TheBigShort
Registered User
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Have you uncovered a fundamental flaw in my cunning plan?
Perhaps, perhaps not.
Here is the Irish State issuing 100yr bonds
https://www.irishtimes.com/business...rst-100-year-bond-set-to-raise-100m-1.2592250
So, again, admittedly the finer detail of my proposal would need to be ironed out. If it cant be done, then fine - thats the endof it. But if it is possible to do, and I don't see why not, then in my view it should be done. The Irish State would act as guarantor for a significant portion of the loan scheme, thus reducing the risk.
And again, we are talking about housing here. Between it and food, I can't see it going out of fashion anytime, or replaced by an alternative anytime soon, can you?
If it does, we will have all been cooked by then so no loss to anyone.
And by that I can only assume you mean a free-market for profit business?
The notion that the State should act as a competitor in the housing market is simply laughable. For starters, it makes the laws! What hope the aspiring property entrepreneur competing against the resources of the State? As the law-maker the State would crush the competition.
No, better the State stays out of the private profiteering market and only intervenes to assist those who cannot provide for themselves.
The free-market for profit housing business will provide sufficient and sustainable housing for everyone else, wont it!
Just some points.
Not all LA tenants are being subsidized. Some of them live in some of the most socially deprived areas and conditions that any rent they pay is in effect, actually a subsidy back to the State.
Second point is, I never suggested a "golden handshake".
Third point, while I have outlined a proposal to provide financial assistance by way of tax refund, grant etc, the nuts and bolts of such a proposal would need to be scrutinized and evaluated. So to elaborate somewhat on my thinking, it is my view that if people are to be enticed to downsize (to facilitate in part the failed housing market which cant provide for sufficiently for working people) then one way to do it is for the State to intervene and perhaps, as a suggestion, to cover the cost of solicitors fees, forgoe stamp duty, property tax (say for 5yrs), and contribute to moving costs up to say, €1000, on qualifying properties.
Fourth point, all of the above could be financed, probably at a fraction of the cost that any other proposal to forcibly evict people out of properties that they dont want to leave, in the vain hope that all those same properties will be occupied by homeless families or FTB's.
Admittedly that is just an asumption concerning costs. The numbers would need to be crunched, but I would judge that a system of incentive and enticement to be wholly more economically efficient and effective against a system of coercion and eviction, tied up as it would be in administrative and legal quagmire.
Setting up a limited company is simple. Running a company is a task that requires business acutement. Good business people are what are needed to run a professional landlord service, providing quality accommodation at affordable prices to prospective tenants.
Instead a significant portion of housing, (that would be better off in the hands of FTB's) is in the hands of amateur landlords - intent solely on having someone else pay off the mortgage of their 'investment' property just in time for their retirement.
Let me know who those posters are and I will put them straight.
I will say one thing however, after you have evicted a prospective tenant due for 'inheritance' where do they go?
Bearing in mind the housing crisis and all that stuff?
Where would you put a 19yr old third level student living all her life in a two-bed flat in D1, of a single mum who had recently passed away?
Just as a straight forward example, it would be helpful if for once a straight forward answer could be given? Never mind the complex ones.
She would stay where she is until she has finished college,
got a job and started earning money
then it would be re-assessed and if she didn't take advantage of being in third level to get employment because she knew she would lose the 'social house', she should lose the social housing and be put at the back of the housing list..
A 19 year old certainly shouldn't be told she has a property in D1 on hugely subsidised rent for life and will also probably even be given an opportunity to buy the property at a discount in the future. Just because her mother needed help at one stage of her life. What's so difficult about that?
And if she has to repeat a year or two? Or if she decides to change course mid-way to pursue a different career, and then finishes with a Masters degree and all in all is six or seven years on college, is that ok?
What if, upon leaving college, say like in 2008, it coincides with the deepest economic recession where employers are virtually battening down the hatches and not taking on any or few graduates. How does that effect matters? Will she need to send copies of job applications to the Ministry of Housing Assessment? Copies of rejection letters?
Or should highly educated worker be compelled to take any work that is on offer? A job at the pizza parlour for instance? Would the pizza parlour owner have a say in who he employs?
What does 'didn't take advantage' mean? Turn down high paying employment as her skills and qualifications could ordinarily command? Is that a real-life issue? Highly educated people turning down prospective careers with good pay - just to stay in a LA flat?
Nothing, except in reality she will only succeed in staying in the housing if there is no alternative suitable accommodation.
If there is alternative suitable accommodation, she will move there as per the Dublin city council rules.
If she does progress in college to obtain a high level of skills, in all probability, she will most likely want to afford a place of her own and perhaps meet a partner and start a family. Exactly how many well-paid professionals like teachers, judges, barristers, doctors, chemists, engineers etc do you actually know that come from LA housing and continue to live in LA housing upon establishing well-paid careers?
Basically the point is, as its always been, that for every scenario of what 'should be' and 'should not be', a series of obstacles, conditions, exceptions will be found by those not willing to leave as to drag any such housing assessment policy into a costly administrative and legal quagmire.
I did not suggest a free market for profit business you did. I simply suggested the costs of providing the accommodation should be reflected in the rent. if the State already own the land then there is no land cost and only the only initial cost is the build cost
Great, its a not-for-profit business. And all we are really talking about here is the build cost, thereafter the maintenance costs.
There are a considerable amount of social housing units that were built in '50s, '60's. The build cost of these houses would not have been anymore than €10,000. LA tenants are paying on average, circa €3,500 per annum.
The cost build of those houses have been paid for a multiple times over.
Yes. She is in full time education. Don't need to be clever to make that distinction
She does what every other graduate needs to do. She tries to find a job.
She emigrates.
If I can do it, why can't she? What's special about her?
Yes. It happens. You do know there are whole studies on the dangers of barriers to return to work and dependency and fear of losing social welfare is one of them.
I have no idea how many there are. You are making the point so you tell us.
My issue is that at the moment, a 19 year old would inherit a local authority house for life if she chooses.
The build costs now are at least €150k for a standard three bed semi in Dublin due to the current building regs. I can guarantee you nobody was paying €3500 on a house in the 50's and 60's as rent.
If you cant figure that much im done with the Ladybird lessons.
Dont pretend that you understand business but cannot understand basic maths and english.
Nobody was paying €3,500 in 50s or 60s. But they are paying it now...on properties of cost builds of no more than €10,000.
The cost of new builds today of €150k (as per your post) and rents of €3,500 will be repaid after 45yrs, all things remaining equal. And most likely, a lot sooner.
If you cant figure that much im done with the Ladybird lessons.
The build costs now are at least €150k for a standard three bed semi in Dublin due to the current building regs.
She does what every other graduate needs to do. She tries to find a job.
you have done nothing but drag up stupid examples
you are dragging up ridiculous justifications
If you can't post anything without insulting people's intelligence
You can actually double that.
You didn't post an intelligent post. You posted a stupid example about emigration.
I didn't give stupid examples, I gave simple examples, of which there are innumerable amounts. That, for the purposes of demonstrating the absolute pointlessness of what you and others propose.
If you dont get that much, there is little hope.
Best I can offer is go find a similar system to what you want in the Western world.
Tell Horseman, the €150k is his figure.
I did, I quoted his post. It's not all about you you know.
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