LinkBack URL
About LinkBacksSo, looks like FF are going ahead with the builder bail out, all under the disguise of helping out first time buyers.
State mortgage plan for first-time buyers - National News, Frontpage - Independent.ie
Yes
No
Not decided
So, looks like FF are going ahead with the builder bail out, all under the disguise of helping out first time buyers.
State mortgage plan for first-time buyers - National News, Frontpage - Independent.ie
Christ on a bike, it gets worse by the minute! Those who can't afford to buy a house shouldn't get one - end of. Most of us who have/had mortgages had enough hardship and now the clowns are proposing what amounts to a GIFT to bot those who don't have enough dosh and the builders.
If the builders can't sell the houses that they built on the basis of unreal and highly expensive returns then the houses can go and rot or be sold off for a song. That's the way it goes for any other commodity, ask the local publican.
its pure horse manure, for new building only, surely this is against some sort of competition / equality law? what about all the individuals who are trying to sell their home, why cant they get a digout?
It won't work in any case... local authorities have been trying to sell the affordable housing scheme, shared ownership scheme, tenant purchase schemes for years.. and they simply don't work
There is also the matter of interest repayment... for years the Government were charging higher than the market going rate in interest on purchased local authority houses...
If this scheme is put into place and the Government charge a lower rate of interest than financial institutions, then it will be anti-competitive..
If they charge a higher rate, then by definition they will be enagaging in sub-prime mortgages i.e. mortgages to customers who can't get credit through the normal system, at a higher than normal interest rate
And if they simply allow the mortgage brokers and institutions to run the scheme, with the deposit effectively stumped up from the Government finances, well, frankly an awful lot of people who are already paying mortgages will be very pissed off if newcomers are effectively getting a 30-60k digout from the public purse
There is a simple solution to all this... let the market fall to its real level... if that drives developers out, so be it ... and then buy the new houses that are unoccupied at the lower level... then consider selling/renting out this stock
It doesn't take a genius to figure this out!!!!!
The funniest thing about this scheme straight away is, that it'll only be available for people earning less than 60,000. For years people have been inflating their incomes to get mortgages... now they'll be deflating them
In a fiscally responsible world, a 60k salary shouldn't buy any more than a 2.5*60=150k house for a single person, or 3.2*60=200k house for a two income couple. And that's after a big deposit
Now here we are throwing good taxpayers money after bad ona crazy scheme
This is the problem, Zanu-FF cant let the builders go down the tubes and will now screw the country in a move to save their bacon.Originally Posted by wysiwyg
Last edited by Digout; 11th October 2008 at 09:43 AM.
Last week Minister Lenihan was saying that the property market prices must fall. Now he devises a crazy scheme to halt the slide. The best way to help first time buyers is to let the market fall further so they dont have to borrow as much. This is a blatant attempt to help the builders sell their unsold/unsalable housing stock.
I wouldn't worry too much... I can see this scheme being a complete dead duck... the public at large know well that the prices are falling.. especially anyone on the cusp of investing a couple of hundred thousand on a house
utter maddness.
the price of housing in some areas is GETTING to that local authority figure of 185k! all this does is shore up builders and actively SCREWS first time buyers as it introduces an artificial floor for a market thats still got a good ways to go down.
do these idiots have ANY foresight or are they really THAT indebted to the vested interests involved? neve mind i think we all know the answer to that one.
this is probably the single biggest threat to first time buyers in this country since the credit crunch. we were slowly getting back to the sensible ol 3x your wages rule with 10% down to get a house, this would spell the end of that.
i hope your right WYSISYG but no ones ever gone broke betting on people being stupid.
Looks like I won't be paying tax in Ireland for a long time so.
are you leaving?
Reply With Quote