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TAOISEACH LEO VARADKAR has hit back at comments made by Mary Lou McDonald about the need for house prices in the capital to fall and said he doesn’t think she has “really thought about it”.
In an interview with the Irish Times earlier today, the Sinn Féin president said house prices have to fall substantially and that the average house prices in Dublin should fall to “the €300,000 mark”.
The average house price in Dublin is about €430,000 at present, according to figures from the Central Statistics Office.
Speaking to reporters at a roundtable interview in Dublin this afternoon, the Taoiseach said he was “a little taken aback” by McDonald’s comments.
“I’d be interested to know from Mary Lou McDonald and Eoin Ó Broin how they would propose to bring average house prices down to €300,000 in Dublin. I’m not sure they really thought about it to be honest,” the Taoiseach said.
“That would have significant consequences – it would put a lot of people into negative equity, particularly the vast majority of people who bought their first home in the last couple of years,” he said.
The Taoiseach also warned of the message it would send to banks and said a drop in house prices of that level could result in fewer mortgages being issued with higher interest rates.
“If banks and lenders hear that the potential next Taoiseach wants house prices to fall by that much, they will think twice about issuing mortgages to people against assets that are going to be worth less.
“While I understand the intention behind Mary Lou’s comments, we all want houses to be more affordable, people are really listening to what she says now- bankers, lawyers, financiers, investors.
“And if the message she sends out to lenders is that if you issue a mortgage to somebody I’m going to try and make the collateral to that worth less, the message then is – issue fewer mortgages and put up interest rates,” The Taoiseach said.
“And I’m not sure she fully appreciates that she is now in a position where what she says really matters,” he added.
Varadkar said there is a “transition” you have to make when moving from opposition to government and said he thinks McDonald “needs to think more about the things she says” in relation to investments, tax and house prices.
“I wouldn’t like to see huge numbers of people fall into negative equity and I wouldn’t like to see banks being afraid to give first time buyers mortgages or putting up interest rates as a result of factoring in a potential fall in house prices,” the Taoiseach said.
In his view, he said what really matters in relation to the affordability of housing is the ratio between incomes and average house prices.
He said there are many countries in the world where house prices are much lower than in Ireland, but incomes are also a lot lower too.
“What we really should try to achieve is a situation whereby incomes rise faster than house prices, and that’s the way you achieve affordability in my view,” he said.
“It’s not by having house prices collapse and we remember the last time that happened – huge numbers of people ended up in negative equity, mortgage arrears, and the banks stopped lending.
“We see incomes now rising faster than house prices and if we can sustain over the next couple of years, that’s how you achieve real affordability, it’s not boom-bust-crash-surge – that’s what’s got us into a lot of trouble in Ireland,” the Taoiseach said.
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Leo, I work full time as a medical social worker in the HSE, and have a part time job teaching in the evenings. I can’t afford my own home as a 35 year old. Regardless of the rationale behind Mary Lou’s statement, your time is up.
@Joe S: im in the same boat, different career but decent income 35 and in my parents spare room so im technically “not homeless” parents shouldnt have to keep their kids at home into their 30s just because developers want to fatten their pockets more and more
It’s not today or yesterday we knew SF/IRA were totally deluded lol
@Pete Murray: We really need a thumbs-down option so we can see the number of ppl who disagreed with your môronïc comment.
@Heywood Jablome: don’t feed the troll please. And a bad one at that
@Pete Murray: I really hope you are getting paid for your illiterate trolling. Because if you are on here every day like this for free you are a sad sad creature. God love you, child.
@he didnt take the 120k because he already got it s: most houses sold are not new so development of new houses is only a small factor. It’s simple supply and demand
@Joe S: there’s an extra seat next time in Leo’s constituency FYI, in case he needs to scrape in
@Heywood Jablome: It’s a teenager with several accounts trying to get a rise out of people, Just ignore it.
I don’t mind being in negative equity for the sake of the nation, I was in negative equity for several years during recession and I’m still here, this is my house to live, not to resell. It will be paid for by the time I retire and it will be all mine and my kids after I’m gone
@J Ven: well that’s suits you, but unfortunately it won’t suit people who are in small apartments and are looking to trade up and be able to start families etc.
Not everybody is lucky to get the right house for their needs for the rest of their life straight away.
Leo wouldn’t be my most favourite person but what he is saying here is common sense.
@Fiona Wyse: and not everybody is lucky to have an apartment, the sheer amount of people still living with their parents because of the prices is outragoues
@ferrett: I wouldn’t say luck, I’d say more sacrifice, hard work and savings.
@Fiona Wyse: I’ve been working 10 years, saved plenty but get refused mortgages because I don’t earn enough, everything to do with luck
@J Ven: hope u dont split up so…cause people do…..all the time….and HAVE to sell…but CANT
@Fiona Wyse: “i over paid so everyone else has to over pay too”
@ferrett: how many hours a week do you work?
