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Affordable housing

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  • 27-08-2018 11:41am
    #1
    mariaalice
    Registered Users Posts: 12,493 ✭✭✭✭


    There may be a new affordable housing initiative in the budget for those who don't qualify for social housing but do not earn enough to support an open market mortgage.

    Can a mortgage based housing subsidy ever be designed so that the participants cannot benefit financially from the subsidy they are getting? in other words, it would be a housing and not the bases of a financial asset, could never be rented out for example.


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    #2
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    Where are you getting this information from?


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    #3
    mariaalice
    Registered Users Posts: 12,493 ✭✭✭✭mariaalice


    myshirt wrote: »
    Where are you getting this information from?

    Just listening to FF and what they want from the budget negotiations. It more a general point though.


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    #4
    victor8600
    Registered Users Posts: 1,641 ✭✭✭victor8600


    mariaalice wrote: »
    There may be a new affordable housing initiative in the budget.....
    myshirt wrote: »
    Where are you getting this information from?

    http://rebuildingirelandhomeloan.ie/ ?


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    #5
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    victor8600 wrote: »
    http://rebuildingirelandhomeloan.ie/ ?

    That's something that is already in place. For years actually, they've just re-badged it, re-announced it, but increased the funding.

    The op is on about something else. I had a look at the pre budget tax strategy etc papers and see nothing in there, so wondering where the information source is. FF have been harping on about loads of things for months, but there is nothing in the pipeline. It will likely to be October 2019 before you see anything. It takes time to build these initiatives.

    For now, the Indecon report that is coming out in a month will be key.


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    #6
    victor8600
    Registered Users Posts: 1,641 ✭✭✭victor8600


    mariaalice wrote: »
    Can a mortgage based housing subsidy ever be designed so that the participants cannot benefit financially from the subsidy they are getting?

    No. It is either a mortgage and you are responsible for risks (being in debt) and benefits (can sell/rent).

    What should be possible, in my opinion, is an option for any citizen to apply and get social housing with all its current limitations and advantages. I may have preferred to live in a council house and pay a limited percentage of my salary towards the rent rather than to have a mortgage and to fear losing my home because of a temporary unemployment.


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    #7
    mariaalice
    Registered Users Posts: 12,493 ✭✭✭✭mariaalice


    victor8600 wrote: »
    No. It is either a mortgage and you are responsible for risks (being in debt) and benefits (can sell/rent).

    What should be possible, in my opinion, is an option for any citizen to apply and get social housing with all its current limitations and advantages. I may have preferred to live in a council house and pay a limited percentage of my salary towards the rent rather than to have a mortgage and to fear losing my home because of a temporary unemployment.

    Yes, but how to account for the discount/subsidy the purchaser of affordable housing gets.


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    #8
    Sleeper12
    Registered Users Posts: 17,069 ✭✭✭✭Sleeper12


    mariaalice wrote:
    Just listening to FF and what they want from the budget negotiations. It more a general point though.


    They also want a social welfare increase. They have little or no input into the budget so I wouldn't hold my breath.


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    #9
    victor8600
    Registered Users Posts: 1,641 ✭✭✭victor8600


    mariaalice wrote: »
    Yes, but how to account for the discount/subsidy the purchaser of affordable housing gets.

    Council housing is owned by the council, as far as I understand. You pay rent according to your means, and get to live in it with more freedom (pets, redecoration) than you would have in a privately rented house. But since you do not own the house, you cannot sell it or sub-rent it.

    Any affordable mortgage scheme is basically free money for those who qualify. There was a scheme in 2000's where you would pay only a potion of the mortgage yourself. You could sell the house, but you would pay the council its portion of the mortgage. So when the prices were going up, it was a once-off opportunity to gain a €100K for being in the scheme.


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    #10
    Caranica
    Registered Users Posts: 10,117 ✭✭✭✭Caranica


    Possibly some of the rent to buy social housing? Planning given recently in Loughlinstown for social housing (via housing association) where the tenant can buy after ten years at what is essentially a bargain rate for that location.


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