Who will possibly be next housing minister ?

jam_mac_jam

Jump_In_Jack wrote: »

Had to look that acronym up, assume you meant REITs (Real Estate Investment Trusts).

I take your point that by disincentivising private investment in property rental it could cause a lack of available housing for renters.

Not all renters can afford to buy.

If indeed private landlords were to decide that a rent freeze combined with a hike in tax on rental income were enough of a reason to exit the market, then those properties would be sold at market rate to those that could afford to own a home.
Ideally the market rate would adjust to a lower rate after taking into consideration that rental income would not be as profitable so the bidders for the property would be aspiring home-owners and not private landlords.

In order to improve the situation for renters the government might be able to provide cheaper alternative rental properties than the private investors.

There would have to be an effort to build new affordable rental properties in that case.

Ideally, through that type of policy, there should be less private profits arising from housing, and there should be lower rents for renters, as well as more homes available at reduced prices for potential home-owners.

The alternative would be more homes being built but nothing being done to prevent private investors from investing even more to continue to take extortionate profits from renters, and the problem won't get any better for renters or aspiring home-owners, but it would really suit private investors.

Basically, if the housing market is allowed to be used by private investors to make higher rates of profit from renting than they would by investing in industry then housing prices and rents would have to stay artificially high to pay out to those investors.
There is little value to renters or home-owners by sharing a market with private investors.

I did sorry. Typo.

thegetawaycar

Jump_In_Jack wrote: »

Had to look that acronym up, assume you meant REITs (Real Estate Investment Trusts).

I take your point that by disincentivising private investment in property rental it could cause a lack of available housing for renters.

Not all renters can afford to buy.

If indeed private landlords were to decide that a rent freeze combined with a hike in tax on rental income were enough of a reason to exit the market, then those properties would be sold at market rate to those that could afford to own a home.
Ideally the market rate would adjust to a lower rate after taking into consideration that rental income would not be as profitable so the bidders for the property would be aspiring home-owners and not private landlords.

In order to improve the situation for renters the government might be able to provide cheaper alternative rental properties than the private investors.

There would have to be an effort to build new affordable rental properties in that case.

Ideally, through that type of policy, there should be less private profits arising from housing, and there should be lower rents for renters, as well as more homes available at reduced prices for potential home-owners.

The alternative would be more homes being built but nothing being done to prevent private investors from investing even more to continue to take extortionate profits from renters, and the problem won't get any better for renters or aspiring home-owners, but it would really suit private investors.

Basically, if the housing market is allowed to be used by private investors to make higher rates of profit from renting than they would by investing in industry then housing prices and rents would have to stay artificially high to pay out to those investors.
There is little value to renters or home-owners by sharing a market with private investors.

In terms of renters, some people (especially foreign workers who have come here to keep our tech sector going) actually want to rent, they don't want to buy so there is a need/demand for rentals.

What I do think Sinn Fein can do is start taxing the REITs so as that they actually start to give back to the country. The landlord with 2 properties has already been taxed on his house purchase (stamp duty etc...) and is paying 50% tax on the rental income, if you bring in a rent cap you have to allow that landlord some tax break, otherwise they just hold the property vacant as the cost of trying to evict a possible rogue tenant and the tax burden/paperwork make the risk not worth it.

Hopefully we see an end to whole blocks being sold to REITs (as an aside, do they still have to comply with the social housing quotas?) and at least some housing in blocks being used for the councils.

I'd like to see them setup/properly fund the housing sector in the councils, rent collection should be priority, no more arrears, quick turnaround of houses when tenants move on, no more boarded up council houses/flats and immediate dealing with anti-social behaviour (including up to eviction).

JP Liz V1

Is big Jim Callaghan taking it on, is Fianna Fail Tackleberry going to tackle housing?