@Martin Mongan: Couldn’t be further from the truth lol! Bought my first apt back in 2004 when I was 22, things different back then, I chose buying a house over going to college and travelling. 3 years ago sold my 2nd apt and bought 4 bed house with my husband, worked like mad & we both took on an extra job each, had to make 20% deposit and no 1st time buyers grants available. I never overpaid, every property price was relevant at the time of purchase in 2004/ 2007 and 2021.
@Fiona Wyse: so you over paid, to the point you had to work 4 jobs between two people and then try and lecture other people. So what does a single person do? Work 6 jobs? Imagine thinking your circumstances apply to everyone.
@Fiona Wyse: For the good of the country and most young people in it prices have to fall. It won’t suit everyone but it is for the greater good. Instead of pumping money into shared equity and help to buy they could probably use it to assist anyone selling who did go into negative equity instead. The thing is there will be a correction anyway as these schemes can only inflate prices for so long before the whole house of cards comes down. You do see how that will end up?
@Martin Mongan: No as I said, the prices I paid for my properties was reflective of the prices in the market at the time. I had to work 2 jobs to save a pot of cash for a deposit, solicitors fees, estate agent fees, stamp duty etc. Thats not overpaying. If that’s the case every single house purchase is overpaid as houses do not sell for fixed prices, would you agree?
@John Moore: I would like too see the old shared ownership model that Dublin City Council had brought back. I bought my first apt with a €1,300 deposit. Bring in lower deposits and longer mortgages to help younger people get on the ladder. The council handled all of my mortgage application and process from start to finish and used their solicitors to complete the sale all for fixed prices.
@Fiona Wyse: you literally said you were able to buy an apartment with no college education at 23, and then in the next breath that you had to work two jobs now with ANOTHER person working two jobs just to afford somewhere 20 years later. Show me someone who can leave school, work unskilled jobs and buy an apartment BY THEMSELVES now.
@Fiona Wyse: shared ownership with DCC was a trap ! Ridiculous set up
@Fiona Wyse: and then in your next comment state that you had the council do all the work for and get you a good deal while trying to be condescending to people saying they just need to work harder. You literally couldn’t make it up. It’s good though that your generation pulled the ladder up behind you and then try and talk down to people who you have no idea of there circumstances, your first deposit wouldn’t pay the rent for one month in Dublin and you’ve the cheek to say people need to work harder
@Pete Murray: more than U can count
@Martin Mongan: agree with everything you have said. I worked 2/3 jobs trying to save to buy in Ireland and I couldn’t get a foot on the property ladder. I’m in Finland 15 months and get the keys to my first property next year (and that’s just from my one and only income) Ireland is a joke when it comes to affording to buy a home.
@Martin Mongan: well for me to answer that question I need to understand what you define as an unskilled job? I got a job in finance when I was 18. Young people need to think outside the box you can go into a job and customer services and finance and you can have all of your exams paid for you and study while you work. It’s a no-brainer and it means that you’re going to go up the ranks financially a lot quicker than if you go to college possibly. So if somebody was to join a bank or a financial company at aged 18 the minute that they leave school they could actually pull this off if they really put their head down. But there is no 18-year-old these days that is interested in that level of sacrifice.
@Auntie Says So: it worked for me, I managed to buy an apartment and when I sold, I had a small bit of equity so I didn’t have any issues. I think there was two different types of shared ownership scheme at the time potentially, I can’t remember and I don’t have documentation left from my transactions to back it up unfortunately it was a long time ago.
@Martin Mongan: the council didn’t do all of the ‘hard work’, I still had to go out and view the apartments myself, place all of my bids, organise mortgage protection etc. It’s not like I just paid a deposit and they went and picked me out an apartment! I never pulled up any ladder behind me, I’ve purchased two apartments on my own and I do understand that it is a lot different these days what I just think that people need to think differently about how they approach it. I’m not an advocate of college at all I think that there needs to be more apprenticeships and people need to get working from a younger age and have more on the job training to get them higher up the chain, not everybody is an academic I certainly am not I struggle quite a lot that’s why I’m adverse to college!
@Martin Mongan: and I’m just going to put it out there before you come back and think that I’m on a really big salary, I’m not!!!
My salary is €45,000, not exactly setting the world on fire for somebody with 18 years in same job but it does me and I’m happy! And my husband is a bus driver we are very much the squeezed middle income Ireland! Maybe that will help you understand why we had to take on extra jobs to upsize because we don’t have big salaries, it’s not that we’re trying to buy an overpriced house! We bought outside of Dublin.
@Fiona Wyse: I think you missed his point. He is saying when you first bought your apartment at 22 you could do it on one salary and get on the property ladder. You couldn’t do that now regardless of what job you are in or put your head down and work harder or smarter.
