Houses prices to fall 20%

Re: How do the CoCo know?

As I've stated there are rules set out by the council which dont allow you 'do what you like' but again I state if you are asking how they enforce these they will rely on your neighbours to report any activity which may breach these rules.
 
Re: How do the CoCo know?

Hi rainyday. In response to:
Hi Darag - Clearly we do disagree on the principle involved. But I'm
interested in your view how the other benefits should be 'fairly
distributed' - If you think that use of income as a criteria for this
benefit is unfair, wouldn't it be equally unfair for other benefits,
e.g. social housing etc?

First of all I'm surprised that you believe that
government social spending should be directed toward
non-welfare (in it's literal sense) goals but there you
go. What you seem to view in this case as "free money"
from the government, I view as money that is taken from
all of society and given to a rather arbitrary small
section of society who are not suffering any real
hardship.

Regarding fairness, I don't at all object to using
income a criteria for distributing benefits. I think
Tommy made the point earlier
There is something smelly about a scheme where a select
number of lucky people are awarded a massive financial
benefit based on what are ultimately abritrary criteria
while people who don't satisfy the criteria get
absolutely nothing.

The comparison with 3rd level maintenance grants &
medical cards means testing is appropriate only to a
point. Your child would be a long time in college or
your granny a long time getting free prescriptions
before their maintenance grant or medical card would
yield them €100K in benefits.
I also made the point:
Because the system will work like a lottery, I object to
social spending where the receipt of a huge benefit can
be described as "occurring by chance or fortuitous"
rather than on the basis of suffering some sort of
hardship.
The grammar might be a bit dodgy - I copied a definition
of "lucky" from a dictionary - but the unfairness of
awarding benefits by lottery is obvious to me anyway.

I must say 'though that this scheme is a masterstroke of
Irish politics. The financial aspects are opaque or
deliberately obfuscated ("sure it's only unused land" -
it's not like it's costing us anything). It manages to
appeal to lefties while at the same time it is diverting
government money into the pockets of big builders.
There has been no economic or financial analysis of the
scheme; no one has even asked: where will the extra
building capacity come from? What will happen the
regular FTB market both secondary and the new builds?
What will be the effect of forcing between 10,000 and
20,000 people to live in the same place for upto 15
years in terms of economics (worker mobility) and
general social and personal welfare? Finally it makes a
good sound bite and the lads get on the nine o'clock
news trumpeting what they're doing for the poor FTBs.
The largely middle class electorate think appreciably of
their kids starting work on salaries of 24K trying to
buy a house and so you also get the supportive callers
to Marion Finucan.
 
Re: How do the CoCo know?

Hi Greg

How does the coco stop this happening?

It won’t be too hard really – monitoring of ‘house to let’ ads, monitoring by Revenue of claims for ‘rent a room’ or mortgage interest relief benefits, getting reports from neighbours, monitoring of electoral register etc.

Hi Darag
I'm surprised that you believe that
government social spending should be directed toward
non-welfare (in it's literal sense) goals but there you
go.
Forgive my ignorance, but what exactly do you mean by non-welfare?

I’d agree that the lottery system isn’t ideal, but what’s the alternative? Should they lower the qualifying salary criteria to whatever level is necessary to limit the number of applicants the the number of houses available – would that really be any better? You can it is unfair, but it is equally unfair to everybody, which actually makes it fair.

it is diverting
government money into the pockets of big builders
This totally depends on how the tendering for the contract to build the houses is managed. If it is done properly, there will be no profiteering or windfall for the builders. You can’t rule out a scheme like this just because there is a potential for abuse.

What will be the effect of forcing between 10,000 and
20,000 people to live in the same place for upto 15
years in terms of economics (worker mobility) and
general social and personal welfare?
No-one is forced to live anywhere. They are free to move at anytime – they just have to repay the benefit that they got. They are no more ‘forced to live in the same place’ than any FTB who buys their first property and find it difficult to trade-up.

the lads get on the nine o'clock
news trumpeting what they're doing for the poor FTBs.
The largely middle class electorate think appreciably of
their kids starting work on salaries of 24K trying to
buy a house and so you also get the supportive callers
to Marion Finucan.
You ain’t so bad at the soundbites yourself! ;)
 
Re: How do the CoCo know?

Hi rainyday. By "non-welfare", I mean not addressing
basic social needs. Maybe along the lines of those
outlined by the UN; i.e. education, health, etc. It
may not be black and white, but owning "real estate"
is certainly not one of them.
 
Re: How do the CoCo know?

Hi Darag - Yep, I get you now, and I would generally agree with increased spending on health & education. We disagree in relation to spending on housing in this particular case.
 
plo

Just like benchmarking, the gov'ment will end up paying top dollar at the peak, then house prices fall and we wonder where all the money went !
 
Re: plo

Why don't we have a shared equity scheme?

Allow FTBs to offer the state the chance to buy a portion of their new house. So if I can only raise 100K and my potential new house costs 200K, then allow the state the chance to buy 50%.

If I sell up and move on the state collects half of the growth.
Money raised could be ring fenced for housing for people who have no chance of owning their own home.

The scheme could also be limited to FTBs buying a property to live in. If at any time you want to rent the property you have to buy out the states portion.

-Rd
 
Shared ownership

The Shared Ownership scheme already works in a similar fashion
 
Re: Shared ownership

So why doesn't the state sell this land for the going market rates, with a condition that it be developed within a specific time frame, and then allow the purchasers to engage in shared ownership separately if they want to.

More money for the government, rather than effectively giving away a state asset.

-Rd
 
homes

The UK is building 120,000 affordable new homes around London to held the people who cannot buy their own homes.
 
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