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Bailing out property developers is now a green issue.

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  • 19-09-2008 9:22pm
    #1
    orbital83
    Registered Users Posts: 208 ✭✭


    http://www.independent.ie/national-news/digouts-agreed--for-buyers-on-lower-incomes-1477388.html
    Mr Gormley briefed ministerial colleagues that the maximum loan approval of just €185,000 was not realistic for those trying to invest in bricks and mortar.

    Now it is thought that maximum loan approval will increase to €300,000.

    Anyone earning more than €40,000 -- barely e2,000 over the average industrial wage -- is currently debarred from receiving loan assistance, he added.

    Mr Gormley indicated that he intended a "significant increase" in both ceilings, according to his party spokesman.

    €185K is a perfectly reasonable amount for purchasing a property in a sane market. It's 4.5 times the average industrial wage for Christ's sake. That was a common salary multiple for buying a house in pre-bubble days.

    If artificial stimulus wasn't provided to the market, prices would return to these levels through the forces of supply and demand.
    Instead, taxpayers money will be used to plug the gap and protect the profit margins of FF's developer friends.

    The above quote should be read in conjunction with the below taken from the Green Party's own website:
    http://www.greenparty.ie/index.php/en/policies/housing__1
    In order to address this housing crisis, in Government the Green Party will:
    ...
    Progressively limit the amount of money that lending institutions can lend for house purchase in order to reduce the price of housing.

    The Greens are well aware that easy credit and reckless lending have fuelled the property boom and caused prices to become unaffordable.
    Now they're colluding in a scheme to make the problem even worse.

    The best they could do for the potential FTB is to leave the property market well alone. Left to its own devices, prices will return to realistic levels, which are sensible multiples of people's salaries and market rents.

    The Greens want to shackle another generation of young people to a life sentence of 40 year interest only mortgages on an overpriced asset, to fund property developers' champagne and helicopter lifestyles.

    That's your money and my money they're using folks. Remember that the next time you're queueing for a hospital trolley, or trying to get your kid into school.

    How things change once one assumes the reins of power.


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