Property crash in Dublin

national | miscellaneous | news report

Wednesday September 25, 2002 04:16

by Truthfully - lets be honest

Irishpropertycrash at hotmail dot com

negative equity - get while you can

There is going to be a property crash in Ireland and a lot of people are going to be left in negative equity having over-borrowed beyond their means - the banks are partly to blame for lending 5 times peoples salaries. They wont mind because they can repossess all the property from people who can no longer pay. The economy in Ireland and world-wide is going down the toilet and it will hit the property market here soon. Housing prices rose last month but the bubble is so big its going to burst at any moment.

There is going to be a property crash in Ireland and a lot of people are going to be left in negative equity having over borrowed beyond their means - the banks are partly to blame by lending 5 times peoples salaries(2.5 times is normal). They wont mind because they can repossess all the property from people who can no longer pay.

The economy in Ireland and world-wide is going down the toilet and it will hit property here soon. Housing prices rose last month but the bubble is so big its going to burst at any moment.

None of the mainstream press want to report this because of the revenue they get from property ads.

Estate agents will not admit it because they dont want to shake the confidence of people who are speculating in property.

Banks are happy to keep lending as much as possible - they can always repossess the property and leave you homeless. A recent trend is for banks to give 150% mortgages to speculators so they can buy a property and then go looking for another.

Think of that next time you turn up to an auction and wonder why the price went so far over the guide price.
Think of it when you are out looking for a place to live and are wondering why the rent is so high and the property is such a dive.

Consider for a moment:
5000 thousand people homeless in Ireland.
People dying from cold in winter nights while sleeping on the streets. "Civilised", "Caring", "Catholic" Ireland.

With so many speculators in the market this means that prices are artificially high and bear no relationship to a real marketplace in which people buying intend to use the property for their own use and money lenders behave responsibly and lend realistically. The Irish property market is bulging from speculators, greedy estate agents and greedy banks.

Thailand was a tiger economy a few years ago, just like Ireland and there was the same over valued property market there too. People wanted to believe the economy would grow and grow, they thought they had control over it. But it all ended in tears thanks to the speculators who care about nothing but profit for themselves. 20% of the population plunged into poverty, banks went bust, investment evaporated, the currency took a nose dive as did the whole property market.

The fact that there are no tenant rights and no rent controls in this country only encourages speculators into the market. The fact that most landlords are not registered, dont declare rent in their tax returns and are not chased by the taxman is just a cherry on a very big cake for them.

Currently 24% of landlords are registered and pay tax on rent.

I dont see McCreevy going after landlords in order to find extra tax revenue. Perhaps he owns property himself, perhaps he has lots of friends who do, perhaps lots of people who fund his party own vast tracts of property all over Ireland. Only theory not fact of course! Of course!!

The students know this(see the photo in the Indo 24/9/02 - USI launch the rent book for students). They might realise at some point that there are enough of them to decide what they want, demand it and get it.

Its amusing to see the trade unions negotiating pay deals with the government and not mentioning the property crisis. Getting and extra 10 quid a week when your rent has gone up by 30 isnt much use.

The government has spend hundreds of thousands of pounds on the Bacon reports(3 I think so far) - nothing was done and nothing has improved, might as well have flushed the money down the toilet.

The cost of living has risen dramatically in the last few years so that we are now the 2nd most expensive place to live in the euro zone.

Big companies have started moving out of Ireland to go to countries where labour and the cost of living is cheaper.
We are seeing an increase in unemployment which is going to get a lot worse.
So people here will no longer be able to afford to pay their mortgage and there will be mass repossessions by the banks who have over-lent and encouraged speculators.

None of the politicians will admit this because most of them are big land owners. They prefer to take a penny off the price of a pint rather than tackle the accelerated price inflation in the property market. But rent or mortgage repayments are the biggest bill people pay each week.

The whole situation is a scam between the estate agents and the money lenders and noone is talking about it. The more money that is lent by the banks and building societies the more money people turn up to auctions with. So a house that might have gone for 300,000 euro ends up going for 400,000. The estate agent gets a bigger chunk of money as a commission.

And the "new lucky owner" has to pay all that back over the new 30 years of their life. Some people call that a mortgage others call it debt slavery. Mainstream media is participating in a big lie, a big scam by not talking about this rot.

"Ah but the price of my house will rise in value!"

"But so will all the others. So where’s the gain? You still paid through the nose when you bought. And you will invariably borrow more when you next buy"

The banks are laughing all the way to the……………….
banks

This site is an ideal area to express your opinion on this subject since you wont hear about it anywhere else. If everyone else is muzzled and paralysed by vested interests then I suppose its up to us to discuss it.......................?

And if you have any doubts lets not forget that most of the tribunals, bar 1, came about from an ad put in the paper looking for information about corruption in the property market.