David McWilliams’s show ‘Ireland’ looked at the issue of property prices here and asked if we are in a ‘bubble’. He spoke to Karl Deeter from Irish Mortgage Brokers about this who made two points. The first was that we are too late to change the outcome of the property cycle, the second was that the biggest land hoarders in the state is the state itself and that Government should release land to flood the land market and drive down the primary costs of construction.
Ciara Kelly interviewed Karl Deeter from Irish Mortgage Brokers in a very comprehensive manner regarding mortgage rates in Ireland and why they are so high. The interview covered a lot of ground, from default risks, to competition, and also why brokers are so important in the mortgage market.
It ended with a suggestion that perhaps banks can’t be entrusted to deal with mortgages in the absence of independent advice and that on that basis they should not be allowed to advertise them and that we should offer new lenders coming into the market some benefit in order to increase competition here.
Cormac Ó hEadhra had Karl Deeter from Irish Mortgage Brokers on his show along with Joan Burton (Labour TD), Michael O’Regan (Irish Times), Carol Nolan (Sinn Fein TD), Colm Burke (Fine Gael Senator).
The discussion focused largely on the tracker mortgage scandal and also covered the stand-off in Stormont.
We had a lot of press covering budget 2018, our contributions are listed below:
Here is a piece from The Irish Sun. “You literally couldn’t hope for a better small country to do lobbying in because we managed to give nothing to anybody, everything to somebody, nobody is happy about it and everybody knows it was a fiscal version of the most average-looking horse in the glue factory”.
The Irish Independent also featured an article by Karl Deeter: It would take a special type of fool to fall for anything you hear in the Budget as being “in your favour”.
Pat Kenny had Irish Mortgage Brokers on the show to discuss NAMA, their role in building new housing and to consider some of the positives and negatives of this approach.
We were asked for comment on housing recently by the Irish Independent and had this to say on social housing: Karl Deeter, of Irish Mortgage Brokers, suggests that sites be released for social and affordable housing schemes, or private homes, in return for equity. Developers would have little cause for complaint.
“On a vacant site (in Dublin city centre), you could build an eight-storey building with 75pc of the building rented at 20pc below market, and for the rest you have a guaranteed upward-only rent review of 2pc a year,” he says. “If we do it on a build to sell, or build to rent, we share the profits..
“We need to flood the land market. People want to talk about the law of the jungle, but you can’t be a lion, and when a rhino comes along you complain.
The general view in our opinion is that much of the malaise always comes back to the base element of housing which is land.
We were pleased to take part in a debate about property tax on Primetime this week. The main point we would hope to make is that property tax based on market values should naturally rise when prices rise the same as income tax paid increases as income goes up, this is the logical conclusion in our view. Some people don’t want it to go up even after it was artificially frozen for political reasons several years ago, we see this for what it is, electioneering and populism. Strong municipal and local government need this funding and should be allowed to decide the sums for themselves, keeping it artificially low only creates a different set of problems in the future.
Recently KBC introduced a 10 year fixed rate, they are not the first back to have done this, in the past other banks had them but their prices were high, the difference today is that you can get a 10 year fixed rate mortgage for below 3% and that means it’s worth considering.
First of all, why would you want to fix for so long? Obviously the longevity of a guaranteed price in a world where rates are expected to rise over time makes it attractive. This has to be balanced against the likelihood of competitive forces driving down Irish mortgage rates. Currently there is upside down pricing where fixed rates are cheaper than variable rates, how long this will last is anybody’s guess.
What we can do is look at the yield curve in order to get an idea of when rates might go up. Looking at that curve today (the quote date is from the 22nd which is last Friday) we see that yields are still negative a full six years into the future. What …
Brendan Burgess of AskAboutMoney.com wrote an interesting ‘tax payer’ oriented budget submission, you can make up your own mind on it, details are below.
Mr Paschal Donohue Minister for Finance By email firstname.lastname@example.org 2018 Pre-budget submission on behalf of the Irish taxpayer
11th September 2017
Dear Mr Donohue
All the pre-Budget submissions you receive will be calling for increased expenditure. But there is no one representing the unfortunate taxpayer who will foot the bill for this expenditure. There is no one arguing the very obvious point that we are spending well beyond our means. So I have taken it upon myself to make a submission on behalf of the Irish taxpayer. Key points • With a national debt of €200 billion, there is a clear and present danger to the economy – so tax cuts in 2018 or 2019 would be irresponsible. • You are making the same mistakes which Fianna Fáil were vilified for making during the Celtic Tiger budgets – increasing permanent spending based on temporarily high tax receipts. • Social welfare payments are far higher than in …