Central Bank Consultation - Policy for mortgage lending


#1229

True, but if they were single they would be basically precluded from ‘getting on the ladder’. With city centre one-beds now around the €500/sqft mark or more (up from €200/sqft low) and with banks self-imposing an 80% max LTV on one-beds, your colleague based on 50k earnings would need a 75k deposit coupled with a 175k mortgage (3.5x earnings) to get off the rental market into a €250k shoebox. I think a 29yo single person on 50k would genuinely struggle to save €75k net of tax.

Of course it is their ‘lifestyle choice’ to be single - it comes with certain advantages, but the cost of housing is substantially increased and we are a nation with an increasing number of single-person households. I really do think that something needs to be done to cater to the accommodation needs of young professionals, who are exposed to both low wages and the full brunt of Dublin’s expensive housing. Of course students too - but there are numerous major student accom developments under construction already. I find it astonishing seeing ads on Daft from people in their late 30’s subletting rooms in their rented apartments/houses. I probably shouldn’t find it surprising - and I’m sure some of them want to live like that - but I just know that it wouldn’t appeal to me, and I’m sure for many of them it’s an question of necessity over choice. Everywhere I look, I see 2 bed apartments now at €2,000+ pm, 1 beds €1,500+, etc. Even split between people sharing, it is total madness for basic accommodation in this fairly basic city of ours.

Something has to change, but that something is not lending limits. When we have hundreds or thousands of houses in South Dublin and surrounds for sale at reasonable prices (i.e. 50-70% of boom-time peak equivalent prices) that people cannot buy because of lending restrictions and the rental market trap, then I’ll believe a change in LTV regs is needed. At the moment there is no such problem, it’s still a question of multiple parties fighting for the same scarce commodity, which ends up with prices spiralling higher. These CB rules are saving us from a lot more madness than is already out there.

I don’t see how we can sympathise with / lament the plight of negative equity mortgage holders (and of course I have some sympathy for genuinely struggling people whose lives are on hold, with families couped up in a one bed shoebox) and at the same time have so much cheerleading for a change in CB rules to facilitate a potential repeat of the same issue by pumping up prices to Celtic Tiger highs once again. The mind absolutely boggles and it really frustrates me to see anyone in the media criticising the rules. Even if it is cheaper at this moment in time to buy than rent, that is in part due to low-ish interest rates and a f***ed rental market with insanely limited supply and market distortions, such as thousands of people having rent paid by local councils. Once we continue to build new properties, that is key, and will I think alleviate issues with the rental market.


#1230

The whole article was a disgrace, either the IT journos are stupid and genuinely believe this nonsense or they are pushing an editorial agenda. If the latter then it’s pretty sinister.


#1231

Why do people read the Times? I pretty much ignore mainstream media (the only bits I read are quoted on the likes of here) and am far happier and I bet my blood pressure is lower :smiley:

Yet people are still shocked when I say the above and include the Times FFS. Kind of like “yeah the Indo and red tops are awful but the times? Really?”


#1232

Unfortunately a lot of people do and it forms their world view.


#1233

I read the papers in a meta kind of way.

More to figure out who is trying to influence who rather than to learn new information.


#1234

Good way of looking at it. :bulb:
I like the Dublin Inquirer, though - they seem genuine (at least for now) - I’ve subscribed to the paper version.
Not that they are MSM, of course.


#1235

Some people liked it!
irishtimes.com/opinion/lette … -1.2767080


#1236

Ah now, that Anne has many opinions on many subjects, from the troubling lack of white pepper in restaurants to appeals for Averil Power to send her a colander to wash her sprouts. :smiley:

google.ie/webhp?sourceid=ch … %2Fletters

Nobody takes the IT letters page seriously, least of all the IT.


#1237

I’ve been impressed with a lot of what the Dublin Inquirer have done. Their writing isn’t stellar, but they do proper local journalism of the sort that I haven’t been able to find elsewhere (would be interested if anyone else does thoughtful pieces about local authority meetings, for example).

I’ve subscribed to the paper version, and feel it’s money well spent (even if it is more expensive than just buying it every month).


#1238

+1 on the Dublin Inquirer. I’m tempted to subscribe.

It has always annoyed me that Dublin doesn’t really have a local media in any serious way (the Hedild just reports on the Dubs and scumlords). Irish Times and RTE only recently appointed, ya know, actual Dublin correspondents.


#1239

If you’re in the tech business checkout The Information (theinformation.com). I subscribed recently and it’s really quite good. Worth it if you can do it on a corporate basis.


#1240

Brendan Burgess (yes, Brendan Burgess) fought the good fight on the Last Word just after 5 today. I thought he did very well.

Listen back here:

todayfm.com/player/shows/The_Last_Word_with_Matt_Cooper/59673/should_the_central_banks_mortgage_rules_change


#1241

BB was also on Morning Ireland today around 8.50am. Spoke well


#1242

Who was the other gob on, blaming the CB rules for the proportion of cash buyer purchases.


#1243

A lad representing auctioneers. He’d done a survey don’t ya know, of auctioneers, who said the CB rules were terrible for buyers :unamused:


#1244

David Hall was on Newstalk after 9am saying the rules had to be relaxed. I think it was Stephen Kinsella he was up against.
1 Texter said he was in shock that Hall, who deals with people in mortgage arrears, was advocating lighter lending rules and larger mortgages!


#1245

his twitter feed is “illuminating”

#memoryloss how are you :open_mouth:


#1246

A letter from today’s IT

irishtimes.com/opinion/lette … -1.2777394


#1247

Ha ha. Takes a furriner to point out the absolute stupidity if it.

Property Industry Ireland got their press release printed by the IT if course.


#1248

The IT are setting it up for a big riposte from Hall!

irishtimes.com/opinion/lette … -1.2780473