First time buyers grant

[hammer]

G`day all.

Would it be a goodtime to reintroduce the first time buyers grant €3,000

It could help free up some of the VAT tied up in housing stock.

Only non FF / Green contributors to respond

[hammer]

As I no longer qualify for mortgage interest relief ( > 7 years ) would it not be a great time to get rid of it

[Dreaded_Estate]

And entice more people to get themselves into negative equity!

The goverment has had worse policies but it is still a terrible idea.

[toughbutfair]

No.

People will buy at the right price. The people ALWAYS decide what this price. We decided it was sky high during the boom (nobody made us buy) and we will decide how low the floor should be.

The government should back off "incentives"

[Middleaged]

If a house is say €200k who much vat would there be locked in....13.5% is it I dunno, it would free €27000... and cost €3000... seems okay

[lobby]

There's a nice M5 BMW sitting in the dealership, if the gov gave me a "sporty car buying grant" of , say, 20,000 I would be able to "free up" the 50,000 or so thats tied up in it in VRT.

First time buyers grants serve no other purpose than keeping prices inflated. No grant = price has to fall to level buyers can afford. With a grant = price is what buyers can afford + value of grant.

[FakeViking]

nice M5 BMW

There's a real challenge. How many oxymorons can you fit into 9 letters plus two spaces?

[Dreaded_Estate]

If a house is say €200k who much vat would there be locked in....13.5% is it I dunno, it would free €27000... and cost €3000... seems okay

But all you are doing is bringing the revenue forward a year or so.

The real savings is
30,000 - 3,000 (Revenue brought forward)
-30,000 * 95% (Revenue lost in 1 years time assuming 5% discount rate)

A €1,500 loss to entice another FTB to buy an overvalued property is terrible government policy.

[Baron von Biffo]

First time buyers grants serve no other purpose than keeping prices inflated. No grant = price has to fall to level buyers can afford. With a grant = price is what buyers can afford + value of grant.

Quite right. The FTBG amounts is a taxpayer grant to builders. The buyer is merely the conduit.

[toughbutfair]

i remember seeing houses priced as 250,000 (plus FTB grant)

scumbags.

why not just force anyone behind to have to put their estate on sale at the amount of the loan outstanding? or even 80% of it - many would sell then.