So house prices are falling, and continue to fall, and the Government thinks that they will aid first-time buyers by propping up the market using taxpayers money? How exactly will that work?
Leave the fucking property market alone Cowen. The best way to make houses more affordable is to leave the market do its work.
That is unless Fianna Fail is in the pockets of developers. Or is at the very least their best friend.
Instead, there are very good reasons to stay out of the property market. Morgan Kelly has a good piece in the IT, and uses the same 50% peak to trough figure Jim Power mentioned in July. We seem to finally be getting out of the “But Ireland is different” mentality.
For an instruction on what exactly an asset bubble is, and where this 50% figure might be coming from, take a look at Chris Martenson’s excellent explanation.
Incidentally, I took some photos of empty houses in completed estates around Carrigtwohill yesterday:
Similar houses to this (being sold second hand) are up for sale at a staggering €449,000. Can you say way over-priced?
You have to ask: Are these 13 houses combined worth around €5.9m? I don’t think they are. I think these 4 bed detached houses are worth at least half that.