Slash mortgage repayments right now

THE latest Permanent TSB/ESRI House Price Index makes interesting reading.

The average price for a house in Ireland in the second quarter of 2010 was €201,364. The average cost of a house in 1996 was €79,682.

By comparison, the consumer price index (CPI) published by the CSO rose by 42.5% from June 1996 to June 2010. If one applies that CPI increase to the average price of a house in 1996, then the average price of a house today should be only €113,575.

This indicates that, overall, the true values of houses are now only 56.4% of their current auctioneering prices.

It is time for an equivalent reduction of 43.6% in all mortgage repayments immediately. If, heaven forbid, there is to be a property tax, then let it be based it on the true values of houses.

Michael Mernagh

Raheens

Carrigaline

Co Cork