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Softening house market?

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  • Registered Users Posts: 1,734 ✭✭✭Large bottle small glass


    There's no doubt in my mind that the current difficulty working people are having securing a home will have very significant political and societal consequences.

    Between funds buying up blocks of property, councils also buying blocks of houses (in south Tipp alone without even looking I'm aware of 4 full developments bought by Tipperary council) there is an extreme shortage of affordable housing.

    That along with childcare costs make buying a house today a very different things to generations ago.

    Getting a qualification, working hard is part of a social contract where you get rewarded by having security of housing, health care etc. That's in tatters for huge numbers of people.

    People who have comfortable lives ( and there's a lot of them, me included) are really unaware of the hardship.

    Coupled with the perception of free houses for people who don't or barely work along with increased immigration there is a time bomb waiting.

    Endlessly unsustainable increasing house prices aren't good for society in general but the comfortable don't realise that until it's their kids can't afford to buy a house.



  • Registered Users Posts: 19,265 ✭✭✭✭Donald Trump


    and a lot of couples that wanted to buy their own place won't have an issue with repayments of 1600 per month over a 30-year mortgage when they have been paying 2500 in rent.

    There is a fundamental difference between having a short term obligation in the form of your current rent and having a long term obligation sitting over your head. It can become even more pronounced at different stages of life



  • Administrators Posts: 53,648 Admin ✭✭✭✭✭awec


    Again, this was not said on this thread.

    People said that banks would raise their mortgage rates and their deposit rates slower than what many expected on here. People also said that banks would absorb some of the increases.

    When you compare and contrast how the banks have behaved compared to the non-bank lenders, it does seem like these people were bang on the money.



  • Registered Users Posts: 19,265 ✭✭✭✭Donald Trump



    It was. What you mean is that you didn't remember it being said, or that you don't read the posts where it being said.


    To be clear, I am not saying it was a widely held view on the thread, only that it was said. I am likely not the only other person who remembers it. It was along the lines of "the Irish banks don't need to raise their rates because they have so much deposits"



  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,472 CMod ✭✭✭✭Sierra Oscar


    We can all re-read the posts on this thread. They're there in black and white. It's not what people were saying, it seems like you're purposefully misinterpreting it. No one said the banks would not increase interest rates.



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  • Registered Users Posts: 19 Ficus Jam




  • Posts: 0 ✭✭✭ [Deleted User]


    I know this. What I'm saying is a lot of people won't consider this and will look at it short term.



  • Registered Users Posts: 242 ✭✭gaming_needs90


    I see little let up in prices here in Galway. Only started looking a few months ago so perhaps this is the norm but any house I have bid on has gone a decent bit above asking in bids, always from a low base. Perhaps this is normal, I don't know. Disheartening all the same.

    I can see why though, really there are at most one good house a week put up on Daft. More like one every two weeks if even.



  • Administrators Posts: 53,648 Admin ✭✭✭✭✭awec


    What am I missing here? That post does not say banks won't raise rates.



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  • Registered Users Posts: 827 ✭✭✭farmingquestion


    The only hope of ever fixing the housing disaster is external factors.

    The government do not want to fix it. They call semi Ds costing 425k as affordable.

    Our only hope is an economic crash which leads to immigrants emigrating to reduce demand.

    Some Irish will get burned but every young person renting is getting burned every day as it is.



  • Registered Users Posts: 10,837 ✭✭✭✭Furze99


    Yes I agree, it's very dispiriting. We have young adult children who have a reasonable expectation of working, living, renting and buying etc. And yet they are being squeezed on all sides and not least by competition from the state as it seeks to meet it's social housing and refugee obligations. Using our own taxpayers money against us.

    So it's not just these same young people who are increasingly angry at the state of affairs but also their parents. However on the other side, there is little real choice of government - it's FF/FG or SF with some small parties and independents. FF/FG have shown themselves to be inept but SF are equally undesirable. And that is what's dispiriting.

    Emigration again for our young people so they can get established elsewhere whilst we allow immigration with little or no controls. Gobshytes run this state.



  • Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,472 CMod ✭✭✭✭Sierra Oscar


    No where have I said the banks will not raise interest rates. I've pointed out that the larger banks will absorb the initial rate hikes, which they have done so. Those on this thread who predicted that the larger banks would pass on each and every interest rate rise have been proved wrong.

    Take Permanent PTSB for example. ECB have increased interest rates by 2% to date. PTSB have increased their rates by 0.45% in the same timeframe. They have absorbed the rest of the interest rate rises, something which the non-bank lenders have been unable to do. That's a fact.

