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

What property crash happenened in 2007 ?

At worst property prices leveled off in 2007 , even when the cracks began to appear in 2008 it took prices a while to decline.When the run started on the banks that was when people realised the game was up.

The cheapest houses around here were bought i would say 2014 and you could see grand houses up for auction for maybe 50-60 k but once you showed interest in them they could climb in price quickly 10-20k

50 k grant for bringing a vacant property back into stock

20k added if that house is derelict

Maybe there holding out for a 100k grant from the gov if the property is a danger to the public

Reverse evolution continues

Yes that is the bubble bursting or commonly known as a crash. The prices crash as a result of demand stopping which happened in 2007. This happened before the financial crash of 2008 which resulted in job losses.

This will collapse site values which will reduce valuations and tax. Developers will Jo longer accumulate sites until they are ready to develop them

I'm a little confused by this.

A reduction in cost of a significant input to the finished product (land for housing) is normally a huge benefit to a business

Tax in this scenario is not for revenue generation purposes, it's placed on to encourage activity (generating revenue) and discourage inactivity (reducing revenue, shortages of key strategic assets necessary for the economy to run more efficiently)

Yes That is the theory it shoukd force activity. However sites need planning and design. From design to breaking ground probably takes 3ish years. The 12 months leeway is not enough for develooers to carry this out. They are reluctant to have sites sitting there and havevthis three year timescale as well.

IIt quite possible you will see double market. One where land is sold without planning and the other where developers will enter into contrcts to purchase shovel ready sites

As this develops it will make it cheaper to sit in development land that has not got planning. It hard to increase activity unless you have the resources to build

Context is everything. The point is the job loses didn't cause or start the property crash. It happened before the job loses is the point. People didn't lose their jobs and then prices crashed it happened the other way around. I was there and I remember how it happened. I am not saying the economic crash didn't make it worse but it happened after prices and sales dropped. People also over estimate the amount of people that bought at the peak when in reality sales dropped dramatically as peak was reached.

That was a dramatic drop in sales from the years prior

A collapse in unused site values in RPZs is exactly the intended purpose of such a tax, any revenue raised from it is just a fringe benefit.

If the unused site is being taxed heavily every year it doesn't matter if developers purchase them quickly or not - the owners will be eager to sell the land, and only growing more-so with time as the tax accumulates. And at a low enough price developers will always buy it.

Unused site taxes really are very close to a magic wand - they costs the state almost nothing, they raise tax revenue, they don't impact existing businesses/employers negatively, they very heavily encourage the use of much needed unused sites, they reduce the cost of construction for builders by reducing the cost of land, and they negatively impact almost no voters.

Limerick rents up 20% yoy, now the 2nd most expensive city in Ireland. (latest daft report)

LDA sitting on a huge tract of city centre land, brown and greenfield. City on a relatively small land print, which includes 2 golf courses and an unused horse racecourse, is surrounded by farmland

Concerning for the longer serving business in Limerick as recent pharma arrivals are pulling staff from other operations which is proving difficult to replace as there is no place to live.

High rents are pushing migrant labour away, while accommodation is prioritised for migrants that are not allowed to work.

Have we lost our marbles completley

Imagine a scenario where pharma closes down other sectors in Limerick as they can't compete for wages, rents, housing, labour and later pharma decides to return home due to trump taxes/tariffs etc. How can our leadership be so sh1¥

Mr Coveney said he assumed the 300 staff being sought by US med-tech giant Ely Lilly are already housed and would not need a home.

However, IDA interim chief executive Mary Buckley said that Ireland cannot take Foreign Direct Investment for granted and called on the government to focus on housing and other issues to maintain Ireland’s attractiveness for FDI

2% is on existing rentals. So when a landlord sells and the property is bough a 2% on the rent means nothing because it is now a private home. A new build or a property never was rented starts at open market rate which means rents can go up above a 2% limit. It is an artificial restriction to keep the rent figures good for the government paid for by landlords that didn't increase on their tenants for years. They are going to do away with the restriction meaning a new tenant no longer gets the old rate. The rent increase figure will go much higher and needs to in order to keep rentals on the market

Low rents are also causing LL to either sell up at the end or during a tenancy or when they get it vacant again to leave empty for two years. It's the law of unintended conquences.

Tennants won't have any protection against price increases. Without the RPZ's a landlord could decide to up the rent by 50% tomorrow and if the tennant can't pay then that's just tough…

Regards affordability, our minimum wage is €13.50/hr. Let's say 2 people work 40 hours each a week, they make €1080/week or 4152/month. Nearly half of that is gone if you pay what is now the average rent

Your examples of the emigrant who comes over here and walks into a well paid job is an excellent example of what we need. Where do you propose these well paying jobs come from though? Are you going to provide them

I accept that landlords aren't charities, they are investors. But the people paying their return on investment are human beings, often ones that don't have the means to pay much more in rent than they already are

But if the govt make a decision to allow 40% or 50% increases in rent they're gonna have a lot more homeless on the streets, and they already have a lot!