Somebody was paid to produce this sob story. I have a long record in writing about property on this site, on pages of the PropertyPin.com and on boards.ie. I think that I should get paid to provide drivel like this too.
I moved house recently as anyone who knows me can attest. I don’t shut up about how brilliant things are. They are like, utterly fantastic. Maybe it’s the fact that in deciding to move house we also got a summer. Look out in the garden. The sun is shining. Oh yeah - garden. I have a garden. It’s amazing.
I lived in a three bedroom duplex apartment in Swords for the last 4 years. No garden. Completely impractical balcony. Flatmates. We will skip the murky details but I stayed there for a couple of reasons a) moving house is hell and I promised the next time I moved it would be to my own place and b) it was near work. I like not having to spend half my life commuting. I do not know what the M50 looks like at 8.30 in the morning because I was very often still in bed and still at work on time. But the lack of a garden drove me up the wall and having watched rents in the city slowly fall, I resolved that if I was going to spend 1000E in rent a month, I’d prefer to spend it in the north city than in Swords.
My friends laugh when I talk about moving back into the city. According to them, Dublin 9 is not the city. It’s not town. It’s far out. Well, maybe they are right. Some of them grew up in the area. But compared to Swords, it’s monumentally different. The bus into the heart of the city centre takes 15 minutes for the most part. Where I play on Dollymount Strand is 15 minutes drive away. Where I work is 15 minutes in the other direction down the M1, outbound. When I lived in Swords, the beach was around 35 minutes to go, and work was about 10. And by bus into town well, you could get the Swords Express and it took 35 minutes or so, or you could get a 41 and fly to the moon and back in the time it took to get from Swords to the city centre. The buses were a bit less frequently, the time table a bit less reliable. I drove everywhere, and everywhere generally amounted to the shopping centre in Swords. The carparks in the city centre could be busy, were expensive, shopping or just dossing around town was too much of an effort. Dossing around home on the internet was somehow just easier, unless I made my way to the beach which I couldn’t without sitting in a car for ages during match days in Croke Park. Somewhere in the last 3 years, living in Swords ceased to be attractive.
This was a problem. I had been looking at the possibility of buying in Balbriggan when things became affordable again. I reasoned it was likely to be the most likely to be affordable for a single person. But when push came to shove I had realised that all the things that made Swords no longer attractive were magnified for Balbriggan. It was off the list of places to purchase. So I realised that the next move from the duplex apartment would be back into rental, again. Not ideal, but given the alternatives - living somewhere I did not want to live and paying more or less the same money - it wasn’t the worst option on the table by a long shot. I picked where I wanted to live, found a house there, negotiated the rent down as best I could. I know already that in 3 months it will be lower again but that’s the break and at least I’m only tied into this for one year as opposed to 35. And I moved.
It’s been terrific. I’m in town more often; going out is easier, taxi fares have fallen off a cliff by comparison. I’m a lot more relaxed. I think with the garden I feel a lot less cooped up. And I’m watching house prices in the area. When push comes to shove, I will probably buy here if I can afford it. If not, then I probably just won’t buy. I’m happy living here.
One of the features of life in Ireland - since I came back - is that people have bought houses in places that they just, by the normal run of things, would never want to live in. They missed a key point whereby if a few can trade their way into the city from the commuter belt, then if everyone tries to do it, it’s just not possible. People are complaining about the decisions they made and I sometimes wonder how carefully they thought them through. The first thing I would always consider about a house that I was buying was “If I get stuck here, for any reason, can’t move for financial reasons, am I going to hate it?” People were buying investment vehicles; gambling on house prices moving a certain way to allow them to buy homes. If they bought homes up front, we would have less wailing and gnashing of teeth over what happened and anyway, what did happen wouldn’t have happened.
Collectively, the house buying public in Ireland completely lost the run of themselves. They bought off the plans - again gambling that prices would rise so that they could console themselves that they had got a good deal. The fact that the properties in question might not be delivered for 2 years was an irritation at best. It’s now a huge, huge problem for some people who may not even see their properties completed. Why did this happen? Because people lost their critical faculties in judging what success was.
I have a cousin who is married with a few kids. His wife came to me one day and said “You know, we’re never going to be rich. We have kids, and I’m staying at home to mind them, we’re not business people, X has his job and what matters to me is that we are happy as a family. I don’t care if our car is 10 years old.” It’s not an attitude that has been hugely prevalent in Dublin of late. They don’t live in Dublin.
For the last number of years, more or less, your success tended to be measured in terms of how much the value of your house increased by. You could impress people by regaling them with stories of how much the bank gave you. Now, of course, this has changed. If you buy, success is in regaling people with how much you knocked off the property compared to the asking price.
Neither of these things is healthy. What should have mattered - and what clearly hasn’t for years - was what is this property like, does it fit your needs, is it located reasonably sanely to your work place. I work in north County Dublin. I know people commuting from Carlow. When people stop looking at the practical issues like this, bad things happen. If people hadn’t been desperate to get on the property ladder at ALL costs, it’s fair to say that properties would not have been built in places that just won’t have the demand in the future, and property prices would not have exploded the way they did. People paid the most they could, not the least.
Where am I going with all this? Well, an increasing number of people are in negative equity; quite a few developers who paid too much for development land are in trouble, and there are issues in the economy relating to the fact that a big bit of our economy was dependent on trading unmovable objects to each other with borrowed money. It is absolutely sickening to see how this is impacting on the rest of the economy which was reasonably healthy apart from the fact that people needed more and more money to pay for accommodation over that time.
Unfortunately, for me, things are not going to change for the better because…instead of some rationality coming in, we have a pendulum effect. Property investment is out and this is depressing because we actually do still need some sort of a rental market. But the extent to which people have had their fingers burned on property may limit the number of entrants to supply rentals. And people will still judge other people’s decisions with an eye on the financial rather than the practical. I’m lucky. I didn’t buy in Slane or Dundalk or somewhere and I am now living somewhere I want to live.
Lots of people…however…can’t say the same.
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