This may sound like heresy but I am more and more inclined to believe that the sooner we see a rise in property values then the sooner we will get out of our macro economic problems.
The consequences and benefits of a rise in property values are widespread.
1. It will lift people out of negative equity , allow people to sell their homes and move home either within Ireland or sell up and move abroad.
2. The property loans and assets already transfered to NAMA will show a profit.
3. The value of the remaining loans yet to be transfered to NAMA from the Banks will increase thus helping to limit the losses in the banks.
4. The morale of the country will lift - because , despite the happenings of the last 3 years, as a nation we are still inclined to measure our wealth in terms of house and land values.
So its in all our interest that we see a slow and steady rise in property values. I am not talking about recreating another bubble but the 50% ( on average) fall in values is in some cases an over correction. For example prices in the better suburbs of Dublin and the better parts of the city centre , such as the Docklands appear under valued. As a nation we need to introduce some well manged and monitored measures to kick start the property market. If prices stay as they are it is only a matter of time before foreign investors take advantage of the value in our current property market and start snapping up property that was paid for by Irish citizens with sweat , tears and cash.
Any thoughts out there.
The consequences and benefits of a rise in property values are widespread.
1. It will lift people out of negative equity , allow people to sell their homes and move home either within Ireland or sell up and move abroad.
2. The property loans and assets already transfered to NAMA will show a profit.
3. The value of the remaining loans yet to be transfered to NAMA from the Banks will increase thus helping to limit the losses in the banks.
4. The morale of the country will lift - because , despite the happenings of the last 3 years, as a nation we are still inclined to measure our wealth in terms of house and land values.
So its in all our interest that we see a slow and steady rise in property values. I am not talking about recreating another bubble but the 50% ( on average) fall in values is in some cases an over correction. For example prices in the better suburbs of Dublin and the better parts of the city centre , such as the Docklands appear under valued. As a nation we need to introduce some well manged and monitored measures to kick start the property market. If prices stay as they are it is only a matter of time before foreign investors take advantage of the value in our current property market and start snapping up property that was paid for by Irish citizens with sweat , tears and cash.
Any thoughts out there.