Irish Property Market chat II - *read mod note post #1 before posting*

I do recall an interview on primetime with Eoin where he said he was trying to attract pension funds looking for secure stable income closely linked to inflation. Your talking about people at pension age looking for income that tracks inflation. This scheme closely matches that customer requirement so if it were a rental solution maybe you could bypass the banks for funding. Said pension funds were completely put off by the speculative nature of the Irish market.

FFG are wedded to developers and speculative finance. These people will run rings around FFG and take taxpayers to the cleaners and FFG buddies will be minted in the process.

FFG's sole skill in this process is creating the illusion that they are the taxpayers and first time buyers friend. Amazingly they are getting away with it while most ftb are shopping in the uninterfered market of used homes.

This morning it was announced that they are increasing the funding for the first home scheme with the liklihood of more rate cuts in the short term. We could well be entering the phase equivilant to 100% mortgages in the noughties.

The next election is the last chance to avert another disaster and it will be missed just like the multiple opportunities that have been missed over the last decade

This is a very poor use of ‘data’ to draw a really poor conclusion!

The Irish data is individual income to home price ratio. You’re quoting USA household income to home price ratio. And even the basis of that data is questionable. Median US home prices are $420k. Median household US income is c.$70k.

The official looking graph is posted by the account of a sensationalist lunatic linking to his own website!

The median US home price to median individual income ratio is at least as high as Ireland (likely a bit higher) AND they have mortgage interest rates almost double ours.

House purchasing in Ireland is astronomically more affordable than the US, and indeed more affordable than pretty much all first world countries.

It's an "official looking graph" because the man claims the data is sourced from Zillow, the Case Shiller House Price Index and the US census bureau, which claim is either true or untrue.

It looks correct to me because if you are familiar with this subject you already know the US price-to-income ratio is normally given as multiples of high 3 to 4 something while Ireland is usually multiples of high 7 to 9, in recent years. Look around then internet and read multiple sources if you doubt this.

The US has had lower house to price income multiples than most countries in the world for a long time (and even now, though QE is causing multiples to escalate) for a specific reason: because the global reserve status of the dollar helps to create a floor underneath domestic US asset prices.

Not sure of the number there, are they using dual incomes?

Median US house price is approx $415000

Average full-time salary is approx $60,000

House price to salary ratio of 6.9

The US is made up of many markets, so houses in places like SF, NY, and Boston could be extremely expensive, and places like Houston or Florida, are much more affordable.

there will be plenty of rent increases before xmas so

Maybe but I dont think SF or Mary Lou will be in government after the November election.

No no…anyone seen to be ripping of the nations coffers gets kneecapped.

so where is the 39 billion coming from to fund these houses - is SF planning income and property tax rises, will they be as bad as the greens.?