State mortgage plan for first-time buyerssttime-buyers-1496

L

lemminkainen

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In todays Independent, there is a story detailing the governments proposal to proved mortgages "to help first time buyers".

Linky --

I dont know about you guys, but this makes me very very angry. For years the government was advised to stop their over reliance on the housing market, but they only helped it. So it grew too fast and now there are many unsold properties, due to the fact that todays first time buyers cannot get a mortgage to cover the selling price.

I am saving for a deposit now, I have been living at home for the last few years saving hard. I cannot progress in my public sector job due to a medical condition (which incidentally has no bearing on my work), even though I am over qualified and less qualified people are promoted ahead of me . I cannnot increase my salary (€38,000) due to the red tape. My only hope of buying my own home or at least paying reasonable rent is to wait for the prices to come down. That will not happen if the government gets its way. They are more interested in helping their buddies in the construction industry than helping middle income citizens.

Now with the government interfering in the market once again, prices will not come down. They are offering up to €300,000 mortgages.

The average industrial wage here is €36,000, five times that gives you €180,000 so straight away you see that the government will effectively offering mortgages that people cannot pay; repeating the banking policies that got us into this position in the first place. What can €180,000 buy in Dublin?

Dont let this policiy fool you, I urge all first time buyers to wait as long as you can before buying a home. Otherwise prices will juist go up again.
 
Second hand houses should continue to drop, so buy one of those instead.

I also agree that this plan is simply outrageous. What a pity the government doesn't support indigenous knowledge-based enterprise as much as it supports property developers.
 
Hello

Largely caused by the bursting of a property bubble, this country is heading rapidly towards the largest recession since the foundation of the state.

The government's response apparantly is to artificially prop up the cause of the problem and offer state backed mortgages, which are multiples of the average wage, to lower paid workers.

Does this make the state a 'sub prime' lender?

Geniuses!

SM
 
It's interesting to note that this measure came from the Department of the Environment and Local Government and was signed off by John Gormley.
You can read this man's election promises regarding housing here:

This State mortgage plan suits the government on a number of levels.
(1) Many of their members, donors and voters are up to their necks in the construction industry and facing financial ruin
(2) We have hundreds of thousands of young people in negative equity, enslaved to jumbo mortgages and long commutes, who were brainwashed into thinking "prices only go up". They now realise they were sold a pup and are growing angry.
(3) The government are not much good at coming up with ideas for sustainable wealth creation that will stand with us into the future. The property bubble worked before, so why not again?

The reason banks are not lending vast amounts of money is that they realise people can't afford to pay those amounts back.
The government are bridging the gap so that people can borrow more than they can repay.

In any case, the budget on Tuesday will make gripping viewing. How will the builder bailout sit with the most savage cutbacks we have witnessed in a generation?
 
Unless the government fund this scheme to the tune of hundreds of millions (billions?) of Euros, I don't see it having much affect..

Reg
 
I really cannot believe this. Simply outrageous.

Shaft the FTBS.

Shaft the taxpayer.

Shaft the competition (the banks that we've just guaranteed).

Shaft anyone selling a non-new build property.

Tom Parlon / FF are attempting to shaft us all.

For the love of God stand up & be counted Dickie Bruton.
 
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