take it easy - its not falling like a stone - that might be if the sp fell from €0.39 to €0.15 like happened to another investment of mine in Quindell and is currently trying to escape the clutches of professional shorters. Bank of Ireland has just turned the corner & become profitable again. The economy is back on its feet - the housing market is coming back to life, and BOI have a good deal with the GPO in the UK, which should lead to substantial mortgage business.BOI will have no difficulty with the Stress tests per the Central Bank. The SP may go to €0.25 but I will be averaging down, having bought at €0.32.There is no news so I would think it is profit taking and perhaps some concern about negative interest rates being considered at EU level. However this package is not adopted yet.
What many posters here fail to realise is that Ireland is still on life support. The salaries have been cut to shreds and the taxes are among the highest in the EU. After 32.000 k euro, you pay 41 per cent tax plus prsi (another taxe) and the newish Universal tax plus, plus, plus. Added to that is the 2-3k the average family pay every year for private health insurance and you get the idea. Without private health insurance in Ireland you are are bunched. So do the maths. Very few people have money to buy houses 'cash' and the banks are still lending on a very stringent and conservative basis. Irish people believe austerity is good for them and that is why they refuse to protest. Nothing g shocks or bothers them to any great extent. That is why the country will remain in limbo for the next few decades. Even the rather conservative British would not put up with this charade.
What is the exact driver of this downward trend? Uncertainty , time of year or has just the whole expectation bubble just burst and we are just looking at cold hard facts that the buy to rent sector is in the sh/t where forget about capital repayments but interest payments are lagging?
"Irish mortgage loans in arrears by more than three months continue to increase, according to new data from the Fitch rating agency.
Fitch said that arrears reached a new high of 18.4% of the current balance in the first quarter of 2014, up from 16.7% a year earlier. It said this was mainly due to the increase of arrears in the buy-to-let sector.
The housing market here has seen significant increases over the past year, which has been driven mainly by demand for properties in Dublin. Home prices have risen 8.1% over the past year and the peak-to-trough fall now stands at 46.7%.
Fitch also noted signs that lenders are becoming more willing to consider taking properties into possession."
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.