Irish Property Market 2020 Part 2

MacronvFrugals

mcsean2163 wrote: »

Yep, if I'd be really annoyed if I lived in continental Europe. Facilitating US giants paying no tax is not cool. China banned them in 2009, that seems ott but they should be taxed like there's no tomorrow as they're destroying global local industry.

Anyway bit off topic except to say if it happens, the property market would likely experience a significant shock!

The UN Special rapporteur on poverty called Ireland's tax policies "Anti-Social"

https://www.theguardian.com/world/2015/feb/12/irish-tax-policies-anti-social-developing-countries-un-expert

Smouse156

Assetbacked wrote: »

India will be the next country to feel the green meat of the Leprechaun rooting around inside its economy on behalf of the big tech MNCs expanding their operations there. The bulking up of Indian employees in Dublin points to plans to justify this practice by providing that there is a significant operational presence in Ireland justifying shifting revenues from India through the jurisdiction.

Why is that relevant to Irish property? Continued Big Tech success in Ireland in terms of employee numbers, offsetting some economic fallout from covid, meaning some new source of demand for rentals.

Having worked with many Indians in the Middle East I can’t tell you for sure that’s never going to happen!

Smouse156

Back to property, noticed more price drops on new developments (transacted prices, not asking):

Brighton Wood Foxrock:

Nos 1&2: sold for €675k (asking 725k)
No 44: sold for €1276k (asking 1500k)

Considering they had no sales since pandemic hit bar the above listed I’m assuming one could get a decent reduction on the asking prices (which are still the same as pre-Covid). Thank God for the PPR

Check out this property I found using Daft: https://www.daft.ie/9106028

brisan

Smouse156 wrote: »

Back to property, noticed more price drops on new developments (transacted prices, not asking):

Brighton Wood Foxrock:

Nos 1&2: sold for €675k (asking 725k)
No 44: sold for €1276k (asking 1500k)

Considering they had no sales since pandemic hit bar the above listed I’m assuming one could get a decent reduction on the asking prices (which are still the same as pre-Covid). Thank God for the PPR

Check out this property I found using Daft: https://www.daft.ie/9106028

Are you including VAT in the new build sales ??

Cyrus

Smouse156 wrote: »

Back to property, noticed more price drops on new developments (transacted prices, not asking):

Brighton Wood Foxrock:

Nos 1&2: sold for €675k (asking 725k)
No 44: sold for €1276k (asking 1500k)

Considering they had no sales since pandemic hit bar the above listed I’m assuming one could get a decent reduction on the asking prices (which are still the same as pre-Covid). Thank God for the PPR

Check out this property I found using Daft: https://www.daft.ie/9106028

still pretty pricey per sq foot, 1&2 are only 114m2

Smouse156

brisan wrote: »

Are you including VAT in the new build sales ??

Yes

Smouse156

Cyrus wrote: »

still pretty pricey per sq foot, 1&2 are only 114m2

Oh the prices are still crazy no doubt! But at least they’re dropping. People were willing to pay the mad prices last year there

TheSheriff

Smouse156 wrote: »

Oh the prices are still crazy no doubt! But at least they’re dropping. People were willing to pay the mad prices last year there

You have to love the staging, bottle of hendricks on the office table ! No doubt thought up by some 'consultant' to appeal to potential buyers.

rks

<SNIP>

mel123

cojomo2 wrote: »

I closed a sale last week , it appeared on the register today.

I closed end of May, still not showing up

awec

mel123 wrote: »

I closed end of May, still not showing up

Yours is probably there, just with a typo on the address or in the wrong county or something.

Claw Hammer

mel123 wrote: »

I closed end of May, still not showing up

Did you get a receipt for your Stamp Duty.

MacronvFrugals

Quick one folks,

See the Property Price Register, is the price sold on that 100% accurate as in what the buyer paid?

mel123

Claw Hammer wrote: »

Did you get a receipt for your Stamp Duty.

No, just on my solicitors invoice

Cyrus

MacronvFrugals wrote: »

Quick one folks,

See the Property Price Register, is the price sold on that 100% accurate as in what the buyer paid?

it should be yes, its provided by the solicitor as part of the stamp duty formalities.

cubatahavana

Cyrus wrote: »

it should be yes, its provided by the solicitor as part of the stamp duty formalities.

