Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Ireland Cuts VAT

13»

Comments

  • sabretoothtigger
    sabretoothtigger Posts: 10,035 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    edited 2 July 2011 pm31 11:58PM
    Aston Martin still does it by hand I think. Political arguments often resemble Luddites in failing to see the greater benefit.
    There is no greater benefit to levelling houses instead of finding a use for them. Its direct and short term intervention and ultimately pointless.
    I can forgive a MP for that stupidity because they only want to win the next election but what excuse does anyone else have. I think you must be kidding us
    A strong economy and strong asset values go hand-in-hand.

    the asset prices are a function of the economy not the reverse. Maybe some foreigners will come buy them
  • crash123
    crash123 Posts: 399 Forumite
    :cool:
    No need here.

    We don't have 17% of our houses empty...... Just 3%.

    Which is why our house prices are 11% below peak, and theirs are 45% below peak.

    Which is why we have 7.8% unemployment, versus their 15% unemployment.

    And it's why we have a deficit of 11% of GDP, versus their deficit of 32% of GDP.

    And of course it's also why our wider economy is doing far better than theirs....

    You can't have a monumental house price crash like Ireland without destroying your economy..... And tinkering with VAT won't make the slightest bit of difference. :)

    Ireland is economically doomed until their house prices start picking up.


    Ireland is in the Euro so they could not lower interest rates or print (QE) loads of money or devalue there currency like we have done.

    If Ireland could have changed interest rates years ago they could have altered the house price bubble and so could we have. You along with millions do not understand high house prices are not good for economies.
  • DervProf
    DervProf Posts: 4,035 Forumite
    crash123 wrote: »
    You along with millions do not understand high house prices are not good for economies.

    The only thing that many do seem to understand is "My house has gone up in value, it makes me feel a bit "clever" and a wealthier, therefore higher house prices are a good thing".
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • JasonLVC
    JasonLVC Posts: 16,762 Forumite
    Part of the Furniture Combo Breaker
    The Standard rate in Ireland is 21% (UK is 20%). The Reduced rate of VAT in Ireland was 13% now 9% (UK is 5%). This reduction only applies to the Reduced rate of VAT.

    The EU in 2008/09 allowed individual member states to change the treatment of touristy activities such as hotels and cafes from being standard rated to reduced rated supplies.

    The UK did not take this option up at the time, nor has yet to.

    Whether or not such a move would actually resolve the deficit problem remains uncertain, whether retailers will pass the cuts on is also unclear and of course whether this will actually stimulate the Irish and tourists to spend spend spend.

    Not to mention any policy that reduces the cost of fatty foods and encourage sectors that employ mainly foreign staff (ie, hotel cleaners, etc) also casts doubts as to whether it would create new jobs for locals or not.
    Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    JasonLVC wrote: »
    Whether or not such a move would actually resolve the deficit problem remains uncertain, whether retailers will pass the cuts on is also unclear and of course whether this will actually stimulate the Irish and tourists to spend spend spend.

    From my experience of regularly visiting friends. A combination of a low Euro exchange rate and high VAT has made Eire expensive in tourist terms.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.9K Work, Benefits & Business
  • 617.2K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.