The Future of Help to Buy Scheme

The help to buy scheme is set to be extended past the original deadline of the end of this year. The help to buy scheme grants money to first time buyers to help and encourage them to purchase their first homes. Currently, the grant gives up to 20 million Euros, but the government Finance Minister Paschal Donohoe signaled strongly that this program will be extended.

Mr. Donohoe said that the grant had, “a very valuable role in supporting the purchase of homes across last year and this year in particular.” The rising house prices in Ireland has caused many young buyers unable to attain mortgages to buy a house and this initiative mainly targets younger couples.

Some complaints with having a help to buy scheme is many people view it as being a subsidy to developers. The payment that the government is giving to buyers is subsequently being paid to the developers. This can encourage them to keep prices raised and not provide a decrease in demand causing prices to lower.

Mr. Donohoe is currently consulting with Housing Minister Eoghan …

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We need to clear our bonds, ensure there are retail offerings.

Ireland has been downgraded by Standard and Poors, we are on a ratings watch with Fitch and Moody’s as well. The last bond issued by the NTMA was not subscribed as widely by the international financial community as they were previously and the Irish stepped up and bought up 55% of the bond, we saved the day ourselves. Now we are at a crossroads, we need to raise money, it will be more expensive given our national outlook and at the same time investors are shying away from our sovereign debt, equally we can’t cut back spending enough to bridge the gap and impressing the international investor market with taxation will hurt our national economy.

There is enough money in this country to clear all of the bonds required, and it is held in ready cash format. …

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