Property boom on the Shankill…

London has long been a venue for housing market regeneration of old run down working class areas. The development of the Thames Gateway is set to transform the like of Dartford, where by SE standards, house prices remain in the bargain basement category. It seems the Shankill area of Belfast is seeing a massive hike in prices, which could indicate some form of regeneration is already in train on the back of a bouyant local market rather than any outside investment.

Yesterday, Jayne Farrell did not have any time to think about the past. She was too busy dealing with a new sort of interest in the Shankill Road’s housing – the sort that has turned this one-time icon of strife and staunch loyalism into an unlikely property hotspot. Ms Farrell, an estate agent whose company opened its office on the flag-lined street just three months ago, is at the centre of a housing goldrush.

Terraced houses on the road and its adjoining streets have more than doubled in value from £70,000 (€105,000) last year to £150,000 (€225,000), while developers are rushing to finish a series of new buildings to meet burgeoning demand. Such is the frenzy of bidding that offers of £20,000 (€30,000) to £30,000 (€45,000) over the asking price are commonplace for red brick back-to-backs that a decade ago were among the most blighted homes in the UK.

Instead of murals commemorating ‘heroes’ of banned paramilitary groups and highlighting atrocities, houses in the area are now adorned with ‘For Sale’ signs.

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  • Who is buying them? Local people newly prosperous thanks to Peace In Our Time or speculators from Dublin?

  • Crataegus

    We are building between 3000 and 6000 less houses per year than we need. In some of the quarters of 2006 planning applications for houses dropped by 25% year on year. A larger percentage of new dwellings are now apartments and there is no effective policy other than market forces to address the problem. Add to this lack of available development land, over restriction in rural areas and silly investment money from the South and I can’t see the prices dropping any time soon.

    What will happen unless someone comes up with coherent policy is that all forms of development other than apartments become uneconomic!!! Belfast will slowly turn into flat land.

  • fair_deal

    Graham Gudgin argued that a factor in Unionist disillusionment with the Belfast Agreement was Loyalist working class communities were not sharing in the economic boom as evidenced by the poor growth in house prices in comparison with the rest of NI. Interesting to see if this will produce a feel good factor for St Andrews.

    SM

    Both. The economic improvements of the past decade or more are finally reaching the bottom rung of the economic ladder. Also the private investors are not restricted to Dubliners.

    It is also an example of successful government intervention in a housing market. The private schemes they encouraged demonstrated to developers that it was worthwhile developing private hosuing stock in the area. In Protestant North and West Belfast there is also something of a skew in the local public housing stock towards 2/3 bedroom houses so if you want a decent family home you have to buy one.

    It will also be an interesting dynamic to watch in terms of the two communities. Traditionally land hunger was in nationalist communities in North and West but that is beginning to develop in Unionist areas too. Time to see if the common needs means common approaches works in the most physically divided part of NI.

  • Bemused

    At the risk of stating the obvious – it’s all about location, location, location. Belfast is full of anachronistic pockets of vermin which are ripe for civilisation – the Shankill, Falls, Village, Markets, Short Strand, Sandy Row, Lower Ravenhill etc. – the sooner these places get hosed out and re-populated with non- biggoted, lard-arsed, rascist, bone-idle, work-shy, illiterate, violent sponging scum the better. How dare these animals expect to live for free within a mile of the city centre.

  • Just one point where I have to disagree, FD – land hunger may be developing apace but the population of North Belfast is falling and has been for decades. Something here does not compute!

  • fair_deal

    SM

    The dense form of old housing in North Belfast means any redevelopment puts back less stock and even the new developments on spare land do not make up the gap. Hence a decline in population.

  • Johnkingii

    I perceive it as a mixture of socio-economic forces and our own little sectarian maps in our heads. House prices in traditional unionist heartlands ie North Down, East Antrim, Lagan Valley have gone through the roof and are unafforable for people on the first rung of the property ladder. Secondly most of these people’s jobs are in Belfast. Thirdly if you are one of the above your going to move within what you perceive as your own community or the community where your own parents originally came from, grandparents other relations still live. Speaking from own experience my own family ten years ago all lived in East Antrim. Now apart from one sister living in the mainland we are all back in North Belfast where are our parents originally came from.

