Irish House Price Crash - 13 times salary mortgages

brit1234

Crazy Irish House Prices may Bankrupt the country

The Republic of Ireland is facing months of chaos as public unrest over the government's handling of the recession spills onto the streets. Reporter Andrew Hosken investigates plunging house prices, rising unemployment and some speculation it may leave the euro. Professor Iain Begg, of the London School of Economics, discusses why thousands of people will attend a march to protest about pay and pensions.

It looks like house prices went even more crazy in Ireland than here, all fueled like here by speculation and very loose lending. Below is the link to the BBC Today Program where they talk about the troubles. With the British Government buying all our banks we could face similar problems.

Enjoy
http://news.bbc.co.uk/today/hi/today/newsid_7903000/7903114.stm

beaujolais-nouveau

brit1234 wrote: »

It looks like house prices went even more crazy in Ireland than here, all fueled like here by speculation and very loose lending.

Yes, I was staggered when I heard that - mortages of 13 and 14 times salary. :eek:

zedyy

wow - Ireland looks worse off that the UK

Paddy2eyes

and 50 year mortgages were not unusual

leftieM

What a mess. The government knew they couldn't build an economy on the back of a housing bubble but they didn't want the good times to end so they just let it go on. Mind you, Ireland had punitive stamp duty levels and yet people kept buying. We were all fools in this housing bubble. Greedy, ignorant fools.
To add, I live in NI and we make the Irish look moderate and sensible in terms of housing bubbles! Despite a 20-30% drop in house prices here, we still have average house prices that are 7-8 times average salary. Now that's crazy.

Thrugelmir

Thanks for post. Interesting listen.

I knew that Dell had a major influence on the Irish economy, but a forecast 50% unemployment rate in Limerick is shocking.

mambury

spending over there has been more than stupid. My mum lives in Ireland and runs her own business as a wedding event dresser nad it has been very successful. I was staggered at the amount of money that people will throw at a wedding, venues charging on average 150 euros a head, with the average guests totaling 300:eek: . It has been the thing to have a big brash wedding to show off your 'wealth' for a long time. She even had several clients that remortgaged just to pay for the wedding, how they might live to regret that now!

The one thing that strck me when I went over last, a couple of years ago, was the cash machines. In the uk you have the choice of different amounts to withdraw starting from £10 and increasing, in Ireland it started at 150 euros! I was amazed.

I still have quite a lot of family there and hope for their sakes that things don;t get too hard, but I can see a return to economy of 15/20 years ago where the only thing reallykeeping the country afloat was subsidies and grants from the EU.

StevieJ

And there is me naively listening to you lot that these problems were all caused by Gordon Brown, mmm I will have to have a rethink :rolleyes:

Graham_Devon

StevieJ wrote: »

And there is me naively listening to you lot that these problems were all caused by Gordon Brown, mmm I will have to have a rethink :rolleyes:

Considering no one has ever said Gordon Brown was thge cause of other countries problems, I shouldn't get re-thinking too soon!

You do realise Ireland is a country in it's own right, don't you?

mambury

Graham_Devon wrote: »

Considering no one has ever said Gordon Brown was thge cause of other countries problems, I shouldn't get re-thinking too soon!

You do realise Ireland is a country in it's own right, don't you?

:rotfl: :rotfl: :rotfl: :rotfl:

StevieJ

Graham_Devon wrote: »

Considering no one has ever said Gordon Brown was thge cause of other countries problems, I shouldn't get re-thinking too soon!

You do realise Ireland is a country in it's own right, don't you?

You mean you don't see the link with UK having problems and nearly every other country in the world having problems :rotfl:Oh I forgot it is worse here :eek: