http://www.independent.ie/national-news ... 95610.html
The government have come out saying that the housing market is "readjusting". Something has to be pretty f*cked before FF ever admit to anything.
There is absolutely no consolation in saying I told you so. I heard Batt O'Keeffe on "Morning Ireland" this morning (in between hos dog barking). He as much as said, well it's your own fault for not exercising caution.
Some ppl want it both ways. If the price goes up the cry is "we can't afford a house". If the price goes down its a crisis. As long as demand doesn't collapse it should be okay. It's time certain people realised that we are not prepared to pay extortionate prices no more.
It's also time to realise that if there is a price crash, FF and the PDs are the ones to blame for it.
The blame for this lies fairly and squarely at the feet of greedy real estate agents and home owners. By demanding higher and higher prices for their properties they have caused young people to over extend themselves dramatically to get a foot on the property ladder. This is highly reminiscent of the UK in the late 80's, early 90's and will go the same way - record numbers of repossessions and serious negative equity. House prices are way too high in Ireland compared to the rest of europe and there needs to be a levelling out.
One of the moderators on here really wrecks my head with his/her power mad ego
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Darn that pesky population buying houses at 2.75% interest rates when the govt kept shouting that there would be no downturn. I was shot down when I tried to warn of this.Originally Posted by FutureTaoiseach
If you bought one year ago on a variable mortgage rate e.g. 400k at 2.75%, you would now have a house worth 360% and be paying 3.75%.
This is not about people cribbing.
Ironically FT, if the PDs had stuck to their principles of economic liberalism, and had the authority to implement policies, it would not have made any real difference so I am not blaming you. I don't even blame FF. However if people bought on the belief that there would be a soft landing, there is going to be no consolation in saying that FF told us it would be different. This is reality!
Strongly disagree that FF/PDs are the ones to blame. Neither are estate agents.
Aindriu you are right about house prices being high compared to the rest of the EU. I go to LA a lot, and what 400 K EUR (about half a million USD) will get you there is phenominal, even in a good area. You can get a great house for about 1 million USD (less than 800K EUR) in Glendale (upper middle class area of north eastern LA). Even in California people seem more educated about booms and hysteria!
If they didn't cause it, they have done nothing to stop it happening. The reason they're dropping is because they're overvalued and if something like capping land values was introduced a few years ago the prices wouldn't have inflated to such a degree.
Wolverine, I have absolutely no interest in defending FF here, but what you suggested, capping land values, would not have worked. I agree that they have done nothing to stop it. And as ever in any economic downturn the wealthier in society (myself included, or my dad to be precise as I am poor) will be indemnified against losses.
Capping land prices would have no affect on house prices. It is ridiculous to think that the cost of anything would have a huge impact on its price. Land costs barely doubled in the last fifteen years, but house prices went up eight fold. Plus it would be very hard to tell a poor farmer looking for comfortable retirement that their one an only asset would be forceably sold below market value.
The incredible demand is what drove house prices. A combination of ridiculous mortgage policies, hype driven by the media, FF driving the hype to keep the spin on tax take going, etc are all contributing factors!
This is not news.
Anyone who can read knew this was on the way. It was even on the Telly for the convenience of the illiterate.
Problem was the election got in the way, so FF had to wait a respectful period after their victory before telling us, the lowly citizen.
Just like they did with PPARS.
Just like they are probably going to do with Evoting.
How much more shlte can they condemn now that they fanfared pre-election?
Part 5 of the planning Act?
De-centralisation?
We should have all the back tracking out of the way by Christmas. The plan would be to bury the dead horses and get the electorate to forget before the Locals start up in '09.
Under Review.
Line 2.
There is, as usual, no one party to blame for our hyper-inflated property market. All participants (land owners, property owners, lending institutions, estate agents, media and government) have all played some part in our speculation price based property market. I could categorise the various affects each particpant's actions played in getting to this stage but these are well documented by now.
As I believe that all politics are local, I was given a new insight into some young people's thinking over the weekend. My neice and several of her friends are going abroad (mostly the UK) to continue their eductation. The primary reasons for leaving were: 1. choice and flexibility of educational courses 2. cost of living in Ireland (they want affordable housing etc after they complete their educations).
As I work in the housing construction industry, I wonder if the next upswing will be anywhere as near good as the old. How long will it take for the next upswing to occur?
A society of sheep must in time beget a government of wolves. (B. de Jouvenel)
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