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Stacking Up A House Of Cards On A Hot Air Bubble

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Stacking up a house of cards on hot air bubble

IN the 1970s, there was a little boy, David, who lived in a bubble protecting him from outside infections which would kill him.

Three decades later, we are all living in a housing bubble and it is floating away - with us inside it blowing hard to make it go higher and higher.

For if it bursts, so do we; and the whole house of cards that is the mad, crazy property market, comes falling down.

It is filled by the hot air of wild borrowing, wilder spending and a euphoria that excitable banks and property developers have injected it with. But with every high comes the low and we had better watch out when the pin comes and the bubble bursts.

The latest OECD report is upbeat, claiming we're still helium-filled and continuing on the up - for at least another two years. Carry on spending, was the message.

The thousands of buyers, most of them first-timers who queued up at the launch of Ireland's first purpose-built town - Adamstown in west Dublin - at the weekend certainly were having nothing to do with the doom and gloom.

The only despair evident was that displayed at seeing the last house go to the person in front.

Higher-priced ones (euphemistically called 'phase two') were enticingly on offer, but you'd have to fork out more and wait longer. Take it or leave it. And, of course, people took it.

What else were they to do? At the mercy of the developers, fat cheques burning a hole in their pockets, it was first-come-first-served to the tune of a €12m sell-out.

What kind of frenzied insanity leads to queues of people, some sleeping overnight in cars like they used to only for the Arnott's sale, begging to part with up to half a million euro for a home?

Borrowing from banks only too willing to lend; coaxing inheritances out of parents still very much alive and well; prepared to do anything, just to get on the property ladder.

Is it right that we can be held in the noose of wealthy builders to the extent that we are mortgaging ourselves to the hilt? Will we end up like Japan, where 100-year mortgages are routine, for three generations? When problems and curious practices arose in Adamstown, punters knew which side their bread was buttered on.

One man deposited €5,000 for a house, only to be told 24 hours later the price had just gone up - by €25,000. Yes, he was outraged, and vented it on Joe Duffy's 'Liveline'.

He had a receipt from Gunne's, the selling agent.

He felt he was entitled to the lower price. Gunne's said it was their mistake. But not in an awfully-sorry-time-for-a-bit-of-goodwill kind of way. It was, it appeared, more of a take-it-or-leave-it, we-have-a-queue, could-you-hurry-up-now, kind of way.

A solicitor who called 'Liveline' said the chap did, of course, have rights and the whole 'subject to contract' thing was a nonsense, as was Gunne's intransigence. He sounded competent and assured. But then, he probably already owns a house and wouldn't understand the madness of it all.

In their frenzy, people are so scared about missing the boat they'll just about put up with anything. The boy David's bubble eventually burst and the invasion of germs killed him.

When our bubble pops, where then for the thousands of people unwittingly caught up in the obsession of the property drug? When the germs of inflation and the sickness of the financial reality invades, will we be able to withstand it?

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The boy David's bubble eventually burst and the invasion of germs killed him.

Really! Analogies are fair enough, but this is very sad, undersupply. :(

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Really! Analogies are fair enough, but this is very sad, undersupply. :(

Didnt write it myself hunnybear :lol:

Send your complaint to

independent.letters@unison.independent.ie

if you found it offensive.

No author is provided on the online version so I couldn't reference it.

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In their frenzy, people are so scared about missing the boat they'll just about put up with anything.

That's right folks. It's a case of "buy now or pay more later".

We've long passed the point when a soft landing was possible. Many of those aforementioned people are young, just starting out in their first home. Meanwhile the old retire on their inflated property pensions, funded by a huge burden of debt that will be carried by the younger generation for many years to come. It's all very sad. :(

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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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