New savings incentive

c_man

So there's calls for a new savings incentive scheme to "cool down" the property market.

Special savings accounts could be established for first time buyers that were exempt from Dirt tax, he said, with modest improvements in deposit rates compared to what is available on the market. If the funds were not drawn down for house purchase within a period of a few years, the account could revert to a normal savings account with both benefits deducted.

http://www.irishtimes.com/news/social-affairs/savings-incentive-proposed-to-help-cool-property-market-1.1834618

So what do ye think, does this stink of SSIA 2.0 and government attempts to manipulate the housing market or do you think it's needed?

I'm not looking for a house now but if a decent interest rate was on offer, I think I'd be tempted to start putting cash away in one of these.

I wish I was earning during the SSIA time, 25%?! Fecking hell

Mr. Incognito

So give us your money and we'll give you what's "marginally" better than the market so we can professionally invest it and make a bomb from the consolidated fund and clawback the benefit if you don't throw it on a house.

The natural result is people buying any piece of crap so the benefit doesn't get clawed back.

How about this.

Why don't the government STOP interfering in the property market with tax breaks, or incentives or otherwise and concentrate on wealth generating investment including capital projects.

Most economists just produce data to suit whoever has hired them. It's akin to reading tea leaves. As an economist he should know what happened the last time when the government started property incentives.

blastman

The more I read from Colm McCarthy, the more convinced I am that he's never read a book about economics in his life....