We all know that the housing market is in the toilet at the moment. The banks, estate agents* and developers are desperately trying to avoid a big whallop. Would it be better if we just took the pain and rebuilt the economy from a low base in a more export focussed and healthy manner?
*It could be said that the estate agents want a big whallop as long as it get's the market moving.
The future saviour of the Irish Economy:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
A big wallop will bring down at least one bank with it. Maybe that's inevitable, but you can bet that they'll resist it tooth and nail
Actual morality is doing what is right regardless of what you're told. Religious morality is doing what you're told, regardless of if it's right.
Yup.
Artifically inflating it is just that - keeping it at an artificial level.
And why should people who made an investment like property be bailed out by the exchequer?
Will I get a cut in CGT to reimburse me for my (hypothetical) losses on the stock market recently?
I also agree with the rebuilding of the economy sentiment.
yes. but i would have advocated this approach two and a half to three years ago. I remember seeing a cabinet member, possibly brennan, on Q&A around then talking about the boom and its effect of maximising economic growth and thinking "would a policy of sustained economic growth not be preferable?". Now we have to deal with the effects of a retracting industry.
Sure some people made a load of money, but that is just other people's debt. And we employed a load of people that now have to be laid off and possibly supported through the social welfare system. We unneceassarily created all these problems because the government were too short sighted to do anything about it (like encourage the central bank to slap down retail banks on their loose lending policies)
Michael Courtney,
Lusk
That's why the banks are playing down the drops and the estate agents are playing them up. It was a thread on ThePropertyPin.com that made me think of this. They reckon the Vested Interests now have conflicting interests in the message they must get across.Originally Posted by Akrasia
The future saviour of the Irish Economy:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Don't hold your breath waiting for this bubble to burst!
We have been told for the last few months that it's going to blow yet what we have seen is house prices drop back over the year about 10%. This hasn't hurt anyone except last year's first time buyers. The rest of the property owners made their gains a few years ago.
It looks more likely since interest rates are still low that the decline will be more gradual. Again it really only affects first time buyers financially, but they drive the rest of the market. I'm not sure the stagnation is going to affect anyone except sellers who have to make quick sales and the odd developer who may have over-reached during the good times. Most seller/buyers are looking to move house and the differentials are remaining much the same along the spectrum of the property ladder.
Another 10% drop this year won't hurt too many people either.
Politicians are the same all over. They promise to build a bridge even where there there is no river. - Nikita Khrushchev
Let the market find it own base.
No government interference (2 bacon and 2 goes at stamp duty are enough). Positive or negative.
No bailouts. Tough luck to losers - commercial or residential. People and business must pay for their poor choices eg 100% interest only mortgage in Meath miles from anywhere or lending to those fools.
We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns — the ones we don't know we don't know.
You can set off captial losses against any capital gains. Has to be in the same tax year though. Sell many sites on the farm last year to offset those ISEQ losses Meri?
Actual morality is doing what is right regardless of what you're told. Religious morality is doing what you're told, regardless of if it's right.
That's if you believe those figures. As for who gets hurt. It's not just house owners. You also have people working for estate agents, mortgage lenders, developers, solicitors and all the different support services.
As long as the interest portion of a mortgage for a property is greater than the rent it is unattractive to buy. Interest rates aren't that low.
The EAs will be laughing. The banks and developers will not.
The future saviour of the Irish Economy:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
LinkBack URL
About LinkBacks
Reply With Quote