Originally Posted by BettyRB
Well, this thread makes sobering reading with the strong price growth predicted by most of you. Do people think this is a good thing? I'd of thought big mortgages suck the life out of other areas of the economy, we seem obsessed with high house prices though. I'm certainly priced out of Dublin, hope 2018 isn't too disastrous in term of rises but I fear the worst. Nobody is shouting stop either.
I don't think that anyone is denying that prices are going to rise- however, I'd argue that the 'strongly' part of the equation- is very location dependent. Most of Dublin is simply unaffordable for most- incomes have been creeping up at a far lower rate than house (and other) prices. According to the CSO average income in 2017 increased by 1.8% and IBEC are on the record predicting wage increases of 1.9% for 2018. This 'constraint' is concurrently being reported as a good thing- and simultaneously- heralded as proof that we have learnt a lesson from the bust 11 years ago- and are paying down debt, rather than spending (which is supported by Department of Finance income tax figures- which are at odds with below profile returns for alcohol, tobacco and other headings).
Dublin price rises- are tame in comparison to the rest of the country (and especially tame in comparison to the likes of Limerick- which just seems to be nuts- though Cork and Galway appear to be moderating, not at the same rate as Dublin- but heading in that direction.
Supply is increasing- and affordability- is rapidly becoming an issue- quite when the top of the market is called- is more a question of a time frame than a suggestion of a unicorn sighting- and is rapidly being viewed in this manner.
As for some people having gotten used to high prices- and a particular lifestyle- honestly- its vastly overstated- the bigger beneficiary of all of this- are multinational companies who bought Irish property during the downturn and aren't paying tax on their rental income- and the Revenue Commissioners themselves- who levy up to 54% tax on some small scale Irish landlords. This salient fact is very seldom mentioned in the media.
Irish prices- are nuts- and are costing us jobs- both Brexit related jobs and other multinational posts. Irish taxes- are making it impossible to remunerate Irish employees. Irish governments- have made working incredibly expensive- and seem to love having a high cost economy- which is destroying the lives of those who live here- and vastly costly in terms of the HSE and social welfare costs. Some deals- such as the incredibly expensive agreements with pharmaceutical companies- are hammering those who are doing their utmost just to get by.
There are lots of things wrong in the Irish economy- of which our house prices and rent levels- are just two items on the list. They are now (with the exception of some bizarre outliers- such as Limerick) moderating- we *need* to moderate the other costs in our economy before they sink us (keeping in mind our demographic time bomb is going to hit us in the next decade- about 10 years later than some other EU countries- but its there nonetheless).