S&P - "Irish property could be undervalued" IT - 01/06/10

Will this reel in the rating agencies & make them accountable for any statements they make?

rte.ie/business/2010/0601/rating.html

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really bizarre article…

Very odd - you would think they would have picked a range of methods (along the lines of Blue Horseshoe) and then gone with some sort of weighted average of the results of that… Instead, they seem to have picked one, not told anyone what it is (it seems to be the ranking in this year’s up-or-down-in-Europe league tables), and then based their entire predictions off that.

A point I would like to make here, seeing as my traditional one pointer, mentioning yields, would be the equivalent of trying to sell wool to sheep, is the divergence in falls around the country. Granted they’re only asking prices, but the fact that some parts of Munster are still showing falls of just 22% while some parts of the Dublin are showing falls of twice that from the peak, I would think it pretty obvious that some parts of the country will bottom out before others.

Speaking of which, can I interest you in these classy ladies’ briefs, courtesy of CafePress? Perfect for your significant property speculator other…
https://images9.cafepress.com/nocache/product/452639829v-1_240x240_Front_Color-WhiteRed.jpg

Nix to the classy briefs. They aren’t anywhere near frilly enough.

However on the subject of falls in some parts of Munster versus some parts pf Dublin, I’d factor in the minor issue of property having risen faster and harder in some parts of Dublin than other parts of the country. It’s my elastic band theory of economic price change - the more it stretched on the way up, the more it’ll catapult back on the way down.

As for the survey in question, meh to that. My house is currently on sale at 300+ times the monthly rent that I pay. I find it difficult to believe the house may be undervalued by 12% or so.