Government using tax payers' money to bail out developers

[Poor Student]

I know the full details haven't been handed down yet but what do posters here think of the government's plan to start lending to those unable to get credit from banks through the local authorities? This artifically interferes with the natural decline of the market and appears to only benefit developers. At a time when our government will have to borrow heavily and cut back on infrastructural spending how can they justify such nonsense?

I know this has been touched on in other threads but I think it deserves one of its own.

[NeilMcD]

Although its probably aimed at the likes of myself, its not something I agree with. I know its a cliche but privatise profits and nationalise losses.

[pete]

I think I mentioned this in one of the other threads.

The article I read said they government should not try to prop up prices or encourage new building but suggested the alternative of assisting people get credit who can't get it because of current problems. It was suggested this would take up some of the excess homes built & if demand was there later would get new homes built.

I don't know first hand how easy or difficult it is to get a mortgage these days & would need to the full details.

I believe though the main distinct is encouraging sales not building directly.

[dahamsta]

It's still an assist to the builders, but I don't think there's any way of avoiding that unfortunately; although I do hate rewarding them for their greed. (Go to Shanagarry Holiday Village if you want an example of an extreme. It's so densely built it could be in the city; but it's not, it's more than 20 miles out. They're nearly all empty, and I genuinely hope they stay that way.)

I'm not looking forward to buying in a year or so. I've been waiting for this day for years, but getting a mortgage is still going to be a pain in the arse. I'll pull it off, but it'll be a hard slog making myself look good for the bank.

adam

[NeilMcD]

You had the same plan as me so.

[Bald Student]

I'm no expert but don't the County Council loans have fairly low limits on the income of the person and the amount that can be borrowed? This might put a floor onto the bottom of the market but I think that most houses or flats in Dublin would have to drop a long way before they could be bought with one of these loans.

[Sligo Hornet]

You had the same plan as me so.

Neil and Adam?


http://i38.tinypic.com/14nn38z.jpg

[dahamsta]

Nothing wrong with not buying at the top of the market. You know, like a moron.

[pete]

I'm no expert but don't the County Council loans have fairly low limits on the income of the person and the amount that can be borrowed? This might put a floor onto the bottom of the market but I think that most houses or flats in Dublin would have to drop a long way before they could be bought with one of these loans.

I am not sure if those loans limit the amount that can be borrowed. I always thought they just limited based on income earned. The income threshold was a lot higher than I expected.