alan kelly blames central bank for housing crisis

caff

\edit\ written in reaction to slightly misleading headline, so I will retract the idiot statement and reserve judgment on him for the near future untill we see how he handles the housing crisis \edit\



Personally I think he's an idiot, other opinions?
Front page of the sindo http://cf.broadsheet.ie/wp-content/uploads/2015/10/CSHZszFXIAAWsnd.jpg

I think the central bank rules are prudent and will prevent buyers over leveraging their earning potential. The deposit rules cater to a future drop in income though they limit the ability to purchase early in a career. The main barrier to home ownership is lack of stock imho. The cause of the lack of stock is the cost of housebuilding according to cif vs sale price. The bulk of this cost is gov taxes and land. Choices for gov are, reduces construction taxes, free up land ( allow high density construction, improve transport, free up landbanks ) prefential rates to developers or blame central banks to allow huge loans to buyers.which would they choose?

TheLastMohican

In the immortal words of Mandy Rice Davis, "He would say that, wouldn't he"!

vicwatson

Who in the fook is Alan Kelly anyway, he'll be forgotten about this time next year.

Duckworth_Luas

vicwatson wrote: »

Who in the fook is Alan Kelly anyway, he'll be forgotten about this time next year.

Played in goals for Ireland, I still remember him!

Eugene Norman

Proving that politicians are still morons.

Apparantly if we let people borrow what they wanted in a time of low supply and high demand everything would be dandy.


We need some kind of IQ test for politicians.

johnny osbourne

Duckworth_Luas wrote: »

Played in goals for Ireland, I still remember him!

moved to soccer forum

mickdw

After the prime time programme I saw a few weeks back, I'm now pretty sure there is no hope for this country.
I genuinely thought I would be an old man by the time I would see the same mistakes being made re inflating property prices etc but the stuff going on now is as if the bust never happened.
They had developers and estate agents seriously calling for relaxation of borrowing rules with politicians full on agreeing with them. Seemingly everyone would be happy once again to have developers throwing up houses at speed for inflated prices.
Nothing has been learned and tbh that being the case, political force will quickly bring lending into life with what suits.
The days of getting a mortgage based on a couple of pay slips or fake declared income are only around the corner.

johnny osbourne

mickdw wrote: »

After the prior time programme I saw a few weeks back, I'm now pretty sure there is no hope for this country.
I genuinely thought I would be an old man by the time I would see the same Keysoe being made re inflating property prices etc but the stuff going on now is as if the bust never happened.
They had developers and estate agents seriously calling for relaxation of borrowing rules with politicians full on agreeing with them. Seemingly everyone would be happy once again to have developers throwing up houses at speed for inflated prices.
Noggin had been learned and tbh that being the case, political force will quickly bring lending into life with what suits.
The days of getting a mortgage based on a couple of pay slips or fake declared income are only around the corner.

you can sing that

Eugene Norman

Where he is from you can buy houses for 50-100k. Clearly the central bank rules aren't hurting anybody with a job there. But in a country controlled by the logic of developers ( we won't build until boom time prices are back) the politicians dance to that fiddle. And this guy is in the so called party of labour.

The barber of chewbacca

History never repeats... Split Enz
“History doesn't repeat itself, but it does rhyme"... Mark Twain
I want to history to repeat and condemn another generation to debt... ALAN KELLY

DEFTLEFTHAND

Did fcuk all for North Tipp. If you think keeping the train station open in fcucking Roscrea is going to save your seat Alan you have another thing coming my son.

ytpe2r5bxkn0c1

OP did you actually read the piece or just look at the pretty picture you linked to?

Did you read lines like

He said the Central Bank rules are probably the right long-term policy,

Did you notice that the quote of "has wrecked" in the headline does not appear in the actual piece at all?