@pBDSiMMi: I don’t believe that it’s impossible, but obviously to test that theory we need to grab some random person who is about to do their leaving cert and we can try it out, any takers??
It would be a hard slog, but I’m reluctant to knock it down and say it can’t be done straight away. You can’t say that without trying. It would be very very hard, you could fail, but you could also succeed.
@Fiona Wyse: 99.9% would fail, of course there are exceptions. Back when I was 22 anyone could buy a house and if you didn’t it was your choice but now you don’t have a choice. Of course if parents give you a deposit that’s also different but 99.9% of people who are 22 couldn’t afford a their own home and that’s not my opinion it’s just a fact. I’m happy it worked out for you and continues to do so. I don’t envy anyone being successful especially when they have worked hard for it.
@pBDSiMMi: Well hopefully some 18 year old reading this will take this onboard and go ill show them. They probably won’t but I’m an eternal optimist!
@Fiona Wyse: no harm in being positive and it would be great to see that happen
@Pete Murray: 40 why does it concern you?
@ferrett: The troll thinks it makes him sound good to say he works 80 gours a week. We keep reminding him trolling on te Journal is not work.
@Fiona Wyse: You should have sacrificed more and worked harder so. It’s your fault if you overpaid for a shoe box apartment.
@Magnificent Mongoose: I never overpaid for a shoebox. In fact I made an extremely healthy level of equity on the sale of my apartment which went into my deposit for a house. Nowhere did I say I overpaid for a property. You might want to learn how to read properly!
I don’t think Leo understands finance, lenders lend mortgages based on income relative to the house price . They do not lend mortgages in excess of the asking price. House prices can rise and fall but mainly rise and yes people can have negative equity but that is not the usual position but has resulted when lenders exceeded mortgages not specific to income. Some years ago lenders were offering mortgages which included buying a new car or holidays and coaxed people in to debt. Mary Lou is right, house prices are over inflated and people can not access a home even when they are on what is considered a good salary. Leo seems to have more regard for banks than people struggling to get a home.
@Eileen Kelly: course he does he’s well off himself and not just from his salary
@Eileen Kelly: Maybe you also need to do some homework on finance, the banks look at mortgages at portfolio level and not individual. If this ‘idea’ from Mary Lou would go ahead, the balance sheet of banks with a large number of mortgages in negative equity would not look exactly healthy, and the last time this happened it was down to us taxpayers to bail them out. I’m not a fan of Varadkar but he’s spot on this time, banks are not on the lending business for charity, they’re lending to make a profit. That’s how it works and if we’re grown ups shouldn’t be hard to understand it.
@Leandro Lorenzo: they are not a charity right up until they need a bail out then suddenly they turn into one.
SF want to bankrupt the country it seems
@Leandro Lorenzo: Banks would jump at the chance to lend on property valued at much lower levels than they are now.
1) It would make it much less likely that the mortgage holder would not be able to pay
2) It would make it much easier for them to recover their costs if something did go wrong, e.g. marriage breakup
3) Any fall potential fall in value would be much less likely
I am sure there would be other advantages too.
But it would make much more business sense to lend than on overvalued property.
@Eileen Kelly: Please try again. If the mortgage lenders and, more importantly, their regulator, the CBI, forecast a 30% collapse in asset value in the making as Mary Lou seems to plan, then they would significantly reduce the lending available to the sector. Also, all those residences in development, the next three years pipeline (40K-50K) houses, would have development stopped in its tracks as they would not be viable any longer. Foreclosure and half developed ghost estates would abound. Also the trades that build these developments would be in for a 20 – 30% decline in wages which would spark a shortfall as we saw the last time there was a shock to the asset values of residential property. It’s completely naive to believe that a shock deflation in asset value would solve a problem like we have today.
@Leandro Lorenzo: If you go into negative equity it doesn’t mean you can’t pay your existing mortgage. Back in the crash time so many people lost their jobs or were lent astronomical sums irresponsibly. That isn’t the case this time.
@Pete Murray: OK. Boris
In other words Who are govern the country! The banks .
@SF Means Sh!t 4 Free: But still a lot more than the price I paid when I bought it.
I live in North County Wicklow and have my 28 year old daughter who works locally for 45 hours a week living at home. She has absolutely no chance to buy a house of her own in the area where she was born and reared. We have billions available and have had for several years. What’s gone wrong and how has our country been mismanaged for the past 25 years ?
@Jp Cleary: It’s right in the article above you! Leo doesn’t give a shyt, he cares about the poor suffering homeowners potentially losing a few thousand through negative equity. His statement about income rises matching house price increases is simply laughable. Public sector workers are certainly not increasing their wages at that level, neither are private workers in any but the top level jobs and roles. His concerns are with the poor homeowners who have their own house. Not those stuck in the rent trap. Not those stuck living with parents missing out on their formative years as a young adult. The poor, poor homeowners who risk negative equity. Vote ANYBODY but FFG.
