If a bank collapses in the coming downturn then most likely they will call on the govt to get them out of trouble whether we like it or not. Reference AIB in the 1980s - would have gone bust without the govt. Also reference current Fitch ratings on the banks which clearly states they have lent too much.
Secondly, as I stated before, lenders don't force anyone to take out a loan, are you suggesting that borrowers are incapable of making the decision for themselves, and that some government agency should make that decision for them?
But why? Its an artificial situation. There aren't many people in this country, there is plenty of land, and shedload of houses, about one in six of which is sitting empty, not even rented out. Therefore the prices have escalated at this demented rate due to extraordinary conditions, and when people could have their own housing, there is no reason why they shouldn't. Unless there are minority groups attempting to set the situation to recreate a landlord class, something I feel should be vigorously opposed. And there are a great many people who will feel the same. Not that it matters, the market is well on its way to resolving the situation all by itself.
I didn't say owning a house was a basic human right, for all the pedants in the crowd. Being denied home ownership in order to make certain groups more wealthy, however, thats a different story entirely. And knock off the guff about "no one is stopping them buying". With housing at 12 times average salaries, there may as well be a law in place for many people, and young families.
True, it's almost the other extreme. I doubt she complained about the size of the rent though - or that she could buy an apartment for about 100,000 Euro.
People who intend to live in a home mightn't be happy to buy off-plan so this is where speculators come in. They add liquidity to the market.
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I havent seen much of this. In my experience, there has been huge interest from ftb's to buy off plans. I've also found that investors usually have high percentages of units bought before they are even officially launched. This squeezing of new supply has had a large impact on prices and in my opinion should have been someway restricted by govt measures.
You think speculators never sell to speculators?
I havent seen much of this. In my experience, there has been huge interest from ftb's to buy off plans. I've also found that investors usually have high percentages of units bought before they are even officially launched. This squeezing of new supply has had a large impact on prices and in my opinion should have been someway restricted by govt measures.
Bleh. When you have a bunch of specuvestors juggling properties back and forth, proclaiming "Look see it got more expensive", while the banks lend out ever higher amounts of cash based on the leverage they have gained from their own properties already in existence, which FTBs can't afford since they have no such leverage, there's no reason on earth why they can't keep doing that forever.You've mentioned this several times. Either you have no understanding of how markets work or you are being deliberately disingenuous.
It doesn't matter if speculators sell to other speculators. Even if there is chain of 20 speculators flipping a 2 bed in the back of Ballivor, driving the eventual price up to €2M, it is for nothing if they cannot eventually sell it to someone who will use it (to live in or to let). So the eventual buyer is also responsible for the high prices. If they feel houses are overpriced they should stop buying them and the prices will come back down.
You speak as though the prices for housing are rising independently of those doing the buying.
And too many young people seem to be victims of their own excess. Thirteen per cent of 21 to 24-year-olds surveyed said that they had missed one or more mortgage payments in the past 12 months.
there's no reason on earth why they can't keep doing that forever.
Are those FTBs not also speculating? Since they are purchasing a house before it is ready in anticipation of the market price being higher when it is.
I bought because I found an apartment that i liked in a location that appealed to me, not because I thought it represented a potential capital gain. I purchased this property because I may not be another like it on the market for quite a while.
Bleh. When you have a bunch of specuvestors juggling properties back and forth, proclaiming "Look see it got more expensive", while the banks lend out ever higher amounts of cash based on the leverage they have gained from their own properties already in existence, which FTBs can't afford since they have no such leverage, there's no reason on earth why they can't keep doing that forever.
Unless interest rates rise and the money dries up.
Oops.
You speak as if you have little understanding of either what I am saying or of the marketplace.
I bought because I found an apartment that i liked in a location that appealed to me, not because I thought it represented a potential capital gain. I purchased this property because I may not be another like it on the market for quite a while. It was also ready within 4 months of purchase so again capital gain between purchase time and completion time was not an issue.
All of which is fair enough. What I don't understand is why housing should be different to anything else people want to buy. If I go into a wine shop I don't demand that my bottle of wine should be cheaper because I intend on drinking it that evening rather than placing it in a cellar with a view to selling it on at an inflated price in three years. If the bottle is too expensive I look for something else or don't buy.
And right there is where you miss the crucial point. Wealth didn't increase, debt increased. We're running debt at 190% of GDP. There are few people who are much richer now than in 2000; there are however a staggering number who are indebted to the eyeballs.Here's how I think it played out. There was a shortage of housing due to demographics and undersupply of new builds. This coupled with the country's increased wealth drove prices up (as people could afford to pay more for a commodity they wanted that was in short supply).
Well this is about public sentiment, after all. Its not a blame game, its about actions and consequences.Notice how the blame game has already started on this thread!
Government "interference" is the only thing that will make sure that this doesn't happen again. You are talking about laissez-faire economics, the survival of the fittest and the idea that monopolies will never exist.The last thing we need is more government interference in the market. Their ridiculous tax incentives and continual hyping of the housing market are one of the major reasons the bubble grew so big in the first place.