I don't think that you erred at all. It clear from the policy document that speculators buying multiple properties would gain most financially from Labours stamp duty tax cuts. e.g a speculator buying three houses at €700,000 each would save an extra €69,000
Can you check your workings please? I make it that under the old regime, any non-FTB (including investor) would pay just under €23k on a €700k property, and under the proposed Labour policy, they would pay €33k. Where did you get your figures from?
Its always a question of priorities. Of course it would be better to have massive tax cuts and large spending increases at the same time but this lays a party open to claims that it is engaging in auction politics and insincerity, an accusation that was do devastatingly made by Brian Cowan against Labour before the election.
Was this before or after Cowen jumped on the bandwagon and offered larger tax cuts than Labour and no cap on stamp duty exemption for FTBs? The words pot, kettle & black spring to mind.
I think that your rhetoric here reveals your ideological basis. I assume that the "residents in certain estates" to which you refer are the poor and the underclass in council estates. Unlike you I have lived in such areas and am not sure that they would agree with your somewhat patronizing insinuation that what they most need is more policing to protect themselves (and the rich) from their anti social behaviour and that they are prisoners in their own (council) houses. Believe it or not there was even a time when Labour represented such people.
There is no rhetoric - just practical on-the-ground experiences from 18 months of canvassing. Your assumption about council estates is of course completely wrong (as is your assumption about where I live/lived). I specifically avoided linking anti-social behaviour to council estates because that does not reflect reality. Anti-social behaviour is a problem in many, many kinds of estates from a range of socio-economic classes. I'd pay good money to see you explaining your theories about social exclusion to many of the residents that I met on the canvass. You wouldn't last 60 seconds.
Ok. I've read up further and I don't see where anyhing that I've said previously is incorrect These are quotes from the policy document
" Take a couple who can get a mortgage for €250,000. Under the ‘Begin to Buy’ scheme, they will go to the local housing authority with their mortgage approval of €250,000. Once approved....the couple to out into the market and buy for say €400,000.
The housing authority will also finance the balance, through a new Housing Assistance Fund which will be established through the National Treasury Management Agency."
i.e. it will be funded by the taxpayer and the money will go to developers. Its main function is to address the affordability gap between the maximum amount that FTBs can borrow and the price that developers want for their properties. Its sole purpose is to allow developers to continue charging high prices and imo it could only attract FTBs if affordable housing production was slashed to remove it as an alternative for young couples.
Way off the mark, for many reasons.
1) Purchases are not limited to new houses, so your rants about developers prices are misguided. Market pricing will apply, and 'begin to buy' purchasers will operate in the market along with other purchasers.
2) In parallel with this scheme, Labour committed to meeting the NESF target of 10,000 social housing units, which will take significant demand out of the market at the lower end.3) The cost of the scheme is minimal - the 'interest only' cost of the funds invested, given that the state retains a share in the property. In fact, if there continues to be a modest rise in property prices, the scheme will be self-financing.
4) The local authority can take a view on the value (or otherwise) of the purchase price and can refuse to pay exorbitant prices
5) There is excess capacity available in the market on the supply side, as we are currently building about 20,000 less units this year over last year. This will prevent any inflationary effect.
Please do something productive with your good intentions. Get out there with any political party, or get involved with a local campaign. Turn the theory into practice.