@Jp Cleary: That’s part of the problem,too many people feel entitled to be able to buy a home where they were reared……most people in my generation(early fifties)couldn’t (and didn’t feel entitled)to buy in the area where they wanted…They bought in the area they could afford.Unfortunately there is a limited number of houses in every area(and no room to build more)so the price goes up.The sooner people drop the entitlement narrative and cut their cloth accordingly the better.
@John Terry: Yea, John.
It’s much more important to protect the investments of the vampire and vulture funds.
@ItWasLikeThatWhenIGotHere: It’s nothing to do with that,There is a finite amount of space in this country and it’s down to supply and demand.
@Jp Cleary: Not mismanagement, corruption and collusion.
@Paddy Short: you got names and precise examples to share? ……………………………………….. Uh huh Thought so.
@Sean Murphy: what’s with the poor homeowners crap,nobody handed them a home they work hard to provide a roof over there heads and family’s heads, and in very difficult circumstances at present,point your finger of blame where it belongs,its not wrong to want to own your own Home.
@Tim Murphy: Of what, the corruption in this country, is that a trick question? So then, you think the housing crisis is just our government being thick, that they can’t even copy successful housing programs from other countries to make up for their ineptitude? How much tax are the vulture funds paying on their tens of thousands of properties?
@Jp Cleary: I had to move from Bray to Finglas to afford my first home, that was in 2004. Now that said I was happy to make the move but it is sad people can’t afford to stay in their local areas. I can only imagine how much prices have changed since then.
@John Terry: “It’s nothing to do with that,There is a finite amount of space in this country and it’s down to supply and demand.”
So what you’re saying is that there is no room left?
You’re saying that the current population is simply too large to be able to house?
@ItWasLikeThatWhenIGotHere: he hasn’t a clue what he’s saying, he was on another article claiming that we full employment in the country AND record numbers of people on the dole.
@ItWasLikeThatWhenIGotHere: In certain areas yes….There is no room to build.generally no,There is plenty of room.My point is,not everyone from the area that they are raised can get to live in that area….
@Martin Mongan: Typical stupidity from you.The country has what’s know as full employment(which means there are more jobs than people looking for them)look it up…..and yet we still have loads of unemployment and hidden unemployment……all those scrotes up and down the country,do you think they are on jobseekers?… proving that they are looking for work…..and you try call me out on my comments.
@John Terry: he’s a thought John try and reply without the word typical, every single response you’ve made to someone starts with “typical” and whatever weird label you try to apply to people because your arguments hold zero weight and contain zero facts. I’ve been asking for you over a week for your sources and you’ve yet to provide anything that is “typical” “ we all know” “ I heard off my neighbours dog”. Facts don’t care about your feelings and you’ve yet to provide any. According to you half the Country is on the dole and the other half are just to lazy. I genuinely feel sorry for you just being a bitter arrogant man who wouldn’t have it in him to say any of this under his real name. And you’ve to cheek to try call me foreign on top of it
If the banks won’t give out the mortgages I bet the Credit Unions who love to do it Leo, banks aren’t the only one’s with money to lend why keep mentioning them when they screwed the country all ready give our Credit Unions a chance
@Robert Boland: if there is going to be enforced negative equity you can be rest assured that the credit unions would pull back as well.
Having a home shouldn’t be controlled by greed
@Robert Halvey: I have 8 properties they and foreign exchange have made me a fortune. Hard work pays off
@Pete Murray: yeah but we are not talking about the game monopoly otherwise I have 4 hotels and a rail network.
Mary Lou spouts a questionable narrative here. How exactly does one achieve a 30% drop in Dublin house prices? Mind you, bearing in mind this party’s fiscal policies, a 30% drop may be possible. A dark day for Ireland.
@Geoff Scargill: Tax the multinationals, reduce employment, increase emmigration, watch prices fall. Job done
@Geoff Scargill: build enough affordable houses will soon drop house prices
@Geoff Scargill: tax developement land hoarding !! a dark day for the banks you mean
@Geoff Scargill: economically illiterate shinners talking nonsense yet again
@Mick Duvanny: Have you been peeking over Pierce Doherty’s shoulder?
Leo cares more about the Banks than the ordinary person working to put a roof over their families heads
Quicker there is in election the better for Ireland
God forbid houses became a little more affordable and maybe just maybe young working couples or god forbid even a single person could possible have some light at the end of the tunnel, house prices don’t effect politicians so they simply don’t care, once they are on the gravey train, screw everyone else.
@Raymond Kelly: seems to be shinners living in mansions… all on the industrial wage
It’s funny that pie in the sky soundbites from McDonald gets Varadkar in trouble here.
