Jonathan Healy of Newstalk spoke to Karl Deeter about capping mortgage loan to values and loan to income amounts. This is a logically compelling idea but it won’t fix the supply shortage or necessarily prevent the problems we are told it will fix. It will also mean that about 2 in 3 first time buyers face an adverse effect that people who already bought didn’t have to deal with, namely that of trying to save up a 20% deposit.
Robert Shortt from RTE’s Primetime show spoke to us about the Central Bank idea of putting caps on lending in terms of the loan to value and the loan to income ratios. There is a sense in this, but we don’t believe such a crude instrument is nuanced enough to negate the downsides that such a policy brings with it. There are better ways to do this and they should be explored.
Pat Kenny spoke to us about mortgage lending and specifically the story which appeared in the news today that the Central Bank are thinking about copying the moves in the UK where the FCA are going to impose loan to value and loan to income restraints.
Today on the 1 O’clock News on RTE Radio 1 we were asked to consider things which the budget could do to help achieve some stability in the housing market.
We echoed the Construction Industry Federation for a call to end ‘Part V’ contributions as this is a 20% tax levied only on new homes which is meant to provide for social housing. This is a mistake, social housing is a society wide responsibility and should not be put only on the shoulders of new home buyers.
Other ideas included ending development levies and dropping the VAT rate while also being mindful of the rented sector.
This week on Drivetime’s ‘Talking Money’ we were discussing water charges, the prices have been published today, we were working on the only indicative price available before this which was published by the Commission for Energy Regulation.
The politics of this weren’t considered, we just looked at costs and the alternative costs of substitution by digging wells, rain water harvesting or the use of septic tanks. The findings show that water is fairly cheap compared to the cost of getting it by your own means.
Matt Cooper from ‘The Last Word’ had Charlie Weston (Irish Independent) on his show along with Karl Deeter to discuss mortgages, loan rates and some of the developments that are starting to happen in the marketplace.
Some of the main points of interest were that switching is available again, rates are likely to lower and that some lenders are coming out with longer term fixed rates.
This week on Drivetime’s ‘Talking Money’ we looked at ways to take the maximum money saving ideas and put them to use in your own day to day life. Some are well known, others are not, but we are hopeful that there was something for everybody!
Jonathan Healy of Newstalk’s ‘Lunchtime’ show spoke to us about the idea of putting homeless people into ‘pre-fab’ buildings. Our general view is that housing the homeless is important, not only economically, but socially as well, if we accept that in civil society we have certain obligations and responsibilities towards each other then it’s a simple answer, house people. But when it comes to how you house them pre-fab’s are not the answer, regular housing is.
This week on RTE Radio 1’s ‘Drivetime’ our regular Monday edition of ‘Talking Money’ covered the issue of buying a home. Many first time buyers are starting to feel pushed into the home buyer cohort when they have other options such as renting or buying in a cheaper area, this can make a huge difference and we outlined some of the costs and concerns.
This is a piece that Karl wrote for the Irish Sun, it relates to a piece that was the lead story for the paper last week.
There is a lot of talk that we have a ‘property bubble forming’, with virtually no supply, a growing population and a trend towards smaller households as things like separation and divorce become more common, it simply lacks ‘bubble’ qualifications.
But it does have ‘boom’ written all over it, we have had many such booms and busts in Irish history, I have spent much of the last two years researching just this very thing with Frank Quinn from Blackrock College of Further Education.
We have had many price rises and falls in the last 300 years, often we saw that after a crash the next boom would result in overcrowding because back then, as now, supply became ‘short’ in the areas that it was needed.
A boom is about rapid price appreciation, it doesn’t mean you have a bubble. You could have the price of anything boom and there wouldn’t be a bubble, …