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

"Government decisions have been beyond stupid over the last 5-10 years. Every single decision has driven up house prices"

The policies of the state were not stupid. They were aimed at doing precisely what they have done; driving up property and rent prices. Be under no illusion that any of this was an accident. A system is what it does, not what it's said to do.

Get your 3rd level education or trade here, live abroad, for several reasons, have a bit of a laugh, then get the head down, earn far higher salaries than you would here and pay far less tax, as a mid to high earner. If you do want to settle, you come back to the banana republic and simply buy a place outright…

I was out on saturday chatting to my mates younger brother, (going to hopefully graduate this summer) he gets E14 an hour, thats for a 12 hour shift, including working saturdays… If he stays living in dublin, lets say E800 rent for houseshare, E200 bills… OR you go to mini ireland in the sun, have a phenomenal life experience, earn far more money and have a far higher standard of living and life…

You know exactly what you are getting if you stay in Ireland… dont act shocked..

That isn't an artificial support. It's money passed to younger generations by those that worked and earnt it.

Nothing wrong with supporting your family.

So the subsidy does not enable the buyer to purchase the 600k home then.

It might push the price of said home from 500k to 600k, but it does not help the purchaser buy the property; meaning they can afford to pay it anyway.

If HTB and other subsidies didnt exist lower down the market, the asking price for the 600k home would probably be a little cheaper; lets say 500k to 550k.

However, there are still only 50 3 beds in the area and there are still 100 buyers wanting to move to the area and they are all still capable of paying 600k+.

The removal of subsidies lower down the chain doesnt impact the 100 buyers budget in the slightest.

The 500k home is still going to sell for near 600k, potentially even higher, regardless of the reduded asking price, because thats what the market can afford to pay.

We see plenty examples of houses going 100k plus above asking and these buyers are receiving no govt supports.

If you want to bring prices down and in the absence of reduced demand, increased supply is the only answer.

In our example, if there were 100 homes for the 100 buyers and the homes were priced at 500k to 550k, they would be much more likely to sell at that price, not the 600k we see when there are only 50 homes available for purchase.

Old KBC headquarters in D2 is also being turned into IPA accommodation it seems.

Or, the help to BE outbid scheme.

I have argued that the existing buyer supports have minimal inflationary impact (indeed any reasonable analysis of the numbers would almost guarantee this).

I think this will undoubtedly be inflationary simply as it will be possible to apply to a vastly higher proportion of houses than any of the existing schemes. I’m on the fence on the schemes to date, probably marginally in favour of them in the round (particularly HTB, more neutral on FHS)…even I think this decision is a bad one!

Why not keep going and say that someone on the dole is paying tax every time they buy something in the economy.

Someone working for an MNC is working and paying income tax.

Someone on the dole is not working and paying no income tax.

Social housing in Ireland is a system that's well beyond the point of being maladaptive. It was all well and good when it was about clearing tenements, but that's now decades in the past.