New Government help

mariaalice

https://www.irishtimes.com/news/politics/affordable-housing-plan-will-see-state-take-up-to-30-equity-with-first-time-buyers-1.4440041

So if the house is 300k and the state will take 90k equity in the house so a mortgage of 210k would be needed making housing more affordable? as a couple with say, two incomes of 30k each and a deposit could afford a 300k house.

Cheapest new house in Dublin at the moment. https://www.myhome.ie/residential/brochure/castleland-park-way-castleland-park-balbriggan-county-dublin/4406217 3 bed 312,500k

shawki

I really wish they would do something to help 1st Time Buyers who want a 2nd hand home.

Geuze

Like most Govt schemes, this is bad, as it adds to demand.


Much better to have a scheme that adds to supply.

mariaalice

Geuze wrote: »

Like most Govt schemes, this is bad, as it adds to demand.


Much better to have a scheme that adds to supply.

I don't think it's bad it's just it should be alongside an increase in supply.

I know a couple who recently purchased a house in Dublin neither of them has well-paying jobs, under 35k each but they were able to live with their parents and save a massive deposit which bridged the gap for them along with HTB. This scheme will help those who don't have the option to do that.

Fol20

mariaalice wrote: »

I don't think it's bad it's just it should be alongside an increase in supply.

I know a couple who recently purchased a house in Dublin neither of them has well-paying jobs, under 35k each but they were able to live with their parents and save a massive deposit which bridged the gap for them along with HTB. This scheme will help those who don't have the option to do that.

Or the extra amount of money might cause prices to rise.

mariaalice

Fol20 wrote: »

Or the extra amount of money might cause prices to rise.

There is an upper limit on the purchases price it applies to.

justindublin

So what happens long term with the equity? Do you eventually need to buy out the state?

When you eventually want to sell the home home messy does that get?

Browney7

Government blinks first in the standoff with zoned landowners. Affordability cap reached so the demand side is limited. So instead of the supply side dropping prices (haha good one say the developers, Covid costs up, planning, VAT, site works, development levies sure we've loads of costs lads we couldn't possibly drop prices) government "helps" the demand side and dresses it up as helping people get out of renting etc. It just serves to prop up land values and is a pig with lipstick.

Government taking ownership of the housing - what is the exit strategy for government to step out of owning the house? Do they hope the teachers, civil servants and guards the scheme is aimed at get outsize salary increases to enable them to get a bigger mortgage top up in five years to buy them out? What happens if the loan goes into arrears/default with the pillar bank and they have to foreclose (will be very fun with the government being part owner who will actually get turfed out) - who eats the loss if property is worth less after foreclosing than the combined loan balances?

So off the top of my head, changes to help the demand side to "stimulate" supply:
Change to a flat 10% deposit requirement (instead of 10% on 220k and 20% thereafter) by the central bank followed immediately by HTB 5% refund scheme (a temporary measure). Then HTB 5% becomes HTB 10% refund and yet supply still hasn't taken off as HTB is now a way of skirting the deposit requirements and is a bit of free money for developers or self builders.

Interesting timing of the scheme announcement with a certain well known Dublin developer focussing more on residential in the new year now that commercial property is a lame duck: https://www.irishtimes.com/business/commercial-property/developer-johnny-ronan-aiming-to-become-market-leader-in-housing-1.4438714?mode=amp

cruizer101

shawki wrote: »

I really wish they would do something to help 1st Time Buyers who want a 2nd hand home.

The thing is they want to encourage more house building by making it easier for more first time buyers to but a new house. Increased demand should lead to increased supply.

But I would rather they were just more honest about it. Instead of saying they are helping first time buyers just make it cheaper to build new houses.

No details on what happens to the governments equity. Do they hold it indefinitely, have to pay back only when selling.

Lia_lia

cruizer101 wrote: »

The thing is they want to encourage more house building by making it easier for more first time buyers to but a new house. Increased demand should lead to increased supply.

I’m a first time buyer in Cork city and from what I can see the demand is already huge. Especially for new builds. I’m not sure do developers need more schemes like this to encourage building...just going to drive the prices up as usual!