Home Choice Loan

ParkRunner

Well here it is, the government backed mortgage scheme to help first time buyers who can not get sufficient finance from a bank or building society. It only applies to new homes! So basically if you can't get finance from a bank but can still afford a home the government will give you a dig out. Loans will be given up to a maximum of €285,000 but it is not clear yet what kind of interest will be charged. The developers must be having a nice sip of champagne at this news!
http://www.homechoiceloan.ie

P.S You have to be earning more than €40,000!

Money Shot

So, is that saying that someone who earns 40k can get a mortgage out for 285k - which is over seven times their annual salary. I hope not.

It's good of the government to help people into the negative equity market - I wonder will they be there to save people if they should encounter difficulties.

It's also interesting to see that First time buyers are only interested in buying new homes - sure what would they be wanting manky second hand homes for anyway ??

I'm surprised this scheme hasn't been slated more - it's an absolute disgrace. He's basically repeating bad policy decisions that got us so deep into this mess in the first place. He's just trying to buy time for developers at the expense of first time buyers. I really hope first time buyers know better than to get involved in this scheme.

ell

The new government negative equity scheme. The developers must be smiling today.

ParkRunner

It is crazy alright, you also have to:
"have proof of being unsuccessful in securing a sufficient mortgage from a bank or building society to buy a home."
The banks or building societies therefore have established that you are not of sufficient means to finance the repayments of a mortgage but yet the State are willing to give you up to €285,000!

Money Shot

EF wrote: »

It is crazy alright, you also have to:
"have proof of being unsuccessful in securing a sufficient mortgage from a bank or building society to buy a home."
The banks or building societies therefore have established that you are not of sufficient means to finance the repayments of a mortgage but yet the State are willing to give you up to €285,000!

Maybe the state could package them as tradable baskets and sell them on to investors - with a AAA rating as it will have government backing. The Government can then pay the investors back as the punters pay back their mortgages. And seen as though property prices always go up, everybody is a winner - why didn't we think of it before...

Weyhey

Only newly built homes - that is a disgrace.

Who should we complain to?

Money Shot

Weyhey wrote: »

Only newly built homes - that is a disgrace.

Who should we complain to?

Your local TD of course - I wouldn't waste your breath though, to be honest. They know what they are doing and the decision was made in the full knowledge of what they were doing. It seems ordinary people trying to sell second hand homes are less important than wealthy developers trying to shift new homes. It also seems that first time buyers are far more important than families with kids trying to trade up to a bigger house.

Iago

that's what you get for having kids. If everyone had less kids there would be less child benefit and early childrens allowance entitlements. There would be more people working and generating tax. There would be more money available to buy goods and services and therefore increase the VAT take for the government, and then maybe we wouldn't be in this position.

So as you can clearly see, the problem here isn't wih government policies, or greedy property developers and bankers, nor with the global credit crisis or anything else. It's simply families who aren't happy with 1 or no children ruining it for everyone else. I despair really.

astrofool

Iago wrote: »

that's what you get for having kids. If everyone had less kids there would be less child benefit and early childrens allowance entitlements. There would be more people working and generating tax. There would be more money available to buy goods and services and therefore increase the VAT take for the government, and then maybe we wouldn't be in this position.

So as you can clearly see, the problem here isn't wih government policies, or greedy property developers and bankers, nor with the global credit crisis or anything else. It's simply families who aren't happy with 1 or no children ruining it for everyone else. I despair really.

You do know that it's the children born today that will be supporting your pension into old age? Lack of children in the future is going to be a far worse problem than any credit crisis is.

eth0_

It's scandalous. The government have bailed out the banks for their idiotic decisions and greed, and now they're doing the exact same for the property developers!

I only hope there aren't many people who are so mentally challenged that they'll think Home Choice Loans are a good idea.

jackal

http://www.independent.ie/opinion/letters/fianna-fail--the-builders-party-1501546.html

Fianna Fail -- the Builders' Party

Friday October 17 2008
Brian Lenihan's assertion that the State loan guarantee "will not distort housing prices" shows either worrying incompetence or wilful ignorance.

