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Housing Bulldozed

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This is from Namawinelake, the best Irish blog on the Disaster (the name comes from the idea the state will remove a supply of houses from the market to keep prices high):

http://namawinelake.wordpress.com/2011/09/28/the-first-housing-estate-bulldozed-by-a-council-in-ireland-%e2%80%93-before-and-after-pictures/#comment-10621

A tiny move, but it's a first for Ireland.

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This is from Namawinelake, the best Irish blog on the Disaster (the name comes from the idea the state will remove a supply of houses from the market to keep prices high):

http://namawinelake.wordpress.com/2011/09/28/the-first-housing-estate-bulldozed-by-a-council-in-ireland-%e2%80%93-before-and-after-pictures/#comment-10621

A tiny move, but it's a first for Ireland.

There is always a silver lining :P

Presumably, the creditor (a bank? NAMA?) must now kiss the collateral goodbye, recognise the loss and properly write off the loan.

Pity if the creditor is a council because all these leeches know to do is to raise taxes on residents :angry:

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I remember in school our teacher explaining Grapes of Wrath to us, how the farmers would leave produce to rot in the field, rather than risk collapsing the sale price. Meanwhile people went hungry. I've never bothered to read the book, so I don't know if it's true, but it seemed ridiculous at the time, indefensible, an immoral aberration that belonged firmly in the past.

Yes, you can laugh at me :)

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I remember in school our teacher explaining Grapes of Wrath to us, how the farmers would leave produce to rot in the field, rather than risk collapsing the sale price. Meanwhile people went hungry. I've never bothered to read the book, so I don't know if it's true, but it seemed ridiculous at the time, indefensible, an immoral aberration that belonged firmly in the past.

Yes, you can laugh at me :)

See Euro Grain mountains, wine lakes and beef freezers

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Here's a snapshot from the Irish CSO Residential Property Price Index report for August 2011, released two days ago.

Look at the second column, showing the month-on-month falls:

IrelandResidentialIndex0811.gif

Also from the report (my emphasis):

"In Dublin residential property prices fell by 3.8% in August and were 14.9% lower

than a year ago. Dublin house prices decreased by 3.4% in the month and were

14.7% lower compared to a year earlier. Dublin apartment prices fell by 6% in the

month of August and were 17.4% lower when compared with the same month of

2010."

Link: http://www.cso.ie/releasespublications/documents/prices/2011/rppi_aug2011.pdf

Edit: redundant word

Edited by FreeTrader

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Here's a snapshot of from the Irish CSO Residential Property Price Index report for August 2011, released two days ago.

Look at the second column, showing the month-on-month falls:

IrelandResidentialIndex0811.gif

Also from the report (my emphasis):

"In Dublin residential property prices fell by 3.8% in August and were 14.9% lower

than a year ago. Dublin house prices decreased by 3.4% in the month and were

14.7% lower compared to a year earlier. Dublin apartment prices fell by 6% in the

month of August and were 17.4% lower when compared with the same month of

2010."

Link: http://www.cso.ie/re...ppi_aug2011.pdf

Long, LONG way to go before Ireland gets back to normal.

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This is from Namawinelake, the best Irish blog on the Disaster (the name comes from the idea the state will remove a supply of houses from the market to keep prices high):

http://namawinelake.wordpress.com/2011/09/28/the-first-housing-estate-bulldozed-by-a-council-in-ireland-%e2%80%93-before-and-after-pictures/#comment-10621

A tiny move, but it's a first for Ireland.

Given Ireland's history of forced land clearances there is something obscene about this move.

The one benefit from most bubbles is a glut of the item that generated the mania. Providing it has lasting use then it can be the foundation for future economic growth Cheaper property prices would drive down living cost in Ireland and make its economy more competitive in the long run. Propping up prices by destroying the asset not only removes that benefit but also essentially throws away the useful life of the asset and negates all the productive labour used in its creation.

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Don't worry the houses cost a fortune to build but it's only debt / taxpayer's money, that is endless money (look, just give it to 'em) and hey they're throwing another £2 trillion into the waste pot, into the trough and Ireland will for sure to be availing itself of some of that. Mind you remember to say stuff like "there's no free lunch" like the Irish politicians, wink wink nudge nudge - let's have another dollop :lol:

Also remember that all that money could have been used to build up an Irish traded sector (blimey thinking about it a UK traded sector as well) but that might have offered some competition to Germany, China and the financial sector etc etc et al.

Better to create huge debt, buy tat, build houses and then demolish them, eh?

Edited by billybong

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Given Ireland's history of forced land clearances there is something obscene about this move.

The one benefit from most bubbles is a glut of the item that generated the mania. Providing it has lasting use then it can be the foundation for future economic growth Cheaper property prices would drive down living cost in Ireland and make its economy more competitive in the long run. Propping up prices by destroying the asset not only removes that benefit but also essentially throws away the useful life of the asset and negates all the productive labour used in its creation.

Yep a good example is the huge railroad bubble int he USA in the 1890's. Which brought down a lot of banks and as per usual many large European investors lost huge amounts of money when the bubble blew up.

But at the end America had this world class rail system reaching all over the country. Which was a substantial factor in driving economic growth in the years that followed. Especially when the debts were defaulted on, the costs to operate were low.

Now imagine if America had ripped up the tracks to try and keep rail freight costs up.

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Yep a good example is the huge railroad bubble int he USA in the 1890's. Which brought down a lot of banks and as per usual many large European investors lost huge amounts of money when the bubble blew up.

But at the end America had this world class rail system reaching all over the country. Which was a substantial factor in driving economic growth in the years that followed. Especially when the debts were defaulted on, the costs to operate were low.

Now imagine if America had ripped up the tracks to try and keep rail freight costs up.

