The tenant will have an option to buy back at this price at any time in the future.
Mark my words , I've said it hear before ... next up is the responsible people who have provided adequately for their retirement ... as the government struggles to deal with the pension issue they will turn their attention to higher taxes on pensions possible means test away the state pension from people who also paid into a contributory pension also.
This is something that should go before a referendum long before lowering the voting age to 16. Let the public know how tax payers money is being used and see if they agree with it.I will be discussing the scheme with David Hall on Matt Cooper on Today FM at 16.30 and with Minister of State for Housing John Paul Phelan on TV3 just after 11 pm tonight.
Brendan
This is one element of this deal that I just can't get my head around.The option price on the house will be in the lease - they can buy it back at any stage.
The price set today will be agreed with AIB - it will be a discount on today's market price, but the level of the discount is "commercially sensitive" - I suspect it's 10%.
Got a bit more information on the scheme from David Hall on the Today with Matt Cooper
The renters will be getting a 28 year lease
The option price on the house will be in the lease - they can buy it back at any stage.
The price set today will be agreed with AIB - it will be a discount on today's market price, but the level of the discount is "commercially sensitive" - I suspect it's 10%.
One bit I didn't understand is that the taxpayer will be paying 40% of the cost of the house through a 30 year loan at 2% simple interest.
Something like the following:
View attachment 2220
The taxpayer will pay 92% of the market rent for the property and the tenant will pay the Social Housing rent.
It will be for about 600 AIB customers initially, but eventually could be 7,500.
Brendan
Strongly agree.We will need a worked example to see exactly how this works. To see who is paying what.
Strongly agree.
The funding of this scheme is completely opaque and this is not acceptable where taxpayer money is involved.
Kept telling BB to 'wait for what I'm about to say, you'll definitely combust then'. He was in effect gloating I thought.
The rent will be set at LA levels for that area, income in the home etc.Do we have any idea what the rent will be for the houses? Is it based on the value of the home or prevailing market rents?
What will happen if rents are not paid?
Re: being able to buy back the home at any time, once the rent is adequate and is paid, I wouldn't necessarily have a problem with this as it's just like an interest only mortgage (again, once the rent would cover the interest and it is actually paid).
The rent will be set at LA levels for that area, income in the home etc.
Do you not have an issue with being able to buy the house at a large discount and at that set price even well into the future with no account for inflation
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