Sinn Fein - 230k cap on affordable housing

Yurt2

IAmTheReign wrote: »

In Ireland, what happens when other people stop paying their mortgage is that the bank, and ultimately their other paying customers, take the hit. This is why interest rates on Irish mortgages are so high compared to other countries. The whole reason the CB LTI caps exist is to reduce the likelihood that people won't be able to afford to pay back their mortgage.

SF themselves said a household with an income of 45k would be able to by a house for 230k. It is not hostility to question how this would be financed given that it is not possible under current private lending regulations.

I wasn't the one who compared the scheme to traditional social housing, you were, but the reality is that people who are on lower incomes and are heavily mortgaged are simply at a higher risk of running into financial difficulties. This is why the banks currently aren't allowed to give a 200k+ mortgage to someone earning 45k

I'd be interested to see where SF said that a combined income of 45k would be given a mortgage of 230k. If you have evidence of them saying that in a press release or otherwise I'd be prepared to criticize it. But I've paid close attention to the debate over the past couple of years and I don't recall them saying it.

You were most definitely making the link between social housing and affordable housing, with a strong implication that people wouldn't be paying their mortgages as some social tenants don't pay their rent.

Yellow_Fern

Yurt! wrote: »

100 percent open market supply to the highest bidder in a low interest rate environment, no matter how many units are built means ballooning property prices. We see this everywhere from Australia to Hong Kong to the UK. Supply of land is inelastic and that model advantages those with assets to leverage and remortgage, and disadvantages first time buyers and those caught in the rental trap. It's not even a debate at this stage.

Countries like Austria and Singapore figured this out long ago and took measures to ensure affordable supply to their working populations.

As this thread is evidence of, we're still caught in the property yahoo line of thought, who think that simply building more units automatically equals moderating prices.

And too many people don't engage their brains because it's not in their interests to do so.

Austria has far less wage growth, somewhat lower wages and slowish population growth while Singapore has rent and purchase prices far higher than even Dublin. As I said before, I support other models. If you want price stability then you need less wage increases and less immigration.

Yurt2

Yellow_Fern wrote: »

Austria has far less wage growth, somewhat lower wages and slowish population growth while Singapore has rent and purchase prices far higher than even Dublin. As I said before, I support other models. If you want price stability then you need less wage increases and less immigration.

Not on the HDB market for first time buyers they don't. It's the best affordable housing model conceived and implemented in any country, and is a cornerstone of the country's prosperity. So much so it's on their banknotes. I'd advise you to do some research on it (as well as the Austrian model of affordable provision).

And as for your last point on lower wages, madness. I'm not sure where you're going with that.