I can’t access the Irish times story but I’m willing to bet there wasn’t one iota from McDonald of how she would achieve this. She is not a serious politician.
Some lad above says he’d be happy in negative equity and pass his house on to his kids. Remember SF are targeting inheritances with even higher taxes.
It’s genuinely mind-boggling that people still take them seriously. They would say literally anything to anyone at anytime to get a vote. She is pushing back against her partys continual decline in popularity. Buyer beware.
@honey badger: and did varadkar not promise to up the inheritance tax threshold, another promise he failed to keep
@honey badger: I’m in no way a SF supporter but they claim to be left wing so they should increase inheritance taxes, why should people get ahead just because they were left a load of money. I prefer a country with equality of opportunity rather than the rich passing on their wealth to their offsprings (let them earn it themselves).
@honey badger: do you mean just like when ffg said they would cut usc and then didn’t. You love to bash sf about what they promise (even though they have never been in power so they can’t be judged yet) but when ffg break every promise they make before elections you go straight to ranting about SF. Cluelessness at its finest
@The next small thing: Typical socialist nonsense,I work hard and pay big taxes(lots of it goes to house and everything else for layabout socialists that think they are entitled to everything but rarely contribute)if I want to leave my money to my kids well then I will…..and there are thankfully loads of loopholes to escape your type equality.
@John Terry: you also spread misinformation by the boatload John, you were trying to call me a typical culchie yesterday when I’m from Dublin hahahaha any chance of you sending on your sources for your claims that the Irish government doesn’t massage the homeless number? I’ve sent you my sources multiple times now and nothing back from you as of yet
@The next small thing: I don’t have any where near a load of money,but I hopefully will have my house paid off to leave to my two sons,because the way this country is heading there going to need it.
@John Terry: I’m far from socialist, centre left would probably be where I fit. I’d prefer to have a social welfare system that gives out what you have paid in, e.g. worked for 5 years, you can claim dole for up to 5 years, never worked, no money. I don’t agree with the cradle to the grave welfare we have in this country that , may I remind you, have been put in place by successive FF or FG governments. Anyway if you are who I think you are we can have this debate at the end of the second floor corridor (where both our offices are).
@Martin Mongan: take no notice of anything that gobsh*te posts Martin.
SF want to steal your inheritance
@Pete Murray: If SF really do want to steal our inheritance, then they’ll get SFA, because FFG have already done that.
To give to banks and bondholders.
And put our children and grandchildren into debt for generations to come.
@Jack Chit: Your name suits you.
@Martin Mongan: Your crowd move around a lot so it’s hard to keep track of it……and the way you went on about Dublin you obviously live in some kippy part of Dublin.
@John Terry: still waiting on your sources John, or even less likely for you to man up and hold your hand up and say you were talking absolute rubbish
@John Terry: and I have no idea what your trying to imply by saying “your crowd”, what’s that exactly? Dubs? Irish people?
@Martin Mongan: Mongan,I know only one crowd that share that name.
@John Terry: again I have no idea what your trying to say by “crowd”. Why don’t you man up and say what your trying to say… Mongan is an Irish name that goes back 1000 years on this island so I literally have no idea what weird group your once again trying to lump me in with? Yesterday I was a culchie even though I’m Dublin born and rared what am I foreign now or something? You really are mentally deluded you can’t argue with facts so you’ll make stuff up and try to claim people are thing without having the stones to actually say it.
@honey badger: how you archive it is by building more affordable homes to rent from the local council. That was how it was done in the past before we imported the idea that purchasing from developers was the way to go. We used to have council workers that built houses for the people. Now we have none of that and a housing crises so we need to bring back the housing departments back into county councils and stop giving public money for private profit. We need to build a public building agency that can build housing for cost and not for profit! It’s a simple idea once you get your head around it. Instead of paying a plumber thousands to fit heating they are paid a salary, same goes for all the trades. And you train them up too.
@Martin Mongan: he is calling you a traveller because your name is mongan and that’s what he means by crowd because it’s also a travellers name.
@pBDSiMMi: except it’s not a travellers names it’s an Irish name what an absolute simpleton that he is hahaha
@Martin Mongan: I know that Martin , merry Christmas
Suprise suprise Fine gael sides with banks and
Leos mate and x fine gael man Brian hayes chairman of the banking federation.
FFG working hard for big business , also why was over two hundred million of debt from state owned banks written off for Independent news papers which runs a strong anti Sinn fein bias
Now things are making sense
@Kevin O Brien: the shinner persecution complex is a wonderful thing lol
Leo anxious to protect the Irish banks highest mortage rates in Europe and lowest saving rates wonder why!
@Kevin O Brien: Hate banks, but half of what you say is not true.
