Irish pay moderation says IBEC

Average house price rose by a factor of four in Dublin over the period 1996 to €500,000 in 2006. The yearly repayments on a 100% 20 yr mortgage @ 5% on the average house would have been:
1996------------------------- €9,899
2006-------------------------€39,597

Now, before IBEC shout for moderation. They should correspond with their members as to what ameliorating terms they could offer to people who bought houses in the period 2003 - 2006, which equates roughly to 50% of all mortgages.

The one fear that I have, is that the same short sighted government is in power that allowed the above situation to happen will: when faced with a sure revenue shortfall, will be panicked into bringing back rates. Rates used to equate to c. 2.5% of the value of a house in the early 70s :laughing:

No chance. Electoral suicide.

As for helping out those who bought and are now feeling pain, it may have merit from a sociolgical standpoint, but it is extremely unwise to reward bad financial decisions - apart from the fact that it makes a complete mockery of those of us who have made good financial decisions and then uses our taxes to ‘Help’ those who did not. :imp:

No pain no gain. 8)

Of course IBEC are gonna say that, what would you expect from that organisation. But regardless of whether they are right or wrong people are gonna get hurt in this because quite simply Ireland is too expensive a place to do business in.

Also as regards house prices if people are stupid enough to pay the price then the builder will charge the price, its called a free market because you have the option to buy not because you have to buy.

So the choice is we are all realistic in negotiations and get somewhere or we are not and get nowhere after months of talking and people are made redundant. I suggest people ask their union rep what stance they are taking in the negotiations.