Sir, – Rational fears have scared a generation of Irish people out of the property market. People in their 20s and 30s who would ordinarily invest in a home are currently saving, often in foreign banks.
It would be preferable to have these people invest both their capital and futures at home. To facilitate this, the right product must be available. Rent is low risk but is not an investment. Mortgages are currently too risky for young people who are unsure of their futures.
An alternative presents itself. The Government directly or indirectly controls a sizeable portfolio of property. In exchange for annual contributions in line with the mortgage cost of the property, individuals could take effective ownership of one of these properties in the form of a bond. The bond would not be linked to a specific property. Individuals might opt to swap their current home for another.
At the end of the term, the value of the bond would be fully redeemable but only against quality property (which might include the current home), which the Government would be obliged to provide. The valuation would also include improvements made to property. Investors would be permitted to sell or pass on their bonds to third parties.
This scheme would have knock- on advantages in the economy at large (eg furnishing, construction) and help get these properties off Government shelves where, currently, taxpayers are footing the bill. – Yours, etc,