Mikie, while I share your interest in sustainable rural development I believe its a pipe dream at this stage. Whether we like it or not rural ireland counts for very little in the overall economic figures. Admittedly farming and food has made a come back of late but even there mechanization has replaced people steadily over the last 40 years.
The price of a rural house means nothing really because of the limited demand for them. Farmers became mini developers duering the boom, selling sites and building houses because it was the in thing. Some of thoes houses will never sell. There will be no IDA factory going into the local town or village. Just like the P.O , the shop, the garda station, the young people its all one way traffic.
The action is all in the main urban centres and particularly on the east coast. The housing prices there are actually driven by demand, let it be by investors or the general public. Prices have risen dramatically, admittedly driven by cash buyers for now but the trend is up. I believe prices will slow in the new year but regardless urban is where all the action will be.
I wouldn't believe a word the Media in Ireland are spouting about property prices recovering throughout the Country - it's utter nonsense. They are, and always have been a vested interest in urban property.
The Cities have seen a recovery yes - but the cities have always had demand and always will - the only reason they plummeted during the crash was not because the demand fell, but because peoples' ability to buy was obliterated, and speculative developers with multiple properties got caught with their pants down.
There were many reasons why city property values fell. All of them caused by the sudden impact of the crash rather than a devaluation of property itself within urban areas.
A sudden rebound in prices within certain urban areas was always likely once the market bottomed out and cash buyers began to snatch up bargains.
Its a completely different story throughout rural areas however.
There has been largely no appreciation in property prices in rural Ireland, and the majority of prices continue to fall.
That's because there remains an abundance of properties in rural isolated areas with no services, no amenities and no proximity to employment or opportunities.
I'm not simply referring to houses at the end of little country lane-ways either - I mean every village and town in the Midlands, South East, West and North West of the Country is awash with properties under €100K that have been on the market for years.
Whatever about the "Cities" in Ireland which will always hold their own - there will be no substantial growth in the this Country until sustainable rural development is prioritised and achieved.
On another note - it's good to see that Toad AIB continuing to drop - the sooner that share price reflects reality the better for all.
Irish bob not sure where your getting your property price info from but I would use another source.Galway prices have seen a very moderate increase at best while only certain parts do Dublin are hot. I also feel that AIB have stolen a march on BKIR with their recent announcements around loan facilities.
At grassroots level thought I'd let you guys know how I fared with BofI on a recent trip back to the old country. Hope it's not too off-topic. Went to my local branch, explained I lived in Aus but would be back in the motherland in a year. They did some rough calcs and let me know what salary I needed to earn and deposit level and then approved me provisionally to buy a house on that basis. In the guy I met's words ' The Rathmines branch has yet to go a week without approving a mortgage' So, short story shorter, they are lending. As an aside, I mentioned I had some Bank of Ireland shares which would form part of our deposit. He laughed, and said they were probably worth nothing, then proceeded to tell me how he bought at EUR18 which made my EUR 0.295 purchase seem not so bad. Is mise le meas, as they say in the states.
im not in the stock at the moment having taken my first loss in three years on it when it sold the day after wilbur left town
im left asking myself a few questions
1. the property market is on fire in ireland right now and not just in dublin , galway is crazy , that said , where the stock was six months ago may have reflected where the property market is today , the stock man are usually ahead of the curve on these things so while my instinct might be to say , if property is recovering so strong , the stock will follow , in reality ive learned that the stock pickers are interested in the future , not the past or present , hence why a further pullaback seems likely , its cheap right now but why plough in when shares could be had for a couple of cents less
would not be surprised to see a 10% run back up past 27 cents however in the coming four weeks , i just dont see us past 30 cents for at least four or five months yet at the earliest
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