I think of the Channel tunnel...investors lost out, the banks bought it and we have a tunnel.

It is a way of doing things, but for it to work, defaults and losers there must be.

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I think of the Channel tunnel...investors lost out, the banks bought it and we have a tunnel.

It is a way of doing things, but for it to work, defaults and losers there must be.

Or you can accept that for many infrastructure projects and basic services, it is basically impossible to get absolute returns because the benefits are widely distributed, so they are best taxpayer funded, especially as the taxpayer can generally borrow at a lower cost.

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I think of the Channel tunnel...investors lost out, the banks bought it and we have a tunnel.

It is a way of doing things, but for it to work, defaults and losers there must be.

Throughout time investors took risks and usually lost.. with a few winners making a fortune. The baby boomers want to change all that.. they took the risk therefore they deserve the promised reward. Even if that means the government has to step in and bailout the investment.

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I remember in school our teacher explaining Grapes of Wrath to us, how the farmers would leave produce to rot in the field, rather than risk collapsing the sale price. Meanwhile people went hungry. I've never bothered to read the book, so I don't know if it's true, but it seemed ridiculous at the time, indefensible, an immoral aberration that belonged firmly in the past.

If there is one country that should 'know better' its Ireland.

Ireland in the 1800s is often remembered for two things, famine and rebellion. Hundreds of Irish Patriots were killed in the fight for Land.

In the mid-1840s the Great Famine ravaged the countryside, killing entire communities and forcing untold thousands of the Irish to leave their homeland for a better life across the sea.

In Ireland, in 1876, 616 landowners owned 80% of the country. The English aristocracy

The Land War was not so much a war as a prolonged period of protest which began in 1879.

Irish tenant farmers protested what they considered the unfair and predatory practices of British landlords. At that time, most Irish people did not own land, and were thus forced to rent the land they farmed from landlords who were typically transplanted Englishmen, or absentee owners who lived in England.

In a typical action of the Land War, tenants organized by the Land League would refuse to pay rents to the landlords, and protests would often end in evictions. In one particular action, the local Irish refused to deal with a landlord's agent whose last name was Boycott, and a new word was thus brought into the language.

By 1930, 13 million acres of Ireland's 20 million acres had been sold to owner-occupiers.

By 2001 home ownership is 82%, Ireland's 149,500 farms are 97% owner-occupied and owner-farmed, there is no poll tax, water is free and pensioners get free transport, TV and glasses. In 1872 "most" of the Irish people owned "nothing at all".

The 1 million dead in the potato famine was due to land ownership and repressive laws and not the potato blight

That same monopolisation of the land has been accepted in England for Centuries.

A tiny minority exploits Britain at the expense of the rest of us.

Just 6,000 or so landowners -- mostly aristocrats, but also large institutions and the Crown -- own about two thirds of the UK. They have maintained their grip on the land right throughout the 20th century.

Just 1,252 of them own about 60% of Scotland.

[They pay no land tax. Instead the government gives them £2.3 billion a year and the EU gives them a further £2 billion. In subsidies.]

The poor are forced to subsidise the super rich.

As of 2001 landbanks to a value of 37 billion pounds were known to exist, with capacity to build an additional 3-4 million homes.

This reserved land is almost wholly owned by aristocrats; with none of it on the land registry.

[This land is coming out of subsidised rural estates, land held by off-shore trusts and companies, and effectively untaxed.]

Throughout the 18th century enclosures, the landowning class stole eight million acres of Common land from the people.

The thieves were mainly tyrannical Parliamentary Landlords.

When certain Commoners questioned this. The State had them horrifcally murdered, to make an example of them.

They still hide their crimes and their takings. The aristocratic landowners, through their House of Lords influence successfully conspired to take out of circulation, the 1872 Return of Owners of Land, or "Lost Doomsday Book" that documented who owns what.

This was then hidden from the public and never updated. This was the most comprehensive record of landownership ever compiled.

Shares have to be registered; but land doesn't. The Land Registry still DOES NOT KNOW who owns between 30% and 50% of land in the UK.

86 years after the creation of the Land Registry, up to 50% of the land in England is still not registered.

Landowners' wealth is a parasite on Britain. Their wealth comes not from farming, nor even from renting, but from a trickling of land onto the urban housing market.

The clearing banks and building societies stripped our industries of investment capital, then supported their clients, the landowners, by running the rigged and overpriced land market.

In other European countries, Ireland, Denmark, throughout history it has taken a revolution to end the feudal tenure of Land.

Less than 8% of the UK is developed. The scarcity of Land is a myth. Agriculture only accounts for 3% of the economy.

In the UK 70% of the land is owned by 1% of the population. A statistic from a Banana Republic, or a third world dictatorship.

Edited by Milton

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Same with fish, if they catch above quota the excess is dumped back in the sea. The fish die of course.

Cannot remember which retailer it was now but I remember reading about how they threw stock away that didn't sell instead of selling it at a discount or giving it to charity.

To ensure nobody got hold of it for free they put a knife threw it to make sure it was completely useless.

Hard to believe people are homeless and starving in the same world such stupidity is going on. Still the last thing we want is any fooker buying a house for less than a kings ransom.

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What is the reaction in Ireland to this? It seems crazy to bulldoze perfectly good, habitable housing stock.

It seems to be a lose-lose situation. Political and economic vandalism.

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What is the reaction in Ireland to this? It seems crazy to bulldoze perfectly good, habitable housing stock.

It seems to be a lose-lose situation. Political and economic vandalism.

Questions are being asked, but intelligence seems to be reserved to t'interubes with nothing left over for parliament:

http://namawinelake.wordpress.com/2011/09/30/ireland-%e2%80%93-a-country-with-over-300000-vacant-homes-but-100000-households-on-state-housing-lists-a-joke-or-an-opportunity/

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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