You are probably right about the savings rates, but you are incorrect on the mortgage rates at present. Savers are actually subsidising borrowers indirectly, as the banks can lodge money with the ECB for approximately 4% and therefore generate their massive profits there.
I prefer facts, not soundbites.
https://www.statista.com/statistics/615037/mortgage-interest-rate-europe/
Leo says wages will make people better off as their wages out pace house prices in terms of inflation. WOW, so the 30% plus increase in construction costs over the last 12-18 months is less than pay increases that people have got. Well tell gardai, nurses, public sector workers and 100s of thousands of private sector workers who are now worse off under ffg govt than they were 10 years ago, 5 years ago, 2 years ago.
If your money can buy you today what it could 5 years ago then you are in a minority group and you should vote for ffg as they are our version of the conservative part and you are part of the protected elite. If your wages don’t go as far, if car insurance, house insurance, elec bill, groceries, new car price etc has all gone up by more than your wages has, find someone else to vote for.
By 2010, our house had dropped invalue by 55% from what we paid, we put it on the market and the buyers had no problem securing a mortgage to buy it. Banks will absolutely keep issuing mortgages, they don’t care what happens the asset, so long as the borrower can pay.
Noooooo not negative equity!!!! WHAT A TRAGEDY! Think of all the poor homeowners who will lose some money! Disregard those stuck in the rent trap for life, pensioners stuck renting, the record levels of homelessness, SOMEBODY, ANYBODY think of the poor homeowners in negative equity! Not to mention the banks who would surely miss out on their main money maker by not provided mortgages. Have you ever heard such SHYT? This is definite, in your face proof FFG don’t give a hoot about the housing crisis. VOTE SF.
@Sean Murphy: And people like you give out about greed!…..Your statement is pure greed….it’s ‘too hell with everyone else and I don’t care if they loose massive money on their investment’…and yes,a house is an investment because most people start off with a cheaper starter home and then move up the ladder.
@John Terry: It’s greed to want to be able to afford a basic necessity, a house? You are absolutely delusional. Your asset gaining value is more important than people being homeless? It’s more important than your essential public servants like nurses and teachers being stuck renting for their whole lives? This is the problem with people engrained in voting FFG – You see the only way to gain wealth as your primary property. In reality, the government should reduce taxes on profits from investing similar to ISA’s in the UK. In most of the rest of the world, investing is how you get money, not commofidying first time housing.
@Sean Murphy: your greed is staggering, so full of hate for those who are better than you
@Pete Murray: Lol, you think you’re better than me, do you not think I’m a home owner? Condescending pr!ck
@Sean Murphy: Don’t reply to that clown, he’s just looking for someone to bite,Just look at his previous posts, constantly trying to goad people.. He’s just a muppet.
@Seanie: Correct Seanie . A few posts back Murray Peter or Peter Murray whatever he was calling himself announced that he had eight properties and in the next breath accused another poster of being greedy .
Pot kettle etc.
@John Smith: the only houses he owns are in his head to be fair
Maybe set up a public bank then that covers the needs of the citizens first, along with the lower prices of housing? Or is he saying that the business needs of a private bank comes before a basic right of the Irish people and the State is ok with it?
@maritoj: You are joking yeah,a public bank?….I can image the amount of defaulters(because it’s taxpayers money)and the state wouldn’t be able to deal with people who just stopped paying their mortgage.. ….it would be a disaster.
@maritoj: what a stupid idea
@John Terry: But haven’t some of our banks been public since the state decided to put the welfare of bankers and bondholders ahead of the people, John?
@ItWasLikeThatWhenIGotHere: No,it’s simple,this is Ireland,a state owned bank would be a one way bank……ie,bank lends money and most would treat it like a council house.64% are in arrears owing over 100 million in rent.Can you imagine a mortgage portfolio?
@John Terry: But AIB was effectively owned by the state for years.
The state also had stakes in others too (PTSB? BoI?).
So, aren’t just spreading more of your nonsense?
@Pete Murray: Why?
@John Terry: Well that shouldn’t happen, so I stand by my original post? It’s a public bank, not a payout institution. With the amount of money that goes to HAP, Rent Tax Credits, Help-to-Buy, etc they could aswell just try and tackle the root issue instead and provide a stable, long-term framework for home building and associated lending, leading to home ownership, according to median wages, instead of throwing money at developers and private banks?
Tick tock
A vote for fg FF and particularly backing Leo, is a one way ticket for our future children
And there you have it. The current government don’t want to see lower prices. Wages are never going to catch up with the increases that have already happened never mind in the future. Help to buy, shared equity etc. is all a wheeze that can only go on for so long to keep people chasing ever higher prices. He mentions people that might fall into negative equity. Ok but what about all of the people that have nowhere to live? If he’s that worried about it he can use the money from these various schemes that are pushing up prices to bridge the gap. Current house prices just don’t make any sense. They have drifted off into fantasy land and the market always goes in cycles anyway. There will be a correction whether he likes it or not at some point. If they had done nothing and not introduced these various schemes interest rates would have already lowered prices substantially. But that’s not what they want. Roll on the next election and FG & FF are in big trouble due to their approach to this over the last 10 years in particular.
