Opinion FF wants the Help to Buy scheme limited to €400,000

Discussion in 'Budget 2017' started by Brendan Burgess, Oct 14, 2016.

  1. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    30,732
    http://www.irishexaminer.com/ireland/changes-to-new-first-time-buyers-grant-scheme-urged-425744.html

    Describing the incentive as a “mansion grant” Fianna Fáil’s housing spokesman Barry Cowen pointed out the €600,000 limit is “completely out of sync with the reality of an ordinary first-time buyer”.

    He told the Dáil the average cost of providing a three-bed semi-detached home of 113sq m in the greater Dublin area is €330,493. “For a new home worth €600,000 this requires a €98,000 deposit and an income of at least €145,000. This is four times the average industrial wage.

    “A couple earning this level starting out in life does not need €20,000 from a State struggling to tackle a social housing waiting list of 130,000 homes.

    “It means ordinary tax-payers are directly subsidising people earning four times the average wage to buy a home worth three times the national average price of thee bed semi–d.”
     
  2. Delboy

    Delboy Frequent Poster

    Posts:
    1,186
    A FF fig leaf...."quick, we must find something to give out about in the budget we helped design, or else the lemmings won't believe our line about us being in Opposition".
    They wanted the scheme to included 2nd hand houses!!!
     
    username123 likes this.
  3. Clonback

    Clonback Frequent Poster

    Posts:
    255
    I think Barry Cowen has made a fair point.Why should taxpayers subsidise first time buyers at levels above the cost of a 3 bed house in Dublin
    I feel most first time buyers will be below 440k
     
    MrEarl likes this.
  4. Sarenco

    Sarenco Frequent Poster

    Posts:
    3,273
    I don't see how the rebate subsidises FTBs at any level - the amount of the rebate (duly leveraged) will simply be added to the price of the house. It's a subsidy to builders, plain and simple.

    FF are just annoyed that the size of the subsidy is bigger than what they proposed.
     
  5. Clonback

    Clonback Frequent Poster

    Posts:
    255
    FTBs will now get their deposit and the builders will start building.QED.
     
  6. T McGibney

    T McGibney Frequent Poster

    Posts:
    2,640
    A subsidy using public money to enrich property developers and circumvent Central Bank lending restrictions.

    Only in Ireland.
     
    Delboy likes this.
  7. Clonback

    Clonback Frequent Poster

    Posts:
    255
    Agree Tommy but if we have no development how can demand be satisfied.
     
    T McGibney likes this.
  8. noproblem

    noproblem Frequent Poster

    Posts:
    509
    The information on new house prices this morning shows how ineffective the steps taken in the budget are going to be. Says a lot about ourselves and our mindsets, as well as the rotten greedy way we have become as a people.
     
  9. T McGibney

    T McGibney Frequent Poster

    Posts:
    2,640
    I'd personally prefer a more honest and more easily monitored easing of the Central Bank lending restrictions, while retaining the option to incrementally or completely restore them if deemed necessary at a future stage.
     
  10. Clonback

    Clonback Frequent Poster

    Posts:
    255
    Obviously the CB refused to relax restrictions on FTBs and adapted a similar approach to variable rate mortgages.This left Minister Noonan with no other option to kick start development.
    Reducing Vat on building would result in builders pocketing same.
     
  11. Sarenco

    Sarenco Frequent Poster

    Posts:
    3,273
    IT now reporting that the Government has agreed with FF to reduce the cap to €500k.
     
  12. Sarenco

    Sarenco Frequent Poster

    Posts:
    3,273
    The compromise reflected in the committee stage amendments to the Finance Bill is that the rebate is available for properties with a value up to €600,000 for contracts signed in the period 19 July to 31 December 2016 or in the case of self-builds where the first tranche of mortgage drawdown was between those dates and up to €500,000 value thereafter (rebate remains capped at €20,000).

    In other words, the €600k limit drops to €500k in the new year.

    Another tweak to the Finance Bill is that a rebate is also available for conversions of properties not previously used as dwellings.
     
  13. MrEarl

    MrEarl Frequent Poster

    Posts:
    994
    Hello,

    I agree with the principal of reducing the cap from €600k but I think there needs to be two limits, one for city properties and one for rural locations.

    You will struggle to buy much in many parts of Dublin for near €400k, whereas you could buy a large detached 5-bed house in parts of Cavan for example and still come in well under €400k.

    In fact, I'd almost be tempted to also introduce a ratchet system, with the "grant" increaseing to a maximum of €20k depending on certain criteria to include the purchase price, the amount being borrowed etc.

    I'm all for helping people, but lets do it right...
     
  14. Smarff

    Smarff New Member

    Posts:
    4
    Is €500k now confirmed as the upper limit from 1st Jan onwards? If not, do we have a ballpark timeframe on when the limit will be finally settled?
     
  15. MrEarl

    MrEarl Frequent Poster

    Posts:
    994
    All I can really see coming out of all of this, is more new houses for first time buyers being sold at €499,999 !