Irish Property Market chat II - *read mod note post #1 before posting*

Finance costs alone and availability of finance for developers is a major cost for building. The state is running big surpluses at the minute, we can afford to offer very low interest rate loans to developers to stimulate construction.

This takes the risk off developer and onto the state (who can take land/assets as collateral in event of default), less risk = more activity given the possible profits remain the same (or higher actually due to lower loan repayments)

It never ceases to amaze me when it comes to posters and basic economics. Everything has a cost be it a financial one and opportunity cost etc.

Private business is there to make money nothing more nothing less and if you try to control a market it reacts, that's what business is.

Simple economics since the beginning of time suggests if supply increases price falls, for supply to increase there must be something to encourage that increase. If a market is dominated by a small number of large suppliers or buyers they can have a significant impact on the operation of the market.

Housing is 30% of the inflation basket figure. Tackle that successfully and you go a long way to improving competitiveness, something a small open economy should be watching very carefully

Ok I will just say "soft landing"

That article is fairly ironic in that it goes on about how misleading it is to call properties affordable by comparing it to second hand listing prices without any regard for the fact that listing prices are completely misleading in themselves. Pretty much nothing in Dubin will sell for near its listing price these days, making the whole comparison nonsense!

The result of state inaction is why we are where we are. The state abdicated its responsibility to house people and left it to the private sector simply because it can't manage the process.

Cant/wont pay your rent don't worry we will introduce a mechanism that delays your actual eviction so your not the States responsibility for now.

What exactly do you think businesses do? They look to earn profits again simple economics!

Want to solve the housing crisis get the state to build themselves, but don't want to go back to council estates because of anti social issues! Deal with that issue and you go a good way towards dealing with the housing crisis.

But sorry I forgot "I'm entitled" to this or that, do you actually think any politician is going to take hard decisions?

You might also notice that duplexes are cheaper than houses which might be a shock to Dublin developers.

As other posters state Business have to make profit and when you have a government with a blank cheque book backed up by other people's money and lobbyists from government parties. You make hay while the sun shines. Organic growth, I believe is the politically correct term

Nothing more dangerous than fools with other people's money

From the council website It looks like the affordable home is priced at 15% below "market" value (the figure quoted). The council then takes an equity share depending on your max mortgage between 5 and 15% of the above discount

The 2nd property is to show that you can get a similar property for less than the affordable house price on the 2nd hand private market without any subsidies

This means that the only effect of the subsidies is to drive up price and risk to the buyer/council

Another insight into where taxpayer money is being allocated for apparently affordable housing, this time for a new apartment development in Limerick City. I'm hoping some of the otherwise unfathomable figures quoted are a misprint. Below is from a Limerick Post article last Wednesday:

It is understood that 17 of the planned units will transfer to Limerick City and County Council to be used as social and affordable housing at a cost of over €9million.

One-bed units would cost the council an average of €505,000 each, while a two-bed would see the council shell out over €660,000 each.

These prices “reflect the high standard of design and specification of the proposed residential units, amenities, and facilities,” the planning files state.

Ennis Road, absolute lunacy

Its absolutely affordable for said hypothetical household (especially compared to renting), but theres no way a household with €70k gross income is getting a €400k mortgage from the banks. Thats as big a problem.