Originally Posted by alwald
Why take a debt when there is a massive budget for housing overall? Shouldn't this miserable government use those funds to build more?
Other than that I agree with the fact that this government isn't going to do anything and that next elections are key.
The decisions taken are not just financial ones. Firstly the tax take for the govt from private (non institutional) landlords is in the main over 50%.
For this the Govt don't have the risk of non payment, don't have the maintenance costs. The Govt also are not blamed on any eviction should it happen.
Firstly while in the long term from a financial perspective it would make sense for the State to build rather than rent with this comes its own problems. We would need significant capital investment to build the number of properties needed. We can't access the capital to do this because of the conditions of the bailout. If the properties were built where would the be built, we have ample land outside of Dublin, Cork and Galway for example but people want their "forever home" in these areas. I don't have an issue with supporting those who genuinely need support, I do however have an issue with people picking and choosing where they will agree to live despite the fact they are receiving heavily subsidized housing.
Secondly, there are the cost savings to the State for support staff to maintain council properties.
Thirdly because of our culture people are never really held to account for their actions in all sectors of society. Be it for committing criminal offences or even failing to pay mortgages, rents, fines etc.
All in all what the State "pays" for housing is not actually a bad deal when you consider the above.