Budget moves on property speculation?

Budget moves on property speculation?
August 23, 2006 13:07

rte.ie/business/2006/0823/houses.html

The minister responsible for housing, Noel Ahern, has criticised financial institutions and property speculators for practices which he claims are adding to house price inflation.

Speaking at the publication of new figures showing that housing output continues to rise at record levels, the Minister said he would be speaking to the Minister for Finance about the possibility of introducing measures in the next Budget to curb property speculation.

The Government figures show that 51,752 homes were completed in the first seven months of this year, an increase of nearly 24% on the same period last year. The figure for the greater Dublin area was 16,982, an increase of 17.6%, according to the Department of Environment.

Mr Ahern said the number of new houses this year was likely to beat all previous records. Last year, 80,957 houses and apartments were completed. The data also show that 41,000 new houses were started in the first six months of this year, a 2.5% increase on the first half of 2005.

A breakdown of the seven-month figures show that house completions more than doubled in Monaghan and Sligo, while Kildare showed a 66% increase. The only two counties to show declines were Limerick and Wicklow.

Mr Ahern also defended the Government’s record on affordable housing. Figures show that the Government has produced a fraction of the affordable houses it promised under a number of schemes. But the Minister said affordable housing output was improving and in the coming years would rise to around 5,000-6,000 houses per year.

Meanwhile, Mr Ahern welcomed the findings of new research that found that immigrants were making up a large proportion of buyers in the housing market. He said that it showed many people coming in from abroad were doing well in the economy.

The figures from the Irish Mortgage Corporation show that almost one in five first-time buyers are foreign nationals. Asians top the ranks of individuals from other countries who are purchasing property in Ireland. According to the Irish Mortgage Corporation, 18.5% of first time buyer mortgages in the first six months of 2006 were foreign nationals compared with just 6.2% the same time five years ago.

Of the people from other countries who buy homes here, 36% are Asian. A large proportion of those purchasers come from India, the Philippines and Pakistan.

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I really don’t know where to start on this one …

First off, it would be all but impossible to make “flippingâ€

Eh.

I already posted this in the Politicians & Property Bubble section.

You’ve made my case for severe rationalisation of this forum with OW that much stronger, thanks Blue Horseshoe! :stuck_out_tongue:

Anyway onto the serious stuff, I know anecdotally that a friend of mine with a girlfriend from Eastern Europe had severe difficulties in securing a mortgage so I presume passports and nationality checks are all in order. (as an aside, she’s worked here for years for a major telecommunications company and earns shitloads of cash, so it was all the more surprising to come up against that bureaucratic racism and probably confirms its endemic to the system).