What can be done to prevent another bubble

[Clanrickard]

While most of the focus is on how to dig us us out the hole we're in as per usual there is little or no effort being put into making sure it doesn't happen again. Yes the banks are tightening up but they are private companies and if the fizz returns then I expect prudence to fare less prominently against fat commissions. Only hard and fast rules can constrain greed.

I would like to see.....
1. Getting rid of any tax relief on mortgages.
2. A property tax. Family home exempt, maybe allow for a holiday home but after that you pay tax.
3. Use it or lose it. Was discussed a few years ago but as usual Zanu FF caved in. Anymore than say 4 acres and you're not a farmer then you must do something with it.
4. The Financial Regulator, hopeless case that he is, could redeem himself by laying down strict criteria for what property he considers an asset or not instead of allowing Banks to dicate the value of their assets.

We have squandered a huge oppurtunity so when the upswing comes we should be ready. Government should take away the incentives to invest in property and incentiveise investment in the productive economy like start up companies.

[Dreaded_Estate]

It's all about the mortgage lending IMO. Control that and I think you will prevent future bubbles.

Makes you wonder what the government is trying to do with its "help" for FTB's just announced

[Furze]

Only hard and fast rules can constrain greed.

I would like to see.....
1. Getting rid of any tax relief on mortgages.
2. A property tax. Family home exempt, maybe allow for a holiday home but after that you pay tax.
3. Use it or lose it. Was discussed a few years ago but as usual Zanu FF caved in. Anymore than say 4 acres and you're not a farmer then you must do something with it.
4. The Financial Regulator, hopeless case that he is, could redeem himself by laying down strict criteria for what property he considers an asset or not instead of allowing Banks to dicate the value of their assets.

We have squandered a huge oppurtunity so when the upswing comes we should be ready. Government should take away the incentives to invest in property and incentiveise investment in the productive economy like start up companies.

Why distort the market at all. Why should a "family home" be exempt.
Why should an old granny occupy a x bedroom house to retain for her greedy offspring under the guise of family home.

[droghedasouth]

Agree with:
1 Get rid of all mortgage interest relief.
2 Introduce a low level property tax to give some stable income to local authorities.

But in the main, there won't be another property bubble for a very long time because an entire generation are going to be scarred with the effects of this madness -wont be as long lasting as the aftermanth of the famine which lasted about 100 years, but this one is gooing to run very deep.

[constitutionus]

to be brutally honest theres nothing we can do to prevent another bubble.

the measures introduced after the great depression were adopted to prevent such a thing and within 80yrs were repealed so muppets could go mental "because this time its different"

the EXACT same thing will happen again with any leglislation introduced now.

it mightnt be in our life times but you can be assured the fools will do it again. all to the cheerleaders of the day. its inevitable

in regards to what WE can do to now. simple financial rectitude on the part of the banks, that shouldve been applied from day ONE , would see off any possiblity of a bubble in our lifetime.

mortgage amount doesnt equal to 3x your wage an 10% down or less? Then you dont get the mortgage. simple as.

the rules and regulationary practices are there, the banks just have to start abiding by them again. personally i'd give the regulator the power to sue the hell out of a bank or financial institutions that violates "Best practice" . the only thing that puts manners on a bank is the prospect of losing dosh.

i dont exempt builders or gov from blame but the fact is the banks are the engine of this industry as without the recklessly loaned cash no purchase's could occur.

[drbob1972]

I would like to see.....
1. Getting rid of any tax relief on mortgages.
2. A property tax. Family home exempt, maybe allow for a holiday home but after that you pay tax.
3. Use it or lose it. Was discussed a few years ago but as usual Zanu FF caved in. Anymore than say 4 acres and you're not a farmer then you must do something with it.
4. The Financial Regulator, hopeless case that he is, could redeem himself by laying down strict criteria for what property he considers an asset or not instead of allowing Banks to dicate the value of their assets.

whilst i don't have any issues with 1 or 2 (though i can see real difficulties with same),i think 3 is a non runner, why can people not own land for what ever reason they wish ? personally i would very much like 20 or so acres for personal usage, not farming or any commerical usage, are you saying i should not be able to do so or should pay a prohibitative tax for the benefit ? A far more reasonable and practical solution would be a large taxation of any land that is rezoned to allow building, perhaps on a sliding scale up to 60 or so percent, as as we saw fields went from 200k to 20M with the stroke of a pen, this obliviously contributed massively to the boom and bust and created massive wealth for a small few out of nothing.......

[constitutionus]

hasnt something similar been done already?

im sure i heard somewhere that lands thatve been rezoned but not developled now face significant charges to re apply for the planning permission if theyve let it lapse.

or something to that effect.

basically means if youve a few acres for personal use you dont get hit but if your speculating by sitting on it you are.

[DeGaulle 2.0]

To prevent future bubbles:-

a) banks must value property at its longterm trend value - ie. an average house to be 3.5 x average income (or whatever the exact ratio is)

b) all property advertising to include the longterm trend value (eg. 3-bed semi, Acme Estate price 500,000 - longterm trend value 250,000)

c) foreign currency mortgages to be banned

I would suggest the following small initiative also - the government should hold a competition for designing family-friendly apartments at a realistic cost. The prize would be that the government would ensure that some of the best designs were build in Dublin and possibly elsewhere. This would be an extremely small scheme but might provide a template for when building resumes in a few years time.

[lostexpectation]

nothing boom and bust is ff policy

[Clanrickard]

whilst i don't have any issues with 1 or 2 (though i can see real difficulties with same),i think 3 is a non runner, why can people not own land for what ever reason they wish ? personally i would very much like 20 or so acres for personal usage, not farming or any commerical usage, are you saying i should not be able to do so or should pay a prohibitative tax for the benefit ? A far more reasonable and practical solution would be a large taxation of any land that is rezoned to allow building, perhaps on a sliding scale up to 60 or so percent, as as we saw fields went from 200k to 20M with the stroke of a pen, this obliviously contributed massively to the boom and bust and created massive wealth for a small few out of nothing.......

Faor points. I agree your proposal has merit. But there should some restriction on complete enjoyment of land by one individual especially in scenic areas. Say a cap of 10 acres. Otherwise you could get people cordening off land in vast swathes. This island isn't big enough for ranches.