of the whole mess sometime this summer .