WARNING: this article may induce projectile vomiting.
This is going to end very badly - again.
It’s getting time for the Spring bounce expect the property rampers to have articles ready to go in the next few days. Remember estate agencies tend to be big advertising spenders so it helps to keep them onside when your paper is loosing market share and money. This is just a dead cat bounce driven by the end of mortgage interest relief and the supply of property in south county Dublin.
Almost every other indicator says property prices are going nowhere.
- Mortgage interest relief gone.
- Property tax introduction with guaranteed future rises, meaning pensioners on fixed incomes will have to sell.
- Water and waste charges - less income to service mortgage
- Yet more tax rises.
- Move from full time to contract work - hard to secure a mortgage
- Mass emigration of young people
- Bankruptcy reform and repossession - increase in supply, all those arrears got to be resolved somehow.
- Zombie banks, with another bank likely to fold this year.
on the plus side
- very little new supply being built.
- rents are increasing (yields vs bank interest rates, rent vs buy)
More bailouts from my taxes coming up.