T McGibney
Registered User
- Messages
- 6,207
Yes. Stop trying to badger me. You have no business trying to interrogate me.
Yes. Stop trying to badger me. You have no business trying to interrogate me.So you're not here to offer or defend your own opinions, just to say that the government should do "something".
Or inward migration of 16%. Everyone wants to live in a city. Hence my suggestion of extending the city limits by 20k and building affordable (modular) homes. We have the land in Ireland.In the decade and a half since the last crash we used QE to more than double the amount of money in the world. Almost all of that money went to people over the age of 45. That's the problem. We replaced the lost wealth of older people by making up money and giving it to them, replacing the money they had in the banks, replacing the money their pension funds held in stocks and shares and re-inflating the value of their homes. That halved the value of labour relative to capital. That's why young people can't afford houses and why house prices have grown so much relative to earnings.
The rest is just a discussion about the symptoms of that problem.
No, the root cause of the housing shortage is that we enacted a raft of laws in 2009/10 that constructively outlawed new housing development at a time when labour and materials were relatively cheap.That's the root cause of the housing shortage.
Would you like them to try?My doctor can't cure an underlying condition; they can however alleviate symptoms with medication.
No point in me stamping my feet, refusing meds & insisting they stop treating my symptoms & go find a cure.
No, in a normal market the construction sector would just respond to that demand. Because of QE land and commodity prices are way higher than they should be so construction costs are higher than can be afforded by those who only have wealth generated by labour.Or inward migration of 16%. Everyone wants to live in a city. Hence my suggestion of extending the city limits by 20k and building affordable (modular) homes. We have the land in Ireland.
So how come so many other countries have exactly the same problem?No, the root cause of the housing shortage is that we enacted a raft of laws in 2009/10 that constructively outlawed new housing development at a time when labour and materials were relatively cheap.
Ours appears to be considerably worse and has been going on for far longer. I first saw the signs of a developing problem when I visited Dublin on the May weekend of 2011 That was the weekend that Osama bin Laden was assassinated. That's how long ago it is.So how come so many other countries have exactly the same problem?
Why is that only applicable to certain areas? There seems to be no difficulty in building one off homes in the country. Perhaps for every home built in a rural location a second property should be built for social housing? It need not be the same size. That way young people on a average income not from a farming background would have an opportunity to own their own home.No, in a normal market the construction sector would just respond to that demand. Because of QE land and commodity prices are way higher than they should be so construction costs are higher than can be afforded by those who only have wealth generated by labour.
Wealth generated by QE is competing with wealth generated by labour.
Not remotely true.Why is that only applicable to certain areas? There seems to be no difficulty in building one off homes in the country. Perhaps for every home built in a rural location a second property should be built for social housing? It need not be the same size. That way young people on a average income not from a farming background would have an opportunity to own their own home.
Not even close.Ours appears to be considerably worse and has been going on for far longer
What does that graph say? It doesn't even mention housing availability, nor build costs.
In a market that's been so screwed up by governments and central banks any all all available resources should be used to build private housing. Every house built will house the same number of people. When governments, having totally distorted the demand side, then distort the supply side they make the problem worse.Why is that only applicable to certain areas? There seems to be no difficulty in building one off homes in the country. Perhaps for every home built in a rural location a second property should be built for social housing? It need not be the same size. That way young people on a average income not from a farming background would have an opportunity to own their own home.
It tells us that housing affordability in Ireland has deteriorated less than many other European countries in the 22 years.What does that graph say? It doesn't even mention housing availability, nor build costs.
No, they're graphs of house prices and associated ratios to income.It tells us that housing affordability in Ireland has deteriorated less than many other European countries in the 22 years.
This graph shown income to housing affordability in a global context.
That was a snapshot in time during an unsustainable credit bubble. That credit bubble, also caused by governments and central banks, was also distorting the market. For almost 100 years up until that bubble US house price inflation relative to wage inflation was almost zero. That's what happens when you don't print money and you have relatively high property taxes.No, they're graphs of house prices and associated ratios to income.
The problem is one of volume or lack thereof. We had a house price affordability problem in 2006 but there was no shortage of places to live, and plenty of cheap rental availability.
No, there was a moderate tightening of rents in 1999-2001 which Charlie McCreevy took action to resolve in late 2001. Rents remained moderate from there on until 2011 or so (at which point house prices were on the floor), when they started tightening again, finally to the current ridiculous levels. Houses in out-of-the-way rural towns are now achieving rents of over €1,500 a month not because those towns are awash with money but because it's a sellers market.That was a snapshot in time during an unsustainable credit bubble. That credit bubble, also caused by governments and central banks, was also distorting the market. For almost 100 years up until that bubble US house price inflation relative to wage inflation was almost zero. That's what happens when you don't print money and you have relatively high property taxes.
So why are rents appreciating more in other developed countries?No, there was a moderate tightening of rents in 1999-2001 which Charlie McCreevy took action to resolve in late 2001. Rents remained moderate from there on until 2011 or so (at which point house prices were on the floor), when they started tightening again, finally to the current ridiculous levels. Houses in out-of-the-way rural towns are now achieving rents of over €1,500 a month not because those towns are awash with money but because it's a sellers market.
There are a lot of new builds on family land in Ireland. The rebuilding calculator is currently showing €2,800 per square metre for a detached property. There must be money available to build these homes. Either through gifts, savings or mortgages. Perhaps a combination of all three. If developers have to allocate a certain proportion to social housing in urban areas. Those building on family land should have to do the same in rural areas. It might help those who otherwise cannot get a foot on the property ladder.Not remotely true.
Current cost of a basic rural new build in my part of the country is north of €400,000.
Rents are rocketing.
Inherited money is a major factor in house purchases. Getting a free site will, obviously, lower the overall cost.There are a lot of new builds on family land in Ireland. The rebuilding calculator is currently showing €2,800 per square metre for a detached property. There must be money available to build these homes. Either through gifts, savings or mortgages. Perhaps a combination of all three.
Developers shouldn't be allocating any homes to anyone except those who can afford to buy them on the open market. You don't fix demand side distortions by distorting the supply side.If developers have to allocate a certain proportion to social housing in urban areas. Those building on family land should have to do the same in rural areas. It might help those who otherwise cannot get a foot on the property ladder.
Not any more.There are a lot of new builds on family land in Ireland.
A total non-runner. It would be more honest to ban self-builds, although how that would help housing availability is beyond me.If developers have to allocate a certain proportion to social housing in urban areas. Those building on family land should have to do the same in rural areas. It might help those who otherwise cannot get a foot on the property ladder.