House prices, to be sure to be sure

**milanbenes** · 26 July 2007, 10:53

ummm, forgive me if I am missing the point here, but when they say...

'Finance Minister Brian Cowen is expected to increase mortgage interest relief in December's budget to help offset the increasing interest rates. ',

umm, aren't interested rates raised by the central banks purely to calm the market and slow the market ? And if the finance minister implementing mortgage interest relief then it appears the government and the central bank are working against each other ? still what do I know eh ? anyone an answer to this one ?

This looks painful...

'The eight rate increases, from a low of 2pc, means that a home owner with a €300,000 mortgage over 30 years has seen repayments shoot up by €280 a month, from €1,215 to €1,495. ',

Long may house prices rise.

Milan.

**Moscow Mule** · 26 July 2007, 10:53

Originally posted by Pickle2

I saw something about house prices, and my involuntary tick kicked in, and next thing you know im posting a link here again.

http://www.independent.ie/national-n...h-1044153.html

"THE value of average priced homes in some areas of the country is plummeting by €10,000 each month.

Estate agents last night confirmed that - despite recent concessions for first time buyers - there has been an alarming drop in house and apartment prices across the country over the past three months.

............"

Of course, this kind of thing could never happen here. Never. Ever.

Must, exchange contracts sooooon.

**Pickle2** · 26 July 2007, 10:57

Originally posted by milanbenes

ummm, forgive me if I am missing the point here, but
umm, aren't interested rates raised by the central banks purely to calm the market and slow the market ? And if the finance minister implementing mortgage interest relief then it appears the government and the central bank are working against each other ? still what do I know eh ? anyone an answer to this one ?
Milan.

I think the problem over there is that intrest rates are set to suit Germany, and do not reflect conditions in the Irish market. So I guess this is them trying to fend of the effects of higher rates set by the central bank to suit someone else.

**milanbenes** · 26 July 2007, 10:58

ahhh,

thanks Pickle, yep, they're in the Euro and governed by the European Central Bank interest rates

al es kla

thanks,

Milan.

**cailin maith** · 26 July 2007, 11:04

Originally posted by Pickle2

I saw something about house prices, and my involuntary tick kicked in, and next thing you know im posting a link here again.

http://www.independent.ie/national-n...h-1044153.html

"THE value of average priced homes in some areas of the country is plummeting by €10,000 each month.

Estate agents last night confirmed that - despite recent concessions for first time buyers - there has been an alarming drop in house and apartment prices across the country over the past three months.

............"

Of course, this kind of thing could never happen here. Never. Ever.

My brother bought a house about 50 miles from Dublin last year - nice enough.... 4 beds etc but €265,000 euro and they only earn about €80,000 between them - it's scary!!!

**Old Greg** · 26 July 2007, 11:57

Originally posted by cailin maith

My brother bought a house about 50 miles from Dublin last year - nice enough.... 4 beds etc but €265,000 euro and they only earn about €80,000 between them - it's scary!!!

265k that near Dublin? That's dead cheap. I have buddies in Cork who are paid well over that for 3 beds. It's crazy over there.

**Unwitting Catalyst** · 26 July 2007, 11:58

supply and demand

Last year, 80,000 new houses were built in ireland which has a population of 4 million. In the UK, 160,000 were built for a population of 60 million. This is about supply and demand, not to do with the ECB interest rates

**Francko** · 26 July 2007, 11:59

Originally posted by cailin maith

My brother bought a house about 50 miles from Dublin last year - nice enough.... 4 beds etc but €265,000 euro and they only earn about €80,000 between them - it's scary!!!

Oh well not really. In London if you earn 80k you wouldn't want to live in an east london studio flat (with the exception of sadguru, of course) worth 265k. Or that's even more scary, isn't it?

**gingerjedi** · 26 July 2007, 12:13

IMO 90% of new houses are poorly/cheaply constructed compared to old and are never going to be in prime locations so why do they hold value so well?

Just looking at the recent floods it does seem that a majority are new builds built on land that was previously considered unfit or at risk, it stands to reason that older houses are going to be in the prime locations.

Where I live a modern 3 bed semi commands nearly the same price as a 30's house despite the fact the 30's house will generally be bigger and in a better location, do people really prefer new with a 10 year builders guarantee over a building that’s stood the test of time? I don't understand?

House prices, to be sure to be sure