  • Mick Fealty

    That seems to me to be the most likely explanation John. I’d be interested to see though how that investors/first time buyers split goes. Also, though I suspect this might not be the case in Shankill just yet, to what I extent new buyers are following sectarian lines, or the weakness in market prices.

    We know that 90% of public housing is non mixed. Can we expect to see the market create more mixing as a result?

  • Concerned Loyalist

    “flag-lined street”

    I was up and down the Shankill Road twice on Saturday and didn’t see too many flags, not even Union flags! As for paramilitary flags there is a blue UDA one up on the Woodvale Road on the Woodvale Park side of the road at the top of the Shankill but that has been there for about a year and is tattered and torn so it is barely identifiable so therefore it can’t be offensive!

    The Shankill community have turned a corner – I come from the Coleraine Borough so can’t speak from personal experience but from what I’ve been told from friends it was a very scary place to live during the UDA/UVF feud, especially in the Lower Shankill (in the Upper Shankill estates the UDA and UVF have a very good relationship) which a certain John James Adair has to take the brunt of responsibilty for.

    The feud’s over, C/Coy. is “under new management” and neither the West Belfast UFF or UVF/Red Hand Commando are active and there is a good local community restorative justice programme in the area (you can see a mural celebrating the local CRJ on the right hand side of the road as you’re driving down from the top). The local area has also won an award from Europe for the improvement in the area’s image with intimidating murals replaced by more progressive ones, red, white and blue kerbs being replaced and a significant reduction in flags along the road outside of the Marching Season.

    Loyalist communities get frustrated when big steps like these are taken with little or no media attention or encouragement, then when the IRA sign up to policing you’d think the “Second Coming” of Christ had just happened!

  • c’mon board anytime

    “Loyalist communities get frustrated when big steps like these are taken with little or no media attention or encouragement, then when the IRA sign up to policing you’d think the “Second Coming” of Christ had just happened! ”

    Making your own community more habitable frustrates the natives because there is no encouragement or media attention?

    Get real.

    When the loyalist thugs decomission their arsenal, stop selling drugs and extorting local business maybe the rest of society will applaud and encourage their efforts. A lick of paint and taking down a few sectarian flags is hardly siesmic, to borrow an expression.

  • Dread Cthulhu

    Crataegus: “We are building between 3000 and 6000 less houses per year than we need. In some of the quarters of 2006 planning applications for houses dropped by 25% year on year. A larger percentage of new dwellings are now apartments and there is no effective policy other than market forces to address the problem.”

    Not quite accurate. Giving the bureaucracy that surrounds the building process, the market forces, barring government intrusion into the market, push for high-end / luxury units, which allow the builder / developer the best margin on each unit. Additionally, these units are the ones least likely to involve additional / future government intrustion or control.

  • Dread Cthulhu

    CBA: “When the loyalist thugs decomission their arsenal, stop selling drugs and extorting local business maybe the rest of society will applaud and encourage their efforts. A lick of paint and taking down a few sectarian flags is hardly siesmic, to borrow an expression. ”

    Actually, this over-riding of the primitive marking of territory / tribal behavior could be just that… besides, a veneer of civilization is the best we can get in a great many places… why should Shankill be different than Los Angeles or New York City.

  • marty (not ingram)

    £150k?!

    You’d need your head looked at if you paid that.

  • Oranges for Sale

    I’ve been trying to get on the property ladder for months now, but prices are just too far over my limit. Personally I blame those smug buy-to-let investor types who are probably the same people snapping up all the property on the shankill. Although it would be quite satisfying to watch their little investments implode if a certain Mr J. Adair ever returned home. There will always be social housing within these areas of Belfast, and there will always be the scum who dwell therein. Its not much good having a £150,000 terrace house when the local drug dealer/paramilitary still lives a few doors up.

