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

Agreed. The most important point is that the state can make the decision as to when and whether these properties can be sold at the moment the state (via HAP) is basically paying rent on an asset that it does not and cannot own. We also have to assume (as the market appears to do) that these rents will rise continually. So the state is putting itself in the same miserable state as the renters are - they don't have the capital to own their house - what I'm proposing is that the bond acts as the supplier of the states mortgage on the properties - the income on the bond is equivalent to the mortgage interest rate. The underlying value of the properties being purchased by the mortgage may also be rising. The state may choose to sell properties to increase the fund - using this as both a social tool (increasing the mix of private and public housing) and allowing the scheme to expand - ensuring that sales out of the scheme are matched by new builds - i.e. a 1 out 1 in basis.

If you doubt that this could work I suggest that you take a look around Dublin's housing schemes in Crumlin, Drimnagh, Walkinstown, Marino etc. These are rapidly improving mixed housing areas. They were built to a very high standard and are still capable of providing good quality housing and can be upgraded to modern environmental standards. They are also well matched to modern housing requirements as we now have smaller family sizes. The problem is that we sold these off without using the income received to build replacements - 1 out, zero in.

Social housing is not the be-all and end-all of our housing issues but it does provide a buffer that prevents price escalation in a dysfunctional market.

If you thought giving banks easy money to pump property prices was a bit of a disaster, wait and you see the outcome of giving government easy money to the do the same thing at a time of record wage levels.

Developers and buyers are subsidised rather than taxpayers money and government policy being focused on increasing supply as is needed for those taxpayers. The demand pre exists it's supply that is the problem

House prices are determined by cash available to buyers not cost of construction

Did they go for private sale?

Anyone who can afford to build houses for themselves and for their siblings is not living on the breadline, is very wealthy compared to the urban homeless poor or the low-wage workers renting.

Thought of your post when I came across this

It's long but if you download the substack app, you can play it as an audio file. Every Irish taxpayer should read/listen to understand how your taxes are wasted on rental and housing and other subsidies

Rocket ship on our way to Mars! Keep increasing leverage rather than introducing policies to get house prices to drop. Hmm, have we heard this story before?

https://www.independent.ie/business/money/mortgage-shake-up-as-buyers-can-borrow-five-times-income/a1468347405.html

Madness again. Pouring petrol on the fire comes to mind. We're in a state of under supply so increasing demand and buying power via credit will only lead to one thing, increased house prices and higher personal debt levels. We are incredibly stupid in this country. We're addicted to the easy, popular, short term options. Constantly shying away from the more difficult, less popular options that will actually work.

My only rebuttal to that is 2 wrongs don't make a right. I also think there should be government sponsored shared equity schemes for people like your friend who banks deem to be too high risk. The bank has decided what is fiscally prudent in that case and government should bridge the gap in the name of social cohesion / social contract i.e. entertainment is a financial risky business but government seems it critical to the social fabric of the country and therefore should sponsor it in cases like this.

The banks could already go over this, all this seems to he is Nua following suit. It’s for a limited portion of a loan book, I find it hard to believe it will jeopardise the banks first and foremost.

If we are being honest about it, you could use this post to describe all the taxpayer funded "help to buy" "first home" etc

Even to qualify for a local authority home loan you have to provide evidence that you have been refused by 2 seperate lending institutions.

Every scheme/program sole purpose is to maintain unsustainable prices, thus making affordability worse for everyone

aah here, but where will we find the workers!!!!

Dublin city council:

10,000,000 to be spent on energy efficiency, security and electrical upgrades on a building due to be demolished in 2029

You carbon neutral policy results

Many people waiting for a crash. The crash is already here: inflation.

And politicians do not want to do anything about that because the cost is them losing power.