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

Without the need to perpetuate growth, the immigration that has caused the population on the island to jump so swiftly would not have happened. Thus, the people would not be here.

I'm aware that this is a sensitive topic, but it's not one that can really be ignored anymore.

Did someone here have data on what proportion of developments started because of investment funds providing the funding for building

Most of the news stories are of them buying existing developments that had already been funded

I remember the last recession only too well; I can assure you. I think there's a balance to be struck between having a reasonably healthy economy with good levels of employment and what we have now.

Yes this is true. It's not a uniquely Irish problem at all.

Thanks for clarifying that these institutional investors can avail of all the taxpayer spending required to ensure these apartments/homes exist without contributing anything in return

Waiver from development levies, water connection, waste water

Up to 130k grant per apartment built

Transport infrastructure and maintainence.

Education of the workers that can achieve the salaries required for the rent demanded

Social welfare for the renters that can't afford rents charged

This model of housing provision truly is the way forward for Ireland and beyond. How come noboby had been able to formulate such a genius solution in the past. It must be the proliferation of our best and brightest and wealthiest having governments in there pockets.

We can all feel better now, go out and work confident that half our salary taken by the government is spent wisely for the greater good

Well done all

Please provide proof as to what extent your statement is accurate.

How many units commenced directly as a result of investment funds providing finance for the project. The vast majority of what we are hearing are projects already started, built or 2nd hand, therefore funding pre existed

Give us numbers please

https://www.rte.ie/news/business/2024/0827/1466914-cso-earnings-and-labour-costs/#:~:text=Preliminary%20figures%20from%20the%20Central,the%20same%20time%20last%20year.

With all the concerning news of late on both rent and house price increases it’s at least some consolation that wages are powering upward also. CSO published today

Just had a look there and in the last 6 years (since 2018):

Average wage increase: 30%
Average house price increase: 37%
Average rent increase (new tenancy only): 43%

Can’t help but feel a lot of the dramatisation of things could be cooled if media presented things as:

Real house prices have increased at an average rate of 1.1% annually since 2018 and average rents have increased at 2.1%.

Instead we get upward red arrows and ‘PRICES EXCEED CELTIC TIGER PEAK. UP 8% this quarter’ from Irish Times. Trying to create a sense of panic it feels like.

I think the strike action is confined to commercial sites, residential is unaffected for now

Less than €6k per SQM, its not that bad, those houses are really nice and were built by one of the best builders in the country at that time Alexander Strain.

I used to rent at Glencairn Gate in D18 and there was people paying this type of money to hear a perpetual 55-60 decibels of the M50, in my opinion, the Glasnevin house is better value considering it has a decent garden also.

you do realise that banking is only a subset of the finance industry. And funds another subset of the finance industry are providing finance for housing developments….so don’t know why you are saying finance aren’t allowed do their job.

Finance are not allowed to do their job? sorry what now?

PAYE, PRSI and USC tax take going through the roof too as people move into higher bands.

People aren't taking home 30% more; add in COL increases on top too.

PRSI is a fixed percentage so it doesn’t need to be indexed to keep pace with inflation. If you have a fixed 4% tax rate on all income. A 30% gross pay rise equates to a 30% net pay rise. Thats how the maths works.

Income tax credits will be up c.20% after the next budget and income tax band cut off up c.25% so there has been a slight increase in effective income tax rates but it’s not massive.

USC is slightly more complex. Likely reduced burden for lower income workers due to the rate reductions and indexation. Increased burden slightly for higher income workers due to non indexation of 70k band.

Overall the tax burden on incomes has gone up slightly but not much, so net incomes will have also risen by pretty close to 30%.

‘Cost of living’ has gone up 21% since June 2018 - net wages have definitely substantially outpaced this.

i.e. people on average have experienced a significant improvement in their net income relative to living costs and therefore have more disposable income (in real terms, so this increase is over and above the 30% increase in nominal terms they’d have experienced if col had been equal to wage inflation).

It’s another example of how hyperbolic media reporting playing into the negative Irish psyche means people have no perception of economic reality.