  • c’mon board anytime

    Dread,
    I don’t disagree but when unionist politicians lecture republicans about standards and criteria for inclusion to government they would do better to ‘encourage’ their own constituents that they also have a part to play.
    Instead of constantly focusing on the negative, outdated politics these dinosaurs should be ‘encouraging’ change and focusing media attention to the positive steps their community are taking.
    This would make strides for a much better economy and improvements in social areas such as housing.

    Just because your house is worth £70k more this year than it was last year doesn’t mean the area has is a more desireable or civilised place to live.

  • Dread Cthulhu

    CBA: “but when unionist politicians lecture republicans about standards and criteria for inclusion to government they would do better to ‘encourage’ their own constituents that they also have a part to play. ”

    Everybody worries about their neighbor’s mote to the detriment of their own plank. That’s human nature…

    On the other hand, there is an organizational difficulty that Unionism faces that Republicanism doesn’t. Republican efforts, focused on changing the status quo, required the development of a political track. Loyalist organizations, oriented, ostensibly, toward the maintaining of the status quo, have political wings that were non-existant or afterthoughts, leaving the political heavy-lifting to the existing Unionist structure. As a result, Loyalist’s political interests were “protected” without openly attaching Unionist parties to violence.

    The problem is is that Loyalism never developed the relationship between the struggle and the political. Without a real goal, Loyalism has stewed in its own juice for decades and, in no few cases, sees itself a power unto itself, a view fostered by some of the Faustian arrangements between themselves and the State.

    CBA: “Just because your house is worth £70k more this year than it was last year doesn’t mean the area has is a more desireable or civilised place to live. ”

    Not to start. But it definitely means that improvement is likely… but that itself is a double-edged sword.

  • Crataegus

    Dread

    Not quite accurate. Giving the bureaucracy that surrounds the building process, the market forces, barring government intrusion into the market, push for high-end / luxury units, which allow the builder / developer the best margin on each unit. Additionally, these units are the ones least likely to involve additional / future government intrustion or control.

    The build and application figures are from the Planning Service. We are under building and have been for some time. We need 200,000 dwellings within 10 years, some of us think that figure low. The best annual build was 17,000 units. The average for the last 5 years is probably around 15000 units.
    With regards high end luxury flats I disagree. What is driving up the price of many houses beyond what the average family can afford is subdivision of houses (or re-develop site) into smaller units. So let us say the average young couple who once bought a house for £150,000 now pay that, or more, for one of 6 apartments in a house, and there is few of these that I would describe as luxury.

    If you bought an acre of land for housing the site for each house could cost about £150,000. How do you build affordable houses if this is the initial land cost? Building houses just does not make economic sense unless it is social housing which everyone is paying for. For the private developer there is a better return building apartments and generally the smaller the unit the better; tomorrows slums.
    The problem is there isn’t enough slack in the system. Planning Service intrusion has created a shortage of development land, the controls are just too tight.

    Sammy
    The population in North Belfast has dropped because there are large areas of derelict houses in protestant areas due to local factors. Take a trip through Tigers Bay and despair! Perfectly good new housing boarded up. Also as fair-deal states many of the new developments are of lower density, to those that they replace. This however is only true of social housing. Expect the population of Belfast to rise as more high density private developments kick in.

    My own view is that housing now cost more than our local economy can afford long term. Personally I would like to see prices falling back and I wouldn’t mind if a few speculators lost their shirt. The average family should be able to afford the average house. People have a right to expect somewhere to live.

  • Crow

    Crataegus,

    Okay maybe a dumb question but why if there is pent up demand, is perfectly good new housing boarded up in Tigers Bay?

  • Crataegus

    Crow

    Loyalist paramilitary types!! People who could moved out leaving the old and the poor.

  • Yokel

    As a kid who spent some of his days on the Shankill, there have been improvements but no one should doubt that the same problems still remain.

