Villa05 wrote: » You do realise that what you describe was a direct result of unaffordable housing. Pay had to rise to try and keep pace with those house prices Interest free loans should be used addressing infrastructure deficits within the economy that generate a return or alleviate/reduce current spending. Hap being the obvious Instead we are using this money to commit to long term leases embedding that spending at an increasing level for generations to come Economic suicide from a position of great strength
LasersGoPewPew wrote: Could the minister for housing put forward legislation to prevent the sale of new builds to REITs? Or force developers to sell only to private individuals? What are the possible legal challenges to this type of legislation?
Cyrus wrote: id argue that house prices rose as pay rose not the opposite.
Villa05 wrote: » Instead we are using this money to commit to long term leases embedding that spending at an increasing level for generations to come
Villa05 wrote: » Much easier to put a standard tax on rental income. Levels the playing field with some landlords paying no tax (rents) and others paying 50 percent You might address why house inflation outpaced wage inflation by vast multiples then
fliball123 wrote: » I never said 14k if I did show me?? Sure when we were arguing about it there was already more than 14k built. I said 17/18k and the other thing is those numbers are still not concrete if anything the last 2 lockdowns may bring them down. So sorry to tell you I was actually closer So you still think we not going to have anyone coming to live in Ireland from other countries when covid is a thing of the past..What are you basing that on?
The new affordable housing scheme should be opened up to some of the country's 220,000 divorced and separated people, according to a support group. But One Family has asked for more flexibility, saying it is seeing people who are in dire need of housing for themselves and their children who are out of the family home or in negative equity. CEO Karen Kiernan said: "We have parents telling us they can clearly see that if they become homeless they will cost the State more than if they can access State schemes now and try to get secure housing for their families." A spokesperson for the Department of Housing said that the details of the scheme are still being worked out but "close consideration" is being given to include people who are divorced or legally separated.
Villa05 wrote: » You might address why house inflation outpaced wage inflation by vast multiples then
Cyrus wrote: » Because you can borrow multiples of your income and because of the emergence of the female professional classes meaning you now had 2 of these incomes combined.
PropQueries wrote: » Common sense. The IDA has already stated that pre-covid predictions of FDI into Ireland over the coming few years most likely won't materialise now given the inability to perform on-site visits during 2020 and into 2021. The tourism sector most likely won't return to 2019 levels for another few years. I doubt international students will be back to pre-covid levels for the 2021/2022 academic year. And, we're still building or finishing off all those additional student accommodation units. Don't they need to decide where they're heading to college next year around now? If construction is going to be down as much as you predict this year and next, we also won't need any more construction workers. Even if net inward migration did return to 2019 levels in 2022 (highly unlikely IMO), we will have still added c. 40k additional new built residential units in the meantime (2020 + 2021) based upon the central bank link you provided. In all fairness, the above are not my predictions, but were in a very good article I read a couple of months ago. Can't find it at the moment but will link to it once I do as it makes sense IMO.
Cyrus wrote: Because you can borrow multiples of your income and because of the emergence of the female professional classes meaning you now had 2 of these incomes combined.
LasersGoPewPew wrote: » Could the minister for housing put forward legislation to prevent the sale of new builds to REITs? Or force developers to sell only to private individuals? What are the possible legal challenges to this type of legislation? It's understandable why developers want to sell to REITs. But I think they would have difficulty selling whole swathes of property to private individuals if such legislation was introduced due to the social housing quota. The social housing quota for new builds has certainly put me off from buying new, I'm not afraid to say that knowing I will get lambasted for stating same. It would sicken me to know that someone could walk into a property in a new build and pay practically nothing for a similar property as I. And also the unpleasant social issues that may be incurred. Before covid and the need for more space, I toyed with the idea of buying an apartment in clonbern, phoenix park racecourse. They seemed like nice apartments until I found out an Irish housing charity purchased a block of 88 apartments beside it, which was handed over to Fingal Coco for solely social housing. There are a number of apartments that remain unsold in the development. I believe this is partly because of this block handed to the council, and partly because it's overpriced for the area. That's why I switched to looking for secondhand property in matured areas and developments build prior to the mandate. I don't tar all people in social housing with the same brush, but we have all heard of the horror stories and read the feelings of entitlement. I don't want to deal with the potential headache.
DataDude wrote: » Assuming we refer to inflation of both in percentage terms: €100k salary = €450k mortgage €103k salary (3% increase) = €463.5k mortgage (3% increase) The latter (two incomes) is a factor I'm sure.
Marius34 wrote: » The increase of property prices are much more than just income. There are major increase in Land costs, regulation costs, material costs, increase in standards, infrastructure costs, Tax costs and so on..
PropQueries wrote: » Ok, in my opinion, in order to get our heads around the true cost of building a house in Dublin today, we should work backwards. Here's an example of a 99 sq.m. 3-bed, A2-rated semi-detached house in Waterford currently asking €225k. According to the PPR, it was sold in May 2018 for €172k (excl. VAT) or €195k (incl. VAT) i.e. so an A2-rated new built house for under €200k in 2018. If this exact same house was built in e.g. Stillorgan, I assume it's asking price would be well over €600k.So, what makes up the minimum of €400k difference in cost between this Waterford house and if the exact same house was built in Stillorgan? Is it land costs, labour costs, material costs etc. or is it profiteering? I would have no problem with high land costs (if there was truly a shortage of land to build on in Dublin) or profiteering. But, I do have a problem when people say it's down to e.g. higher wages in Dublin, higher regulations, higher standards (this is an A2-rated house) etc. Link to Waterford house on MyHome.ie here: https://www.myhome.ie/residential/brochure/8-waterside-abbeyside-dungarvan-co-waterford-x35-w582/4475541 According to MyHome.ie: "Built in 2018, this gorgeous 3 bedroom home is the first property to come to the market in Waterside since the development sold out. Enjoying the most scenic location in the development this property sure to attract interest!"
