Crash in property rental market confirmed - Daft report

[oceanclub]

I dont want to be paying for somebody who was stupid enough and or too greedy to buy an over priced second/third/fourth cardboard shoebox.

It's great, isn't it? For years, we were told we should aspire to being risk-takers like these Canny McSavvys. Now that he's lost his bet, Canny is now expecting the rest of us to pay for it.

P.

[oceanclub]

As an example of Sherry Fitzgerald spinning at its best, try:

Survey results say good time to buy home • thepropertypin.com

Their spin:

"The survey by PAN Research found that 63pc of recent buyers responded by saying that they felt it was the right time to buy and they were satisfied that they were able to negotiate a fair price"

Actual interpretation:

"Over a third of people who recently bought a house already regret their decision."

As for Gerry Ryan, here he is, unctiously shilling for the now defunct 119 Howth Road development:

119 Howth Road

(Click on "Media", then click the 4th image with the picture of the man on it.)

If you can watch more than 2 minutes of that without getting nauseous, you've a better stomach than me.

P.

[bormotello]

To predict the house prices look at the yields near the end of the report. Normally I would expect a yield of about 6% (if someone has a better figure let me know).

Even if rents are constant (they will probably fall) house prices have to fall by 33% more to go from a yield of 4% to 6%.

If rents fall (which they will), house prices have to fall even further.

And this isn't taking account of any undershooting.

This makes me happy as I will want to buy a house in a few years.

Supply is missing from equation. There is a good chance that next year it will be around 10,000 and will fall further
Of coarse, it is enough for at least four years, but then situation can change overnight.
I think reverse of direction will be very sharp

[oceanclub]

What do you mean by supply?

I'm assuming a constant housing stock (which is very close to the truth)

Do you mean constant output of stock? Or constant as in the amount is now static?

Production has fallen 22% since last year, which means that there's still a lot of new dwellings coming on the market.

P.