    Apart from the relative internecine peace thats broken out there are number of straightforward commercial factors at play.

    There have been some serious improvements to the social housing stock over the years (a similar process you can see on the Springfield Road) which quite simply makes houses more attractive to buy where that option is available. Once you start having that, the private market forces take over and they’ve just been going up in value.

    Add to that born locals who’ve ‘done well’ and are returning or staying because housing stock is available at comparatively reasonable prices in nto so bad areas. The developments in the Westway area in particular is one example which 10 years ago just werent there.

    This new build private housing in particular may well one of the reasons why the average house prices are rising because there’s more at the higher end in existence now compared to before.

  • Dread Cthulhu

    Crataegus: “The build and application figures are from the Planning Service. We are under building and have been for some time. We need 200,000 dwellings within 10 years, some of us think that figure low. The best annual build was 17,000 units. The average for the last 5 years is probably around 15000 units. ”

    Not arguing — I was actually taking issue with another part of your post, specifically that “A larger percentage of new dwellings are now apartments and there is no effective policy other than market forces to address the problem.”

    The problem with your reasoning, and perhaps I was not explicit, is that government intrusion into the real estate market will, in all liklihood, exacerbate the problem, not solve it. Looking back, I quoted poorly — my bad.

    That said, government intrusion into the marketplace is more likely to make matters worse, not better. The rise in prices is a simple matter of supply and demand — unless you know someplace you can “build” more land within the confines of Belfast, you have a fixed acreage to build upon. Ergo, simple capitalism — you end up with an auction — more buyers than sellers. As a result, the price increases, buyers drop out and those with the wherewithal make their purchases. Those who dropped out of the bidding look to alternatives, which, in turn, bid up the prices of other areas.

    The builders, given the limited acreage upon which to build, do not what to build lots of little houses for modest profit. They want to maximize their profits, which means a smaller number of larger houses they can sell for a better price.

    Crataegus: “So let us say the average young couple who once bought a house for £150,000 now pay that, or more, for one of 6 apartments in a house, and there is few of these that I would describe as luxury. ”

    Ah, going condo… welcome to New York, circa the seventies.

    Crataegus: “Building houses just does not make economic sense unless it is social housing which everyone is paying for.”

    Contrariwise… that makes the least sense of all. All this will do further distort matters.

    Crataegus: “For the private developer there is a better return building apartments and generally the smaller the unit the better; tomorrows slums. ”

    You’re incorrect — its a balancing act. Too small, no one wants it, although the price set on the maid’s apartment in Knight’sbridge(?) could prove me wrong, and too big, few can afford it. The developer wants a product that maximizes his profit while minimizing his cost to develop. The wrong price and he has to pay to carry inventory.

    Crataegus: “The problem is there isn’t enough slack in the system. Planning Service intrusion has created a shortage of development land, the controls are just too tight. ”

    Precisely. Unfortunately, deregulation being a pipe-dream, I suspect things will be worse before they are better.

  • Crataegus

    Dread

    I don’t think on the basics we actually disagree but trust me when I say the best returns are on units in the range £150,000 – £200,000. Scarcity is more important than quality I regret to say.

    Precisely. Unfortunately, deregulation being a pipe-dream, I suspect things will be worse before they are better..

    It is not deregulation that is required but another look at various aspects of policy. The restrictions are just too tight. When you start to see a 25% drops in applications year on year and you are already under building time to worry!!! We are heading for a serious housing shortage and I agree unless there is change things will get a lot worse.

  • Dread Cthulhu

    Crataegus: “I don’t think on the basics we actually disagree but trust me when I say the best returns are on units in the range £150,000 – £200,000. Scarcity is more important than quality I regret to say. ”

    Then I have to ask the next obvious question… just how in the name of God’s wounds did the market get that far out of balance to begin with? Now, to have housing boarded up whilst the market goes begging is “normal” within certain tolerances, regulation has to be a major part of the problem, along with certain “ad hoc” nuisance groups.

