Irish Property Market chat II - *read mod note post #1 before posting*

Don't have the figure for visas nope

Woooooorl goes the magic-money press…

How the state can't get the lead out, get building and make money in such circumstances is baffling

A SENIOR executive at telecoms firm, Verizon - which has announced a massive investment in Limerick - has warned “houses cannot keep up” with jobs being created in the city...

Developers margins have moved from circa 15% to the 20s since all these extra supports have been brought in over the last 18 months. That's a greater than 20% increase in profits

State needs to activate small to medium sized developers to increase supply. The big players will continue to extort when competitive conditions are absent

Really Interesting thing happened over the weekend. The lad in the small rental I have offered to paint it of I supplied the paint. So on Sunday morning when I was passing I dropped off the paint, he was working so I left myself in and dropped off the paint, rollers etc.

Got a call yesterday evening from a women looking to rent it she was full sure your man had moved out. She hardly believed me when I said he was painting the Kitchen/sitting room for me. Just goes to show why no houses appear on daft for rent

A few pages back @Dav010 was praising the government on there record on "job creation". The reality is that that government policies and inactions are a barrier to job creation. Public infrastructure, housing and energy being a drag on continued growth

The I. T. sector is moving to a space where energy requirements are huge and Ireland risks being left behind.

Children's hospital budget has gone well in excess of the cost of the dome over the chernobyl nuclear reactor to contain radiation which is has a life expectancy of 100 years.

McWilliams has a good podcast today about public infrastructure and how competent EU countries deliver consistently within budget

They're not misdiagnosing anything. They want to drive up property prices and rents, and they simply don't care about the consequences.

With the current "administration" poised to water down and defer the much needed residential zoned land tax (RZLT) I think Ireland Inc's success is very much in spite of their recent actions.

Especially so when all and sundry are screaming about our infrastructural deficits and how they are driving away FDI - and their response is to water down one of the most important actions they could take to fix housing in this country.

We put circa €7bn a year into the reserve funds last year because it was surplus to requirements. The current budget surplus is likely going to be closer to €9bn a year and rising.

If labour capacity was actually available / prioritized towards housing the state could build 20,000+ social housing units a year with absolutely no financial issues. The problem isn't financial, its policy.

There is definitely a saving on margin and marketing but I’m not to sure on VAT because I would imagine that whatever public body is set up will not be tax exempt for vat purposes because it can be argued that they are in direct competition with the private sector…. Yes they could pass legislation to make it specifically exempt but then there is the question of whether that would be allowed under EU rules.

As for finance cost that would still exist and be significant as to pay for the capital expenditure the government would need to issue debt which will impact credit ratings and increase the total cost of existing debt as a result.

As for state land the majority of it will be owned by semi state companies and if they don’t sell it a fair value then they stop operating on a comercial basis which yet again would impact the bond market and make Irish debt more expensive to service.

Just look at the UK and see what how the bond market reacted to the tories plans and you see the results of how the market would react to these changes.