And so it begins…

cranes dublin

In 2006 the Irish government and Irish banks stimulated an already over-heating property market by providing tax breaks and 95 and 100% mortgages to first time buyers. The result was economic Armageddon, the government guaranteed the banks and the Irish taxpayers footed the bill.

In 2014 the Irish government announces plans to stimulate an overheating property market by offering to guarantee mortgages as high as 95% for first time buyers with Irish taxpayers on the hook for any future default.

Are we really going to do this all over again???

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This entry was posted in Economy, Ireland, Property and tagged , , , , , . Bookmark the permalink.

9 Responses to And so it begins…

  1. mudpilewood says:

    Hi, I’m Irish (Maria) and not really proud of it when I read this. We seem to have lost all common sense and logic. I would start ranting but I know that is useless what we need is action,

    • rjmackin says:

      I know! It’s pretty depressing that the people who are supposed to be running the country are going to repeat the exact same mistakes that got us into this mess in the first place… have we really learnt nothing… Supply is the major issue with the housing market, so they should focus on getting NAMA to release some of the stock they’re sitting on instead of looking after their developer buddies who brought the country to its knees with their greed…

  2. You have got to be kidding me.

  3. I’m actually in favour of that tax on (against) developers sitting on parcels of city land and not developing them, because we do have a housing supply side problem again, especially in Dublin. You can’t let developers buy up all the available land, then sit on it, (squeezing supply, as demand rises) waiting for prices (and their profits) to rise ever higher. So a non-use tax on land like this is necessary, I think.
    I agree with you though about the mortgage support scheme; utter and Groundhog) madness.
    Did they learn nothing? What a pack of clowns.

    • rjmackin says:

      I think NAMA has a big role to play in this as well, as they are sitting on a substantial stock of land and housing units. There’s also the question of rezoning land that had been approved for apartment developments to be changed to houses, as that seems to be where the greatest demand lies… but the idea that we’re about to do all the same things that fuelled the collapse last time round is pretty terrifying….

      • I agree that NAMA has to be part of answer. As major land and property holders, they are a huge part of the equation. But there’s a big dilemma here, because of of course they took over all that land & property as security and compensation for the huge, extraordinary debts they re-paid, with Our money.
        So, although we’ve all sort of accepted a massive loss, we still, quite rightly, expect them to try and get as much of our money back as possible, by not selling it off too cheap. Tricky one, no?
        I think NAMA land should be made available, at reasonable prices, to developers who make a verifiable, and enforceable, commitment to
        a- provide decent % of social housing,
        and b- develop on best principals (sustainability, low-energy, mixed use,community and public spaces, landscaping and greening etc, etc)

        I’d be prepared to accept a big loss on that basis. I think a lot of Irish people would.

      • rjmackin says:

        Although NAMA are selling off loans at enormous losses every day. At least if it was sold to provide much needed housing, it would serve some good. And 100% agree on best practice in relation to planning. I guess it would be the first time we’ve seen it in this country! Ethical, socially responsible housing developments with decent infrastructure and quality, eco friendly materials…. but sure what’s in it for the county councillors!?!!?

  4. Yep, I agree, hear you loud and clear. “Our” track record in this area is so dismal, utterly depressing, its impossible to feel optimistic about them doing anything right. We can hope. But we won’t hold our breath though.

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