    Crataegus: “It is not deregulation that is required but another look at various aspects of policy. The restrictions are just too tight.”

    I think we’ve hit the classic “po-TAY-to” vs. “po-tah-TOE” impasse. We’re having more conflict over language than concepts. I think we can agree that gov’t has to took on how to get out of the way in one form or another.

  • Crataegus

    Dread

    Then I have to ask the next obvious question… just how in the name of God’s wounds did the market get that far out of balance to begin with? Now, to have housing boarded up whilst the market goes begging is “normal” within certain tolerances, regulation has to be a major part of the problem, along with certain “ad hoc” nuisance groups.

    Like all such things it is complex.

    For some time Developers have been advising that we are running out of development land. Everyone says they would say that! Unfortunately a case of calling wolf wolf, as this time the wolf was at the door. By my reckoning we could be 80,000 houses short in 10 years time as I believe we underestimate the level of immigration and the tendency of single occupancy.

    We were under building year on year and then some serious planning decisions;

    1 We should build 60% of new housing on brown field sites. This sounds fine and they have went to great lengths to identify sites, but identifying sites and them being available are two different things. Because there is scarcity people are buying land and sitting on it.

    2 Lord Rooker made one of the biggest planning blunders imaginable in treating most of rural NI as a virtual Green belt. He should have changed the rules and encouraged the building of new hamlets and villages but no virtual blanket ban.

    Imagine you were a small developer / builder who in years past earned a living building a few houses a year up country what do you now do? You have to earn a living so you start buying up houses in the towns and cities to convert into apartments. You are joined by money from the south as the property market there has peaked, and in addition there is a rising population and also there are many local investors as property is mistakenly seen as easy money.

    Lots of money with nowhere to go so prices shoot up.

    On the demand end there is quite high levels of immigration from Eastern Europe. These are tending to move into rented accommodation increasing demand for such property. Increasing numbers of immigrants are arriving here with families if my own unscientific observations are correct!

    With regards houses boarded up. It has always struck me as odd the attention given to West Belfast when we mention division and problems. In my opinion the worst areas are the Protestant areas of part of West Belfast and North Belfast.

    In recent years you could not have worked in many of these areas because of the local detritus. You had to belong and if you were building you had to pay. If you didn’t you were literally at risk of your life. Also bear in mind the problems with the police and you were well and truly on your own. Over a period of 30 years people who could left. Hence the boarded up houses.

    These areas are strategically placed near the city centre and are prime development land but you would be a brave one to invest here unless you can do so in a large fashion and fundamentally change part of the area, but owning one house in Mount Vernon or York Street in the hope of a better tomorrow is folly unless it is long money.

  • Dread Cthulhu

    Crataegus: “For some time Developers have been advising that we are running out of development land. Everyone says they would say that! Unfortunately a case of calling wolf wolf, as this time the wolf was at the door.”

    More likely, it has to do with the fact that developers, by the nature of their profession, have a long view — they rely upon they one commodity that is relatively static – land.

    Crataegus: “We should build 60% of new housing on brown field sites. This sounds fine and they have went to great lengths to identify sites, but identifying sites and them being available are two different things. Because there is scarcity people are buying land and sitting on it. ”

    Not a bad move — land, by its nature, is never a bad investment, esp. when the state has so graciously made it a hot commodity…

    Crataegus: “Lord Rooker made one of the biggest planning blunders imaginable in treating most of rural NI as a virtual Green belt. He should have changed the rules and encouraged the building of new hamlets and villages but no virtual blanket ban. ”

    Ah, the joys of Stalinistic central planning with no regard to reality.

    Crataegus: “Imagine you were a small developer / builder who in years past earned a living building a few houses a year up country what do you now do? You have to earn a living so you start buying up houses in the towns and cities to convert into apartments. You are joined by money from the south as the property market there has peaked, and in addition there is a rising population and also there are many local investors as property is mistakenly seen as easy money. ”

    To listen to my guide last time I was in Dublin, its still not peaked, but continues to kite upwards. More than likely, the Belfast surge is at an earlier state than the matured markets in the south. And, for good or for ill, its *IS* easy money… so long as you have more buyes than sellers, you have an auction. Great time to be holding inventory for future sale.

