Joseph Conroy writing on the Newstalk blog:
Carol Tallon, author of the Irish Property Buyers Handbook joined The Pat Kenny Show to discuss the Irish property market – she warns that buyers face a tough few years as they wait for more supply to come on the market.
The age profile of Ireland’s first-time buyers is set to change from the old norm of people buying in their late 20s – to a new situation where people will be closer to 40 when they get on the ladder.
Once people buy – it is unlikely that they will move, she says we can, “forget the concept of a starter home – it is no more” and that in the new market, “what you buy is what you are committing to.”
She adds that a new cohort of Irish people will never own a home: “Home ownership in Ireland has been seen as a right-of-passage, that is simply not the case any more.”
Link to audio piece here: http://www.newstalk.com/EXPLAINER:-Why-Irelands-recovery-could-be-more-painful-than-the-crash
“It’s easier to stay in a bad position than to try to get into a good one.”
She warns that this will be a difficult period: “The Irish economy is in a recovery – that sounds like a good thing – but actually recovery is a painful process. It can be more painful than the crash.”
Ms Tallon continues: “It’s easier to stay in a bad position than to try to get into a good one.”
As the economy improves there will be plenty of people who are ready to buy houses – but they will also be aware that there is a shortage in the market at the moment – and that they are likely to end up paying over the odds.
These people will rent – and wait for the market to calm down.
The squeeze in supply, and the new tougher mortgage rules will have the unintended consequence of creating a spike in rent costs.
Continue reading this blog on Newstalk: http://www.newstalk.com/EXPLAINER:-Why-Irelands-recovery-could-be-more-painful-than-the-crash