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Are we booming or busting? – The confusion about the “current financial climate”

Written by Joerg Steegmueller
Are we booming or busting? – The confusion about the “current financial climate”

A friend posted a notice from a small business in Dublin on Facebook. The business (the name or sector is not relevant for this post) closed its doors on 31 January and the explanation for the closure started with “due to the current financial climate”. Interestingly, that business was in the same part of Dublin where a 3-bed apartment on Daft.ie has a rental price tag of EUR 3,800 per month and it was not a million miles away from a number of areas in Dublin, where the pubs are booming like mad.

If we talked about a place far away from our world, we would wonder what is going on, we would be puzzled!! Why are there these type of significant contradictions happening: One business closes due to “the current financial climate” and other businesses are booming and house and apartment prices are higher than they were before. But it is just around the corner from us, in the middle of our life and neighbour hood. So are we booming or busting?

The answer is most likely that we are BOTH in a boom and at the same time still in trouble. There are some companies who are (still) in trouble, some because they were not made or managed to be ever successful and others because the people running them are still in the mindset of “trouble”. But other areas are just ignoring that and it seems to work for them.

The “current financial climate” is still in the head of people while at the same time they are prepared to spend like there is no tomorrow. It also seems that we have a new split in society with one part being still – at least partially – in the bad financial climate, while the other part is riding the crest again. Nearly all formerly bankrupt or at least “NAMA-treated” developers seem to be back in buying mode! :-O

Where does that leave us? It leaves us in a weird and eerie twilight zone of a “boom-bust”, where the emotions about the economic situation might influence us more than the actual facts.

It’s a pity about that small business, because without a doubt dreams and hopes were dashed, replaced by disillusionment and despair.But I would also guess that that small business had made it through harder times a few years ago. Maybe they just reached the point were they couldn’t take it any longer?

Dublin, Economy, Society, , , ,

The bubble is back! Crazy apartment prices in Dublin!

Written by Joerg Steegmueller
The bubble is back! Crazy apartment prices in Dublin!

This week an apartment advertisement on Daft was shared on Facebook. The ad confirms that the craziness regarding Dublin rents is back. Exactly 10 years after the crash, we are were we were before.

The apartment is a 3-bedroom apartment on Parnell Street and the rental price is a whopping EUR 3,800 per month. With such a mad price, it is not surprising that it is advertised to accommodate up to 8 people and the pictures show bunk beds in the two small bedrooms. But I would expect that the people who rent it will try to squeeze at least 10 people into it. :-O

Ad is shown below here and I have also added some of the interior pictures. It looks like a really nice apartment, but the “behind the curtain” view is on the last two pictures.

 

Dublin, Economy, Irish, Odd, Society, , ,

Averages and Salaries :-O

Written by Joerg Steegmueller
Averages and Salaries :-O

So what are you? Are you below average or above average? Before you drop your self-esteem to the floor, let me tell you that without a doubt there are areas in your life or personality where you are well above average, but there might also be some areas where you are blow average. We are multifaceted, so there is give and take and lots of areas where we can shine.

When it comes to numbers, however, the truth is sometimes much bitterer. About two weeks ago I found an article that specified what the average salary in Ireland is. And this average for full time workers stands at EUR 45,611. That is a good bit higher than I had expected and I know that many people WISHED they were just average i.e. not far below average! (If part time workers are considered, then the average salary is EUR 36,519.) Clearly crazily high salaries in some sectors distort the average number quite a bit.

Ohh and if you are anywhere near that average, please chip a bit of your average in the Dublin Event Guide hat!! Without your help it is in trouble! You can help here www.paypal.me/dublineventguide

www.breakingnews.ie/ireland/this-is-the-average-full-time-wage-in-ireland-795670.html

Economy, Society

Dublin is booming: Temple Bar Pub and Guinness Storehouse

Written by Joerg Steegmueller
Dublin is booming: Temple Bar Pub and Guinness Storehouse

Two media reports last week seem to indicate that Dublin is booming again. We had that before, but will it last this time?

The first one here, is about the Temple Bar Pub and the fact that it made a profit of EUR 3.29m last year, with a gross profit of EUR 10.3m. That is a HELL of a lot of pints even at crazy Temple Bar prices. Since the gross profit is the total revenue minus the cost of goods, the actual cost for the drink has already been subtracted. And if you divide that amount by 363, then you come to a gross profit of more than 28k per DAY!

And in the second report here, the Guinness Storehouse has announced that they will spend EUR 16m to expand the Storehouse, which includes a plan to double the size of the Gravity Bar on top of the building. Works will start in the beginning of 2018 and will be finished by 2019. Coincidentally the amount they will invest is “just” EUR 1 per visitor for ALL visitors since 2000: 16.5m visitors came to the Storehouse since it opened in 2000.

There is clearly a lot of money in Dublin…at least the pub and pub/drink-related businesses seem to have it.

Dublin, Economy, , ,

Back where we were before…and NOTHING learned! – House prices in Dublin

Written by Joerg Steegmueller
Back where we were before…and NOTHING learned! – House prices in Dublin

Just 9 years ago in 2008 the country nearly collapsed when the banks and the property market got in serious trouble. People couldn’t pay their mortgages anymore because they had paid too much for the properties they lived in and for investment properties and many are STILL hurting from the losses. But memory is a short term thing!!

Back then, the mess was created by builders overcharging to make a big profit and by buyers overpaying because they expected massive profits. Last weekend it seemed as if 2008 had never happened. I heard about it on Newstalk but after a good search found an article about it in the Irish Times: Twelve out of fifteen apartments in the Hanover Lofts development at Grand Canal Quay were sold over one single weekend! The price? The 4x one-bedroom apartments start at EUR 415,000 and the 11x two-bedroom apartments start at EUR 575,000.

The madness is back with a vengeance!

What does that mean for us? If you own a property you can celebrate because the price is definitely going up. And if you don’t won any property there are two options: Either start panicking because you need to buy NOW and not wait any longer. OR: RELAX!! The prices are already FAR beyond what is affordable for many. So no rush for your buying! Maybe there will be another crash, THEN it is your turn! ;-)

Dublin, Economy, Odd, Society, ,
 
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