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Friday 18 October 2019

The beginning of the end of the property crash

THE SCSI market report probably marks the beginning of the end of the Great Irish Property Crash of '07 which so severely crippled the Irish home owner and ultimately hamstrung the economy for seven long years.

The rapid reduction in cash buyer transactions - along with increased mortgage lending, more transactions and a growing fluidity in the market - means that the Irish property market is returning to normality.

Every record sale that took place in the latter boom years generated the potential cash pot to enable rock bottom purchases in recent years.

Who would have known that those who sold a house in a D4 street for €10m in 2006 could return to that street just four years later and buy four of the same houses with the proceeds?

In a few more years those homes will likely be worth €4m or €5m - earning those cash buyers another €10m on the back of their foresightedness. Thus have property and real estate fortunes always been made.

However, those cash buyers were also vital in kick starting the property recovery when banks had ceased lending.

Without the cash buyers picking bones from debris of the world's worst national property crash through 2011 and 2012, the market recovery simply wouldn't have got going.

Rather than hail the demise of the cash buyer with glee, we should be grateful for their role in creating the confidence which in turn brought mortages back and ultimately returned the ordinary family buyer to the market once again.

But the SCSI is a nationwide survey and there is evidence that in the capital the cash kings and queens still account for 40pc plus. They haven't gone away you know.

Irish Independent

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