Will the Budget do anything for house buyers?

[Bronte]

Property is inherently superior because if you have it, you are self-sufficient in it. If it wasn't so essential why would we have social housing and rent supplement?

I'm quite convinced that a policy which encourages home ownership will ultimately lead to less outlay for retirees by the state. Nothing anyone has said thus far in this thread has contradicted this.

And it would seem that the people who do best in life have at the very least purchased their own home. This doesn't always apply of course, and it's not true to say in some European countries where wealthy people rent rather than buy.

At least NAMA (via builders) are going to invest in housebuilding and that's a very good thing. But I do think Ireland needs to look at building family sized apartments in high rises, the urban sprawl is not a good thing.

 

[trasneoir]

As for consuming some residential property for some portion of our old age - where are you planning on living? A yacht? A tent in the phoenix park?

Depends. I'd utilize a lot less property once the kids are gone, so definately somewhere smaller. Maybe closer to public services if my mobility declines. Maybe closer to healthcare providers as my utilization increases. Probably into a dedicated healthcare facility at some stage.

In any event, the four bed semi that best suited me in my 30s-50s probably wouldn't best suit me in my 60s. Liquid assets would provide me with a lot more flexability.

And it would seem that the people who do best in life have at the very least purchased their own home. This doesn't always apply of course, and it's not true to say in some European countries where wealthy people rent rather than buy.

If you've got cash in your pocket and you're likely to be staying put for 10+ years, a PPR is a pretty safe, tax efficient, medium term investment. We don't need any further incentives, it already makes sense to own your home if you can afford it.

Borrowing to invest in property (or any other asset class) is a much less clear-cut proposition. It's dangerous at the personal level if it's not stress tested thoroughly (and we will lie, borrow, and perjure to "pass" stress tests). It's dangerous at the macroeconomic level if everybody is doing it (2008 financial crisis). We have no business subsidizing it.

 

[odyssey06]

Borrowing to invest in property (or any other asset class) is a much less clear-cut proposition. It's dangerous at the personal level if it's not stress tested thoroughly (and we will lie, borrow, and perjure to "pass" stress tests). It's dangerous at the macroeconomic level if everybody is doing it (2008 financial crisis). We have no business subsidizing it.

Totally agree on this part, but we'll just have to agree to differ on the PPR aspect.