What will your house be worth this time next year? - Tribune

[**What will your house be worth this time next year?

thepropertypin.com gets a mention.
It’s a big article

The easing has begun to ease.

In a similar vein from the Sindo…

I just loved how Capel Developments were able to rationalise how they were justified in dropping their prices by upto 100k while at the same time warning other developers against falling suit. Capel Developments also seem to believe that existing purchasers should be happy about being upto 100k down in negative equity on the basis that Capel are now out of the development! Does anyone get that logic because I certainly don’t.

The Sindo article also repeats the new mantra, albeit with quite a caveat.

well I guess they won’t be dropping prices any more… :wink:

Nice to see the Pin get a mention, although a quick inspection of the price drops here would show the author that 20%+ drops are hardly the stuff of urban legends.

It became the norm on the pin about a month back to see falls of that scale.

This is the last phase in the development of only 27 units and they wanted to finish the project so they could concentrate on other projects around the city."

Funny, another report I read on this price slashing said that 26 out of the initial 27 units had been sold and that because the sale had went so well, the remaining 70 were on going on sale on Saturday past.

Sure it’s a long term investment. And paying 100K too much for a property means paying 200K+++ too much after interest (to say nothing of higher stamp duty etc.)

So, all told probably more than half of the length of time they spend paying their mortgage will have been for nothing.

To put it another way, 15 to 20 years from now they’ll be making mortgage payments that there was no need for them ever to make.

Yeah, they know property is a long term investement, don’t you worry,
they’ll have a monthly reminder of that fact for many years to come.

The same people who write this 100K drop off as a blip, and say property is a long term investment, would jump on a 20% drop in equities as evidence of why properties are a better investement.

Properties apparently don’t suddenly lose a big chunk of their value like shares do.

-Rd

Indeed - at least with equities you can sell anytime (mon-fri 9-5pm or so) within seconds (or minutes, depending on how old-school your broker is), and with minimal transaction costs.

Whereas with property, even if you knew for 110% certain that the price of your house was going to drop by say 10% in a given timeframe, you couldn’t sell an existing property, wait for the drop, then get back in, without the transaction costs eating the profit. What a market.

Not true. Property isn’t “marked to market”, so that can give the misguided impression that prices aren’t very volatile.

Take the anouncment by Hibernian this week. Some property investors lost 12% in a flash.