High house prices must be addressed
Unfortunately, there is a Government-sponsored rip-off occurring in the form of pension funds being plundered to allow investors to get richer.
It’s simple: the Government introduces a taxation scheme to allow investors into the house market, thereby pushing up house prices for all buyers, but especially first time buyers because price ranges are affected. Therefore, instead of being able to afford a house and a pension, it’s one or the other.
And where is the media in all this? They’re silent at best, but normally in compliance.
Sandra Hurley quoted a TSB spokesperson (Irish Examiner, July 13) that said the increase in house prices was due to first time buyers. Then the Department of the Environment said that 66% of all new homes were bought by investors. There was not a single comment showing the utter contradiction in these two statements as would be expected from a journalist.
However, people will have to plunder all their savings (already hit by inflation) and take a risk on interest rates, the economy and face the potential of negative equity in order to buy a house.
To put this into real perspective, house prices increased five times more than the average wage in the last five years.
We keep on hearing about the free market and supply outstripping demand, but an estate agent told me last week that if the tax breaks for investors hadn’t been introduced, the market would have collapsed.
I wonder if the tax breaks had anything to do with an election year?
Regardless, it would be refreshing to see some objective reporting on this matter for a change.
Michael O’Connell,
The Orchards,
Maryborough Hill,
Cork.
