UTV hosted a conversation about the new Mortgage Bill that went through the Dail last night. The conversation was hosted by Claire Brock and the panel was made up of Pearse Doherty (Sinn Fein), Stephen Curtis (IMHO) and Karl Deeter of Irish Mortgage Brokers.
In this piece which appeared originally in the Sunday Business Post on the 8th of May 2016, Karl Deeter questions the conventional wisdom of calls for a right to housing (or housing equality) being about ‘rights’ and that it is perhaps more about money and governance.
The script after this text in italics is the text of the article that was published.
When we hear people talk about inequality or social issues like housing, is it about money and process or is it about rights? This may seem obvious at first, but when you start to look into it, often it’s not so simple.
It’s obvious that a person with no place to call home isn’t equal to those who have such a place (be it rented or owned) and civil society generally accepts that this implies a certain level of duty on the rest of us.
Usually the state helps to equalise this situation by making the provision of a place to call home possible, be it social housing or emergency accommodation. This would lead to the assumption that …
The Irish Times carried an article by John McCartney (Savills), Lorcan Sirr (DIT Bolton St) and Karl Deeter (Irish Mortgage Brokers) about the issues surrounding a shift away from a home ownership model.
Our point isn’t that there is a definitive ‘right or wrong’ way to provide housing, obviously our market has massive issues at present, but the larger question is the long run effects and how a lack of household savings can turn a property crisis into a pension crisis of sorts.
That is why we need to find new solutions for more than just housing.
The Irish Planning Institute held their national convention in Athlone and we were pleased to see one of our own as one of the opening speakers at it. The points raised about planning, housing, and the importance of household wealth were received well by the audience which was about 300 strong and made up of the key players in planning throughout Ireland.
Claire O’Sullivan of The Irish Examiner followed up with a good piece on the conference and quoted Karl Deeter extensively, the excerpts from the article are below.
The Government should consider removing the rights of people to object to proposed developments as it is hugely costly, causes delays, and is not necessary, the Irish Planning Institute’s annual conference heard.
A compliance manager with the Irish Mortgage Brokers Association, Karl Deeter, said instead there should be greater trust in the ability of planners and the local authority.
He said a “third party right to object” did not exist in many countries as the planning departments and local authority are expected to make the correct decision.
“The role …
This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.
Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.
We were pleased to be part of a discussion about housing which featured our own analyst Karl Deeter and Sinn Feins Eoin O’Broin to talk about housing.
Deeter was at pains to point out that tenant protection was enshrined under the idea of ‘dual ownership’ back in the 1870’s and O’Broin said that there were other things to consider, it was a measured and interesting debate.
The lesser discussed problem of rising rents will be the rising prices of the next few years, we see it as a foregone conclusion that price pressure will be upwards as long as rents are rising.
This occurs for several reasons, first is that higher rents compel renters into the purchasing space, those that can move must have sufficient savings and earnings to do so, but equally, those that can afford high rents – and to escape them via a purchase, are exactly the ones who will make that choice.
There is a tricky relationship between rents and prices, but as can be seen from the chart showing the last 25yrs there is some correlation.
What we can see is that often when rents are rising that prices then catch up, at times rents can even be falling and prices still go up – this is perhaps due to the delayed nature of the commitment to a property contract which can be long drawn out.
What you don’t see for long in that chart is rents rising …
The Sunday Independent mentioned Irish Mortgage Brokers in their article yesterday. We were making the point that being ‘middle class’ today means less than it did in the past when it comes to housing.
Karl Deeter, of Irish Mortgage Brokers, argues that today’s middle-class lack the conventional trappings of previous generations.
“Many have been badly hit with negative equity property, others are unable to save the 20pc deposit that the Central Bank demands. Their cost of living is very high, their wages haven’t improved in real terms. They’re facing huge rent hikes. They pay an awful lot of tax.
“And yet the Government thinks they will have somehow been able to save for a 20pc deposit [to buy a home]. Where do they think the money is coming from? They’re the group that have been hit hardest. They can’t rely on State help like those below them can, and they can’t avail of the sort of tax arrangements that the elites can. They’ve borne the brunt of the recession and they’re bearing the brunt of this so-called recovery.”
This is a video about paying off a mortgage early. This is generally a good idea, being debt free is a great landmark in a persons financial journey. The other thing that we often forget to focus on is that overpayments are a brand of ‘savings’, if we thought about this more than consumption there would be more personal wealth staying with people rather than their creditors!
The Irish Times mentioned Irish Mortgage Brokers in their story by Arthur Beesley and Eoin Burke-Kennedy on the rate cut by the ECB from 0.05% to 0%. The implications for borrowers are minimal, it’s more about ‘signalling’ to the market, the good news for debtors is that rates look set to stay low, which is awful news for savers.
“Mortgage broker Karl Deeter said monthly repayments on a 25-year €200,000 loan would drop by €5. The refusal of Irish banks to pass a succession of ECB rate cuts to variable rate mortgages has long been contentious.”