The State loan will clearly distort house prices by supporting a specific part of the market at the expense of the market as a whole.

Just like Orwell's 'Ministry of Truth', which in reality served the opposite function, the 'Home Choice Loan' offers little choice. The loans are only available to purchase new builds, which excludes a massive part of the market: all second-hand home owners hoping to sell to a first-time buyer.

There could not be a clearer signal that Fianna Fail are in the pockets of the developers than this, but there is more.

In addition to only making the loans available to buy new builds, the builds have to be part of the homebond scheme. The homebond scheme generally is adhered to only by large property developers. So this measure is also excluding small builders and developers from this "last hurrah" for the cronies of the Builders' Party.

For our Government to use our money to help naive first-time buyers into guaranteed negative equity so that their friends can exit the market intact is one of the most brazen examples of serving vested interests that I have ever witnessed.

Indeed, Mr Lenihan said in his speech on Tuesday: "This Budget serves no vested interest."

Much like a suspect blurting out "I didn't do it!" before they are asked.

It had guilt written all over it.

Pub07

This is unbelievable.

Tigger

thing is i'll bet you people use it

Pub07

We should all fire off a few emails to the Indo and the Times, etc..to get them to highlight this. I really can't belive this hasn't highlighted yet by the media, it's outrageous that these 'loans' are only availabe if you buy a new house.

Pub07

Pub07 wrote: »

We should all fire off a few emails to the Indo and the Times, etc..to get them to highlight this. I really can't belive this hasn't highlighted yet by the media, it's outrageous that these 'loans' are only availabe if you buy a new house.

BLITZKRIEG THEM:

http://www.thepropertypin.com/viewtopic.php?f=4&t=14604&start=0

^^^^^

emails, phone numbers and addresses for those you need to be telling

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

Senna

In addition to only making the loans available to buy new builds, the builds have to be part of the homebond scheme. The homebond scheme generally is adhered to only by large property developers. So this measure is also excluding small builders and developers from this "last hurrah" for the cronies of the Builders' Party.

This highlights one of the more disgusting parts to this bailout, the only people this will help is the big developers and not the small time builder who will be in a worse situation if they cant get their 1 or 2 houses sold.
If they had of made this scheme for all house new or old, homebonded or not, i'd still think it was a bad idea and their propping up the property market, but at least that's all their doing.
With this their just saying, we want the big developers to make their money and once thats done, we don't care.
I can only assume that the big developers threaten to tell all about bribes and brown envelopes unless this scheme was put in place.

Please god, no first time buyer is stupid enough to fall for it.

SimpleSam06

astrofool wrote: »

Lack of children in the future is going to be a far worse problem than any credit crisis is.

Quick fix, cut the taxes on licker.

Deleted User wrote: »

BLITZKRIEG THEM:

I don't know about a blitzkrieg, mainly due to the shortage of tanks, but a night of the long knives isn't off the cards.

Senna wrote: »

Please god, no first time buyer is stupid enough to fall for it.

Are you kidding? This is free money as they will see it. If the taxpayer is happy enough to give them a mortgage, of course they'll take it.

Lets be honest here lads - we saw this coming a long time ago. All that remains is to decide what to do about it.

Duckjob

Senna wrote:

Please god, no first time buyer is stupid enough to fall for it.

SimpleSam06 wrote:

Are you kidding? This is free money as they will see it. If the taxpayer is happy enough to give them a mortgage, of course they'll take it.

+1

The most depressing thing about this is that you can't rely on Joe Soap to solidly tell the government to shove their Home Choice loan up their arse.

If the gov was waving around loan cheques for €2 Million, some people on 35K would still snap it out of their hands and head off to buy the most overpriced, price-bloated gaf they could find. Such people will insist on having the property bug painfully flogged out of them over the next 40 years.