iCare Housing

Thargor

When you think of the 28 year buyback option like someone paying 1989 prices for todays properties while people who sacrificed everything to keep their mortgage repayments up get nothing theres a slight whiff about this, especially when they start cranking up the interest rates again.

Spanish Eyes

Stheno wrote: »

I also 100% support keeping people in their homes and disagree with the buyback.

I also have a problem with the government stumping up a forty percent deposit and paying 2% per year over 28 years tbh along with paying HAP

that means for every 100k house bought the government will pay €180000 between deposit and interest (40k deposit and 5k interest per year for 28 years (it's simple interest)) to keep a family in their home, along with HAP!

Meanwhile the family that have been subsidised to that extent and have had debt paid off can choose to buy back for 100k?

I'm just not seeing the economics here maybe?

I am not too sure of the mechanics either, or the benefits to society apart from keeping people in their homes.

Surely it should be difficult to buy out a potential future social house that could be added to the stock. Especially if residual debt is written off also. That is a benefit too.

It's early days so maybe more info will come out soon.

I have to say I am a bit gobsmacked at the potential deal available to those who may see better times under the scheme.

There may be a lot of bitter people out there who did everything they could to keep up their payments. They may be ok now but don't have the opportunity that this scheme's tenants may have.

Things have to be seen to be fair to get support.

Stheno

Spanish Eyes wrote: »

There may be a lot of bitter people out there who did everything they could to keep up their payments. They may be ok now but don't have the opportunity that this scheme's tenants may have.

Things have to be seen to be fair to get support.

This is it for me, my marriage broke down mid recession and I literally spent three or four years hanging by a thread, constant calls from lenders, juggling who got paid one month and the next, but finally I got everything back on an even keel. It was hard work, and if I'd been offered mortgage to rent, I'd have considered it.

I think the buyback is insane.

Doltanian

Buy house today for €300,000, default on loan, get it transferred to this scheme. Live in house for the next 29 years @ €25 per week costing roughly €36,400, after 28 years buy back house for the original €300,000, when its inflation adjusted and with house price increases then the house will be worth somewhere between €3m to €4m if inflation and house price increase trends continue.

I was talking with my father tonight, he borrowed £12,000 to build our family home in 1981 @ 12.5% interest from the Council as the bank wouldn't lend to him. If such a scheme existed back in his day it would have made sense to stop repaying his mortgage and let the Govt pay your debts. He repaid the loan by working in England when a big opportunity arose for him in Birmingham to earn GBP£800 per week in the mid-nineties and he worked 6 days a week for 6 months on contract and returned and paid off the Mortgage in full plus early penalties etc. He also installed oil central heating and changed the car with the surplus.

This man is now an old age pensioner and is awake every morning still at 7am and worked like a slave paying nearly 80% tax at one stage during the eighties. It sickens me to see the attitude today of everybody demanding something for nothing. Everyone should pay their debts or else forfeit the right to own their own home.

Hitman3000

Doltanian wrote:

Buy house today for €300,000, default on loan, get it transferred to this scheme. Live in house for the next 29 years @ €25 per week costing roughly €36,400, after 28 years buy back house for the original €300,000, when its inflation adjusted and with house price increases then the house will be worth somewhere between €3m to €4m if inflation and house price increase trends continue.

Not as simple or as straight forward as you wish portray.

The_Conductor

The major looser in all of this- is the Irish taxpayer.
The only fly in the ointment for people who might decide to take part in this scheme- is they have to qualify for Local Authority housing (aka all the household income is means tested towards qualification for this).

I suspect Mr. Hall may discover the number of owners who qualify for his scheme- even allowing for its rather generous provisions- is significantly lower than he imagines. Time will tell.

One way or the other- while it assists the lending institutions in cleansing their balance sheets (if it actually works that is)- it sends a pretty appalling message to all those who practiced financial prudence- along the lines of the old idiom- 'No good deed goes unpunished'............

This scheme is a boon for people who strategically have not paid their mortgages.

The other aspect of the statement from PTSB and AIB- which seems to have gone under the radar- is a version of jingle mail for landlords.
I.e. Landlords who own units in negative equity- can hand over the keys and allow the lending institutions sell the units (obviously they have no intention of becoming landlords). The o/s debts on these units will be wiped. Its anticipated this will release 14-16,000 units from the rental market to the sale market. Most of these units are anticipated to be in the Dublin area- and 2,000 offers have issued to landlords thus far- with the remainder due to go out over the next 6 weeks............

I foresee a lot of pretty angry tenants in the immediate future..............

The Ging and I

The_Conductor wrote: »

The major looser in all of this- is the Irish taxpayer.
The only fly in the ointment for people who might decide to take part in this scheme- is they have to qualify for Local Authority housing (aka all the household income is means tested towards qualification for this).

I suspect Mr. Hall may discover the number of owners who qualify for his scheme- even allowing for its rather generous provisions- is significantly lower than he imagines. Time will tell.

One way or the other- while it assists the lending institutions in cleansing their balance sheets (if it actually works that is)- it sends a pretty appalling message to all those who practiced financial prudence- along the lines of the old idiom- 'No good deed goes unpunished'............

This scheme is a boon for people who strategically have not paid their mortgages.

The other aspect of the statement from PTSB and AIB- which seems to have gone under the radar- is a version of jingle mail for landlords.
I.e. Landlords who own units in negative equity- can hand over the keys and allow the lending institutions sell the units (obviously they have no intention of becoming landlords). The o/s debts on these units will be wiped. Its anticipated this will release 14-16,000 units from the rental market to the sale market. Most of these units are anticipated to be in the Dublin area- and 2,000 offers have issued to landlords thus far- with the remainder due to go out over the next 6 weeks............

I foresee a lot of pretty angry tenants in the immediate future..............

Well spotted !

__..__

Let me see.
I give all my savings to my son.
I owe 250000 on my nice 500000 house.
I get myself fired.
I stop paying my mortgage.
I live in my nice 500,000 house in my nice area for practically nothing compared to my neighbours.
I semi retired for 20 years or so then I get my savings back off my son and possibly a loan off him to pay the 250000 back.
I sell it for what it's worth then. 1.5 million or so.
Sell it . Pay back my son and retire.
Count you me in.

And I'm only sorry I paid my mortgage for the last 10 years or more. That was a total waste of money paying it down.

Roger_007

The principal objective of this scheme is stated to be keeping people in their homes.
What happens if any of the beneficiaries of this scheme default on the nominal rent they are required to pay? Will they then be evicted?

The_Conductor

Roger_007 wrote: »

The principal objective of this scheme is stated to be keeping people in their homes.
What happens if any of the beneficiaries of this scheme default on the nominal rent they are required to pay? Will they then be evicted?

No reason they wouldn't be evicted- however, the carrot, perpetually dangling for them, is the prospect of buying the property back at cost somewhere down the road. From the interviews- it would appear to be actual cost- not an inflation adjusted cost- aka- its 2% cheaper annum- based purely on the basis of inflation- nothing else- and over the longer term, housing has tracked the CPI reasonably closely.

Presumably- the carrot will be sufficient to stop shenanigans- such as not paying your rent on the units.

Bigger issue- the owners have to qualify for local authority housing. How many of these owners will?