Always on your side!

Goodbye (with more than a hint of relief!) to 2009, a year that brought the Irish market back to levels last seen in 2003.  In the latter part of the year, however, we did see the rate of decline slow down significantly.  One practical and positive outcome of 2009 was the 20% reduction in housing stock nationwide (and a reduction in excess of 30% in Dublin), which was badly needed.   As for 2010, all indications point towards a return to economic growth and consequent price stabilisation by mid year. This stabilisation process could take approximately six months by such time we should start to see positive growth, albeit at a minimal rate. 

So what will this mean for buyers on a practical level..?  Firstly, it will mean greater availability and access to credit; secondly, it will mean that buyers can take action when the timing is right for them.  Most importantly, if this is your year to buy, then buy while the bargains are ripe.  Since the market turned in late-2006, first-time buyers have been the holy grail of the industry so our advice is USE YOUR POWER WISELY i.e. no more queuing in cars overnight to pay over the odds for box 10 miles from the city centre (yes, this really did happen, buyers actually queued overnight for their little bundles of negative equity)! We understand that as a first-time buyer, your priorities are likely to be very different to those of an investor but don’t lose sight of the basics; mainly, don’t pay more than the property is worth and build in a further reduction to future-proof your purchase against further short term drops.  Timing is an important factor in buying property but it’s not the most important factor.  There is always an opportunity to buy well if you research your market and shop around for the right seller.  The only reason to wait is if you cannot find great value in a suitable property,

 As for the investors, only a “reported” 7% of residential units in 2009 were purchased by investors.  Here at Buyers Broker we cast doubt over that figure as most statistics available in Ireland are based upon mortgage data and we have seen a massive increase (in excess of 15%) in cash purchases in 2008 to 2009.  Investors have been unjustly vilified over the past decade and temporarily chased out of the market but there will always be the brave few who instinctively rebel against the herd and reap the benefits.  We have a few BMV surprises for investors coming up over the next few weeks so keep an open mind …

 Finally, for the doom and gloom brigade, it’s worth remembering that life goes on.  Even in recessionary times, people change jobs, get engaged, married, expand their families and/or invite elderly parents to join their household.  Houses will be brought, sold, swapped and inherited.  Our mission here is to guide those buyers and investors who actively want to buy; any comments and feedback will be greatly appreciated…

Until next time, 

Carol

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