Never to own a home of your own, thanks Fianna Fáil!

[untouchable]

May I comment on the recently published study of the Dublin housing market by Trinity professor P.J. Drudy.
Let it not be forgotten that the banks and building societies are also in criminal partnership with Fianna Fail in the greatest rip off of the century ,of our young people so desperate to own a home of their own, at any price.If these amoral,greedy, profit driven organizations were using prudent lending criteria and the old rules which restricted loans to a multiple of annual income were still in force the housing rip off would come to a standstill.The same banks,which aided and abetted thousands of businessmen to avoid paying their taxes through off shore a and fraudulent 'non resident'accounts ,and got off virtually scott free for their crimes-are now complicit in the great housing gouge of our young by 'Friends of Fianna Fail.'Fianna Fail will never -and can never- reform the status quo, as their relationship with landowners,builders and big business is so intertwined as to preclude that possibility.The current Oireachtas report and recommendations on reform, will gather dust, in government Archives,as did the last report on this subject commissioned over a decade ago.Fianna Fail is 'Big Business' ;Fianna Fail is 'The Builders Party';Fianna Fail is the Embodiment of Corruption since the day that C.J.H.hijacked it,many years past.I do not believe it is capable of re-inventing itself.Even now 'Cu Cullen is driving new highways out from 'The Pale,cutting across our most precious heritage,The Hill Of Tara in the process-,having soaked Dublins citizens dry,-the new speculators,farmers,and landowners of the hinterlands,await the arrival of our dispossed youth,who will be fleeced once again in the towns of Navan ,Trim,Kells,etc,and face a long (and expensive )commute into Dublin,- all for the privilege of owining a home of their own.Civil servants -,who dont want to leave-can consider themselves lucky!-they won't have so far to travel for gainful employment thanks to their forced repatriation.If this government are allowed to continue with their depredation and exploitation of our young people it will be an unforgivable crime,and all those who propose to vote for them in the coming election must examine their conscience .
y



[Edited on 23/9/2004 by David Cochrane]

[Cork]

Never to own a home of your own,-Thanks fianna Fail1

We live in a free market economy not in Cuba. House prices are determined by supply & demand.

More houses are being built in this country than any time in thw past.

But ignore the facts & blame FF.

People themselves are paying crazy prices for houses. But don't blame them - blame FF.

People are paying crazy money for houses in "snob areas" but again - lets blame the government.

Can people cannot accept that we live in a market economy?

When interest rates go up - these peeople will be ringing up RTE radio saying that they can't afford their mortgages.

Again - thei'll blame the government.

[KingKane]

Cork, are you sure you are sitting down, cos it sounds like you talking through your rear end there.

"House prices are determined by supply & demand." Supply and demand can only work where the production cycle is not unnaturally restrained. Zoning and the finite amount of land available for development means that the normal rules of supply and demand don't apply.

"More houses are being built in this country than any time in thw past." So, what! In the past, Ireland was historically a country of emigration, so housing production levels were never close to the demand that the demographics would have required. Last January, 03 the number of housing starts dropped compared to the previous year, 02 because there was a hint that prices might level out.

See the facts & blame FF.

"People themselves are paying crazy prices for houses. But don't blame them - blame FF.
People are paying crazy money for houses in "snob areas" but again - lets blame the government."

People are paying crazy money for houses all over the place, snob areas and dumps. The fact is that we've completely bought this idiotic idea that investors are needed to drive a profitable housing market. The only reason that many people are renting from the investor market is because they have been pricing out from buying.

[Dera]

KK, hear, hear.

Cork - you comments are childish and naive, there is no such thing as a free market, they are always guided and controlled.

[geraghd]

This free market thing is the solution to everything it seems for some people..
As the housing market testifies it doesnt always work out.. and FF/PDs are to blame for doing nothing about it..
Well done KK..
And YFG are the only ones that seem to be pushing the agenda for change in the houseing market..

[abhaile]

Some links relevant to the PJ Drudy Report

http://www.labour.ie/press/detail.tmpl? ... 0409132511

http://www.irishexaminer.com/pport/web/ ... 2fa91M.asp

According to Prof Drudy's report, almost half of those living in Dublin and a third of those living nationally will not be able to afford their own home in two years' time.




Deputy Gilmore expressed the urgency of the situation by revealing that a couple hoping to buy a new house in Dublin would now need a combined income of about €90,000.


It is debatable if an amendment to the constitution is required to allow government to take action to minimize the supernormal profits been "earned" by land speculators. That said there needs to be government will to take action on behalf of young people been squeezed out of the property market.

Unfortunately, I guess we all know were this government’s sympathies lie, based on their inaction on this issue.

[crosswind]

To be fair i don't think any government has really tackled this issue properly. The kenny report came out around 1973, unfortunately that was the year of the first oil crisis which hurt world economies and so there was no big need to tackle housing prices head on (I am assuming). The big pressure started in the mid nineties but has become particularly acute in the past three years. People say that it isn't a problem, the market is king. unfortunately huge house price inflation has damaged economies before, britain was hurt and the Japanese dug themselves into a hole with it that some might say they still haven't fully recovered from. To be honest i don't think this government has what it takes to intervene in the housing market. If they do it they'll probably cause the crash they are trying to avoid.

[geraghd]

would a crash be such a big problem?

[crosswind]

YES
people who have taken out big mortgages which may be as much as 90% of the total house price would be sitting on something called negative equity. ie their mortgage is more than the value of the house. If there was a difficulty in payments and the bank foreclosed then the owner(s) would be backrupt. Tax revenues would suffer as people make loses on houses they bought and then sell, there would be a slump in demand for new houses inherent in a crash thus the building industry which has been irelands powerhouse for the past couple of years would stall.
THis would probably spill over into higher taxes because of reduced government revenue, more people demanding social housing and unemployment from the building indutry losing jobs. less jobs means less demand for houses...it becomes a spiral....Crash! that's just one possible scenario with over-simplification.

[geraghd]

i understand the negative equity aspect but the difficulty in payments would be the same even if the morgage was overvaluing the house right?
If there is a slump in demand then would demand not come close to supply in that case and so the building industry would still build the smae level of houses even more since demand is way over supply at this stage?
How would tax revenue sufffer is people sell houses? i mean i can understand the some revenue would be lost but hardly enough to increase taxes and already the govt are making a absolute killing on houses already off the backs of people trying to fork out extortionist prices for homes..