In my 40′s. I worked hard and saved everything I could whilst renting for years in end. I don’t work in a highly paid job so a mortgage was not an option. I purchased a property with cash recently and am now mortgage and rent free. Hard work and sacrifice pays off if one can do it. No drinking, little to no costly socialising, no holidays, no expensive Christmas periods, no meals out, no designer clothes and I kept an older car that is cheap to run on the road. I am now in a position to live a decent life which I will after the years of sacrifice which were more than worth it.
@Sun Rise: That’s me too a tee also,although I’m not mortgage free yet,a bit to go,it’s staggering that some begrudge you this like it was handed to you for free,I sympathise with people who are struggling with housing issues,and yes it is more difficult for people now to access home ownership now especially in dublin than it was a few years back,like @john Terry said,I bought were I could afford to live over where I wanted to live.
@Sun Rise: Congratulations that’s super work, it’s tough at the time but so worth it in the end xx
@Deano: friend of mine, 2 kids, wife sadly passed away. Pays 1100 a month just to keep a roof over his head, can’t afford childcare but is lucky enough his parents are retired so can mind the kids while he’s working. You should tell him that he should just suck it up and find somewhere cheaper cause you were lucky enough to not be in that situation.
@Martin Mongan: sorry to hear of your friends situation,and condolences to him and his children, and I mean that,but I don’t see how my circumstances should cause you anger towards me,I’m simply stating and pointing out that I took the path that was available to me at the time.
@Deano: A path that is not available to most…
@ItWasLikeThatWhenIGotHere: I agree,as I’ve said above,but I’m not responsible, nor any other homeowner, again I sympathise with those with housing issues,but I took the opportunity that was available to me and my family,basically the bank offered this amount and I bought a house that matched the amount.
@Deano: and you are one of the lucky ones. Just like myself, but I don’t go around being condescending telling people they just need to work harder or that there just being picky about where the live, there’s plenty in this country who work themselves to the bone and have ZERO chance of ever being in a position to own there own place, which 20 years would have been near impossible.
@Martin Mongan: I didn’t tell anyone to work harder or where to live,I simply replied to a post that mirrored my circumstances, people are free to live where they want,I live where I can afford,that’s my choice,and it’s not luck martin,homeownership is only down to hard work these days,and before you start I’m not suggesting people who don’t own there own home don’t work hard of course not,there is a criteria to meet to get a mortgage as well you know and based on my finances I was offered said amount and I bought my house with said amount,probably the same as you did.
Leo always worried about banks. To hell with the banks. They created this conundrum.
In other words, he’d prefer his landlord cronies to hold the keys.
He’s a total …..
Another ig norant,pompous comment from this FG cl own.He forgets he was elected by the people to represent the people.When you come from the wealthy class the last think you care about are the little people.
Will nobody think of the banks?!?!
Leo worships before the idol of the banks; as do most politicians.
And there you have it folks – that is the level of understanding of basic economics from FG, and their level of understanding of the housing fiasco.
And their level of compassion.
Is this guy for real or is he really that stupid. He asked how does she plan on making house prices lower, I’d have thought that was very simple. Supply and demand is what’s driving the prices up so you just build more houses and stop the demand from an ever increasing population by putting a cap on refugees.
Always thinking of wealthy property owners and their equity… Not the 70k homeless, not the youth who’ll never own a home…
Government by and for landlords.
@Chris O’Brien:I agree Chris,and reading some of the gobsh××es above there lumping the ordinary home owner in there too,people highlighting people in homelessness (quite rightly)and there plight and then vilifying homeowners as part of the problem,and as for the youth,I have to at home,and I worry what awaits them and there future in years to come.
Have they all developed this hands out pose like they are holding a big football to make it seem like are doing something.
@Jp Cleary: Yep. Media training all round. Costs a fortune. It’s their way of trying to make a dumb person look smart.
If only we could build decent apartments suitable for families which are close to schools, shops, etc and also have car park spaces! Works well lthroughout Europe,
@EMcD: You own Sweet Fanny Adams with an apartment.
All you own is a lease.
Some other entity owns the building and the ground it stands on.
When the lease expires, the then ‘owner’ is out on their ear.
Jesus christ this man is some pest
It’s actually really simple to bring the price of houses down, which is why FFFG for decades obstructed doing so.
The way to lower house prices is to build a lot of social housing, this would mean that people across the country would have access to low cost housing within their means, it would also lower rents across the entire private rental market and lower the cost of buying a house for anyone wishing to do so.
