Government Agreed Slow House Building With Vulture Funds

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trajan

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I see no other explanation for the way that housing market things are in now.
The initial tranches of apartment blocks sold off by NAMA must have had associated and binding assurances from the government/NAMA to keep new home building at snail pace. Who would buy these blocks without this assurance ?
Then, seeing such great returns and no more apartments to buy, the vultures reason that new homes in a tightly supplied market would be just as good a punt.
There's simply no other plausible explanation.

Rory Hearne makes some vacuous comments about government policy in this regard but this is an absurdity: what else could be the rationale for such a policy if not to clear the path to offload property debt created by an older generation and charge it to the next ?
I suppose the Sinn Feiners want plausible deniability on this matter in the event that they become the major party next election and have to lead a government. Like Fine Gael in the old days, they'll pretend that they had no idea how little funds the previous government had left - so they just row back on election promises and put them on the long finger "till the economy picks up" . . .
 
Why would any government do that?
Any party in government would want to ‘solve’ the housing issue. It will be the hot button issue here, and in much of the developed world, for years to come.
Suggesting that there is some sort of conspiracy between the government (3 Parties) and, by extension much of the civil service, banks, developers and construction companies, just doesn’t stand up to even the most rudimentary reality checks.
Remember the old line “never ascribed to malice that which can be explained by incompetence “.
 
J'ai peur de l'irlande lorsque les Chauvins d'aujourd'hui occupent les salles du pouvoir. :eek:
 
trajan said:
You're running away from the main point made in the OP. :(
Click to expand...
What point were you making?
Is it that the government is in a conspiracy with some "Vulture" funds in order to keep property prices high. What's the reason? Are they trying to lose the next election? The debt in the property market is being held by those with mortgages bought at the crest of the last boom and new entrants. The reason prices are high is mainly to do with international capital markets but this is compounded by populist government policies, a dysfunctional construction sector and a State sector which is no better. Incompetence is the problem at a local Irish level and Capital markets are the problem at a global level. There's just lots of money floating around and there's a low interest environment. While Bond yields are so low money will flow into property.

If we want to fix the market here then fix the supply side but it is things like HAPS and the State out bidding private purchasers which are the main local factors pushing up rents and purchase prices, not the so-called vulture funds which provide financing on the supply side.
 
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