Boards.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more x
Post Reply  
 
 
Thread Tools Search this Thread
22-01-2018, 22:59   #61
Losty Dublin
Registered User
 
Join Date: Aug 2010
Posts: 8,441
I can see some potential pro's out of this.
  • It may force the main lenders to reduce their rates and some of their fringe costs.
  • It may coax some vacant properties onto the open market as well as some of the private small time rental homes.
  • It will make things easier for some people to escape from a long term rental trap.
  • It will discourage sub prime lenders from entering the market.

However I can't see it being decisive enough to make a difference bar the last, which is something that the Central Bank can control to some extent everything. Also, given the chronic lack of housing in most sectors of the market none of these were badly needed acting upon and it will only serve to hurt the market in the mid term.

Last edited by Losty Dublin; 23-01-2018 at 00:54.
Losty Dublin is offline  
Thanks from:
Advertisement
22-01-2018, 23:06   #62
fritzelly
Registered User
 
Join Date: Feb 2010
Posts: 3,421
200m will get you about 700 houses or 700 mortgages - not a lot for a lot really

But building them themselves will give a sustainable income with a non ridiculous rent for working people - paid back in less than 40 years

But the council doing something like this...better to pay some middle man company to manage rooms for the homeless in an hotel
fritzelly is offline  
Thanks from:
22-01-2018, 23:44   #63
Graham
Moderator
 
Join Date: Nov 2001
Posts: 9,664
Quote:
Originally Posted by fritzelly View Post
200m will get you about 700 houses or 700 mortgages - not a lot for a lot really
This.

Nationally speaking, it’s not particularly significant and as such unlikely to have any substantial effect on house prices.
Graham is offline  
22-01-2018, 23:51   #64
Averagevegan
Registered User
 
Averagevegan's Avatar
 
Join Date: Oct 2017
Posts: 48
Quote:
Originally Posted by Losty Dublin View Post
I can see some potential pro's out of this.
  • It may force the main lenders to reduce their rates and some of their fringe costs. It may coax some vacant properties onto the open market as well as some of the private small time rental homes.
  • It will make things easier for some people to escape from a long term rental trap.
  • It will discourage sub prime lenders from entering the market.

However I can't see it being decisive enough to make a difference bar the last, which is something that the Central Bank can control to some extent everything. Also, given the chronic lack of housing in most sectors of the market none of these were badly needed acting upon and it will only serve to hurt the market in the mid term.
The government is going to be a subprime lender.
When the defaults occur, it will be swept under the carpet as always.
just give away the money and save on the admin.
Averagevegan is offline  
Thanks from:
22-01-2018, 23:53   #65
Averagevegan
Registered User
 
Averagevegan's Avatar
 
Join Date: Oct 2017
Posts: 48
Quote:
Originally Posted by chrismon View Post
So everyone is trying to figure out how to get refused for a mortgage.
Easy, just mention your best friends with paddy and Mr power.
Averagevegan is offline  
Advertisement
22-01-2018, 23:53   #66
Crunchymomma
Registered User
 
Crunchymomma's Avatar
 
Join Date: Aug 2016
Posts: 1,062
I'm curious how the insufficient funds will work?

My partner and I were hoping to buy later in the year and while we should have no issues securing a regular mortgage, I'd love to be get one fixed at such a low rate!!
Crunchymomma is offline  
Thanks from:
22-01-2018, 23:55   #67
fritzelly
Registered User
 
Join Date: Feb 2010
Posts: 3,421
Hardly subprime lender - how many people are going to be successful in getting the money

Government/councils should not be thinking short term solutions to long term problems, it's the other way round - long term solutions to short term problems because those short term problems (as they happen to be called and god know why because they will never be solved) are actually long term problems that require 'radical' thinking about how to invest money where it isn't just flushed down the toilet with no return for the future of the city/country
Of course DCC is of the hypothesis that charging more for commercial rates is a solution and killing more businesses just for example...
fritzelly is offline  
23-01-2018, 00:46   #68
FinanceDublin
Registered User
 
FinanceDublin's Avatar
 
Join Date: Sep 2016
Posts: 46
Quote:
Originally Posted by Graham View Post
This.

Nationally speaking, it’s not particularly significant and as such unlikely to have any substantial effect on house prices.
Possibly dumbest thing I’ve seen FG do in the last decade. And we’ve seen a lot.

