Jump to content
House Price Crash Forum
Sign in to follow this  
Flash

Latest Irish Property Spin

Recommended Posts

Bank of Ireland's - Dan McLaughlin

This is cracking stuff from one of Ireland's leading vested interest spin merchants.

Its economist Dan McLaughlin also says property prices will rise by 10% this year, a higher forecast than other commentators. He believes mortgage debt will reach €94 billion - up 26% on last year.

I can't argue with his reasoning here. What he is saying, in other words is, if you pump the property market market with credit (100%+ mortgages), then that will cause prices to rise. Go to the top of the class Dan!

Bank of Ireland says interest rates could rise by one percentage point over the next year. It says that may dampen demand for home loans but will not lead to a drop in house prices.

Priceless. So interest rate rises are coming and while that is bound to reduce borrowing demand - somehow the link between credit demand and high house prices, that we have observed for many years, will be broken. Yeah, right. :rolleyes:

Edited by Flash

Share this post


Link to post
Share on other sites

Bank of Ireland's - Dan McLaughlin

This is cracking stuff from one of Ireland's leading vested interest spin merchants.

I can't argue with his reasoning here. What he is saying, in other words is, if you pump the property market market with credit (100%+ mortgages), then that will cause prices to rise. Go to the top of the class Dan!

Priceless. So interest rate rises are coming and while that is bound to reduce borrowing demand - somehow the link between credit demand and high house prices, that we have observed for many years, will be broken. Yeah, right. :rolleyes:

The other part of the spin strategy that emerged today is the big emphasis on rents going up. Just in case anyone might have second thoughts about buying in the face of rising interest rates. The message is: if you continue to rent well you'll be paying more there too.

The number being bandied about is rents going up by 2%.

Well, I calculate that if interest rates go up 1% next year then monthly repayments on a 30 yr 300k mortgage will go up by about 14%. No mention of that from the banks :D

Edited by AssetIndigestion

Share this post


Link to post
Share on other sites

The other part of the spin strategy that emerged today is the big emphasis on rents going up. Just in case anyone might have second thoughts about buying in the face of rising interest rates. The message is: if you continue to rent well you'll be paying more there too.

The number being bandied about is rents going up by 2%.

Well, I calculate that if interest rates go up 1% next year. Then monthly repayments on a 30 yr 300k mortgage will go up by about 14%. No mention of that from the banks :D

Indeed. I heard on the radio today that "Rents have SURGED by 2%".

SURGED eh? Well, I had better go and buy a house then....

...Oh, hang on a bit....2%?....Hmmm... Isn't price inflation in Ireland running at 3%, with wage inflation in most sectors higher than that?

So rents have ACTUALLY FALLEN then. :)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.