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14-09-2018, 16:40   #31
mariaalice
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It is not the worst idea it would give the government a leave to lower land prices and that is the crux of the matter, for example, if there was land say near the M50 and beside it empty factories industrial land or other lands with state involvement then this agency releasing it for housing will lower the value of surrounding land and that will lower house prices.


It would stop land hoarding and speculate because why buy an asset at inflated prices if the government can use this agency to lower the value of the asset.

The only issue is someone is going to have to take the hit all those empty factories and industrial land which in reality are worth very little but are an asset on someone balance sheet they could now be realised as an asset with very little value so who takes the loss. The same with all state-controlled land its an asset to whatever organisation owns it how will lowering the value of an asset be dealt with.

Last edited by mariaalice; 14-09-2018 at 16:45.
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14-09-2018, 22:51   #32
Geuze
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So an affordable house is now at 320000.
Eoghan murphy states that a couple earning 75000 combined income will be able to afford an affordable house.
Central bank rules are a mortgage is limited to 3.5 times combined income.
75000x3 = 225000.
So 320000-225000= 57500.
So that couple has to have a deposit of 57500.
That's pretty unaffordable.
It's even worse on a single income.......
Plus you can bet houses won't be as "affordable" as 320000 in 2020 by the time they're built.
75k x 3.5 = 262.5k

320k - 262.5 = 57.5k
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15-09-2018, 08:48   #33
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How will they stop someone buying an affordable house, then selling it on later for full market price?
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15-09-2018, 11:06   #34
jon1981
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How will they stop someone buying an affordable house, then selling it on later for full market price?
One of many issues that will need to be trashed out.

As usual the government have released a plan with no details...probably to test public reaction
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15-09-2018, 11:35   #35
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How will they stop someone buying an affordable house, then selling it on later for full market price?
I think the housing co-ops that are building in Ballymun have a clawback clause in the contract where the difference in price has to go to the council for the next X years.
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15-09-2018, 22:55   #36
ShaneC93
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Originally Posted by tom1ie View Post
So an affordable house is now at 320000.
Eoghan murphy states that a couple earning 75000 combined income will be able to afford an affordable house.
Central bank rules are a mortgage is limited to 3.5 times combined income.
75000x3 = 225000.
So 320000-225000= 57500.
So that couple has to have a deposit of 57500.
That's pretty unaffordable.
It's even worse on a single income.......
Plus you can bet houses won't be as "affordable" as 320000 in 2020 by the time they're built.
The ability to get a mortgage up to €250K/€320K without adhering to the 3.5 times income rule is under a new government scheme anounced earlier this year:

https://www.irishtimes.com/business/...work-1.3363921

The new scheme however allows buyers to sidestep this rule (3.5 times rule), by offering mortgages on the ability to service their debt. Local authorities are able to do this because, as unregulated financial providers, they are not subject to Central Bank rules.

For example, a single person on a salary of € 40,000 will be able to borrow up to €198,000 (ie 5 times income), as with repayments of €858 a month, their mortgage would account for 33 per cent of disposable income. Aa couple on € 75,000 can borrow € 288,000 in Dublin – ie multiple of 4.1 per cent


Calculate how much a person can borrow under the scheme: http://rebuildingirelandhomeloan.ie/calculator/

Last edited by ShaneC93; 15-09-2018 at 22:59.
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16-09-2018, 11:20   #37
jon1981
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For example, a single person on a salary of € 40,000 will be able to borrow up to €198,000 (ie 5 times income), as with repayments of €858 a month, their mortgage would account for 33 per cent of disposable income. Aa couple on € 75,000 can borrow € 288,000 in Dublin – ie multiple of 4.1 per cent[/I]”

Calculate how much a person can borrow under the scheme: http://rebuildingirelandhomeloan.ie/calculator/
Ahh ffs are we back in 2005 now...

So 3.5x is ok for higher earners but the vulnerable of society will be allowed 5x with higher % of their income going towards mortgage repayments... i give up
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16-09-2018, 18:01   #38
tom1ie
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Quote:
Originally Posted by ShaneC93 View Post
The ability to get a mortgage up to €250K/€320K without adhering to the 3.5 times income rule is under a new government scheme anounced earlier this year:

https://www.irishtimes.com/business/...work-1.3363921

The new scheme however allows buyers to sidestep this rule (3.5 times rule), by offering mortgages on the ability to service their debt. Local authorities are able to do this because, as unregulated financial providers, they are not subject to Central Bank rules.

For example, a single person on a salary of € 40,000 will be able to borrow up to €198,000 (ie 5 times income), as with repayments of €858 a month, their mortgage would account for 33 per cent of disposable income. Aa couple on € 75,000 can borrow € 288,000 in Dublin – ie multiple of 4.1 per cent


Calculate how much a person can borrow under the scheme: http://rebuildingirelandhomeloan.ie/calculator/
I see. So it'll be only a short time before we get the next housing bust then.
This country is beyond belief.
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16-09-2018, 18:35   #39
mariaalice
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https://www.irishtimes.com/news/envi...lion-1.1640864.

That is from 2013.

The fact that anyone who needs to get a subsidiary or needs support to circumvent central bank rules have a higher rate of default seems to be ignored.

Nobody seems to be able to answer the question of how to provide a housing for those who won't get social housing but are in a vulnerable position if they take out a mortgage.

Affordable housing is a bit of an oxymoron because all housing should be affordable.

If the agency worked property it would gradually decrease the value of most property and make most housing more affordable because it would decrease the value of land, however, there are too many people invested in property to let that happen.
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16-09-2018, 21:41   #40
Geuze
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Originally Posted by mariaalice View Post
Affordable housing is a bit of an oxymoron because all housing should be affordable.

If the agency worked property it would gradually decrease the value of most property and make most housing more affordable because it would decrease the value of land, however, there are too many people invested in property to let that happen.
x100.
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20-09-2018, 17:52   #41
syndrome777
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https://www.independent.ie/business/...-37335667.html

is that is?

I wonder how many houses a year will be available through this scheme
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20-09-2018, 17:56   #42
lawred2
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Quote:
Originally Posted by mariaalice View Post
https://www.irishtimes.com/news/envi...lion-1.1640864.

That is from 2013.

The fact that anyone who needs to get a subsidiary or needs support to circumvent central bank rules have a higher rate of default seems to be ignored.

Nobody seems to be able to answer the question of how to provide a housing for those who won't get social housing but are in a vulnerable position if they take out a mortgage.

Affordable housing is a bit of an oxymoron because all housing should be affordable.


If the agency worked property it would gradually decrease the value of most property and make most housing more affordable because it would decrease the value of land, however, there are too many people invested in property to let that happen.
not sure what that's supposed to mean..

all houses are affordable to someone..

just because someone can't afford to buy a property doesn't make it unaffordable. Just something that someone can't afford.

I can't buy a house on Shrewsbury Road. But someone else can.
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