They would’ve been far better off investing in O’Cualann housing, say.
FinanceDublin is offline  
23-01-2018, 01:03   #69
Cookie_Monster
Registered User
 
Cookie_Monster's Avatar
 
Join Date: Oct 2007
Location: New Plymouth
Posts: 22,292
Send a message via Skype™ to Cookie_Monster
Quote:
Originally Posted by Junadl View Post
In my view a house is a basic need. Someone being taxed 10,000 per year who can't get a mortgage, don't they deserve help?!!!
Do they? That's about 42k gross, 19.7% high than average and 82% higher than min wage. Hardly the level of income you should be targeting for assistance
https://salaryaftertax.com/ie
Cookie_Monster is offline  
Advertisement
23-01-2018, 07:15   #70
Junadl
Registered User
 
Junadl's Avatar
 
Join Date: Oct 2015
Posts: 99
Quote:
Originally Posted by Cookie_Monster View Post
Do they? That's about 42k gross, 19.7% high than average and 82% higher than min wage. Hardly the level of income you should be targeting for assistance
https://salaryaftertax.com/ie
For a one income family with very young kids? Of course they deserve help. Or I know a couple one on permanent contract on around 35k the other on around the same but not on a permanent, yet has been in the same job years. Do they not deserve help?! Of course they do!!!! Slaving away without a chance with the banks. Aging and missing a chance to settle down and have their own family. What hell that has been.
If someone is working their ass off every day, up at 5 am, home at 6pm but just falling outside of the banks crazy rules then yes they need help!
Come on!
Junadl is offline  
23-01-2018, 07:17   #71
Junadl
Registered User
 
Junadl's Avatar
 
Join Date: Oct 2015
Posts: 99
Of anything it is the ridiculously unfair tax system which needs to desperately change. They are absolutely thieving from people. The government are the ones who make it hard for everyone.
Junadl is offline  
Thanks from:
23-01-2018, 07:48   #72
Darkglasses
The King of Rabbits
 
Darkglasses's Avatar
 
Join Date: May 2010
Location: Wexford
Posts: 12,908
Quote:
Originally Posted by Jurgen Klopp View Post
I'm not sure how they are claiming it as new, co councils have been offering mortgages for years once you get two rejections form banks or building society's
The terms under this scheme are significantly different. The previous scheme had a max loan to value ratio of 97%, requiring a far lower savings amount. Also they were variable only rates, meaning the borrowing capacity was stress tested. A much fairer scheme than this one, in my opinion. Also not every council offered them in practice, and the high publicity launch of this scheme should have the effect of forcing them to do so.
Darkglasses is offline  
23-01-2018, 07:53   #73
Darkglasses
The King of Rabbits
 
Darkglasses's Avatar
 
Join Date: May 2010
Location: Wexford
Posts: 12,908
Quote:
Originally Posted by sjb25 View Post
There always has been a co council mortgage scheme run along similar lines I think I’d only started looking at it all lately maybe confusion is being caused

I’m assuming these mortgages will also remain available
My local one can be found here https://www.wexfordcoco.ie/housing/m...ngle-applicant
Unfortunately the old mortgage schemes are to close come 1st February, if CoCos will still accept applications for it at all. The RIHL credit policy will replace the old one once it is signed into law.
Darkglasses is offline  
Thanks from:
23-01-2018, 07:56   #74
Darkglasses
The King of Rabbits
 
Darkglasses's Avatar
 
Join Date: May 2010
Location: Wexford
Posts: 12,908
Important general note on these mortgages which I haven't seen mentioned yet - the underwriting process for CoCo mortgages does not take any account of the number of children or dependents you have in calculating your borrowing capacity, it is purely based on income and loans repayments/alimony if applicable. If this was a factor in your refusal with banks, this is very likely to be a good route for you.
Darkglasses is offline  
23-01-2018, 08:11   #75
neonsofa
Registered User
 
neonsofa's Avatar
 
Join Date: Nov 2016
Posts: 4,264
Quote:
Originally Posted by Junadl View Post
For a one income family with very young kids? Of course they deserve help. Or I know a couple one on permanent contract on around 35k the other on around the same but not on a permanent, yet has been in the same job years. Do they not deserve help?! Of course they do!!!! Slaving away without a chance with the banks. Aging and missing a chance to settle down and have their own family. What hell that has been.
If someone is working their ass off every day, up at 5 am, home at 6pm but just falling outside of the banks crazy rules then yes they need help!
Come on!
I'm in the one income family with young kids bracket. All I see this doing is pushing us further from our goal. Property prices will increase past the modest mortgage we were slowly working towards and there'll be more people bidding against us for the moderately priced houses that are left. The last 4 or 5 years I've been scrimping and saving with a plan in place based on central bank rules, my salary increasing,my savings slowly building up...now I'm not even sure if my original plan will pay off but in the meantime house prices everywhere will increase.
neonsofa is offline  
(5) thanks from:
Post Reply

Quick Reply
Message:
Remove Text Formatting
Bold
Italic
Underline

Insert Image
Wrap [QUOTE] tags around selected text
 
Decrease Size
Increase Size
Please sign up or log in to join the discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Share Tweet