Housing Authority properties at 20% discount

henry galea

Nov 22nd 2008, 07:21

Mr. Dalli it is no time to invest in property, can you garantee that our jobs last . Your proposel only applies to people who have already made money and want more.

mario aquilina

Nov 21st 2008, 21:57

How about the people who got subsidized Housing Authority places. I thought that the H A is there to help people in need. Come around the Housing Authority Blocks to see these people that begged for an apartment, driving there gas guzzling 4x4, towing their boats. My heart bleeds.

Paul Smith

Nov 21st 2008, 18:21

Sorry Daniel, didn't mean to offend you.

You truly do a service to your community and that i thank you for.

But at this moment, rent to buy is debt slavery. You are contracted to buy an over priced shoe box, badly built by either Persimons George wimpy or Barrett homes for a total sum of around 140,000 or 160,000 dependent on where you live in the UK and with house prices falling at 1000 pounds a week you have brought yourself a negative equity trap. By the time you have saved a 15% deposit the market value of the property could well have halved with Bloomberg.com reporting two days ago that house prices could fall a staggering 40% over the next two years.

I have taken a keen interest in the UK property market, UK personal debt and the problems we had coming some 4 years ago. I see no reason for there not to be a massive drop in UK house prices, i see record repossessions and massive strain put on council house stock.
We, in the UK are in Big trouble.

Daniel Russell

Nov 21st 2008, 16:50

Sorry all for the mistake in my second article, we have delivered 550 new homes since 2000, many of which were on large sites and some in the rural area which are for local people where there was often no housing in the locality for them at all

I did not intend to mislead, I was typing too fast and pressed wrong key!

Have a great weekend Daniel

Daniel Russell

Nov 21st 2008, 16:38

@Paul Smith
Incidentally Paul, I did not mention Assured Shorthold Tenancies and I agree with you very strongly on this tenure. Rent to Buy so i understand is a contractual tenancy for up to 3 years where you pay a rent mid way between social and private rent and have security similar to an assured tenancy. The idea is that the tenant will be able to save a deposit to buy up to 50%.
This debate is about Malta and not the UK and I was not giving any advice on any issue. What I was trying to get over is just merely to dispose of properties for a 20% discount on the open market is not affordable. As Ms Attard correctly states, there are a group of people who an underclass in society who get least help and need it. The Housing Authority should be developing more innovative housing solutions to help them. Maybe rent to buy is an idea or also secure rented properties.
I am offended by your comments that the affordable housing supply situation is a disgrace. I accept some councils have not been as proactive as others but I have enabled 800 units since 2000!

Daniel Russell

Nov 21st 2008, 16:22

@Paul Smith
Paul I could not agree more with you about assured shorthold tenancies and agree with everything you say. I have worked hard to prevent the homelessness of people from several private landlords and some being very unscrupulous. Ms Attard I agree with you, there are a pool of people who do not get most help and are discriminated in society.
OK then Paul, why not rent the house on a secure tenancy and give people the opportunity to afford a low monthly rent.
Rent to Buy is a new scheme where people can rent and buy the property they are in eventually by charging a low rent and then giving people the chance to save a deposit to buy and give them 3 years before the option to buy is given and if not, continue renting.
There is a lot of good work done by lots of Councils in building housing, of which my authority in the Midlands is one. We have enabled over 300 units for rent and 150 for shared ownership and 80% sale since 2001. We have worked hard to ensure that we provide affordable housing and have made a real impact on people

Sarah Darmenia

Nov 21st 2008, 16:11

Well done Housing, a little more hope to have a decent life. Correct me if I'm wrong but wasn't this father unknown thing removed in March 2005??? Now why won't justice be done to all the children who were born before March 2005 and get these irresponsible males to act up and let the mothers spend their money on their children and themselves instead of having to pay them in lawyer and court fees just to get the father on paper. That will surely relieve the government from certain subsidies and social security money.

giannella attard

Nov 21st 2008, 15:49

I think that yes there are poor people in Malta but unfortunately they are the people who get least help. Unfortunately our social services favour those who abuse of the system. Examples are "single mothers" who wisely enough know that just by not marrying, they will get all the benefits even though they live with their partner or those unemployed and yet work as maids, painters or otherwise with the only difference that I pay my due for the benefit of these who at the end of the month earn more than I do but declare otherwise.

I sincerely hope that the discounted properties go to those who are TRUELY in need.

