Follow @PoliticsIE
 
 
 
Page 1 of 18 1234511 ... LastLast
Results 1 to 10 of 180

Thread: Is a further huge crash in house prices imminent?

  1. #1
    Politics.ie Member Glucose's Avatar
    Join Date
    Mar 2010
    Location
    C6H12O6
    Posts
    852
    Mentioned
    0 Post(s)

    Default Is a further huge crash in house prices imminent?

    The former chief executive of Bank of Ireland Michael Soden gave an interview with Ivan Yates on the breakfast show on Newstalk just before 8 this morning.

    Did anyone else hear it?

    I found it extraordinary.

    He basically said NAMA was continuing to cause paralysis in the property sector and that NAMA needed to start unloading its property portfolio on to the market.

    Doesn't that not make a mockery of the Governments stance on NAMA?
    Beware of imposter Miss Piggy's on P.ie. There is only one Miss Piggy on P.ie. The others can FROG OFF.

  2. #2
    Politics.ie Member nonpartyboy's Avatar
    Join Date
    Dec 2006
    Posts
    6,848
    Mentioned
    0 Post(s)

    Default

    The govt have just about made every mistake they possibly could, Nama was effectively designed to stop property prices falling. If you then cut the income of every person in the country, how can they be expected to afford current prices ? It's the worst of both worlds. House prices will go where they are going , it is simply inevitable but this government will have pissed away further billions in a vain attempt to prevent.

  3. #3
    Politics.ie Member ballot stuffer's Avatar
    Join Date
    May 2007
    Location
    52.617,-6.778
    Posts
    1,503
    Mentioned
    0 Post(s)

    Default

    Unemployment, mortgage arrears, crippled banks, reduced wages, huge unsold housing stock the list goes on.
    I can't think of any compelling reason why prices won't crash. NAMA is just delaying the inevitable.
    Sow the wind, reap the whirlwind.

  4. #4
    Politics.ie Member
    Join Date
    Sep 2010
    Posts
    334
    Mentioned
    0 Post(s)

    Default

    Nope. The social welfare system has established a rent floor. Therefore, a property's minimum value is x20 the 11 month rent.

  5. #5
    Politics.ie Member
    Join Date
    Jul 2008
    Location
    Dublin
    Posts
    13,428
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Glucose View Post
    The former chief executive of Bank of Ireland Michael Soden gave an interview with Ivan Yates on the breakfast show on Newstalk just before 8 this morning.

    Did anyone else hear it?

    I found it extraordinary.

    He basically said NAMA was continuing to cause paralysis in the property sector and that NAMA needed to start unloading its property portfolio on to the market.

    Doesn't that not make a mockery of the Governments stance on NAMA?
    Yes, I heard it. Even if it is aimed at 'sorting out' banks, NAMA is a massive intervention in the property market. And so many vested interests in the property market (now including NAMA) want to keep prices up.

    But the economy won't start moving again until prices and costs return to levels which relate to people's incomes. Wittering on about increases in exports in terms of GDP is only further evidence that the Irish state is unable to accept the facts of life the real economy.

    When Michael Soden opined that property decline still has further to go, even if we may be close to the bottom, he's confirming what the dogs in the street know - that the economy is still in recession, and we're doing relatively little to rectify the problems on the ground.

  6. #6
    Politics.ie Member 'orebel's Avatar
    Join Date
    Nov 2009
    Location
    In corrigible
    Posts
    20,288
    Mentioned
    2 Post(s)

    Default

    Quote Originally Posted by Glucose View Post
    The former chief executive of Bank of Ireland Michael Soden gave an interview with Ivan Yates on the breakfast show on Newstalk just before 8 this morning.

    Did anyone else hear it?

    I found it extraordinary.

    He basically said NAMA was continuing to cause paralysis in the property sector and that NAMA needed to start unloading its property portfolio on to the market.

    Doesn't that not make a mockery of the Governments stance on NAMA?
    The govt. stance on NAMA is a joke. The only effect NAMA is having is to keep the market stagnant. If property prices had been allowed to find their own level the market would have started moving again.
    As was said above, we have the worst of both possible worlds.


    NAMA money pit could be our economic Stalingrad

    Inexplicably, NAMA is our economic Stalingrad and it scares all sensible people. It is based on the “big lie” that to lose here would spell disaster. In fact, the opposite is the case. Why wouldn’t you want to invest in Ireland once the banks are wound down? You get a smart population, that isn’t being mortgaged for the mistakes of the few.

    The reason we must fight NAMA at every turn is because it is the economics of fanatics and the whole world can see this. It will keep money away from the country, not the other way around.
    Last edited by 'orebel; 24th September 2010 at 10:03 AM.
    "It is important therefore that I clarify to the House that in the first instance there are significant monies within Anglo-Irish to take the strain of loan losses arising over the next three or four years, before State support is engaged." Brian Lenihan 15/01/09

  7. #7
    Politics.ie Member Glucose's Avatar
    Join Date
    Mar 2010
    Location
    C6H12O6
    Posts
    852
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by firefighter View Post
    Nope. The social welfare system has established a rent floor. Therefore, a property's minimum value is x20 the 11 month rent.
    What Michael Soden is basically saying is that there needs to be a firesale/auction of the vast quantity of property assets NAMA is amassing to get the property market out of paralysis.
    Beware of imposter Miss Piggy's on P.ie. There is only one Miss Piggy on P.ie. The others can FROG OFF.

  8. #8
    Politics.ie Member LeDroit's Avatar
    Join Date
    Mar 2010
    Posts
    1,771
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by firefighter View Post
    Nope. The social welfare system has established a rent floor. Therefore, a property's minimum value is x20 the 11 month rent.
    +1

    The Govt through the SW system have set a false floor in rents and through NAMA have set up a false floor in purchase prices. Through their refusal to address existing commercial upward only leases, they have also set a false floor in commercial rents causing business closure and unemployment in the SME sector.

    The Market will not be bullied and will not be conned which is why we have stagnation across economy. Let the false floors go. The Market will re price, re boot and return to activity. Otherwise we will be sitting on a slow puncture deflationary bubble for decades.
    "A govt big enough to give you everything you want, is strong enough to take everything you have" Thomas Jefferson

  9. #9
    Politics.ie Member Glucose's Avatar
    Join Date
    Mar 2010
    Location
    C6H12O6
    Posts
    852
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by McDave View Post
    Yes, I heard it. Even if it is aimed at 'sorting out' banks, NAMA is a massive intervention in the property market. And so many vested interests in the property market (now including NAMA) want to keep prices up.

    But the economy won't start moving again until prices and costs return to levels which relate to people's incomes. Wittering on about increases in exports in terms of GDP is only further evidence that the Irish state is unable to accept the facts of life the real economy.

    When Michael Soden opined that property decline still has further to go, even if we may be close to the bottom, he's confirming what the dogs in the street know - that the economy is still in recession, and we're doing relatively little to rectify the problems on the ground.
    Thank god someone else heard it. I was more shocked hearing Michael Soden talk this morning then when i heard Brian Cowen on Morning Ireland last week.
    I literally looked at the radio.
    Beware of imposter Miss Piggy's on P.ie. There is only one Miss Piggy on P.ie. The others can FROG OFF.

  10. #10
    Politics.ie Member
    Join Date
    Feb 2009
    Posts
    465
    Mentioned
    0 Post(s)

    Default

    "He basically said NAMA was continuing to cause paralysis in the property sector and that NAMA needed to start unloading its property portfolio on to the market."
    .
    There could be a very good reason why NAMA is having a problem unloading its property portfolio on to the market and it could have something to do with 'title.'

Page 1 of 18 1234511 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •