Daft.ie & Myhome.ie for sale?

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mneylon

Administrator
Staff member
#1
I was just reading yesterday's Sunday Business Post and it seems that both sites are fishing for buyers.

Has anybody heard anything about this?

I'm a bit surprised, but then again they may be choosing now as a good time to make an exit, a bit like some of the recruitment sites that sold last year
 
#3
Yeah I read about a possible sale in the Sunday Times - apparently daft is valued at €15m... older brother has 10% stake whilst the younger one has a 90% stake!
 

mneylon

Administrator
Staff member
#6
What makes you think the property market is going to vanish?

From what I can see it seems to be expanding and diversifying
 
#7
Put it this way... average Dublin house prices rose by €80k last year, €230 a day. This was driven by two major factors - Investers and increasing population (largely due to migration). IMHO this is simply unsustainable in the medium term. I don't predict a crash, but a long period of 1-4% growth is coming.
 

mneylon

Administrator
Staff member
#8
It may appear to be unsustainable, but if you look at the number of people looking for somewhere to live etc., I can't see a property crash..
 
#9
I believe strongly in P/E ratios whether it be in equities or property. Houses prices are now at a much higher multiple of earnings than they where a few years ago - this is not just in Ireland, but worldwide. At present I think there is a serious case of asset price inflation partly due to low interest rates in the worlds two biggest economies (EU/USA). We have no control over interest rates, so when they begin to rise, what will happen? Heres a typical situation in Dublin:

Young Couple: Joe (28) & Jane (27), both working in Dublin City Center
Mortgage: €390,000
Current Terms: 3.3%, 30yrs
Monthly Repayment: €1,708

Scenario B Terms: 6.9%, 30yrs
Monthly Repayments: €2,568

Thats a €850 extra a month.

Yes it is unlikely interest rates will double, but remember every 0.5% jump results in a €110 jump in the monthly bill and interest rates are currently at an extrememly low level. The ECB is a very new system, so it's better to look at the US FED in recent years; check out this chart. In 2000, the central bank rate was over 6%!

Like I said - there won't be a crash; but with so much cheap money currently floating around, property is seriously overvalued; so it's likely we will have years of low growth to pay for the current boom times.
 
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