House prices down 50pc as further falls expected
WARNING: Banks must help or values will plummet even further
HOUSE prices have plunged by over 50pc since the peak of the boom -- and the sharp fall is unlikely to stop anytime soon.
Two surveys published today reveal a stark outlook for homeowners, with prices set to plummet even further this year as the eurozone debt crisis rages on.
The average asking price for a property is now just over €175,000 -- less than half of the €366,000 price tag homes fetched when prices reached their peak in 2007.
Experts have warned that unless banks start lending again to potential buyers and the economy experiences growth, prices will fall even further.
Property website Daft.ie has revealed that prices fell almost 8pc in the final three months of 2011, and a massive 18pc during the year overall.
SHOCKING
And MyHome.ie reported that prices dropped by 13pc over the past 12 months.
The average price of a house in Dublin is now estimated at €268,000 -- a shocking 50pc drop since 2006. And some properties in the capital have fallen a dramatic 60pc in value.
Ronan Lyons, economist with Daft.ie, said that although people will see the drop in value of their homes as a bad thing, it is important that the market eventually bottoms out.
"It is tempting to see larger house price falls as a bad thing and no doubt many, particularly those in negative equity, will see this dramatic fall in those terms. But if the size of the correction in prices is determined by fundamental factors, then it is better for prices to race to the finishing line than crawl there."
Mr Lyons added that without finance being made available by banks, there is a risk prices could fall by up to 65pc before coming back. "This is down to the banks who will not resume lending until the Government's stress tests stop punishing them for doing so," he added.
Pair admit role in savage killing of student Andrew
TWO suspects who were arrested for their involvement in an assault which led to the death of a 20-year-old student have admitted their role in the incident.
The assault on tragic Andrew Dolan was caught on CCTV outside an Abrakebabra outlet on Pearse Street, Mullingar, Co Westmeath, at 2.40am on December 23.
Andrew suffered severe head injuries and died at Beaumont Hospital in the early hours of last Sunday morning.
A source explained: "Of the three people arrested, CCTV shows that two of them were directly involved in the assault.
"CCTV shows the two males who were arrested (aged 20 and 21) punching the victim.
"The young woman (19) who was also arrested at the scene was not directly involved.
"He was punched at least twice in the head before falling to the ground. The worst of his injuries were caused by the impact of his head off the ground.
"This was a completely random incident -- the victim was not looking for trouble and there is nothing in the suspects' background that suggests any previous form for assaulting anyone.Shocked
"They seemed shocked in the aftermath of the incident and remained at the scene until gardai arrived shortly after the incident.
"It will be up to the DPP to decide but all the indications at this stage are that this will be a manslaughter rather than a murder prosecution."
Earlier on in the night that he was attacked, Andrew had been out in Mullingar with former school friends from Wilson's Hospital.
The popular young man, from Carrick-on-Shannon, Co Leitrim, was a bio-medical science student at NUI Galway.
After his life-support machine was switched off on Sunday, Andrew's organs were donated to people awaiting life saving surgery.
Last night his father, Joe Dolan, a well-known hotelier, issued a statement on behalf of himself, his wife, Rosie, and the couple's two other children, Gavin and Jack.
The family said they were devastated by his death. They said Andrew had been looking forward to a rewarding career in bio-medical science which he had been studying at NUI Galway.
They thanked all those who supported them through their devastating ordeal and asked people to remember him in their prayers.
Funeral
Pending the release of his body, Andrew's funeral will be held tomorrow at midday in St Mary's Church in Carrick-on-Shannon.
He will be buried in Ardcarne Cemetery, Co Roscommon.
Mr Dolan's family have been involved in the hotel trade in Carrick-on-Shannon for several generations. They own the Bush Hotel which is the sponsor of the Leitrim senior football team.
Troika warns of more tax hikes and welfare cuts
INCOME tax increases and more cuts in social welfare may be likely as the Government struggles to meet its international bailout commitments, troika officials have warned.Irish people will be forced to carry an even heavier financial burden in the years ahead. Officials from the EU Commission and International Monetary Fund (IMF) believe the Cabinet will be unable to keep election promises not to adjust tax bands and credits in the 2013 Budget.
A team of officials from the international troika monitoring Ireland’s adherence to its bailout promises will arrive in Ireland next week to scrutinise the Government’s fiscal performance.
Burden
Householders are facing new property tax bills which will be far higher than the new €100 household charge. The value-based home tax is expected to place a significant burden on struggling families.
Experts in the IMF and the Commission believe ministers will come under increasing pressure to make bigger welfare cuts and change tax bands to meet its targets of a €3.5bn adjustment in the nation’s finances next year.
The Government is planning €2.25bn in further spending cuts and €1.25bn in new taxes to meet the bailout agreement target of a deficit of 7.5pc of Gross Domestic Product in 2013. The details of the Budgetary measures must be revealed and passed by the troika members as the Government accepts former pre-Budget secrecy measures not longer apply.
The Government in the recent past has promised the troika members a range of measures to meet its targets, including:
further increases in alcohol and tobacco;
reductions in tax-related cost of private pensions;
more changes in PRSI;
increases in motor tax;
higher carbon taxes;
hikes in Capital Gains Tax and Capital Acquisitions Tax.
The troika is believed to be unhappy that ministers appear to be taking the politically easy measures of cutting capital spending in favour of deeper cuts in day-to-day spending.
The international experts also believe the Government is not tough enough on unemployed people who refuse to look for work.
Swine flu victim tells of six-month fight for life
A MAN who almost died from swine flu has spoken about his difficult recovery.Padraig Gregan (33) thought he was "a goner" as he spent much of last year fighting for his life.
He was at a huge risk of brain damage or possible death after being struck down with the deadly H1N1 virus in late 2010.
His condition worsened so much that he was airlifted to Sweden for specialist treatment last February.
Padraig, from Tinahely, Co Wicklow, suffered major deterioration to his lungs and began extracorporeal membrane oxygenation (Ecmo) treatment in Sweden.
But after a long and painful road to recovery he was eventually discharged from Cork hospital on his birthday on July 10 last. He has now told the Herald: "I'm feeling fantastic. I'm still not able to do anything physical because it's my energy that's affected now but I'm in great form.
"I was nearly a goner. It's frightening when I think about it.
"Brain damage was a big risk but I didn't have that, thankfully. I did get seizures but they were able to treat that quickly.
"My lungs are never going to be the same, they'll never be 100pc after the damage."
He added: "I've come on a lot and my family has been great. They wouldn't leave my side and if I'm going anywhere they'll make sure that I'm not on my own.
"I'll be thinking about it. I do think about it a lot but I just want to get on with my life as well," he said.
Hospital
"I don't think my family thought I'd be celebrating Christmas. They had some tough times. I'm very lucky that I don't remember it.
"The only thing from it that I remember is waking up and seeing my brothers there and coming home from Sweden. They had a big party for me as well when I came home from hospital on July 10 and you could hardly get standing room in my sister's house."
Padraig will still need to attend Cork University Hospital for check-ups in the coming months, and though he's not making any new year's resolutions, he hopes to move on from his swine flu ordeal.
"I'll take each day as it comes now and we'll just have to wait and see. Hopefully I won't see anymore hospitals though I'll be back in Cork for X-rays and check-ups."