  • Crataegus

    Dread

    Great time to be holding inventory

    Suits me fine, but I am not so sure that it is good for the economy long term and average family should be able to afford somewhere reasonable to live. Not my problem.

  • Dread Cthulhu

    Crataegus: “Suits me fine, but I am not so sure that it is good for the economy long term and average family should be able to afford somewhere reasonable to live. ”

    Whose fault is it that things are bollixed?

    The government created this rat’s nest of a system — the developers are simply playing by the rules they were handed.

  • GetReal

    Until Loyalist narco-terrorist scum do something meaningful to reflect the new times, such as decommission their weapons, stop pedalling drugs to kids, stop intimidation and other scumbaggery at which they are so expert, and preferably slap themselves around the head for being such parasites, then removing a few offensive murals and flags is only window dressing and deserves no praise, sorry

    The IRA decommissioned their arsenal, Sinn Fein now support PSNI, Gerry Adams attended the funeral of a former “enemy”, now those are changes that deserve praise…

  • Comrade Stalin

    Graham Gudgin argued that a factor in Unionist disillusionment with the Belfast Agreement was Loyalist working class communities were not sharing in the economic boom as evidenced by the poor growth in house prices in comparison with the rest of NI.

    What an absurd argument.

    House prices are low in loyalist areas because supply outstrips demand. Supply outstrips demand because people don’t want to own them, due to the presence of loyalist paramilitaries who burn out or threaten anyone who doesn’t “fit” – taigs, poles, Indians, whatever.

    Now who is going to invest in buying a house with people like that around ? I know of an individual who made the foolish mistake of renting a house at the bottom of Skegoneill Avenue and found himself in precisely this scenario. I think the majority of Prods coming from those areas are therefore saying “feck this” and abandoning them – either to move out to the sticks (property prices are ludicrous in rural bits of North Antrim and Lagan Valley) or to go over to another part of the UK.

    Concerned Loyalist :

    Loyalist communities get frustrated when big steps like these are taken with little or no media attention or encouragement, then when the IRA sign up to policing you’d think the “Second Coming” of Christ had just happened!

    Take it from me CL, those of us in the sane, law-abiding part of the world get frustrated when you people stop shooting people, hanging up sectarian flags and generally messing the place up, and expect some kind of credit for it. According to the IMC loyalist punishment beatings, criminality and other nefarious activity shows no sign of abating. Get back to me when the UDA/UVF have disarmed and are calling on their members to support the police, and maybe we’ll have something to talk about. You people need to go away, and until you stop polluting the place with unelected hardmen, ordinary folk will regard the community as an unsafe and dangerous place to live in.

    Dread:

    Actually, this over-riding of the primitive marking of territory / tribal behavior could be just that… besides, a veneer of civilization is the best we can get in a great many places… why should Shankill be different than Los Angeles or New York City.

    This is a salient point. In New York City, they call the process “gentrification”. The poor are swept aside, and swanky new apartments are erected. I’m sure we’ll see this in the city centre. The seeds for it are there – the Housing Executive are required to sell up property, and for the right price, tenants who have exercised their right to buy will feel compelled to sell up.

    just how in the name of God’s wounds did the market get that far out of balance to begin with?

    Let’s be honest here, there are quite a lot of stupid people out there. I have had several people tellme that house prices cannot possibly drop, the government wouldn’t allow so many people to be bankrupt, everyone needs to own roof over their head, you’re such a risk-averse worrier, yadda yadda yadda. When people believe that they have a bet which is impossible to lose, believe that they will make money and there are no two ways about it, they engage in what the rest of us see as reckless gambling. Of course, sane people know that there are examples of major house price crashes in recent memory, including in the UK in the early 1980s and again in the early 1990s. House prices in Japan dropped continuously for over a decade at one point. This whole thing is going to end in tears, and I sure hope I don’t get to take the brunt of it.

