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What impact will this scheme have on the market?
It will solve the Housing Crisis. 4%  4%  [ 1 ]
It will fuel another unsustainable property bubble. 96%  96%  [ 25 ]
Total votes : 26
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 Post subject: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 9:49 am 
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A simple question.


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 9:52 am 
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Private Tenant

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It's a bad idea but it's not big enough to do either of those pejorative options


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:05 am 
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woodrow wrote:
It's a bad idea but it's not big enough to do either of those pejorative options
So you reckon it won't have any impact. Interesting. A thousand mortgages all focused on a single rung of the 'ladder' with promises to extend the scheme in the future? If they do extend it then what impact will it have?


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:20 am 
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Private Tenant

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Coles2 wrote:
woodrow wrote:
It's a bad idea but it's not big enough to do either of those pejorative options
So you reckon it won't have any impact. Interesting. A thousand mortgages all focused on a single rung of the 'ladder' with promises to extend the scheme in the future? If they do extend it then what impact will it have?


i'm not looking in hypotheticals

but 1000 mortgages won't be done in Year 1 and this is versus about 30,000 of regular mortgages per year

so, it may have an 'impact' but nothing like the two options that you limited in the poll, to make whatever political point you were aiming at


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:24 am 
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Then what is it intended to do?

Is it intended to be a solution to the Housing Crisis or to be an artificial support to the market? I'm really sorry that discussing the political policies of politicians from political parties is seen as making a political point.


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:32 am 
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Too Big to Fail

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It's the Govt making sure they're seen to making an effort.
They're getting massive pressure from their confidence pals, FiannaFáil.
It's clueless ill-thoughtout notions with an eye on an election


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:35 am 
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temene wrote:
It's the Govt making sure they're seen to making an effort.
They're getting massive pressure from their confidence pals, FiannaFáil.
It's clueless ill-thoughtout notions with an eye on an election

Exactly. It will have zero impact on the housing market, just like predecessor schemes.

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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:38 am 
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Private Tenant

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Coles2 wrote:
Then what is it intended to do?

Is it intended to be a solution to the Housing Crisis or to be an artificial support to the market? I'm really sorry that discussing the political policies of politicians from political parties is seen as making a political point.


tell you what, add another poll option as c) Neither


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:43 am 
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woodrow wrote:
Coles2 wrote:
Then what is it intended to do?

Is it intended to be a solution to the Housing Crisis or to be an artificial support to the market? I'm really sorry that discussing the political policies of politicians from political parties is seen as making a political point.


tell you what, add another poll option as c) Neither
It's being touted as a solution to the Housing Crisis. Are you suggesting iwe're being misled? Such cynicism.


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 10:47 am 
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Old Time Landlord

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Posts: 382
I think it's great, 2% fixed for the life of the loan, it's a gift. One guy in work is trying to work out how to get rejected by three banks to qualify.


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 11:09 am 
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Joined: Oct 29, 2014
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cjs wrote:
I think it's great, 2% fixed for the life of the loan, it's a gift. One guy in work is trying to work out how to get rejected by three banks to qualify.


Any tips?


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 11:21 am 
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Of Systemic Importance

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There's a 50k single/75k joint income limits, 90% LTV plus overall limit of €320k in Dublin (so €288k mortgage).

So that limits LTV to 3.84, which isn't much different to the existing CBI restrictions before exemptions.

But the income limits will massively restrict the scheme to the intersection of:

- People earning <75k
- Properties for sale for <320k

Critically, if you have more deposit then you can't use it to buy a more expensive property than 320k, more deposit would only help people on lower incomes.

Regardless, the effect is that nothing will be for sale under 320k, anywhere in Dublin.

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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 1:44 pm 
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Single Home Owner

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Eschatologist I think you need to extend that 320K floor to a few more counties.

"In line with Central Bank rules, borrowers will be able to borrow up to 90 per cent of the purchase price, up to a maximum purchase price of €320,000 in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and €250,000 in the rest of the country. So, the mortgage will be limited to €288,000in the former counties, and €225,000 in the latter."

https://www.irishtimes.com/business/per ... -1.3363921


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 5:55 pm 
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Government Policy driving House Price Inflation, -Fitch Rating Agency
Quote:
The warning comes as international rating firm Fitch separately highlighted the Irish government’s incentives for helping to drive residential prices. It forecasts double-digit price growth this year, the only country in the world it believes will post such house price inflation rates this year.

Ireland is the only market where we forecast double-digit price growth, as demand is boosted by government support for first-time buyers,” the rating firm said in its major forecasts in its global housing and mortgage outlook.


Chartered Surveyors say that the price of Development Land is contributing to the problem.
Quote:
“One of the main contributors to the cost of new housing is the rising price of development land. Our report found the price of residential development land increased by 14% nationally in 2017 and predicts it will increase by a further 11% this year. A 25% increase in two years is simply not sustainable and one has to ask in light of that rate of increase if the changes made to the vacant site levy tax in the budget will be sufficient.”

Lol! Read the 'Help to Hoard' thread for more info on how the government policies deliberately drive up development land costs.


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 Post subject: Re: Government Affordable Mortgage Scheme - Poll
PostPosted: Wed Jan 24, 2018 6:23 pm 
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Old Time Landlord

Joined: Dec 5, 2007
Posts: 382
Bubblecovery wrote:
cjs wrote:
I think it's great, 2% fixed for the life of the loan, it's a gift. One guy in work is trying to work out how to get rejected by three banks to qualify.


Any tips?


Stink of beer talk slow, fill in the form in green ink. Spell you own name wrong. Wear a frock (if male)


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