If the Help-to-Buy scheme is cut it will only worsen the housing crisis

The Construction Industry Federation (CIF) claims that if the Help-to-Buy scheme is in fact removed it will only worsen our housing crisis.

The CIF, an industry lobby group, said it will take time for the scheme to do what it is intended for. The scheme has expanded the first-time buyer market so banks will start lending to builders more to construct starter homes.

The Help-to-Buy scheme can help first-time buyers get a tax rebate of up to €20,000. The public has blamed this scheme for playing a part in the rising house prices this past year.

The Help-to-Buy scheme apparently has made residential building in key locations possible from the first-time buyers being assisted. The CIF director general, Tom Parlon, says that this scheme has significantly helped in the growth of residential construction. Since more first-time buyers can purchase a home, building starter homes becomes a more enticing move for builders.

The Central Statistics Office published on Tuesday a report saying that housing prices grew 2.2 percent last month. This is the largest monthly increase since last July.

In Dublin, …

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TodayFM: Matt Cooper, Last Word & Irish Mortgage Brokers on Budget 2015

Matt Cooper had Karl Deeter on his show to discuss some of the changes in Budget 2015 and how they affect the property market and people looking to buy a home.

 

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Good news: Rate drops and recovery indicators

Doom is the only thing selling lately, but today we will bring you some of the Sunny statistics that are being largely overlooked. This doesn’t mean we are well down the road to recovery but there is the distinct possibility that 2009 will be a turn around year for the global economy, that turn around might be a turn for the worse too though! However, the statistics we will show you now are all positive economic indicators.

1: The end of March saw the housing figures compiled for the previous month [USA]. In February the US Housing sales jumped , existing homes up 5.1% and new build was up 4.7% as buyers took foreclosure properties and others that were thought to be at ‘bargain basement’ pricing opportunities. This could be a hiccup or it could be the start of a trend, it is important to note however, that it took spectacular price drops for the renewed activity to occur. The economic stimulus package also provides tax relief to eligible first time …

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Resisting that which is easy: Why economic health must outweigh lobbyists for first time buyers in the budget

There is something awful that might be about to happen, namely the current Government are considering a special type of loan for first time buyers in order to help them get onto the property ladder. It probably comes across like a contradiction, saying that ‘helping first time buyers is a bad thing’ when most of us feel that it is not, however, it is not so much the fact that first time buyers are doing anything wrong, more so, it is about flawed economic planning that will hurt generations of tax payers.

Property prices have not reached their market clearing level as of yet, what that means is that property is not selling at a speed and price that is conducive to that of a healthy market. Supply (at least for now) outstrips demand by quite some way, if we look at the current overhang as put forward by some lobbyists the number is 30,000 units (CIF), that is actually the number of properties that have not sold, it doesn’t mean it is the number that are empty. We would …

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Tom Parlon, preaching to the subverted.

I don’t often take swipes in this blog but today there is a difference, somebody or some one (preferably a qualified psychiatric professional) has to have a serious one to one with Tom Parlon of the Construction Industry Federation (CIF) because he has finally crossed the Rubicon that divides reality from fantasy land and turned his attention towards the utterly insane, namely by stating in the Sunday Business Post that the solution to the economy is more houses.

Just when we are hearing how there is a massive oversupply, how in three years 250,000 houses were built to satisfy a demand of about 130,000 required, and when prices are falling out he comes with this little gem. Supply outstrips demand, and his response is ‘more supply’. Perhaps it would be wiser for the CIF to employ an actual builder or engineer to do his job rather than a politician who has no experience in doing the job of the people he represents.

In his article he points out that for every 10,000 houses built that …

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