surely with the full cost of the bailout now revealed (although i’m sure it will be higher) property prices must now effectively have to collapse. I was thinking of buying a shell of a farmhouse and 42 acres in leitrim. i offered €4500 a acre and €50,000 for the shell of the farmhouse in Total €239,000. The agent agreed with the price (although in hindsight it was generous.) The agent informed me that the guy who owned it paid €490,000 for it and as the bank had given him a moratorium on his repayments he was holding out until someone met the asking price. How can anything move until people/banks crystallise there losses and then we can start again.
Yeah, thats the nature of a property crash. It takes years to play out and hit bottom. The sellers in denial, refuse to sell at the market price and drag the whole thing out.
The only way for buyers to deal with the denial is to just keep making low ball bids and wait till a seller is forced by their circumstances or creditors to accept.
It would be nice if there were some way for buyers to deal directly with the bank manager who holds the delinquent mortgage, but I dont know of any.
Things can still move if people who have money in their pockets (or in their home safe,under the floor boards, gold etc.) decided that such investments are risk and disposition that into property.
There are some of such buyers out there that want to do that and are making bids on properties where effectively the banks do not have ties to the sale (e.g. non-indebted sales from executor sales and the like).
I know of various properties where the banks have a major hold on properties.
Some of these are good and some are not so good, obviously I or others are not so interested in the latter. Due to the banks being able to get easy and FREE TAXPAYER FUNDING, THEY DON’T HAVE TO SELL ALL OF THESE AT FIRESALE. Instead they are selling some of the better ones to their buddies and selling others if they get good offers. As it’s said. A Fool (lots of them in this country as in others) is easily parted with his money…
this is how the economy has stalled, i have the cash to buy and would like to replace the house, improve the land but i cant.
this would have led to
money to land registry
money to a solicitor
money to a builder/spark/chippy
money to labourers
additional spend in the local area.
and the relevant tax take on all those elements.
this multiplied by 1000’s is a recovery although of sorts.