What will be the next government scheme to prop up property prices?

Akrasia

When the mortgage interest relief for FTBs ends in January this is almost certainly going to lead to another dip in house prices (or stagnation as people no longer have an urgent reason to buy rather than wait for further price decreases)

Given that there is going to be a property tax and the banks are still refusing to lend, does anyone here have any insights on the government's next attempt to push up property prices will be?

State backed mortgages to people who have been refused by the banks perhaps?

Rent to buy schemes making another comeback?

Waivers on the property tax?

Idbatterim

State backed mortgages to people who have been refused by the banks perhaps?

this already exists as far as I know!

Zamboni

Vast demolition of the oversupply of houses.

Akrasia

Idbatterim wrote: »

State backed mortgages to people who have been refused by the banks perhaps?

this already exists as far as I know!

I thought these schemes had phased out?

Dannyboy1987

I'd say we will find out in the budget coming up, I'm hoping that house prices will drop a good bit or affordable housing type scheme. With this government anything can happen.

StillWaters

Akrasia wrote: »

Idbatterim wrote: »

State backed mortgages to people who have been refused by the banks perhaps?

this already exists as far as I know!

I thought these schemes had phased out?

It's still there, on paper only though.

Slydice

I think I've read some economists pointing to next year being a big one for people in arrears either giving back houses or getting repossessed. It's want to be a fairly big scheme if things get that bad.

Saying that though, people giving back houses and getting repossessed would reduce the amount of mortgages in arrears. Might not be a bad thing if it included debt write offs. Less arrears, less pain for people, we finally get to a bottom, finally ripping the plaster off, enough of this slow painful drag.

tim9002

Hopefully they won't do anything. They need to let the market reach its natural level as soon as possible.

steddyeddy

Properties in Ireland will need to drop by a large measure to reflect their real value. It wouldnt do the economy any good by propping up property prices.

Akrasia

We all know that the property market should reach it's natural clearing price, but the government own NAMA and most of the banking sector.

The accounts don't look good when property prices are falling.

The government will probably try another scheme, maybe not at the budget (they'll want to eek out the last few months of panic buying from FTBs trying to get a house before the mortgage interest relief ends)


Property prices are probably below the cost of construction at the moment for a lot of sectors but there is a big overhang in the market.

RATM

I'd love to see a list of politicians currently in power who have investment properties in Ireland and abroad. We already know that Phil Hogan has a loan for €1m from which he bought an apartment in Portugal and a D4 pile too. Alan Shatter and Eamon Gilmore also have property lying around the place. And it is unlikely they are exceptions but more likely that a lot of the current cabaal have a personal vested interest in property prices not finding their natural floor but rather some sort of artificial one.

Michael Noonan has already called the bottom of the market just there two weeks back so it would also be interesting to find out what he is holding onto that he is trying to talk up in price.

strandroad

We are potential FTBs with good outlook, savings, credit assessment etc. but I honestly don't know what the government could do to entice us to buy when all we can see is a raft of new fees, taxes and levies eating into our disposable income and thus lowering our hypothetical mortgage payments. Which would have to be stress tested more as banks raise interest rates. It seems only reasonable to hold off and keep saving; even if they assault our savings, pension funds etc it makes more sense to emigrate than to buy still.

brian2614

mhge wrote: »

We are potential FTBs with good outlook, savings, credit assessment etc. but I honestly don't know what the government could do to entice us to buy when all we can see is a raft of new fees, taxes and levies eating into our disposable income and thus lowering our hypothetical mortgage payments. Which would have to be stress tested more as banks raise interest rates. It seems only reasonable to hold off and keep saving; even if they assault our savings, pension funds etc it makes more sense to emigrate than to buy still.

Well said,I am in the same boat here.I wish the government would see the bigger picture.I am just glad I didn't buy in the boom like so many of my friends who now haven't got a pot to piss in.They are barely paying their mortgage each month let alone living.I can see a lot more people just emigrating and handing back keys.

Mr.Wemmick

After a trip to the stronger economies of Switzerland and Germany this Summer, it was interesting to see how Ireland's house prices are higher than in both countries. Evidence of Ireland's ridiculous costs are everywhere: I was told this week by a Swimming pool in NCD that the one-off entry cost for a swim for one adult and 2 kids was 35 euro - three times more expensive than in Switzerland. Panda charges for rubbish collection in Dublin is almost double that of Switzerland. The mind boggles.. Pretend excess money is still floating about in Ireland it would seem.

With regard to the house prices, it certainly makes sense that there must be a vested interest by the boys in charge to keep the prices from falling to their natural low. It's a wee-bit like beating the sea back with a stick, and I doubt they can keep the artificial high prices going in this damaged domestic market without causing further long term woes. I am sure they'll give it a good go, though.

I think the old corrupt tradition in Ireland of looking after your own is alive and well.. and the deeper this recession goes, the less transparency and accountability.

who_ru

Mr.Wemmick wrote: »

I think the old corrupt tradition in Ireland of looking after your own is alive and well.. and the deeper this recession goes, the less transparency and accountability.

NAMA

steddyeddy

Well a basic law of economics was broke in Ireland. That is, you cannot base your economy on the value of your property. Whats valuable is still the property. I think that the greed of a few individuals is going to resist the essential lower of property values and that is going to affect our recovery.