Amirani

Thank **** for independently run central banks tbh.

relax carry on

Stupidly misleading title for that article. He seems to blame developers for unrealistic profit expectations more than the lending rules.
The independent don't even try anymore, do they.

caff

Marlee Wooden Parrot wrote: »

OP did you actually read the piece or just look at the pretty picture you linked to?

Did you read lines like

Did you notice that the quote of "has wrecked" in the headline does not appear in the actual piece at all?

It wasn't online when I posted so yup I was working off the headline and what I could squintingly read from the front page pic

matrim

Here's the full link for the article

ben.schlomo

caff wrote: »

It wasn't online when I posted so yup I was working off the headline and what I could squintingly read from the front page pic

Nothing like an overblown headline to rile people up.

newacc2015

The central bank is to be independent of any government influence. Otherwise it defects the purpose of it. Imagine if house prices were dropping and then suddenly due to pressure from the government. The rules were relaxed, the house prices would rise again.

Alan Kelly is like Leo varadkar from 5 years ago. He was an opinion on everything. But knows nothing at all

caff

ben.schlomo wrote: »

Nothing like an overblown headline to rile people up.

Especially at 2am

practice

"Alan Kelly is like Leo varadkar from 5 years ago. He was an opinion on everything. But knows nothing at all"
At least Leo seems to have some idea what he is talking about.

Alan Kelly
Gave us 100 euro for not paying our bills.
Wants to use part of our property tax to pay for repairs to privately owned apartments in Dublin.
Tells me that in a few years I can make money from my waste.

And this man wants to lead the Labour party.

conorhal

relax carry on wrote: »

Stupidly misleading title for that article. He seems to blame developers for unrealistic profit expectations more than the lending rules.
The independent don't even try anymore, do they.

Meanwhile developers claim that the cost of building a house outstrips the cost that it will sell for.
The reason, the tax burden the government places on development to fill it's coffers.
Answer, remove the taxes and charges that ammount to 50% of the cost of building a house and place a site tax on development land to replace it so that it will be cheaper to build a houses then hoard land.

As for the governmet's role in spiraling rent costs:

If rising rents are such a moral issue for Kelly then why is the government driving their inflation?

1) LPT applied to the value of a property
2) USC applied to rental income
3) PRSI applied to rental income at 4% class S (but it doesn't get you the same benefits as Class A 4% employee contribution class.)
4) PTRB charges and per tenent registration.

And lets not forget that landlords were already paying out 52% tax on rental income.

If you're going to add three or four grand to the cost of managing a property then you can hardly be surprised when costs are passed on to customers.

If a landlord increases rent by €100 per month, and the tenant is a higher rate taxpayer, they must make over €200 per month in order to come out with €100 after tax.
Then the landlord receives the €100 and is forced to pay over 50% tax on that income.
So the tenant has to earn €200 for the landlord to receive a net of €50.
Of course we don't need to ask ourselves who the real net beneficary of this increece is now do we?

JacquesSon

How about they lend money from the ministerial pension fund to people who don't meet the minimum deposit requirements?

It's not like there's a risk they'll default or anything.

Quorom

The central bank did not help, first the light touch regulation of Fianna Fáil and then the knee jerk reaction of Fine Gael Government and then overregulation.

hardCopy

mickdw wrote: »

After the prime time programme I saw a few weeks back, I'm now pretty sure there is no hope for this country.
I genuinely thought I would be an old man by the time I would see the same mistakes being made re inflating property prices etc but the stuff going on now is as if the bust never happened.
They had developers and estate agents seriously calling for relaxation of borrowing rules with politicians full on agreeing with them. Seemingly everyone would be happy once again to have developers throwing up houses at speed for inflated prices.
Nothing has been learned and tbh that being the case, political force will quickly bring lending into life with what suits.
The days of getting a mortgage based on a couple of pay slips or fake declared income are only around the corner.

Don't forget the urgent need to reduce the minimum size and standard of new homes. Because it's just not worth it for developers.

God forbid we might reexamine our obsession with 4 story apartment blocks and allow them a little higher.