RichardAnd wrote: » Alternatively, the state could be reduced in size, lessening the need for further taxation and putting money back into the pockets of citizens. A state without the funds to take out 25 years leases would be a good start.
PropQueries wrote: » That would be a good start. But will those 25 year leases then just be used even more in the second-hand market with no real benefit to FTBs or renters? In relation to the state being reduced. Michael McGrath has already stated that it will get bigger and more expensive and that we should just basically get used to it. Back in November, he stated: "We have also made decisions that will result in a permanently larger public service... That will need to be paid for within an overall framework that is responsible and sustainable... There will come a time, perhaps as early as later next year, when our borrowing costs will be fully determined by the attitude of investors on the markets." Link to Irish Times article on Michael McGrath: https://www.irishtimes.com/news/politics/michael-mcgrath-we-will-inevitably-have-a-larger-state-coming-out-of-the-pandemic-1.4408766
awec wrote: TikTok obviously don't read the boards property forum or they'd have learnt that offices have gone the way of the dodo, nobody will ever work in one again.
JimmyVik wrote: » Dont own any house myself at the moment, but this call of tax, tax, tax will only end up coming back to bite us all in the arse.Carrots are what are needed to solve problems, but in Ireland the only answer we seem to have is tax.
Villa05 wrote: » Madium term plans to employ 5k people which is great, office space for 2k, maybe WFH will be significant at tiktok I haven't seen rent free periods in commercial since the rebooting after the last crash. Is this normal? Is it another accounting trick given the state is a significant renter of office space? Any opinions on the deal, don't know much on commercial prices. Is it up/down on pre covid leases
DataDude wrote: » I get your point. We are too heavy on taxes in many areas. However, the problem with Carrots is they generally cost money. Carrots for the minority (owners of vacant properties) paid for with the stick for everyone else. Personally think the inverse with vacant properties is much more desirable. You can either pay the tax, which is grand. Or you sell up, which is great. Win/Win. If you see the bidding on some fairly shabby properties these days, there's no shortage of people with the money or the will to take these projects on. If someone isn't willing to pay up to bring a property into use - next person up.
Bass Reeves wrote: » There is going to be no one pill cures all solution to this issue. You will need a carrot and stick approach. We need a vacant site tax but talks of 10% of value is ludicrous. It should be targeted at urban area's where demand for housing is highest. Where houses are vacant and are not in habitable condition tax relief on there upgrading should be considered to bring them to a minimum standard for habitation. This could be offset against future rental income or existing rental income from elsewhere. Tier it so as to encourage immediate uptake. Same with vacancy tax set a minimum rate now to raise in 2-3years time . Set it at 2% but a full rebate if site is developed and in use within 2years. This would encourage development on smaller sites.I have always taught that the way vacancy over commercial premises has developed in Ireland is crazy. It is because of a mixture of insurance and H&S. Give tax relief to businesses or LL's to bring them up to rental standards against rental income. Set conditions that where tax relief is availed of properties must remain in use for 5-10 years. Allow sale of properties to FTB or those on housing lists as fulfilling these conditions. Set maximum refurbishment values to prevent abuse.
awec wrote: » I think one of the biggest hurdles to this is that many (most?) of these empty floors above retail or commercial units have no entrance to them, other than through the ground floor unit.
timmyntc wrote: » Some dont even have stairs - worked in a shop once where there was just a stira type ladder going from ground floor up to 1st floor. And 2nd floor was just a regular ladder As central as you could get, could easily be turned into a 2bed apartment too if it had proper access (& stairs)
Amadan Dubh wrote: » With inflation already here and even some hyperbolic media articles on the extent it is due to rise, we could see interest rate rises sooner rather than later to counter inflation and that of course will hurt mortgage holders and benefit the funds as more people go to the rental market. This needs to be protected against as rents are already beyond the ceiling of affordability (increase in rents has slowed substantially). Let's add the mortgage-paying home owners to the disgruntled category of the electorate annoyed at the housing market when these interest rate rises are necessary to curb inflation and then we will have some really interesting and chaotic times in politics.
awec wrote: » Yea and any access in and out of these would have to comply with fire safety etc. It's not as straightforward as people think.
Hubertj wrote: » https://www.irishtimes.com/business/commercial-property/tiktok-agrees-long-term-lease-on-new-dublin-docklands-office-1.4562076?mode=amp Can someone please explain this. Experts on this thread were saying that when google pulled out of this lease the building would lie empty for years. I just don’t understand.
Bass Reeves wrote: There is going to be no one pill cures all solution to this issue. You will need a carrot and stick approach. We need a vacant site tax but talks of 10% of value is ludicrous. It should be targeted at urban area's where demand for housing is highest. Where houses are vacant and are not in habitable condition tax relief on there upgrading should be considered to bring them to a minimum standard for habitation. This could be offset against future rental income or existing rental income from elsewhere. Tier it so as to encourage immediate uptake. Same with vacancy tax set a minimum rate now to raise in 2-3years time . Set it at 2% but a full rebate if site is developed and in use within 2years. This would encourage development on smaller sites.
Villa05 wrote: » Solid solution, far cheaper than current apartment building costs quoted and reinvigorates town/City centres I bet that prices quoted for apartment building would drop significantly were this proposal implemented successfully Would add CPO for properties where owner is not engaging, seen quite a few council notices on properties to establish who the owner is
Bass Reeves wrote: » Prices for Apartments development will not go down they are more expensive to build than houses.
Bass Reeves wrote: Prices for Apartments development will not go down they are more expensive to build than houses.
Bass Reeves wrote: » There is going to be no one pill cures all solution to this issue. You will need a carrot and stick approach. We need a vacant site tax but talks of 10% of value is ludicrous.
Amadan Dubh wrote: » There is an underlying assumption to all the talk of property that the economy can return to some sort of pre-covid levels however, which no one knows if that will happen. We have not really experienced any economic fallout from covid as of yet as employees have been supported so it will only be once restrictions and supports are gone that companies can properly assess their business needs. If inflation is indeed back, then employees will be expecting higher salaries over the coming months and if rents are also not going down this will also impact growth plans for companies in Ireland since again it will require paying more to employees to get them to work in Ireland.
DataDude wrote: » It's a good bit down. 55-60 per sqft vs the pre COVID prime of 60-65 per sqft. But more importantly 18 months rent free is considerably up on pre-COVID where it was 6 months rent free, if at all. It's probably in the region of 10-20% cheaper than it would have been in 2019, based on my understanding. I'm close to some people who do big commercial property deals in Dublin. It's a buyers market for sure, and expected to remain so for the next few years.
Villa05 wrote: » Price seems more dictated by demand than cost of build, if a significant source of extra supply of apartments is tapped, price will fall
Bass Reeves wrote: » While prices may fall a little if prices fall too much then building will cease unless costs fall substandically. From 2013-2017 Construction struggled as price achieved at sale was below build price. This is still what prevent a lot of development outside of main urban centers.
RichardAnd wrote: » Hmm, but if prices fell by a significant, surely it would mean that the demand would not be there to maintain them at a higher level. Thus, if they were declining, then there would be no need to build more? Maybe I'm over-simplifying it.
