Irish Interest Rates - Will They Increase Again?

Fear of an interest rate rise has meant that many people have gone without their normal holiday this summer.

The Irish Central Bank is also concerned about the possibility of higher debt costs and the potential collapse of the building construction industry, should an interest rates increase be imminent. The rate has already been increased four times since December 2005 by a total of 1 percent.

Ireland's property boom has enabled 77% of Irish homes to be owner-occupied. However, the Irish Central Bank has discussed the prospect of house prices falling due to the acceleration in price inflation which may have had the effect of an over valuation in house prices.

Ireland has generous tax incentives for property owners, as Britain did before the 1989 changes which lead to the worst recession for many years. In Ireland, a purchaser is allocated a deduction in their taxes for the mortgage interest they pay. Also they don't pay property or capital gains tax on the sale of their homes, provided they are owner occupied.

However mortgage debt has soared in Ireland. It is now estimated to be approximately110 percent of disposable income which is a rise of over 50% since the 46 percent in 1998.

The thought of the stress of dealing with negative equity and repossessions has led to the following eBook being produced by Aine Callan, who has first hand experience of living through the effects of the 1989 property downfall in the UK.

'How to Survive Your Debt and Live a Fun-filled Live Within Days'
You can obtain a FREE Report at http://www.debts-challenge.com

Ireland - Callan