Theskeat Posted June 4, 2006 Share Posted June 4, 2006 Many a time on the forums we go on about the shortage of houses for locals on the Island, how can we have a shortage when the Likes of Dandara are spending loads of money on the radio trying to sell vacant houses as Holiday homes to visitors. Ready to move into. Link to comment Share on other sites More sharing options...
Slim Posted June 4, 2006 Share Posted June 4, 2006 There's not a shortage of housing, there's a shortage of affordable housing. Link to comment Share on other sites More sharing options...
Theskeat Posted June 4, 2006 Author Share Posted June 4, 2006 There's not a shortage of housing, there's a shortage of affordable housing. Listen to the advert on the local radio stations, it says low cost affordable homes Link to comment Share on other sites More sharing options...
Gladys Posted June 4, 2006 Share Posted June 4, 2006 Wait until they have finished all these new apartments they are building. How are they going to be sold? Isn't that particular market already saturated or are they going to be held in someone's rental stocks until the downturn in the market they have created reverses and they can then control that market? Why would they do this? Simply because if they sold all the apartments now this would depress the price, so if they are held and released little by little onto the market, meanwhile being rented, no downturn in the market, the appreciation in value is captured and overheads are covered by rent. Link to comment Share on other sites More sharing options...
THRILLER Posted June 4, 2006 Share Posted June 4, 2006 Price of houses is disgusting, i live in a commisioner house and want to move out because these days you cant even fart without the comms being onto ya.They also say that if you earn more than £24.000 between ya then you cant have a comm house and you are able to afford a first time buyers...yeah rite.They forget about all the other things you gotta pay for like cars, Kids birthdays, kids xmas presents, clothes, electric, gas, food and so on. i know 2 comms who live in the same house and they have 2/3 jobs each plus there 2 kids have 2 jobs each and they all live in the same house, are they on less than 24.000 grand a year....i think not. housing is just a mess on the isle of man and something needs to be done, low prices for the locals......sorry but it should. Link to comment Share on other sites More sharing options...
THRILLER Posted June 4, 2006 Share Posted June 4, 2006 If the post seemed a bit off target then im sorry cus ive been drinking and my heads a bit messed up. Link to comment Share on other sites More sharing options...
hboy Posted June 4, 2006 Share Posted June 4, 2006 I like the radio ad for the Heritage Homes apartments (flats to us manxies) in Peel. The lady says "But its only £149,000 and its close to all the amenities". It always makes me pi** myself as the amenities in question are obviously a few pubs, some run down shops and a beach covered in dogsh*t. Its also terrible that they are targetting these at "locals" as the ad mentions the government grant scheme more than once, so the taxpayer is paying for the developer to shift these units and underwriting these people getting into hundreds of thousands of pounds of debt to live in a shoe box. The state of the local housing market is embarrasing and now that professional investors are not buying these things, it seems to be expected that the locals will do the "decent thing" and pile in. Link to comment Share on other sites More sharing options...
GD4ELI Posted June 4, 2006 Share Posted June 4, 2006 What's also bad are the new flats being build on the quay in Peel - more expensive than luxury flats where I live in the Swiss Alps - and I doubt if the build quality in Peel will be anything like that here in Swizterland. Save your money - marry a rich farmer's daughter! Link to comment Share on other sites More sharing options...
LoneWolf Posted June 4, 2006 Share Posted June 4, 2006 Wait until they have finished all these new apartments they are building. How are they going to be sold? Isn't that particular market already saturated or are they going to be held in someone's rental stocks until the downturn in the market they have created reverses and they can then control that market? Why would they do this? Simply because if they sold all the apartments now this would depress the price, so if they are held and released little by little onto the market, meanwhile being rented, no downturn in the market, the appreciation in value is captured and overheads are covered by rent. I wish markets were that simple I bet Dandara wish markets were that simple too. Link to comment Share on other sites More sharing options...