Paul Smith

Nov 21st 2008, 15:43

Since Daniel Russell is a UK housing officer, maybe he can do something about assured short hold tenancy agreements, because our badly regulated private rental market does huge damage to individuals and families. Firstly, if you have an AST in the UK you find yourself never settled and this is alarming to children as it effects there school life. It also costs large amounts of money to hard up families constantly having to find up to 2 months rent up front as well as a large security deposit time after time. Then there are moving costs, and worst still, there is a big problem with the fact that many UK landlords purchased there rental properties with Northern crock 100% loans and now find themselves in negative equity or going on the lenders SVR rate hugley increasing monthly loan payments leading landlords to default and making families homeless. Take no advise on the rental market in the UK, it is a minefield of problems and misery. There has been little or no affordable housing built in the UK for over 30 years! It is a disgrace.

Daniel Russell

Nov 21st 2008, 15:11

I am a Housing development officer in the UK and we have done a similar scheme where the Council retained 20% ownership and sold 80%. Even before the credit crunch, these properties were costing people £1000 per month! and they found problems getting mortgages.
Guidance at present suggests that households should be spending no more than 2/3 of the income on housingcosts even including bills etc.
Why couldnt the government of Malta provide greater assistance to people as what they have done is NOT affordable housing. The poorest in Malta would not be able to afford those properties and it is very short sighted in the times of economic plight to operate a discounted sale policy. Why couldnt they rent the houses out on short term tenancies and then give the tenant the opportunity to save a deposit and then buy in 2-3 years or so?
Affordable housing is, according to UK government guidance " includes social rented and intermediate housing, provided to households whose needs are not met by the market. – Meet the needs of eligible households including availability at a cost low enough for
them to afford, determined with regard to local incomes and local house prices.

lgalea

Nov 21st 2008, 14:44

Randolph Sptieri
Thank God you are not one of those who have to see where they can get something to feed themselves and their children, to dress and/or where to sleep.
If you think that there are no poor people in Malta you are either living in cuckoo land or trying to take the readers for a ride.
If you think that there are only isolated cases as you have said, ask all the charitable organizations and they will tell you if there are poor persons of the type you described in Malta.
Since you seem to be well off and good luck to you, thank God that you are not one of them Mr Spiteri and that you do not depend on people with your reasoning, for you would have reasoned otherwise.
On fathers unknown I agree that this should be scrapped and no longer accepted by the authorities and that no aid should be given unless the say who the father is. As if they don't know with whom they slept!

Paul Smith

Nov 21st 2008, 12:41

I simply cannot see the logic in high house prices, they stiffle economic growth by making housing un-affordable to many. Then banks come up with crazy schemes to either lend more than 3 times joint salary or try to tempt buy to let landlords and without a well regulated market this causes misery to tenants. Any sellers need to move up and have higher and higher mortgage costs.

If you are going to have a home owning society, then houses need to be affordable to all. Houses are homes and not casino chips.

randolph spiteri

Nov 21st 2008, 11:12

Poverty is relative !

If I cannot buy the latest mobile phone, LCD TV or Playstation am I poor ? Some people feel they are poor because they cannot keep up with the Jones's.

How much is real poverty widespread ? The type where people resort to begging for food & shelter. If there was real poverty in Malta, you would see people begging and sleeping outside in the street. And yes, there are charitable institutions even in other countries and despite this, they still get a lot of homeless & beggars.

so the answer is ... yes there is poverty but only in isolated cases.

Joe Vella

Nov 21st 2008, 11:01

@ Randolph Spiteri

According to Joseph Muscat the vast majority of Maltese are below the poverty line

Randolph Sptieri

Nov 21st 2008, 10:35

Same old story ... robbing Peter to pay Paul ... Robin Hood government .... This is becoming a socialist system, the aim being to bring everybody to the same level.

Who are the really poor in Malta ? Those "imsieken" who get subsidised property, telephone, water & elec bills and various other dish-outs ? Are they really poor & unemployed ?

I bought my house for Lm30,000 + way back in 1997 .. and the government didn't give me a cent, and to add insult to injury I had to pay various taxes on the final price !! I had to pay off the loan by myself with only my efforts.

Yes, I admit , there are really poor people in Malta, but I believe these are the very few. There are many others who abuse of the system, (such as the "father-unknown" type who get all the various benefits) . The real trouble is how to make a distinction between these people.

For instance, do you really believe there are 30,000 families who should benefit from W&E bills subsidies ?? Number is too big I think.

B Sant

Nov 21st 2008, 10:14

good idea- at least the state for a change will lead the property bubble....thums up