Wednesday, Sep 06, 2006

Rising rates begin to bite in Ireland

Bloomberg: Irish Home Mania Squeezes Consumers as Rates Rise

As rising mortgage payments eat into wage packets, spending on everything from holidays to furniture may slow. First-time homebuyers are already spending 27 percent of their incomes on repayments, almost double the level 10 years ago, according to Dublin-based EBS Building Society, the country's biggest customer- owned lender.

Posted by james @ 11:33 AM (530 views)
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2 Comments

1. indiablue19 said...

The debt to income ratios there don't sound so drastic as here. But certainly an average home price over 200,000 pounds on a national basis is extraordinary. Also, the Republic government isn't that pickey how development is done and, in the end, I think Ireland is going to have a blighted mess on their countryside. You can feel the difference when you cross into the North, even now before the cheap workmanship catches up with anybody. And that says something about ultimate equity in a property.

It always strikes me, reading about the trade and industry successes of the Celtic Tiger how, if they'd gone to the Euro in time, the UK could have been the brokers between Europe and the dollar. That might have done a lot for UK business and I wonder why they chose not to notice.

Wednesday, September 6, 2006 08:39PM Report Comment
 

2. European-bear said...

I lived in Ireland ten year and brought and sold a house for x4 what I paid for it (and I sold back in 1999, when I thought the price was hugely overvalued). I think the whole Irish economy is very fragile and it is quite possible that HPC in Ireland will be far greater than in the UK. Ireland is shabby, dirty, expensive and the weather is awful. And the "friendliness" is only superficial, there xenophobia and racism is much worse than the Brits. And they will make more effort trying to rip you off than trying to make an honest buck.....All the multinationals that have located in ireland may well move on to Inida or elsewhere, and since 8% or more of the economy is construction, any slowing of the economy will slow construction, hence making the economy even worse and it will get trappen in a downward spiral. I really fear a catastrophy in Ireland comparable to the 75% meltdown in Japan, whereas the UK I set the crash at 20-30% when it occurs....

Thursday, September 7, 2006 07:35AM Report Comment
 

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