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More money, more problems

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By Michael O’Connor

This week, the Central Bank eased their lending limits to allow first-time buyers to borrow up to four times their income, an increase from 3.5 times set in place following the housing bubble fiasco of 2008.

I appreciate that for those looking to buy a house in the current market, this represents an opportunity to finally get on the property ladder and is welcome support.

However, the reality is, it is these extended credit facilities that have driven house prices higher over the last 30 years. Creating financial mechanisms to allow home buyers to tie themselves to more and more debt is not the solution that is needed.

Imaginary Wealth

Wage increases are not the factor driving the housing market to 'unaffordable' prices. Our new-found ability to justify these surging prices is thanks to some banking wizardry.

Longer mortgage terms and lower and lower interest rates have ensured that monthly payments are as affordable as they have ever been.

Yes, €500,000 is a sizeable mortgage, but if you spread it out over 35 years at historically low-interest rates, suddenly it seems justifiable, manageable even. The bidder most willing to shackle themselves to this life sentence 'wins'.

But what happens as interest rates rise? The very thing we thought we could afford is no longer affordable as the terms of the deal change.

All this credit in the system stops working when the cost to borrow starts to increase. We no longer can afford the things we thought we could afford. The imaginary wealth we thought we had, disappears.

And yet the solution from the Central Bank is to allow more leverage in the system in a rising interest rate environment.

Can't afford a home?

Not to worry, we will just lend you more money so we can prop up this house of cards just a little longer.

Pumping more money into an already inflationary environment does the exact opposite of what is needed. Instead of addressing supply issues and regulatory issues, they continue to focus on mechanisms to help justify current prices.

The Root of the Problem

Increasing the leverage in the system just kicks the can down the road. Currently, the data shows that home sales are slowing dramatically in the face of higher interest rates and a slowing economy. We are in the middle of a stand off between buyers and sellers. Buyers who can't afford to purchase at current prices as interest rates rise and sellers who don't want to sell at a price lower than their neighbour sold for.

Instead of leaving the market dynamics of supply and demand play out, allowing some downward pressure on house prices, the Central Bank has thrown a bone to sellers and disguised it as a benefit for buyers. They hope that this attempt to 'help' buyers stretch just a little further will be enough to keep the wheels turning. It won't.

Once Again

Allowing more leverage in the system to help justify higher and higher prices is not the answer. Doing it in the face of inevitably higher interest rates is simply thoughtless.

We simply didn't build enough homes following the last housing crash to meet the demand coming from millennials reaching their household formation years.

Perhaps addressing this generationally undersupply would be a more worthwhile endeavour instead of extending lines of credit, the very thing that facilitated this price surge in the first place.

Just a thought.

To learn what companies to invest in, and for direct access to my personal investment portfolio, go to www.theislandinvestor.com.

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Killarney rail journeys hit all-time high

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Killarney rail journeys hit all-time high


Rail travel on the Tralee to Cork/Dublin line, which serves Killarney station, reached a record-breaking high in 2025.


New figures from Iarnród Éireann show that demand on the route surged to 962,000 journeys last year, an 8.3% increase over the previous 12 months.
This total surpassed the 2024 record of 888,000 journeys for the Kerry service. Nationally, the rail network also saw its busiest year ever, recording 55 million total journeys across Intercity, Commuter, and DART services.
Iarnród Éireann Chief Executive Mary Considine welcomed the figures, stating they demonstrate a clear appetite for high-quality public transport. She noted that as volumes continue to grow in 2026, the company is focused on expanding services and investing in new trains and station upgrades.
The record numbers come as the rail provider looks toward a more sustainable future, with plans to use the rail network as the backbone for transport and housing development under the All-Island Strategic Rail Review.

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Wander Wild Festival announces expansions for 2026

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The organisers of the Wander Wild Festival have officially announced a significant expansion to this year’s schedule, introducing over 40 brand-new activities for the upcoming event. Running from April 17 to 19, Ireland’s premier outdoor, culture, and wellness festival will now feature more than 160 immersive experiences.

Set within the 26,000-acre UNESCO-protected Killarney National Park, the festival continues to establish itself as a national leader in nature-based adventure and community connection.

The latest wave of announcements introduces a diverse mix of high-energy mountain adventures and intimate cultural performances.

Among the standout new additions is a Social Summit of Mangerton led by Tadgh O’Brien, alongside a special screening of Ellie Berry’s short film which documents her world-record achievement of climbing all 275 Irish mountains over 600m. For those looking to sharpen their technical skills, the 2026 programme includes a mountain scrambling masterclass on some of the country’s most challenging ridges and a trail-running masterclass hosted by Irish International runner Matthew McConnell.


Heritage and nature remain central to the festival’s identity. New experiences for this year include a Monastic Ruins tour, temperate woodland and waterfall explorations, and wild-food foraging workshops.

Those seeking a unique perspective on the park’s landscape can join Killian Buckley to explore the hidden mountain valleys of The Horses Glen or participate in a Dawn Chorus Walk to experience the natural symphony of the park at daybreak.


Culture and connection are further highlighted through new collaborations. The “Echoes of Earth and Water” event combines a traditional boat journey with a guided walk, while the TAWLA Collective will host “Supper & Stories,” an intimate dining experience inspired by the flavours of Palestine, Egypt, and Lebanon.

As evening approaches, the festival’s atmosphere shifts toward music and storytelling. Kean Kavanagh is set to perform at St Mary’s Church, while a series of “Fireside Chats” will feature guests like Chris Barrett and members of the How to Gael trio sharing stories of resilience and exploration.


Families are also a primary focus this year with an expanded ‘Wildlings’ schedule. New family-oriented activities include a folklore walk with author Barry Coleman, Yoga Óige, and nature-themed LEGO workshops.

These join returning favourites such as Gruffalo adventure hunts and family orienteering.

These new additions complement over 120 established festival favourites, including the Dark Sky Hike, “Rave ar Róthar” cycling disco, and the lakeside sauna experience at Dundag.

Organisers remain committed to a low-impact, eco-friendly ethos, encouraging attendees to choose sustainable travel and accommodation.

With ticket prices ranging from €10 to €95 and several free events available, early booking is strongly recommended via wanderwildfestival.com following the sell-out success of previous years.

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