Daft Property - Irish Property News

Thousands facing a future living in unfinished estates... TENS of thousands of homeowners face the prospect of living in unfinished estates for the foreseeable future. Construction bosses admitted yesterday that incomplete developments may never be finished. Cash-strapped builders can't get loans to tidy off their estates and now heavily mortgaged families will be forced to remain there without proper roads, footpaths, green spaces and public lights. Former president of An Taisce Eanna Ni Lamhna, who is still an active member, told the Irish Independent that the state's heritage body had long warned of the effect of half-built houses on the landscape. "It doesn't give me any pleasure to say that if they'd listened to An Taisce, we wouldn't be in the situation we're in now with all these houses," she said. "I must say that we've been saying for years that it was too much too soon. I was told that I was against development and we were against ev

'Ireland is a disaster . . . leave now and enjoy your life'... On these pages last week, Shane Fitzgerald, a young graduate of University College Dublin, wrote about the Government’s failure to deliver on its promise of a bright future in Ireland for him and his generation. Rather than draw the dole here, he left recession Ireland behind him – departing “these bankrupt shores” for London. His experience rang true for many online readers, some of whom reacted with strong antipathy towards our politicians. Here is an edited selection of how they see Ireland and its politicians. JAY: BORN and educated in Dublin, I emigrated to Canada in my 20s after working around the British Isles for a few years after graduation. My best advice, based on my very varied, interesting and relatively successful life filled with rich experiences and career choices, is to leave now and enjoy your life. Ireland is a disaster. It is sorely mismanaged and misruled and destroyed by its own absurdity. Ther

Families set to be ‘robbed’ of their homes... AN avalanche of repossessions "robbing" cash-strapped families of their homes will follow the creation of NAMA, opposition leaders have warned. Fine Gael and Labour joined forces to plead with Finance Minister Brian Lenihan to launch a rescue lifeline package for people falling behind with mortgages as the controversial NAMA legislation was pushed through the Dáil. Labour finance spokesperson Joan Burton predicted "reckless lenders" were only holding off on going after families in financial difficulties until they had secured the €54bn deal from the State to take toxic developer loans off their hands. "Ordinary families will be leeched by the banks and building societies as soon as they get the NAMA money. They pushed money at people at the height of the boom and now will go after them to get it back." Ms Burton said a 24-month moratorium should be extended to householders with problems who were trying to deal

Nama is rescue plan for the elite... Do you remember back in school how the smart lads in the top class looked down their noses at the other lads in the streams below them? I have distinct memories of the fellas in the top stream at my school, many of whom went on to be doctors and lawyers - and who are now at the top of their professions, having a lofty view of their own abilities. Why wouldn’t they? They were mainly decent enough fellas, and they were lucky because the entire Leaving Cert system was designed to bolster their egos, tell them how clever they were and usher them on a professional southside Dublin path to prosperity. They were very much the type of lads that the system was designed to foster and produce - the six straightA merchants. After school, they flew through college and joined big accountancy or law firms, while the doctors went to the US to work like dogs, climbing up the greasy medical pole. They all sought the financial nirvana of a consultant’s position back h

Is property past its sell-buy date?... 10 questions currently facing wary buyers and shell-shocked vendors... Are the banks really granting mortgages? To whom, what percentage of the property price, and under what conditions? Yes, technically. Loans of up to 92%, valued under €300,000, are being granted mainly to first-time buyers from Bank of Ireland, ICS and AIB. Other lenders are giving up to 80% of the purchase price (see graph). But the qualifying conditions are becoming more stringent, and if the bank doesn't really want to grant you a loan, they'll find a reason. Anecdotal evidence suggests that, after initial approval, stringent creditworthiness checks are carried out. For example, if a would-be borrower is behind with credit card payments, the loan will be turned down. Job security is a huge factor and everyone is under scrutiny now, says Peter Bastable of Simply Mortgages. "Those occupations on the danger list are widening day by day. It's no longer just cons

Price drop? About 50% - and all agree... PROPERTY prices to fall 45 per cent, one of this week’s headlines read; property prices have fallen 70 to 80 per cent, said another. And just last week, the ESRI/Permanent TSB reported that prices were down 24.4 per cent “from the peak in February 2007”. Confused? Yes, especially if you didn’t take in that international ratings agency Fitch’s warnings of a 45 per cent drop in Irish property prices related to the fall from a peak, which it said was in December 2006. And exasperated, if like estate agent Ian Finnegan of Finnegan Menton, you’re well aware that prices have already fallen by as much as 50 per cent. Since when? “Mid-2006,” says Finnegan, which he identifies as the real peak. Most in the industry agree with him: MyHome’s property consultant Paul Murgatroyd reckons prices have already fallen by an average of 40 per cent and have another 10 per cent or so more to fall before the market hits bottom – probably in the second half of 2010. I

Property prices to fall 45% from 2006 peak... Property prices in Ireland could fall as much as 45 per cent from levels seen in late 2006, as the economic downturn and increased costs of funding the banks weigh on the market. According to Fitch Ratings, the average house is curently worth 7.5 times the average income, a ratio that is expected to fall to nearer 5.5 times the average individual income. "Tax rises, high unemployment, wage deflation and property supply overhang continue to undermine the country's property market," says Alastair Bigley, Head of Irish RMBS at Fitch. Property prices have fallen 24 per cent to date from a peak in December 2006, Fitch said. "Despite almost three years of house price declines, prices have yet to reach a sustainable level of affordability," says Douglas Renwick, Associate Director in Fitch's Sovereigns team. The difficult market will be further pressured by a rise in the cost of funding to financial institutions, drive