These proposals are too late

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toffblue

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I have to say the horse has bolted on this already. This looks like a desperate move by an institution who have been proved in the past to react too slow to the economics of this state. The housing market particularly in Dublin, has already risen at double digit rates. Correct me if I'm wrong but one of the most significant triggers of the property crash was the amount of mortgaged property and land held by amateur landlords. This was as a result of reckless lending. Why should those who want to trade up their PPR be subject to these new rules if they already satisfy tougher new stress tests that the lending institutions have correctly brought in. Bring in 50% LTV for investors by all means. That would make sense. In addition having negative equity now means you are in an advantageous position to trade up!!! Really doesn't make sense. Too much of a one size fits all approach from the Central Bank who really are out of touch and too late to the party.
 
Toffblue.

The horse bolted 10 years ago , the jockey ie Central Bank/Regulators were either incompetent or believed their Banking friends.
Do not forget The Central Banks main function is to protect their Banking friends, any positive effect on housing/consumers is but a happy bye product.

I would (from experience) be very wary of giving good motives to Central Bank.
The proposals though are I think mostly sensible.
The future;
I would not be atall surprised to find lenders (as was their practice) soon start to tweak income. Sellers to tweak prices (a bit of cash here and there) and since none of this can be properly proven and given our love affair with property Central Bank will ignore.
Then maybe not , they could always fine their friends;
probably 50 euro would be nuff! it wouldn,t do to frighten Banks !
 
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