Dublin property prices falling by €4,500 a month

[Libero]

I reckon, in the event of a housing bust severely hurting the economy, people will start looking at heavy taxes on those owning property abroad. Somthing like 50% of the value of the foreign property would possibly be the figure seen to be in the national interest.

They might use that tax windfall to build excellence in the economy via high-level training, plus a good social welfare hike for those made jobless by the collapse.

How would Revenue have a clue about who owns property abroad?

Besides, I think those throwing money at overseas property have done us a favour. Most of these investors clearly have property on the brain to an irrational level, looking at the appetite to buy shoeboxes in some hole in Bulgaria that they'd never have thought of visiting other to look at their investment. Even those plumping for saner locales like Germany haven't displayed much nous. Reports from various property investment exhibitions point to herd mentality.
So my point is, had they not invested overseas, they'd just have invested more and more here in Ireland - driving the bubble up further. Equities and fixed income investments aren't on their radar screens so it's just as well that when they go nuts for property, they do it somewhere else.

[feargach]

Tax officials usually have ways of finding these things out...

To properly answer your question I'd have to say "whatever it is the IRS do in America to find out about foreign property owned by Americans, is what the Irish could do"

Off the top of my head, I would think that paying informants in foreign property agencies to alert the tax authorities to Irish people holding property through their business would be a productive way to go.

What do our authorities do when a rep comes from a foreign state claiming that a given business is aiding a foreigner in evading his tax liability in his native land?

[kerrynorth]

Latest mortgage data states that the volume of mortgages taken out in Q1 is down 19% on Q1 2006. FTB's are down 10%, those moving home are down 25%. The only growth was in those re-mortgaging which was up 5.8%.

[Anorakphobia]

Latest mortgage data states that the volume of mortgages taken out in Q1 is down 19% on Q1 2006. FTB's are down 10%, those moving home are down 25%. The only growth was in those re-mortgaging which was up 5.8%.

I assume the re-mortgages are poor sods in Rochfortsbridge topping up to 120% to pay for their mortgage increases.
Flippancy aside, dire figures but the most depressing aspect is the number of people who are calling those who express fears crackpots and panic merchants.

[hmmm]

Flippancy aside, dire figures but the most depressing aspect is the number of people who are calling those who express fears crackpots and panic merchants.

It appears to be unpatriotic to interfere in the gouging of naive young people by our financial institutions.

[kerrynorth]

Flippancy aside, dire figures but the most depressing aspect is the number of people who are calling those who express fears crackpots and panic merchants.

It appears to be unpatriotic to interfere in the gouging of naive young people by our financial institutions.

Downright criminal in fact!

[Edo]

Very very good piece of commentary from Finfacts and should be read and be food for thought for folks from all political persuasions.

This kind of long term thinking is badly absent from economic commentary at the moment , which seems to compose entirely of debating the ups and downs of the property market



http://www.finfacts.com/irelandbusiness ... 0263.shtml

[dermo88]

Feargach

Off the top of my head, I would think that paying informants in foreign property agencies to alert the tax authorities to Irish people holding property through their business would be a productive way to go.

Thats a scary thought. I thought communism was eliminated in Eastern Europe sometime around 1990.

Informants

Jesus Christ, I thought we dealt with these kind of people during the war of Independence.

[kerrynorth]

Well. well, well....... welcome AIB and some other analysts to the truth! For the first time Irish financial institutions are talking about ECB rates reaching at least 4.75 or 5% before they halt rising. Now, Sidewinder and I have been saying this on p.ie for the last 6-9 months to anyone who would listen. Of course, we were derided as Jeremiahs by other posters who have their heads stuck up the ass of their party or finanical institution as the case maybe: but there you go!

The only question I have is where do I send the bill for the consultancy servcies Dave?

Damn I shouldn't have winked at Dave, that could interpreted as a bit gay, he will close the thread down now I suppose.

[Akrasia]

The AIB are also forecasting a 2% drop in average house prices this year. They were previously projecting a 3% increase so it's a 5% swing.

And we all know how 'conservative' bank forecasts are. They don't want to spook the market if at all they can avoid it, so when they say there will be a 2% average drop, they are most likely privately expecting a drop of at least twice that at the moment (and we are certain to see even these estimates revised in the coming months as the momentum of the crash picks up)