Gladys Posted June 4, 2006 Share Posted June 4, 2006 Wait until they have finished all these new apartments they are building. How are they going to be sold? Isn't that particular market already saturated or are they going to be held in someone's rental stocks until the downturn in the market they have created reverses and they can then control that market? Why would they do this? Simply because if they sold all the apartments now this would depress the price, so if they are held and released little by little onto the market, meanwhile being rented, no downturn in the market, the appreciation in value is captured and overheads are covered by rent. I wish markets were that simple I bet Dandara wish markets were that simple too. I know of a developer holding a substantial number of properties then not renewing all the tenancies to sell the stock when the market was at its peak here. The markets are that simple when you hold a substantial part of the housing stock. Also interesting to note that there is a very high number of apartments being built in Jersey by a not unknown developer here. I'm sure someone will correct me when I say that apartments are relatively cheap to build, less land involved, groundworks (a large part of construction costs) are less and even design costs are lower, making them incredibly profitable stocks to hold. If the markets are that difficult to predict, why is there such a trend towards apartments? If they don't sell just rent them out, but NEVER EVER let market forces push down the price. Link to comment Share on other sites More sharing options...
Theskeat Posted June 4, 2006 Author Share Posted June 4, 2006 If a developer keeps the appartment and rents it out for two years he can then sell it tax free Link to comment Share on other sites More sharing options...
LoneWolf Posted June 4, 2006 Share Posted June 4, 2006 The markets are that simple when you hold a substantial part of the housing stock. Problem with that statement is how much housing stock and where exactly. Buyers have the whole world to choose from when making an investment. If the markets are that difficult to predict, why is there such a trend towards apartments? If they don't sell just rent them out, but NEVER EVER let market forces push down the price. Gladys you surprise me! Prices are set by market forces. Link to comment Share on other sites More sharing options...
Roger Smelly Posted June 4, 2006 Share Posted June 4, 2006 Well i was laughing when i heard it, is there any lengths to what these people will do to sell a house. If these people were to buy a second house i am sure it would be somewhere that the sun is warmer. Heritage Homes are too powerful on the isle of man, they seem to just do what they want and get away with it. I don't have a problem with them building when the market dictates but all they seem to be doing is building to let them out. Money don't make the man remember that Link to comment Share on other sites More sharing options...
Gladys Posted June 4, 2006 Share Posted June 4, 2006 The IOM is a micro-market, (and that is the market I am talking about) which is buoyant at the moment, net 1,000 new residents a year I think the stats are. I am not talking about buyers buying for investment purposes, but developers developing, not for re-sale, but for renting. That, I am convinced, skews the market and does not allow normal market forces to operate. My point about market forces is that the supply is being withheld from the demand thus maintaining or increasing the price! Market forces work in two ways, supply and demand. One can manipulate the effect of the other, but who has the upper hand depends on who has the bargaining power. An investor buying to rent will not have bought the property at a wholesale price, so will be more susceptible to the market. Whereas, a developer who retains the property carries less of a risk because his base cost is lower. Link to comment Share on other sites More sharing options...
LoneWolf Posted June 4, 2006 Share Posted June 4, 2006 My point about market forces is that the supply is being withheld from the demand thus maintaining or increasing the price! Market forces work in two ways, supply and demand. One can manipulate the effect of the other, but who has the upper hand depends on who has the bargaining power. Actually Gladys ,markets work in slightly more than two ways but thats another argument The point is prices are determined by market forces. A price is struck by means of a bid offer acceptance. If there is a difference between the bid and offer then a price wont be struck. Regarding your argument developers build to rent in an attempt to manipulate the supply side ... wouldnt the same argument necessarily lead one to conclude it would be a self defeating strategy as they would be acting on the supply side of a different product ? [rental market] It doesnt usually work like that Im afraid. Nowhere near so simple. Im also less than convinced by your argument a micro market exists in the Island. This could only be the case if movement of capital was restricted and the island existed in a universe of its own. Where do you think the demand comes from ? Certainly doesnt come exclusively from IOM residents. Regarding the developer named at the beginning of this thread. A reasoned guess would have them reacting to market conditions rather than trying to manipulate them. Nothing wrong with that. Link to comment Share on other sites More sharing options...
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