    Thanks for proving my point, much appreciated.



  • Registered Users Posts: 5,073 ✭✭✭Padre_Pio


    Handbags down ladies



  • Registered Users Posts: 3,639 ✭✭✭RichardAnd


    The state is, at this stage, an engine of globalist agenda staffed by out rightly sinister individuals. It will do nothing to arrest the housing crisis because what we refer to as a crisis is a direct result of its own policies.  

    For my own part, I would gladly face personal financial ruin if it meant that this mess could be righted for the sake of my godson and those still to come.



  • Registered Users Posts: 12,520 ✭✭✭✭AdamD


    He literally says they were offsetting the early increases due to high deposits but later increases would filter through..



  • Registered Users Posts: 68,499 ✭✭✭✭L1011


    Conspiracy theories forum is a few down on the index. This type of post is not suitable here



  • Registered Users Posts: 68,499 ✭✭✭✭L1011


    Moderation is not to be replied to.



  • Registered Users Posts: 690 ✭✭✭al87987


    Just on the qualification point; my dad, my older brother and me all have the same qualification (ACCA) and qualified approx 50, 22 and 10 years ago.

    My dad bought a house when he was 25 on one income, had 4 kids and a very comfortable life.

    My older brother qualified 22 years ago during the Celtic tiger boom and lives an extremely comfortable life (millionaire).

    I qualified 10 years ago (post GFC) and live with my parents and my pregnant wife.

    I figured if I could do the same as them, I would live somewhat comfortably, but it's a struggle and daily grind in Ireland for most people under 40.

    The game looks the same but the rules have gotten a lot more difficult.



  • Registered Users Posts: 1,015 ✭✭✭Jonnyc135


    It really is a disaster, this isn't just Ireland either its across all western economies. The wealth divides created by bad policies ie. Low interest rates and constant QE have just created extreme wealth divides and polarisation.

    I think we need an absolute destruction of asset prices globally across all western economies inorder to bring things back to a more even reference point. As painful, depressing and miserable as that would be, it may be the only way to salvage the future.



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  • Registered Users Posts: 19,265 ✭✭✭✭Donald Trump



    If only you had never tasted that first succulent avocado.



  • Registered Users Posts: 2,066 ✭✭✭HerrKuehn


    The qualification might be the same, but maybe your career paths are very different? I know you couldn't just compare 2 software developers for example, the range would be huge.



  • Registered Users Posts: 1,786 ✭✭✭DownByTheGarden


    My brother and I have the same qualification. He is 2 years younger than I am. He is a shoulder to the wheel kind of person and will go for any promotion going. Im not really interested in trading more life for a promotion. While I do alright, he is earning easily twice as much as I am, because he had the luck, the contacts and the time put in to get where is is. While I have lots of family time now and treasure it, he is all about the job. Same qualification, different attitudes and different paths.

    If I did see me earning less than him as a problem, I wouldnt be attemoting to shift the blame to anyone but myself.



  • Registered Users Posts: 2,066 ✭✭✭HerrKuehn


    It sounds like different priorities, which is fine, everyone has to do whatever makes them happy.



  • Registered Users Posts: 19,943 ✭✭✭✭Cyrus


    As others have said you can take different accas and there can be a huge disparity in earning and how their career has gone, and people’s priorities will also be a factor.

    You could even take chartered accountants from the same intake at a big 4 and observe the same differences.



  • Registered Users Posts: 19,943 ✭✭✭✭Cyrus




  • Registered Users Posts: 6,205 ✭✭✭Claw Hammer


    Not a very comfortable life if he has an adult child and a daughteri-in -law and soon a grandchild living with him.



  • Registered Users Posts: 192 ✭✭IWW2900


    Everyone keeps looking at last crash and thinks we are in good shape in comparison now.

    They dont understand that each crash is different. This time around, easily available money has pushed up all asset prices. This has to unwind and everything will be hit, including artificial economies.



  • Administrators Posts: 53,648 Admin ✭✭✭✭✭awec


    They dont understand that each crash is different.

    This is quite the comment. There have been people making this point for years, but all they ever got in here was a sarcastic, snide and patronising "sure this time it's different" remark from posters like yourself who have been telling us all that an enormous crash is going to happen any day now for the past decade.

    Usually from the same people who make the sarcastic jokes about soft landings too.

    You are straw manning with this.



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  • Registered Users Posts: 192 ✭✭IWW2900


    When has rates last gone up?

    You realize we were getting to the point where you were charged negative interest for putting money in the bank.



This discussion has been closed.
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