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13-09-2018, 09:30   #1
jon1981
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New State agency to free up land for ‘150,000 homes over 20 years’

https://www.irishtimes.com/news/irel...ears-1.3627335

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It is claimed the agency will seek to remove land speculation and drive down the cost of land, which it is hoped will lead to cheaper house prices and increased availability. It will “smooth the peaks and troughs of Ireland’s land and housing market”, the Cabinet was told.

The agency will, however, demand that almost a third of homes built on its sites must be affordable houses.

The price of an affordable home – or the income of those who would qualify to purchase such a property – is yet to be defined by the Government.

Sources pointed to other State housing schemes that roughly allowed a single person on up to €50,000 a year or a couple with a joint income of up to €75,000 a year to qualify for affordable housing.

I reckon this will be welcomed by most people, though I think certain groups of people are of the expectation that social housing means free or at least available to long term social welfare recipients.

I think the target income earner is spot on. 20 yrs is alittle on the long side but the next effect might be bringing down housing costs sooner than that as supply increases.

Last edited by jon1981; 13-09-2018 at 19:53.
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13-09-2018, 17:32   #2
tom1ie
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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.
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13-09-2018, 17:42   #3
jon1981
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I guess we have to wait for all the details, something has to be relaxed i.e. the deposit. That's the limiting factor for most people caught in the high rent trap.
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13-09-2018, 18:20   #4
tom1ie
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Originally Posted by jon1981 View Post
I guess we have to wait for all the details, something has to be relaxed i.e. the deposit. That's the limiting factor for most people caught in the high rent trap.
The cost of an affordable house in this instance is too high.
I'd love to see where they got 320k from. I'd love to see the breakdown of costs.
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13-09-2018, 18:27   #5
Fann Linn
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Quote:
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.
This Govt just can't stop cocking up when it comes to sorting out this problem. Your figures clearly illustrates the mess this shower continue to cause.
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13-09-2018, 19:39   #6
jon1981
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Are we assuming the houses will be priced at 320k? I didn't see that in the article.

It's likely they'll have to be sold below market value to be affordable or reduce the deposit combined with lower interest rates.

Which then opens this up to abuse as you need to protect against house flipping and fake income returns of people declaring less income than they actually make....

Last edited by jon1981; 13-09-2018 at 19:48.
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13-09-2018, 19:43   #7
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Ah stop. Has April fools Day come early.
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13-09-2018, 19:46   #8
Wheeliebin30
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Jesus do the whingers ever stop?

What a horrible life been so negative all the time.

Let’s wait and see the full deltails before calling for the decapatation of Eoghan Murphys head.
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13-09-2018, 19:51   #9
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Originally Posted by Wheeliebin30 View Post
Jesus do the whingers ever stop?

What a horrible life been so negative all the time.

Let’s wait and see the full deltails before calling for the decapatation of Eoghan Murphys head.
Realists or whingers.
You must be new. welcome to Ireland
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13-09-2018, 21:57   #10
tom1ie
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Originally Posted by Wheeliebin30 View Post
Jesus do the whingers ever stop?

What a horrible life been so negative all the time.

Let’s wait and see the full deltails before calling for the decapatation of Eoghan Murphys head.
Who exactly is calling for eoghan Murphy's head?
Maybe you are overreacting?
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13-09-2018, 22:02   #11
tom1ie
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Quote:
Originally Posted by jon1981 View Post
Are we assuming the houses will be priced at 320k? I didn't see that in the article.

It's likely they'll have to be sold below market value to be affordable or reduce the deposit combined with lower interest rates.

Which then opens this up to abuse as you need to protect against house flipping and fake income returns of people declaring less income than they actually make....
Yeah seen the 320k figure here:

https://www.irishtimes.com/news/poli...28555?mode=amp

It just doesn't make much sense to me to be honest. How can the house be affordable if you need more than 50k deposit?
I hope they publish exactly how much an affordable house costs to build and where extra costs come in to account for the 320k figure.
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13-09-2018, 23:03   #12
MayoSalmon
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Originally Posted by Fann Linn
This Govt just can't stop cocking up when it comes to sorting out this problem. Your figures clearly illustrates the mess this shower continue to cause.

Why do you think the Government would be good at delievering houses especially on this scale?! Like what do the Government do well that makes you inclined to think that they will be able to house it citizens. The sooner people realise the Government are not going to provide for them in life the better off they will be.

Last edited by MayoSalmon; 14-09-2018 at 08:53.
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14-09-2018, 03:56   #13
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Taking a leaf out of Aucklands book. Make a big song and dance about affordable homes and then set the level so high that 50% of people are already excluded...
https://www.nzherald.co.nz/business/...ectid=12081733
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14-09-2018, 08:12   #14
fret_wimp2
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The price has to be low enough to include some people who currently can't get a mortgage due to salary level, but not so low that it causes everyone who managed to buy to to wonder why did they bother saving like crazy and working long hours** to buy a house, when they could have gotten it cheaper/easier if they took the lower pressure job, didn't bother saving so much and just waited for the scheme. It's a balancing act the government need to play to keep many demographics from grumbling too much.

Unfortunately for many, even this figure is too high to reach.
It needs to be remembered however, buying a home is not realistic for everyone, so this scheme, along with the massive build to let scheme announced a week ago will work together to house a lot of people, be it via purchasing or renting long term. these schemes, working together don't seem so unrealistic and have a chance bring genuinely useful, dependant of course on the specific implementation details.

The need is now however, not In 3 years so the biggest failure is the government not heeding the warnings back in 2012 and having this underway now.


**I'm in no way saying people who can't currently afford don't work and save hard. I'm just describing the knee-jerk reaction the probably want to avoid .

Last edited by fret_wimp2; 14-09-2018 at 09:20.
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14-09-2018, 11:52   #15
Fann Linn
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Pat Kenny and Co ripping holes in this plan now.
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