Adamstown: seeing the light of day

Cantab.

Seems this guy is none too please that "the government is undercutting our house prices":

http://www.neighbours.ie/adamstown/showthread.php?p=1700

godtabh

Cantab. wrote:

Seems this guy is none too please that "the government is undercutting our house prices":

http://www.neighbours.ie/adamstown/showthread.php?p=1700

Sounds like he could have applied but didnt. How is that the goverments fault?

kearnsr

kearnsr wrote:

Sounds like he could have applied but didnt.

Thats not really the important thing here - the big issue here is that people who bought property are going to have to compete with the government (and builders I might add) when it comes to selling.
Its all the traits of a slowing market.

People bought "starter homes" - small townhouses and apartments that they are going to want to sell on at some stage and the playing field is totally uneven. To compete, I fear that in the (near) future and in some cases already, people would need to sell at a loss in order to trade up.

Cantab.

Cantab. wrote:

Seems this guy is none too please that "the government is undercutting our house prices":

http://www.neighbours.ie/adamstown/showthread.php?p=1700

Quote from the link:

Seems the government is undercutting our house prices... I cant believe a couple making 75K can qualify. Wish I had waited to buy.. I threw away 100K

Affordable Housing Initiative Announcement
An announcement was made by the Government on 15th February on 500 government funded subsidised affordable homes. These are being sold through the local authorities and details of the units in South Dublin and the application process are available to download or view here.

Purchases on the open market for Affordable Housing South Dublin County Council

Location Units Beds Unit Type Price Range

City Park, City West 43 2 Apartments €230,000 - €275,000
Arena Court, Tallaght 25 2 Apartments €230,200 - €280,000
Priors Gate, Tallaght 24 2 Apartments €248,000 - €290,000
The Paddocks, Adamstown 21 2 & 3 Apts & Duplex’s €200,000 - €280,000

"Wish I had waited to buy.. I threw away 100K "

Its not long ago since our Taoiseach was advising people to buy and that the market was in good shape. Now look at people who took the advice. Sickening what goes on in this country.


more of it:

http://www.tyrrelstown.org/forum/viewtopic.php?t=773

godtabh

Deleted User wrote:

Thats not really the important thing here - the big issue here is that people who bought property are going to have to compete with the government (and builders I might add) when it comes to selling.
Its all the traits of a slowing market.

People bought "starter homes" - small townhouses and apartments that they are going to want to sell on at some stage and the playing field is totally uneven. To compete, I fear that in the (near) future and in some cases already, people would need to sell at a loss in order to trade up.

How is what I said not imortant.

The person is complaining that he bought a house for €100k more than some one on the affordale housing sceme.

If he applied for the scheme he could have gotten it for €100k less (along with the T&C that go with it) and didnt.

Its not the goverments fault that this man made a decesion to buy. Buyer be ware after all. Would this person be giving out if his house was worth €100k more than what he paid for it?

I dont see how people will have to compete with the goverment to sell properties. AFAIK the goverment (in the form of local goverment) buy it and sell it at a cheaper rate to qualified people. How is that the same as you or me selling our h ouse in the open market? The percentage of qualified people compared to the open market would be very small

Noelie

But wouldn't these new properties fall under the Affordable housing scheme?
If so the guy may not have gotten one.

jdivision

Not only that but if and when somebody buys it via the affordable housing initiative there will be a clawback of the money saved originally as well as a slice of any profit made

Noelie

Also doesn't every development have affordable housing in it. there is suposed to be 20% of units set aside for affordable housing, so in my development 1 in 5 buys potentially bought their apartment for upto 100K less than me.
It seems like this guys is just pissed that someone else if getting the same type unit as him under the affordable housing scheme.

godtabh

He is bitching because some one paid €100k less than him through a scheme he didnt qualify for or didnt apply to

OTK

Selection for the affordable housing scheme is made by lottery and those who don't draw a lucky number return to the market facing higher prices. The idea that you can make goods cheaper by increasing demand for a constant supply is laughable. We've already tried this kind of children's economics. Anyone remember the pint price freeze order?