PropQueries wrote: » Ok, in my opinion, in order to get our heads around the true cost of building a house in Dublin today, we should work backwards. Here's an example of a 99 sq.m. 3-bed, A2-rated semi-detached house in Waterford currently asking €225k. According to the PPR, it was sold in May 2018 for €172k (excl. VAT) or €195k (incl. VAT) i.e. so an A2-rated new built house for under €200k in 2018. If this exact same house was built in e.g. Stillorgan, I assume it's asking price would be well over €600k. So, what makes up the minimum of €400k difference in cost between this Waterford house and if the exact same house was built in Stillorgan? Is it land costs, labour costs, material costs etc. or is it profiteering? I would have no problem with high land costs (if there was truly a shortage of land to build on in Dublin) or profiteering. But, I do have a problem when people say it's down to e.g. higher wages in Dublin, higher regulations, higher standards (this is an A2-rated house) etc. Link to Waterford house on MyHome.ie here: https://www.myhome.ie/residential/brochure/8-waterside-abbeyside-dungarvan-co-waterford-x35-w582/4475541 According to MyHome.ie: "Built in 2018, this gorgeous 3 bedroom home is the first property to come to the market in Waterside since the development sold out. Enjoying the most scenic location in the development this property sure to attract interest!"
Timing belt wrote: » This house is not in Waterford city but is out in Dungarvan so the land should be cheaper than Waterford City. I was unable to find the cost of development land in Dungarvan but did find a similar house in Blarney in Cork for which we could compare land values. i.e. An equivalent house in blarney in cork on sale for 310khttps://www.myhome.ie/residential/brochure/aran-gleann-fia-tower-blarney-cork/4475866 The house that prop shared in Dungarvan on sale for 225khttps://www.myhome.ie/residential/waterford/house-for-sale-in-dungarvan Difference 85k Price per acre in blarney is 43khttps://www.irishexaminer.com/property/commercial/arid-40068806.html price per acre sandyford Dublin 10mhttps://www.irishtimes.com/business/commercial-property/sandyford-site-with-planning-for-over-450-homes-makes-38m-1.3804786
PropQueries wrote: » I wasn't "comparing" it to Dublin houses as every estate is different. My question was: "If this exact same house was built in e.g. Stillorgan, I assume it's asking price would be well over €600k. So, what makes up the minimum of €400k difference in cost between this Waterford house and if the exact same house was built in Stillorgan? Is it land costs, labour costs, material costs etc. or is it profiteering"
Mic 1972 wrote: » The market is literally on fire at the moment. Apartments that were going for 210K in Q4 are now being bid for over 240K It looks like the increase in asking price is translating in even higher sales price
Timing belt wrote: » it will mainly be land... If land prices in Dublin are 4 times higher than the house you shared in Dungarvan and 25% of the cost of building a house related to the land cost then the equivalent house in Dublin (assuming all costs except land are the same) would cost 460k. Obviously land in more desirable locations will attract a higher price. This is the reason why people buy a house in good location knock it down and build a new house. They have more value in the land and its location.
PropQueries wrote: » So, it’s probably agreed that the only real reason for the difference in the cost of building an A2-rated three bed semi in Dublin compared to Waterford is the cost of the site. All those reports published over the past 5 years on the possible reasons for the rising cost of housing in Dublin are next to useless from a government policy point of view. Unless the government implements the Kenny report or something similar, it would seem there’s no point commissioning another report unless it properly addresses the only real reason for the difference i.e. the site cost. They should also probably rename the proposed HTB scheme to HTL i.e. Help The Landowner, as that’s where the proposed up to €100k loan to the poor home buyer will be really going.
Smouse156 wrote: » I highly doubt anyone is bidding way over asking in Dublin given that it’s a virtual ghost town and WFH has caused loads to leave! Outside I would say demand is strong and will stay so until supply increases...in Dublin, let’s be honest, not likely! Anyone getting carried away now, especially in Dublin will seriously regret it in a year when vendors start listing again when it is safe to do so, not to mention all the probate sales in the pipeline. Maximum affordability was hit late 2018 and wages are going down so any short term spike won’t be long lived.
Timing belt wrote: » The landowners paid well over the odds for the land back in 07/08.... The government have allowed them do this instead of encouraging them to sell the land at a loss via tax relief if they built houses or by taxing the sh1tt out of them for not using it. The developers have sat on it till it is worth something close to what they paid for it and with rising house prices we will see more and more of it come to the market. I have said before that if the land is not used in a certain time frame the land should be automatically re-zoned so the developer takes the hit.
Smouse156 wrote: » I highly doubt anyone is bidding way over asking in Dublin given that it’s a virtual ghost town and WFH has caused loads to leave! Outside I would say demand is strong and will stay so until supply increases...in Dublin, let’s be honest, not likely!
Fuzzy_Dunlop wrote: » Well you would be totally wrong
TheSheriff wrote: » You are clearly not in the Dublin market.
