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

Mental all right when something with an address at Ballymun road is this price 🤔

https://www.myhome.ie/residential/brochure/91-ballymun-road-glasnevin-dublin-9/4825523

Our government will never fail in misdiagnosing a problem

5000 euro tax credit to incentivise under 25's to stay in the country. God forbid we might build a few affordable homes so that these people could live here

Many of these investment funds are using uber like algorithms to maximise rent, guess what they'll throw out if they hear customers are getting a 5000 tax credit

It feels like that no spending in government is considered unless it inflates house prices and rents where most of the 'wealth" in the country lies

We need to be evolving, we can't live for ever on 2 decisions made in the 80's and 90's and have little to do with governments since the turn of the millenia synomonous with property boom and bust destroying the economy in the process

The recovery was predominantly a product of a restoration of competitiveness following the crash coupled with those 2 decisions plus 0 interest rates

I posted a specific breakdown of house building costs in 2023 that show some very obvious options.

135k of a current 2023 460k new build house in Dublin goes on VAT, margin, finance costs and marketing combined. A state build instead of private sector removes all of that and reduces the cost by 29% by itself down to 325k. Thats the whole savings in cost accounted for with absolute zero decline in labour costs that you apparently think are so completely unavoidable.

70k of that 325k also goes on cost of land for what its worth, which if property is built on already owned state lands (of which theres a lot) would also obviously be possible to be reduced in a lot of cases.

Yep, and the way things are going they're gonna kill the golden goose with their policies, and then tell us how wise they were squirrelling away all those surpluses.

Maybe investing those surpluses in infrastructure and services might actually lead to the betterment of the country regardless of Donald Trump.

"The UK is a product of years of what FFG are currently doing"

There is currently talk of building housing on the green-belt around London. The same politicians and civil servants who suggest and pursue this will also claim that they are serious about protecting the environment. Well, what is "greener" than leaving land to nature, I would ask.

The UK is what Ireland is speed-running towards, and if anyone thinks that voting for SF, Irish Labour or any other collection of globalist hacks and/or communists will prevent or reverse what has been done, they have a surprise on the way.

The UK implemented the bedroom tax which incentivised more efficient use of existing stock.

FFG copied and pasted the demand side policies, but didn't go near supply side policies

I was helping a friend fix up and paint his rented house that he was selling. We had taken down the curtains and every single day of the 3 days i was in there helping him people were knocking on the door first and then the windows when they saw us working inside, asking for the landlords number and practically begging us to rent the house to them.

The first day he was caught off guard and he would say yes when asked if he owned the house. The second day he answered by telling them he was only working there. Half way through the third day we put the curtains back up and closed them. It helped a bit but word had got around and people were still coming. Even some who were already there the days before. There must have been 30 people in all who knocked on the window. Most of them wouldnt go away until he came to the window or door either. Some of the stories i heard them giving him would break your heart.

One of the evenings when he brought me for a few pints we got into a conversations about it. He was selling because the rent was so low and he couldnt put it up, tax was too high and generally when he had a very bad tenant he couldnt get rid of them or even get the rent off them. Even when he decided to sell it was a pain to get it empty. And he didnt want those issues again, so he decided it was time to just sell up.

He did say that he would never even think of selling if he could get market rent, to pay for anything he had to put into the house that all cost more nowadays. And if he could always charge market rent and if he had to pay less tax. But also that there would be profit in it for him with less potential disastrous downside. He said it would be a fantastic investment if only he had control over his property. He would quite happily rent it for less money than market to someone who proved to be a good tenant and why would he even need to ask them to move out if they were good tenants and he was making enough to have a profit and keep up the maintenance without having handcuffs on him. It opened my eyes tbh.

Nobody would ever sell an investment property from under a good tenant paying market rent. Why would they? No need. The relationship is good, everyone is happy, no need to sell. Its when they cant rent for what the place is worth, when they cant remove people that arent working out and when they are tied up on their own property if they ever do decide to sell it that is getting to them.

If you had less landlords selling up and happy landlords and tenants matched up then all is good. There would be plenty of rentals. New investors would come in instead of out of the market. No need then for charities and the state to be competing against ftbs for the new build houses that come on the market, so they would be cheaper. Everyone happy renting so not all chasing the few places available which are on the market at huge prices to cover the lack of wiggle room in the rent when they have to move out of the one getting sold because the rent is far too low to make a return on. Good tenants could be rewarded without a landlord suffering when they move out by being locked on the lower rent.

Anyway, just my rambling thoughts on a Friday morning before work. I could be completely wrong, but i now see both sides of the problem.

We can do little about what Trump does to encourage MNC back to the US.

What we can do is make it difficult for MNC to leave by delivering affordable housing for their staff, energy, water and transport infrastructure

An LNG facility funded by private sector in Shannon is continually being blocked by this government. A unit of gas that sells in the US for 2 dollars sells in the EU for 8 dollars. I'd imagine it's more in the UK and Irl.

We are where we are but gaining a competitive advantage is delivering basic housing at affordable rates to people earning more than they ever have in the past.

To a logically thinking person, this is an opportunity not a problem. The issue is the system that prevents us seizing the opportunity