Lets look at this slowly. Say there are 10 houses for sale by a developer. Without government intervention the people willing to pay the ten highest prices get those houses. Now the government comes along and taxes the developer for two houses. the cost of taxes on goods are shared between the buyer and the seller according to the elasticity of demand and supply for that good so the developer will lose some profit and the cost of the 8 remaining houses will increase somewhat. The final two houses are allocated by lottery to deserving buyers as determined by the government.

At the end of the day, 10 people managed to get a house - the same number as without affordable housing yet two people paid less for their houses and 8 people paid more. Two unfortunates who would have got a house on the open market didn't because they didn't win the lottery, two lucky people won a lottery and got a house cheap.

It's like something out of Gulliver's Travels.

Affordable housing my hole.

godtabh

OTK wrote:

Selection for the affordable housing scheme is made by lottery and those who don't draw a lucky number return to the market facing higher prices. The idea that you can make goods cheaper by increasing demand for a constant supply is laughable. We've already tried this kind of children's economics. Anyone remember the pint price freeze order?

Lets look at this slowly. Say there are 10 houses for sale by a developer. Without government intervention the people willing to pay the ten highest prices get those houses. Now the government comes along and taxes the developer for two houses. the cost of taxes on goods are shared between the buyer and the seller according to the elasticity of demand and supply for that good so the developer will lose some profit and the cost of the 8 remaining houses will increase somewhat. The final two houses are allocated by lottery to deserving buyers as determined by the government.

At the end of the day, 10 people managed to get a house - the same number as without affordable housing yet two people paid less for their houses and 8 people paid more. Two unfortunates who would have got a house on the open market didn't because they didn't win the lottery, two lucky people won a lottery and got a house cheap.

It's like something out of Gulliver's Travels.

Affordable housing my hole.

I thought it was a waiting list rather than a lottery?

hmmm

OTK wrote:

We've already tried this kind of children's economics.

Sadly most people have no idea of basic economics, and welcome so called affordable housing initiatives. There are small signs in the linked post that some people are beginning to cop on that they pay more for their houses as a result.

OTK

Each council uses their own rules. Dublin city council uses a lottery biased towards those waiting longest. When you offer houses substantially below market price you're obviously going to get a lot of people showing up so how do you allocate? You can't use an auction obviously as the whole point is to give discount houses to the slightly needy. Using a waiting list or first come first served still leaves a huge number of people disappointed.

The scheme is of course unable to assess the wealth of applicants. If you inherit the proceeds of your parents house you can just stick it in a UK bank and join the rest of the queue pleading penury on your 55K income.

The affordable housing scheme tries to make housing cheaper without lowering house prices (which wouldn't go down well at the polls). This is not possible. The question is whether the politicians are thick enough to believe that it is or if it is all a cynical exercise in appearing to do something. I think that Fianna Fáil know what they're up to and the opposition are too stupid to work out that it's a charade.

Elphaba

It is a waiting list. There have been lotteries but any of us who's salary doesnt meet the criteria for the lottery are just waiting on the list. It'll happen, it's just a matter of time

godtabh

Elphaba wrote:

It is a waiting list. There have been lotteries but any of us who's salary doesnt meet the criteria for the lottery are just waiting on the list. It'll happen, it's just a matter of time

Thats what I thought happened.

As for affordable housing pusing up pricess I dont agree.

I thought the council only bought new homes at the market value and sold them on to you or me at a discount. Would that not imply that the house bought by the public is the same price?

If the council bought second hand homes it would probably be different

OTK

details of dcc's lottery/waiting list
http://www.dublincity.ie/living_in_the_city/your_home/housing_services/affordable_housing/affordable_housing_panel_waiting_list_.asp

Waiting lists for welfare are a disincentive to work. If you earn 50K and you're on a waiting list to get a 100K bonus linked to your low pay, then why exclude yourself by doing 10K worth of overtime?

The council does not acquire housing at market price. Part V of the Planning and Development Act 2000-02 allows councils to acquire 20% of a developer's land at its value before it was zoned for development. The developer can hand over the land or an equivalent value in cash or houses.