Does anyone remember the spectacular “boom and bust” here in Ireland?
That was the time when property prices were rising so fast that developers were buying telephone kiosks and converting them into shoddy apartments. People were desperate to buy property as you could get a 25% return in one year. Second homes became almost compulsory.
Then of course came the bust and the downside.
House prices dropped by 50%. Hundreds of thousands went into negative equity. Repossessions went through the roof. Ireland became a country of “ghost estates”. The greed turned to abject misery.
Thanks to our Glorious Gubmint we are into another boom-time.
House prices are rising at 25% a year once more. People are queuing at the gates of new developments to snap up property before it’s all sold. “Happy days are here again” cries the Gubmint.
Now of course the Gubmint is rubbing its hands in glee.
You see, they brought in a property tax to help pay off the billions we spent on bailing out the banks last time. That property tax was based on the valuation of the property. Now of course the valuation is rocketing skywards once more and the Taxman is rubbing his hands in glee at the prospect of a bumper harvest.
I don’t know what my property is worth. It could be five thousand or five million and it is totally irrelevant to me. Property value does not exist until such time as I wish to sell or buy and until such time, my property’s worth is irrelevant, pointless and worthless. Yet they are going to try and screw me because I could potentially get more for it now than I could last year should I ever wish to sell. Bollox to that.
And what happens when this latest bubble goes pop? Are we back to more bailouts? More evictions? More suicides? What extra taxes are they going to impose this time, having already milked us for every cent we have?
It’s like handing the keys to a bank to a five year old.
When will they learn?