  • use prices in Japan dropped continuously for over a decade at one point.

    They fell continously from 1989 until 2004 and finished over 60% below their 1989 peak.

    Oh, and it was worse than that in Tokyo.

  • Bemused

    Excellent post Comrade – couldn’t have put it better myself.

  • pete Whitcroft

    Give me a Tardis and I would buy in the Shankill and Donegall Rd.
    I know guys who bought stuff to fix up in Battenburg and Glenwood Street.

    Bought 3 years ago for 8K at Wilsons auctions.

  • Crataegus

    On one hand I think NI is a dangerous property market and would advise extreme caution. There are safer returns elsewhere but on the other hand I see nothing that is going to ease the pressure.

    Prices are way beyond what should make sense so what is on the horizon to dent the market? Higher interest rates, higher rates bills, rising unemployment? Usually the slide starts when confidence wains or supply outstrips demand.

  • pete Whitcroft

    The snow ball is still rolling, people are paying next years price today.
    Beware of apartments up back alleys.

  • Dread Cthulhu

    Comrade Stalin: “Let’s be honest here, there are quite a lot of stupid people out there. I have had several people tellme that house prices cannot possibly drop, the government wouldn’t allow so many people to be bankrupt, everyone needs to own roof over their head, you’re such a risk-averse worrier, yadda yadda yadda.”

    My father bought Rolls-Royce stock on the argument that the British gov’t wouldn’t let the company fall, either, once upon a time. The rule is that which goes up must come down… eventually.

    Comrade Stalin: “When people believe that they have a bet which is impossible to lose, believe that they will make money and there are no two ways about it, they engage in what the rest of us see as reckless gambling. Of course, sane people know that there are examples of major house price crashes in recent memory, including in the UK in the early 1980s and again in the early 1990s. House prices in Japan dropped continuously for over a decade at one point.”

    1929 comes to mind…

    Rule one, never bet more than you can afford to lose.

    Rule two, never bet so much that it screws up your cash flow.

  • Crataegus

    Dread

    Rule one, never bet more than you can afford to lose.

    Rule two, never bet so much that it screws up your cash flow.

    True
    ( If your father had waited until Rolls Royce stock hit 6p a share he would have made money! He was right but looks like he jumped in too soon.)

    The market is full of fools with interest only mortgages borrowed to the hilt. Buy to let simply is not a paying proposition at today’s prices. If the basic business model doesn’t work don’t get involved. People are looking at what the likes of myself are doing and are thinking I can do that too, but the property I own could have been bought between 5 – 20 years ago. Like all investments you buy in the hollow or when you see an opportunity coming up like the one fool Rooker jumped into. Property isn’t a get rich quick game it’s generally a long game.
    So they are all relying on increased property prices to make profit. Sensible people are using money gained in NI to invest elsewhere. Hence Australia India and the likes. Spread the risk, and do so on sensible things not holiday lets, or B & Bs in some God forsaken place in France. Also in Foreign parts you need to do your homework but that is true at home.

    Personally I would welcome a crash. I think it is necessary to restore balance and remove the type of pressure that is creating developments that are to our long term detriment. I regret that some house owners will suffer but if a few thousand speculators lost their shirts it may be remembered for the next decade or two.

  • Concerned Citizen

    “Loyalist communities get frustrated when big steps like these are taken with little or no media attention or encouragement, then when the IRA sign up to policing you’d think the “Second Coming” of Christ had just happened!”

    So far here is the loyalist contribution to decommissioning:

    1 Flagpole (slightly bent)
    2 Union Jacks (tattered)
    1 UVF Flag (good condition)
    1 Baseball bat (some bloodstains)
    2 Murals removed

    And you want praise for that? Seems like the loyalists are the slow learners in this peace process

    As soon as these paramilitaries are out of business we will see how much better places like the Shankill can really be