The only losers in this course of action would be the vulture funds that have tried to take over the housing and comercial property markets and older home owners that delight in the ever increasing value of their own property, while blissfully ignoring the fact that their children and grandchildren will probably not be able to afford rent in the future, nevermind own a home.
@Dvsespaña: If the government were going to build loads of social housing(and the new model is to mix them with private buyers)who in their right mind would buy a house?…..I certainly wouldn’t pay ‘private’ prices to live in a council estate.would you?…..Then everyone wants one of these houses and no one is buying.
@John Terry: That policy is just another way of sabotaging the building of social housing to prevent it from happening.
Building communities that also include social housing, doesn’t necessarily mean local authorities building or buying housing side by side in the same estate as private housing, it means planning cites, towns and villages to include social housing in the overall planning.
Not every street or location in cites, towns, or villages currently without social housing, is a desirable location for private buyers despite there being no social housing there, so building social housing in these areas wouldn’t negatively impact the private housing markets selling points.
Now we wouldn’t want assets management company’s to suffer, would we Leo ?
not a fan of ff or fg but the shinners idea is plain silly,the problem of rising house prices and the cost of living needs to be addressed by more supply and higher wages,real world wages have been in decline for decades
Mary Lou could yet be Ireland’s Liz Truss. Too many simple solutions to complex problems.
@Cathal Nolan: yea…let’s complicate things even more than they already are, that’ll help!
And there you have it. They don’t want to see lower prices. But we knew that all along. FGs core vote in particular would be the better off asset owning class. But even they will have to stump up big for their kids to get on the ladder. Chasing these higher prices with schemes like help to buy and shared equity helps nobody in the long run as the whole house of cards will come down eventually anyway. So there it is. You know what you will get at the next election with the status quo. They’re not even trying to hide it. Wages are never going to catch up to the price inflation we have already seen never mind what’s to come. They have had long enough anyway with no real improvement with completions creeping up. No sense of urgency or realisation of the situation and how much of a crisis it is for so many. If they had just done nothing RE: these schemes interest rates would have already dropped prices significantly. Their time is up.
Well it’s the rule of the market, nothing more nothing less.
The biggest problem is the 3.5 times your income, which is nowhere near what you find in other EU countries, coupled with over the top interest rate, not the house prices.
If you can’t afford to buy in Dublin it’s normal, same as any capital cities. It’s very expensive, nothing new here.
Ah yeah Leo, we’re all thick’s except you
It’s obvious that the shinners haven’t a clue what they are talking about
Wouldn’t that throw everyone into negative equity?
@Liam Mc Donald: Nope!
Just those who overpaid for their homes.
And negative equity foes not matter unless the owner is forced to sell.
But that some overpaid should not be a reason to prevent all others from ever owning their own home.
Unless I’m missing something and if I have this correct, ML is going to try and actually perform magic. Even if she was right (which she isn’t) ….. How would she force a 30% house price reduction in this countries capital? But not a hint at how?
On top of LV comments this would plunge the country into a worse place than the banking crisis.
ML’s comments have seriously damaged her credibility. Pure stupidity.
@Paul C: Making more housing available?
If there was sufficient housing then prices would never have risen to these unsustainable level.
By building more, house prices will naturally fall.
The more build, the greater the fall.
Mary Lou you haven’t a clue
@Paul OBrien: what is scary is the number of people agreeing with her.
@Paul OBrien: she has obviously way more of a clue than Leo…Banks would turn down 300k mortgages…really…BS of the highest FG calibre.
There you Leo and FFG have just admitted that they have the banks interests as priority and screw the ordinary poor Joe trying to put a roof over their head we are under no illusion that was allways the case so it just goes to show who calls the shots bankers, vulture funds, and big business. We are nothing more than a commodity to make a profit on God help our children they will be serfs to the banks.
Wait for a cashless society and then you’ll see the banks true colours
ive heard some ridiculous statements out of Varadkar over the years but that has to take the biscuit…So banks didn’t give mortgages when house prices were under 300k did they not..our first mortgages was 39,500.and the banks were delighted to give it to us and ive no doubt if everybody on the housing list was buying for 300 k they would have absolutely no problem with that..Leo just trying to be clever….doesnt really suit him.
Surely there is negative equity because his party have failed to provide infrastructure.
Incomes rising faster than house prices is NOT sustainable and is not the solution Leo.
What Leo is admitting here is that the housing crisis is government policy working as intended and isn’t something he or his FFG colleagues want to address since building enough homes for people to live in would result in negative equity for some and wouldn’t be as profitable (probably still profitable, just less so) for the financial sector.
If you build enough housing to cope with population growth, average house prices and rents will fall there’s no way around that fact. To Leo and his cohort that’s the worst possible outcome.
, ty
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