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Almost certainly more than one reader... Since the terms "transport", "landlord" and "highest mortgage interest rates in
the eurozone" appear nowhere, I believe the article is a relatively shallow
analysis, though some good points are made. This is probably the most important
assertion, to my mind: Put another way, nobody worried about the cost of building a home rising from
€125,000 to €225,000 when credit had pushed prices up from €150,000 to €350,000.
But when prices crashed back down to €175,000, the system had a real problem on
its hands – one that policymakers have been loath to touch.
It's long been my opinion (I have no economic background) that the last decade or
so has seen successive governments sit out the problem: stalling until the indebted
inflate their way out of debt. Attempts to stimulate supply have been wrong footed,
attempts to reduce demand have resulted in grants and tax relief being withdrawn
from the renter/owner (in stark contrast to the ever increasing reliefs granted to
the investor, but I understand supply and demand). The lower end of the market is
particularly competitive as a result. The Central Bank borrowing limits referenced
have kept price growth partly in check, but favours foreign investment (pension
funds in particular get bad press).Small scale private landlords are exiting the market, there's general unease with
large scale commercial operations (a novelty here) given tight supply and not so
ancient Irish history. A particular issue in Dublin city is the scale of privatised
student accommodation to avail of various tax reliefs (recently some 18k units, in
over 50 individual developments). I have a reluctance to take on personal debt, I was able to save and needed only
a small mortgage for a house in Dublin city (and more importantly, within cycling
distance of work). I consider myself one of the lucky ones. My mortgage repayments
are approximately my previous rent, I rented for more years than my mortgage
term (but ability to move according to work was my preference for a long time). It's no small irony that the house I live in was built in the 1950s, local authority
housing designed by Dublin corporation architect HG Simms - back in the original
Dublin housing crisis ... https://www.irishtimes.com/culture/art-and-design/hugh-lineh... |