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Realistbear

Irish People Borrowed At Record Levels Last Year

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http://www.breakingnews.ie/2006/01/31/story242535.html

Irish people borrowed at record levels last year with banks lending more than €21bn in mortgages, it emerged today.
The Central Bank recorded the highest ever monthly rise in private sector credit with lenders handing out
€6bn in December
, including €3.5bn for residential mortgages.
This brought the
annual increase in credit for 2005 to €59bn
, compared to a rise of €37bn in 2004. Households and non-financial corporations accounted for €25bn.
Frantic buyers were seen to be in a frenzy with banks offering no-limit loans causing excitement levels to reach fever pitch as some frothed at the mouth in eager anticipation of their buy no matter what the price.

:lol::D:lol:

Poetic license probably not far off the mark?

Edited by Realistbear

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So Central Bank, you've reported it. Thanks. Now what are you going to do about it?

How can you restrict the credit growth without causing a devastating implosion in the housing market, whose health now depends upon that very credit growth?

Surely something is better than nothing? Even if the prospect of a magic "soft landing" has now gone.

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http://www.breakingnews.ie/2006/01/31/story242535.html

Irish people borrowed at record levels last year with banks lending more than €21bn in mortgages, it emerged today.
The Central Bank recorded the highest ever monthly rise in private sector credit with lenders handing out [b
]€6bn in December
[/b]
, including €3.5bn for residential mortgages.
This brought the
annual increase in credit for 2005 to €59bn
, compared to a rise of €37bn in 2004. Households and non-financial corporations accounted for €25bn.
Frantic buyers were seen to be in a frenzy with banks offering no-limit loans causing excitement levels to reach fever pitch as some frothed at the mouth in eager anticipation of their buy no matter what the price.

:lol::D:lol:

Poetic license probably not far off the mark?

ireland are in eurozone so cant set interest rates,means rate are artificially low which is driving speculation.

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http://www.rte.ie/business/2006/0131/businesstonight.html

Have a listen to item 3. This went out on the radio last night.

For those of you not too familiar with the Irish market, it will give you a neat insight into what is continuously fed to us from the media here.

The debt levels are rising exponentially - a 6 billion Euro increase in one month! For a population of just over 4m, this is about as serious as it gets. But instead of discussing this directly, the discussion is turned around to how house prices "will continue to rise".

:blink:

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yes, unfortunately the Irish boom is like ours on steroids...........They have an Anglo-Saxon style attitude to home ownership and to debt combined with low Euro IRs...............All the Anglo-saxon economies have raised IRs to control the bubble but they can't owing to euro rates being set for Franco-german economies.

Irs in Australia particularly NZ the are even higher than uk and us

Edited by Michael

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yes, unfortunately the Irish boom is like ours on steroids...........They have an Anglo-Saxon style attitude to home ownership and to debt combined with low Euro IRs...............All the Anglo-saxon economies have raised IRs to control the bubble but they can't owing to euro rates being set for Franco-german economies.

Irs in Australia particularly NZ the are even higher than uk and us

Irish people along with Pakistani's, Indians, Nigerians and Greeks are not risk averse.

They recognise you dont improve your lot by fiddleing about with the latest Halifax cash ISA.

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Irish people along with Pakistani's, Indians, Nigerians and Greeks are not risk averse.

They recognise you dont improve your lot by fiddleing about with the latest Halifax cash ISA.

For everything there is a season, a time to buy and a time to sell.

Right now is not a good time to be buying houses. It WAS a good time to sell last year. Now is the time to have your dosh in a safe place growing at 4% +.

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Now is the time to have your dosh in a safe place growing at 4% +.

Whilst a small % should be kept as cash, 4% after inflation and Tax is looking more like 1.5%, not exactly an investment.

Investment needs a little more imagination and risk than that.

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Whilst a small % should be kept as cash, 4% after inflation and Tax is looking more like 1.5%, not exactly an investment.

Investment needs a little more imagination and risk than that.

The real return for my area is about 9% (4% on savings +5% on house price depreciation) as house prices in Stratford-upon-Avon district are down by about 5% for 2005 if Nationwide is to be believed. I personally see houses dropping more like 10% which gives me a real return of 14% assuming I am going to get back into the market at some stage.

I have invested about 20% of my STR in higher risk places and recently took up a minority shareholding in UK Coal which is moving sharply to the upside following disclosure of a massive joint venture with the Chinese. The rest I placed in US Mutual funds that returned about 16% last year and up about 8% so far this year.

I just checked UK Coal and its up 5.10% today!

Edited by Realistbear

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  • 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%



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