Let's talk about house prices in Ireland

Let's talk about house prices in Ireland
SUBSCRIBE? Just hit the subscribe button and the bell icon to never miss a video.

I have published a number of free reports including “16 Common Mistakes Most Irish Employers Make” and “Buying or Selling a Residential Property in Ireland-The Facts You Should Know”.

MY BOOKS ON AMAZON

MY WEBSITES

The best way to contact me is through email-check out the contact page on any of the sites above.

MY SOCIAL MEDIA-Connect with me

#propertyprices #irishproperty #propertyireland MY PODCAST
The Irish Law and Small Business Podcast

[matthewconley]

Thanks for your priceless content Terry. I’m another Australian with Irish roots. I don’t yet know if foreigners can purchase real estate in Ireland but I am planning to do so in the future. Your videos are helping me to put things into perspective. Now I am thinking that a house in Galway or Waterford to live in might be the go. I am establishing businesses in Australia, and plan to spend six months of the year near my family in Australia, and six months of the year in the Irish countryside. Or something like that. Thanks again, Terry. Cheers!

[horsemanoftheapocalapse]

One of the most down to earth informative videos about the real world on You Tube. and always remember you can always get a good bike to ride if theres no train or bus up the road.

[mralekito]

I can sympathize and empathize with people buying. It’s never easy. When prices are cheap money is hard to borrow. When I bought my first place - after 2 years of savings, I had a tenner in my account. It was that close. I still remember the stress. So keep going and keep saving - you’ll get there.

[goofydadda]

Agreed. Also the value of the euro is worth less than the Irish punt was in the 80s. With inflation over time since 1986, the worlds reserve currency (the dollar) is worth less than it was in the 80s, having a ripple effect on all other fiat. So we have to factor in that it’s not necessarily house prices are increasing, but the value of fiat currencies decreasing.

[CleberToreto]

Absolutely legend this video. I never thought about comparing 1986 to today in these terms. You changed my way of thinking about this. However, I still think prices inside Dublin are absurd but I also understand the lack of houses is a huge factor

[mralekito]

There is a lot of great advice in this video. If you are buying a house to live in you have to look at is it a place you can live. You can sit on the fence for years, or even decades. If your first house is not what you want the do overpayments on the mortgage and try again in 5 years. Yes, I know it’s not easy for everyone but I’ve rarely met someone who cannot cut back on some spending.

Ireland’s population is set to increase. It seems unlikely we’ll see another crash.

[TheGaelgeoir]

How is reland one of the wealthiest countries in the world if home ownership i.e. personal wealth is one of the lowest in the world???

[SharonClancy-sp]

Thank you for sharing your expertise. It is very helpful.

[ministry_of_love]

Very interesting perspective. Especially from someone who had endured considerable losses in the last Great _Property_ Recession.

[TimDaly-kc]

Yes I hear all those valid points but things are absolutely more difficult now for young working professionals!

[CKen]

Have to say that was an excellent perspective on the value of property. Thoroughly enjoyed it. Thanks terry.

[robertlambert]

Well done and very good food for thought

[rffffggg]

Immigration is also a factor for house price increases. Zero immigration/ high emigration in 1986 compared to the the last 20 - 30 yrs. Macro factors make it null and void to compare today to the past.

[viswanathMalepati]

Interesting perspective to think and though provoking Especially liked the comparison of prices of house of real estate in 1980's Vs now. Very thought provoking... Would love to hear from on, What do you think about commercial real estate Vs residential real estate in Ireland? In terms of investment, return of investment, value for money, which one of 2 do you think is better?

[gerrykelly-zklf]

There is never a good or a bad time to buy if it your first or family home you are buying. Get it as young as you can with the longest mortgage you can get and if in todays market try to lock in a low fixed interest rate. Then if you have been blessed to be in that position as long as you can meet your monthly repayments on your home it matters not what the general house prices do from that point on. Investment property particularly if you are older and cannot get long term mortgage then that requires serious due diligence. Buying your first famaily home is about getting on the ladder as young as possible to get the benefit of a long mortgage. If your circumstances improve later in life you can make overpayments to shorten the period.

[dankokozar]

Great video, definitelly thought provoking. Thank you! I’m only missing the market crash bit (and how prices behave in that moment), but that probably depends on international factors and is an orthogonal problem. Still, I’d appreciate if you could lay down how the crash works out in terms of prices, timeline, banks un/willing to give mortgages etc (from your experience). I think that would make a great video. Keep up good work!

[finbarrnangle]

Some Auctioneers live by the rule a bad property in a good area is much better than a good property in a bad location. Yea have to look at how much will the property increase in value over the coming years. Don’t wait for crashes they don’t happen very often.

[MrToweleySlowMo]

As a young person who constantly moans about the price of housing, I think you left out some important details.

The ratio of median wage to median houseprice has increased significantly, back in the 80s the median house price was around 3 times the median wage, now its around 10.

As you rightly point out, the cost of a loan was much higher in the 80s, and house prices were further decreased by high unemployment, high emigration and high interest rates.

I think the idea of "a house is worth whatever the market will pay for it" is ridiculous, in a technical sense its correct, but this kind of thinking makes people blind to speculative bubbles.

You also didnt mention banks lending requirements have changed a lot over the years, during the late 90s and early 00s, banks would lend much more liberally and many irish people were buying second and third homes. This speculation in the property market has increased house prices. Certainly a number of people who bought during the boom would've sold, but those on variable rates, tied to the ECB rate which has been at historic lows for the last decade can keep their homes as investments. Thus decreasing supply and making it hard for young people to buy property.

I could go on about how lending requirements have tightened up making it harder for younger people to buy property in comparison to their parents.

Lastly, I think another important point in all of this is a decrease in house prices might be good for me as a young professional, but would screw a lot of my parents generation who were told by Eddie Hobbs that property is the greatest investment, these people have very little in formal pension, the majority of their wealth is in housing equity. So a drop in house prices could see many people looking to retire left short.

Just some things to consider, you have a lot more experience with housing deals than I do and I respect that, but I think you missed out a few key points.

[joekavanagh]

I can never understand why there are such tight controls on rent prices, but none at all on sale prices. There should be fixed prices on houses, e.g. a three-bedroomed bungalow should cost the same wherever it is.

[cathalsurfs]

Terry are you in the real world? Speaking from experience and observation (having actually renovated a few myself) I found one of them gaffs you're talking about in Roscommon. A lovely one, for circa 50k.. Lovely, run down, ramshackle of a place on a postage stamp which, despite being an existing (old) structure, would still be subject to planning permission (due to the increased tightening of planning regs country wide) and I'd probably have to drop another 50-100k before I even have running water and electricity supply. C'mon lad!