No boom in Dublin house prices - Noonan

Its official XD … -brussels/
Finance Minister Michael Noonan said the new development of banks offering mortgages targeted at landlords could help alleviate problems in the rental market.

Today state-owned Permanent TSB launched new loans for buy-to-let investors. It comes as rents have been rising in Dublin and there have been concerns about a shortage of residential properties for tenants.

Mr Noonan made his comments ahead of the Eurogroup meeting of euro zone finance ministers in Brussels.

“The economy is being repaired all the time and decisions like that by the banks are commercial decisions which are monitored by the Irish Central Bank. If the regulators in the Central Bank are happy then I’m happy,” the Minister said.

Be afraid, be very afraid :nin

All of a sudden I have this horrible sense of déjà vu. How long before “hard pressed first time byers” who can’t “get on the ladder” because of “speculators” are given tax relief to help them buy their first house? We are back to square one.

It’s the perpetual problem with politicians … “Something must be done!”, “THIS is something …”, “Therefore, THIS must be done”.

Just how many ways can the organs of the state skew the property market and screw the citizenry?


Oh well …

Blue Horseshoe

Watch : people will cheer this. And so it begins again…

Reagan summed it up nicely…

“The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’”

Hands up who thinks that is a lie then?

‘Skew’ the property market?! :sick:

Let’s say that even the commercial lobbyists and property industry leaders who profit by having the government’s ear, and who talk about ‘jobs’ and infrastructure development and so on were taken out of the equation…

Do people really think that “the market” would help to prevent profiteering on the pledges and commitments of future work (said pledges and commitments made in the expectation that succeeding generations will pledge even more work for the same thing etc).

Would the sancrosanct “market” work to inhibit the generation of “wealth” from the work that our sons, daughters and grandchildren will do in the future? (If pnly it was left alone unfettered)

Another way of looking at it - what of the institutions underlying the commercial life of this country acted to ensure properly moral property related transactions in the life of this country.

Our financial institutions?
Our engineering and architectural institutions?
Our various business bodies, associations and institutions?
Our educational institutions?
Our media institutions?

Sure sure sure… it’s all the government’s fault… Yeah, Reagan and Thatcher - they sure had the answers… according to some of the idiots on this forum anyway…

Was just quoting the guy because I always found that quote funny,count to ten before you post,it really won’t seem that annoying and sure if it does well reach for a packet of chill pills. :laughing:

“If the alligators in the Central Bank are snappy, then I’m snappy,” the Minister snarled.

So supply is tight in Dublin and causing big spikes in house prices and he wants to encourage in more buy to let investors to push the prices even higher.
Elections are coming, most people have houses, most people want to see the value of their house rise.
Politicians must increase house prices.
Nothing changes.

Not a bad quote, it’s just wasted on Reagan.

These are my favourite type of posts. Succinct. True.

It’s been said before, this government has an unprecedented level of influence on the housing market.

  • It is the largest landlord in the state, through NAMA
  • It is the largest tenant in the state, through Rent Supplement and other schemes
  • It has total control of supply, though planning controls and stimulus measures
  • It has a huge influence on (financed) demand through control of the banks, as well as fiscal and legislative measures

Since the crisis, and since FG/Lab have come into power every single measure they have taken has been to increase prices. Some of these measure have been very costly to the State.

  • NAMA exists to put a floor on the market. Rather than deliver maximum short term gain to the taxpayer by undercutting the market and filling apartment blocks, NAMA chose to drip feed to the market at top dollar
  • Rent supplement has been maintained at similar levels throughout, with some cuts, and then some fresh increases. Meanwhile Cluid buys social housing at above market rates
  • Supply is constrained but no measures were take to increase supply… Instead of a site valuation tax which would have raised much needed revenue and promoted building (and in turn reduced unemployment) we got a property tax on completed houses only. The arrears situation not tackled, people staying in their (sacred) Family Home without paying the mortgage are allowed to stay there indefinitely.
  • Several measures, on the other hand, were taken to stimulate demand - mortgage interest relief, Capital Gains Tax exemption, and now the blessing of Noonan given to investor mortgages which will further increase demand

As Economics 101 says, when you increase demand and do not increase supply accordingly, prices go up. It’s as simple as that. everything they are doing is aimed at increasing prices, so when prices oblige by going up 15% in a year they think they’ve done a great job.

It is monumental idiocy, when we haven’t even begun to recover properly from the last property bubble, that they are actually trying to inflate another one.

Well put, First Bass.
Will any other political party do different?

Are you surprised? We are about 2 years away from a general election. Fine Gael saw Fianna Fail winning every election when property prices were rising. Then they saw FF being wiped out when the last bubble burst.

They know their reelection depends on people feeling good about the “value” of their homes. Any rational (and irresponsibly-scheming) politician would do the same thing. The reasoning is that as long as this bubble pops AFTER the next election, it will be fine. XD

(Of course, if it pops before the election, the electorate will punish them for not learning from the last bubble and pouring fuel on the flames again.)

No shit :laughing:

Socialist in market expectations failure shocker :wink:

I get the bitching about politicians and trying to win elections - yup, it nauseates me too. But do those complaining about Noonan actually think prices will fall after the election ?

Absolutely correct, Moaner, and thank you for refreshing my memory. I recall telling anyone who would listen, to get out of property in the months leading up to the 2007 Gen. Election. I told them that any excrement that was about to hit the fan would be prevented from doing so before then but that it would all blow up thereafter.

I can see house prices continuing to rise for at least the next 2 years. After that I’m not so sure. Time to buy now or emigrate in my case.

Our ‘bits and bobs’ finance minister who tells s there is no boom in house prices is the same person telling us that Ireland’s debt is under control and Ireland’s banks are well capitalised.

His well-rehearsed 3-bullet PR set. XD

First, yes I am surprised moaner. Maybe I’m naive but I find it genuinely astonishing that they can make the fundamental error of believing that it was only the crash that was the problem. As long as we only ever have bubbles it will be Ok!

I have no clue if prices will fall again. I don’t even think it is being done to try and win an election through higher host process. It is being done because they know they are getting fuck all from Europe except a pat on the head. High property prices are just another way to bail out the banks at the taxpayer expense.