Hm well, I wonder how this scheme will fair into the near future with rising interest rates. It says there they’ll have to demonstrate a gap between what owner occupiers can / will pay, and only up to 144,000. Interest rate hikes will significantly reduce the size of mortgage people are able to afford. Even a 1% increase is a massive difference and I wouldn’t be surprised if 5% over time or higher is what’s needed to get the economy back in check.
With all of that in mind something just does not add up. I think there is some level of risk of apartments being built but builders being unwilling to sell them because they over-invested in building them and the grant money doesn’t make up enough of the shortfall. So if that does happen, which it could, what would happen then? Surely they will not bend the rules and allow some firms to snap them up, right ?
€450 fucking million! That is some transfer of wealth from the public into private hands.
Does anyone have a source for how they estimate these costs of building?
Half a mil per apartment in an apartment building sounds like complete fantasy.
>Apartments cost an average of €400,000-€450,000 each to build, but mortgage-lending rules mean most buyers can only raise about €300,000-€350,000.
There’s all sorts of fuckery in that sentence, Apartments at that price are just inefficient and kind of pointless if you can’t deliver for less using economies of scale. Also, that “most buyers” can only raise 300K+ seems a bit beyond the fucking pale as well.
We’re talking about half a billion here, half a billion where VAT exemptions on materials for building might do more for costs than, and would arguably be magnitudes more efficient than building apartments at the prices quoted. Apartments for under the support offered this scheme 90-144K were on sale in Dublin up until around 2016, so there is something seriously fucky about all this.
Normally when business becomes unviable they shutdown. But in Ireland if you are a developer the state is gona pay your costs. Strange that.
I suppose all businesses should just present some bullshit made up costs.
The purist scum that support Fine Gael are fucking disgusting.
So how much longer are we going to sit here and accept this fuckery?
7 comments
Hm well, I wonder how this scheme will fair into the near future with rising interest rates. It says there they’ll have to demonstrate a gap between what owner occupiers can / will pay, and only up to 144,000. Interest rate hikes will significantly reduce the size of mortgage people are able to afford. Even a 1% increase is a massive difference and I wouldn’t be surprised if 5% over time or higher is what’s needed to get the economy back in check.
With all of that in mind something just does not add up. I think there is some level of risk of apartments being built but builders being unwilling to sell them because they over-invested in building them and the grant money doesn’t make up enough of the shortfall. So if that does happen, which it could, what would happen then? Surely they will not bend the rules and allow some firms to snap them up, right ?
€450 fucking million! That is some transfer of wealth from the public into private hands.
Does anyone have a source for how they estimate these costs of building?
Half a mil per apartment in an apartment building sounds like complete fantasy.
>Apartments cost an average of €400,000-€450,000 each to build, but mortgage-lending rules mean most buyers can only raise about €300,000-€350,000.
There’s all sorts of fuckery in that sentence, Apartments at that price are just inefficient and kind of pointless if you can’t deliver for less using economies of scale. Also, that “most buyers” can only raise 300K+ seems a bit beyond the fucking pale as well.
We’re talking about half a billion here, half a billion where VAT exemptions on materials for building might do more for costs than, and would arguably be magnitudes more efficient than building apartments at the prices quoted. Apartments for under the support offered this scheme 90-144K were on sale in Dublin up until around 2016, so there is something seriously fucky about all this.
Normally when business becomes unviable they shutdown. But in Ireland if you are a developer the state is gona pay your costs. Strange that.
I suppose all businesses should just present some bullshit made up costs.
The purist scum that support Fine Gael are fucking disgusting.
So how much longer are we going to sit here and accept this fuckery?
Our attitude needs to change about protesting