neutral guy wrote: » I think government had to send to builders clear message We will support first time buyer giving them 85K but only for property up to 270K. This could bring many positive changes on market.
beauf wrote: » That seems to be what 90% of this thread is about. People want the market to crash so they can buy cheap claiming there is no demand.
schmittel wrote: » This sounds like nonsense. Are we back to the old "I'd like to buy but I cannot afford it" sort of demand? ...
Hubertj wrote: » Is the scheme proposed used in other countries or did they pull it out of their asses?
beauf wrote: » It's affordability not demand. That's why it's pitched at first time buyers. If there was no demand there would be no one to sell to either way. This thread wouldn't exist either. No one would be interested. Even you suggest a cheaper house people won't accept a lower standard. If you suggest they buy in a cheaper location, people won't accept that either. The builders and developers won't build if there not enough profit in it. So it's a catch 22. If the govt built housing itself it could control the costs.
Mic 1972 wrote: » with no plans for new buildings next year most workers will go back to their own countries. Demand for both buy or rent will slow down as a result
awec wrote: » You are being misleading now, implying that 179k is the total cost to build. As the document calls out quite clearly, on the very page you are selectively quoting from, the total cost to build is 371k, of which 179k is the cost of constructing the actual house, with the rest of the cost made up of land, legal, finance, VAT etc. Those other costs are just as relevant. Land is the largest "soft cost", but still represents only 16% of the total cost. Even if you take out the margin (which again is clearly called out on that page that you are quoting from) and imagined that developers were able to build houses for zero profit, the total cost to build is ~330k.
Pelezico wrote: » The bung will increase the price of new homes and be of little benefit to buyers. When the time comes to sell, owners will find themselves in negative equity as potential buyers will not have the benefit of the 85k.
schmittel wrote: » Is the problem really supply? Sounds like the construction industry currently has a demand problem, and is asking the government to help solve it.
schmittel wrote: » If that's the problem the government should politely reply "Thanks, but no thanks to the €85k bung idea. Just start building houses in areas in people want to live and you'll have no worries about demand."
TheSheriff wrote: » The problem is most definitely supply in areas people want to live.
beauf wrote: » The problem is supply. Crashing the market obliterates supply. Especially at the lower end with less margin. But saying it won't work in the long term. But it will make everything worse in the short term term. The next 3-5 yrs. But this plan from developers I can't see making any sense here in it's current form. If a scheme exists in the UK I assume it's more a shared ownership model?
Mic 1972 wrote: » No ones has a clue
PropQueries wrote: » So the developers want the government to give €85,000 to homebuyers to help buy a new build house that costs less than €180,000 to build. Will this be on the top of the HTB scheme I wonder? The SCSI earlier this month published a report stating that the average cost of building a 114 sq.m. new house including all siteworks and site development costs is c. €179,000. The SCSI report is here: https://www.scsi.ie/documents/get_lob?id=1551&field=file
combat14 wrote: » Sounds like PCP for builders provided by the government aka tax payers to keep over priced houses on the go .. really does sound like writing is on the wall for the property market if this is what building industry are requesting at the moment .. Builders propose €85k loan boost for first-time buyershttps://amp.independent.ie/business/personal-finance/property-mortgages/builders-propose-85k-loan-boost-for-first-time-buyers-39506685.html
Deleted User wrote: » How is this going to work for first time buyers. So they will borrow from the bank and then owe the 85K loan to the government aswell. Presumably this will lead to an increase in house prices. So the buyer ends up owing more. That doesn't seem like a good solution.
Deleted User wrote: » Welcome back Fianna Fail.. FFS. Why are the first time buyers so precious anyway. What about someone who sold their house and needs to buy another one in a different location. How will they compete with an 85k headstart. Leave the market alone. But if they are going to interfere anywhere make it be compulsory purchase orders for development land. Thats where the real problem is.
neutral guy wrote: » This movements shows that builders lobby try put pressure on government Government agree to accept that preassure because building industry and Property market is nearly dead. Anyway if this goes forward then it show that property are overpriced/market stall and there is no buyers. Ok,somebody will get 85K what is next ? Give 150K who will continue not afford buy house even getting 85K ? Why not to tell builders it is your problems with prices because you paid for sites too much ? Put prices down ! Why continue support market making prices less affordable for buyers ? Why not crash the prices making more people with small incomes pay less for houses ? All this shows there is less and less money in buyers pockets and it is no way property prices will rising in this situation. Also who will pay again ? Tax payers ? To support builders profits ? Tax payers who will have pay bigger prices for houses ?
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