Skip to main content

Irish Property 10 Years Before Prices Will Recover...

Guru hobbs blames cowen as homeowners face 10 year wait for property price recovery...

Financial guru Eddie Hobbs has lashed Taoiseach Brian Cowen for the "leadership vacuum" that has prevailed for the past year.

And he warned that it could take up to 10 years for Irish property prices to return to anywhere near their pre-recession levels.


In a hard-hitting critique of the country's leaders, Hobbs claimed the Government had failed to lead the nation for the past decade.

"There was a lot more they could have done but I don't think the Government have properly governed the country for the past 10 years," he told the Herald.

"Ireland has been governed by other forces instead, like developers and public sector income through the partnership process. Now that that process is fractured, the Government is only beginning to govern again.

"I find it no coincidence that we're finally beginning to see leadership from Brian Cowen within days of the fracturing of the partnership process." He continued: "We have only had a Government reacting to a crisis and now they're being pressurised into making a decision."

The TV presenter and financial consultant went on to say how the current climate of fear among the Irish people needs to be urgently tackled.

"One thing Brian Cowen needs to do to convince his sceptics is to get rid of the public's fear of spending money. If six months ago, the Government had come out with a radical plan to combat the dire economy, then the atmosphere in Ireland today would be so different," he continued.

fear

"If there were like 'We're in it together, here's the plan', but there wasn't any of that -- there was a leadership vacuum. It has created an enormous degree of fear that we shouldn't be feeling and Brian Cowen must bear enormous responsibility for that."

The Cork commentator, who was at the Dylan Hotel for the new Independent Directory launch, is bringing out a book on how to survive the recession. However, he reckons that people can get their finances under control -- providing they face up to their debts.

"They need to put a debt proposal together and do a frank and honest assessment of their balance sheet -- what they own and what they owe and their cash flow. They need to take out all of their self delusion and then go and talk to their creditors.

"The alternative is, you stick your head in the sand and start getting those letters from solicitors and then debt-collecting agencies and court orders, then sheriffs arrive and you're not in control."

In time, he said that the property market will bounce back -- but it may not be until 2020. "Negative equity is not essentially a problem as long as you make the repayments because house prices will inevitably come back up but it could take between eight or 10 years."



Report by Melanie Finn - Evening Herald.

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

Varadkar says it’s ‘not the worst thing’ that Ryanair is buying up homes for staff

25 of the 28 units in a new development at Fostertown Place in Swords were purchased by Ryanair for their cabin crew. TAOISEACH LEO VARADKAR says he does not have any issue with Ryanair or other companies buying up almost entire housing estates for their staff. He said there is a big difference between companies like Ryanair bulk-buying houses and apartments compared to investment funds. “We are building over 30,000 new homes now every year,” he said. “If you think about it, that’s 70,000, 80,000 or 90,000 bedrooms every year so we are finally seeing housing being built on scale,” Varadkar said. “We want to scale that up this year and next year as well because we do have a rising population and family sizes are getting smaller, so we need more housing and we are making progress,” he said. “In relation to Ryanair specifically, I don’t think it is the worst thing that a company would buy accommodation for their staff. It’s not the first time this has happened, it has be...

Irish Property Overvalued By 30%...

Irish property could still be overvalued by 30 percent... Irish house prices increased by around 330 per cent between 1996 to 2007 – a bubble of impressive scale and duration, but a bubble nonetheless. Plenty of outside observers saw the writing on the wall and said so, but they were overlooked in the Celtic Tiger gold rush. The European Central Bank (ECB), the Organisation for Economic Co-operation and Development (OECD), the Financial Times, the Economist and the International Monetary Fund (IMF) all spoke of dire portents early and often. They were ignored. Cheap and easy money arrived in Ireland just as the tiger economy geared up. The country adopted the euro and access to a large pool of low-cost European finance with it. When the bubble burst Ireland's main domestic financial institutions were wiped out and European institutions and the IMF took over the nation's financial affairs. So the question now is has the country reached the end? According to a report i...