How Fianna Fail and Darragh O Brien have massively inflated house prices in the past 2 years

cars14

1.      Limiting House Supply:  Today, 25 August 2021 only 3023 houses for sale today on Daft and only 292 new houses for sale today on Daft.

Only 33,436 houses were built 2011-2016.

2.     REITs have been buying up homes so that first time buyers cannot buy them. REIT do not have to pay taxes on profits therby increasing their profits. Fianna Fail and  Minister Darragh O Brien does not tax REIT on their rental profits. Other Businesses have to pay taxes, why do they not have to pay taxes?  See Rory Hearne article

https://www.thejournal.ie/readme/ireland-investment-housing-5428746-May2021/

3.      The State (Councils) buying up houses and competing against first time buyers. In July THE HOUSING MINISTER has written to all local authorities in Ireland this week, encouraging them to begin buying up vacant properties in their areas

https://www.thejournal.ie/housing-minister-local-authorities-buy-up-new-properties-5155602-Jul2020/

4.      Help to Buy: The Government does not keep the taxes paid by homebuyers and instead allows homebuyers to give these taxes to Builders. It can mean up to 30,000 been given to builders per house. (Enhanced Help to Buy). Fianna Fail and  Minister O Brien increased the figure up to 30,000 euro from 20,000 euro. This is bad for the taxpayer as it means we have to pay high taxes to make up for the tax that is going to the builders and as everyone is availing of it, it is just raising house prices.  https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx

5.      500 Million Gift to Builders: Fianna Fail and  Minister Darragh O Brien wants to give 500million in 2021 to Builders as a gift if they build houses. This seem mad as they are builders, isn’t that what they do for a living. Next, do we give Teachers and Cleaners a gift of 500 million as well as their wages if they turn up to work? https://www.independent.ie/business/personal-finance/property-mortgages/500m-for-developers-to-coax-them-back-to-building-40752781.html

6.      Shared Equity Scheme Fianna Fail and  Minister Darragh O Brien brought in this scheme.  In this scheme the Government buys a proportion of your home and you are to buy it off them later. Again, this increases house prices. If everyone does a Shared Equity Scheme, it raises prices and does not raise supply. https://www.gov.ie/en/press-release/a8178-minister-obrien-welcomes-cabinet-approval-for-the-publication-of-affordable-housing-bill-2021/

7.      HAP: The Government through HAP Pays high rent for houses on hundreds of thousand of houses therby increasing the rental prices for those that do not get HAP. Why not just reduce HAP rates across the system? It is not fair having to compete against the State when you have to pay rent yourself.

https://cc.bingj.com/cache.aspx?q=hap+costs+ireland&d=4863221771667131&mkt=en-IE&setlang=en-GB&w=AmKChKm0hkWjiZlRScBQsqAGbbd9NghP

8.Poor infrasturture so that people cannot commute far to work or making it difficult for them. The train and roads were always crowded and it took ages to commute to work.

9.Owning and Controlling the Banks that provide the Mortgages: The Government owns the vast majority of the Banks. It owns

AIB: 75% Stake

Permanent TSB: 75% Stake

Bank Of Ireland: 14%

KBC, Rabobank, Bank of Scotland and Ulster Bank are leaving or left Ireland. The Government and also control many of their decisions. Banks have to do as they are told. Many foreign owned banks just leave Ireland as it is not best for them to be operating here.

The solution: Monitor the banks so they are not giving out loans that people cannot pay back

https://www.gov.ie/en/publication/066a28-banks/

 

 

How has Fianna Fail and  Minister Darragh O Brien not been questioned on this? Why did Sinn Fein or Fine Gael not question all of this?

All this combined to make Ireland one of the most expensive countries in the world to buy a house, Foisting huge levels of debt on ordinary people. All investment goes into housing not actual productive businesses. The real beneficiaries of this are REITS, Landlords and Developers. Only for the American Multinationals we would have very little industry just like we had in the 1950s.

Amadan Dubh

"This time it's different."

Marius34

https://www.boards.ie/discussion/2058205717/how-fianna-fail-and-darragh-o-brien-have-massively-inflated-house-prices-in-the-past-2-years

"Only 33,436 houses were built 2011-2016." - why it was so low? Other points are big factor as a consequence to this.

tigger123

OP, how many of your 9 points are a result of decisions made by FF and Minister O'Brien? And how many are inherited problems?

JimmyVik

Its shocking what that fcuker has done since he became minister. Fcuked life up for generations probably.

But make no mistake, he is only building on top of the disaster that all of the housing ministers since and including Coveny have done.

Coveny started the ball rolling and the rest just kept making it worse.

O'Brien is seriously going for the title of biggest fcuk up though.

jimmycrackcorm

The problem is supply and not the government. Because Irish voters don't actually want housing. That's the reason they are objecting to every single development. It doesn't matter who is in Government; Eoin O'Broin is a housing objector, as well as SF councilors, so don't expect to see any changes if SF gets voted in either.

Can't build high enough, can't build dense enough. REITs buying up houses is only a symptom of the problem, not the cause. They are buying because of the rental demand, due to the shortage. No Reits = shortage of rentals. It's largely irrelevant if they are buying instead of house buyers because house buyers or renters lose out either way. It doesn't suit everyone renting to buy so it's not a solution to say these should only be for purchasers either.

There's no point focussing anger on "The real beneficiaries of this are REITS, Landlords and Developers.", when it should be on things like NIMBY objectors, the long-winded planning process, the requirement to spend astronomical sums of money in trying to ensure a percentage of developments are on social housing instead of making sure that social only developments can actually work by removing anti-social elements.

superfurry1

https://www.boards.ie/discussion/2058205717/how-fianna-fail-and-darragh-o-brien-have-massively-inflated-house-prices-in-the-past-2-years

Great post you also left out the cost rental scheme which is the next farcical idea that the government will essentially be your landlord at a market rate, a horrible government that is blinded by greed. The Irish Government is like a big corporation now defined by its profit margin and not even a second thought on helping people or making things and life better for all sections of society. They will do nothing because they are comfortable and their families are comfortable so why look to solve a problem that does not exist in their world.

https://www.irishtimes.com/news/ireland/irish-news/cost-rental-scheme-to-be-open-to-households-earning-up-to-82-000-1.4647836

"Fianna Fail and Minister Darragh O Brien wants to give 500million in 2021 to Builders as a gift if they build houses. This seem mad as they are builders, isn’t that what they do for a living."

They build other things too though. And offices and factories etc have been flying. the brother is a carpenter and I dont know the last time he was working on any house bar his own.