Unless it’s a new build, then you need to deduct 13% VAT

MacronvFrugals

Cyrus wrote: »

it should be yes, its provided by the solicitor as part of the stamp duty formalities.

Thanks Cyrus & Cuba

Cyrus

cubatahavana wrote: »

Unless it’s a new build, then you need to deduct 13% VAT

you mean add 13.5% vat

Browney7

MacronvFrugals wrote: »

Quick one folks,

See the Property Price Register, is the price sold on that 100% accurate as in what the buyer paid?

Potential for a deal on the side for contents on top of the price paid. Also a flag for "not full market value" exists in the register too

Pelezico

Smouse156 wrote: »

Oh the prices are still crazy no doubt! But at least they’re dropping. People were willing to pay the mad prices last year there

Of course prices are dropping. We are in a terrible recession.

jill_valentine

Quick question - I see a lot of "Sold with tenancies in place" appearing in the low price bracket lately. Are these essentially "discounted" to compensate for the fact you're going to have to go to the rounds of evicting somebody if you want to live there? What are the reasons a tenant is left in place when a place is sold?

Cantstandsya

jill_valentine wrote: »

Quick question - I see a lot of "Sold with tenancies in place" appearing in the low price bracket lately. Are these essentially "discounted" to compensate for the fact you're going to have to go to the rounds of evicting somebody if you want to live there? What are the reasons a tenant is left in place when a place is sold?

They aren't operating in the same market as the rest of the houses. No bank will give you a mortgage without vacant possession so it's cash buyers only.

Pelezico

jill_valentine wrote: »

Quick question - I see a lot of "Sold with tenancies in place" appearing in the low price bracket lately. Are these essentially "discounted" to compensate for the fact you're going to have to go to the rounds of evicting somebody if you want to live there? What are the reasons a tenant is left in place when a place is sold?

Would not touch one of those. Some tenants are life tenancies at low rent.

jill_valentine

Cantstandsya wrote: »

They aren't operating in the same market as the rest of the houses. No bank will give you a mortgage without vacant possession so it's cash buyers only.

Ah, makes sense. I figured there was something very simple I was missing.

PropQueries

Smouse156 wrote: »

Oh the prices are still crazy no doubt! But at least they’re dropping. People were willing to pay the mad prices last year there

I'd believe that many of the smaller developers are holding out for the budget to see if there's anything in it to keep prices steady. If there's not, I would predict many will start following Glenveagh's lead and start dropping their advertised prices very significantly just to get their money back at least, never mind a profit.

Even if there is, it will be a stop-gap measure. If they did increase the help-to-buy to €85k as the developers are lobbying for, that measure would be removed within two years (due to budget constraints) and the prices would drop anyway. Will potential buyers realise this and hold out? Some obviously will want/ need to still buy but I would reckon professional investors would be very wary of such incentives.

Would be good for first time buyers if investors did show less interest though.

The_Conductor

PropQueries wrote: »

I'd believe that many of the smaller developers are holding out for the budget to see if there's anything in it to keep prices steady. If there's not, I would predict many will start following Glenveagh's lead and start dropping their advertised prices very significantly just to get their money back at least, never mind a profit.

Even if there is, it will be a stop-gap measure. If they did increase the help-to-buy to €85k as the developers are lobbying for, that measure would be removed within two years (due to budget constraints) and the prices would drop anyway. Will potential buyers realise this and hold out? Some obviously will want/ need to still buy but I would reckon professional investors would be very wary of such incentives.

Would be good for first time buyers if investors did show less interest though.

They already got an additional 10k in the fillip that was given to first time buyers- if they imagine there are more goodies coming on the way, they're not going to be happy.

At the moment we are spending money like there is no tomorrow- because we can- but there is already an end-date on borrow and spend- when the Commission will re-assert budget rules on member states. Keep in mind- we're paying between 8 and 9 billion on servicing debt per annum- and thats at ultra low interest rates. If/when rates rise- its going to hurt badly.

If developers think there is something in the budget for them- they have another thing coming.

Rossvet

Glenveagh in Kilcock bumped up 3 bed prices by €10k following the introduction of the enhanced HTB (help the builder) scheme.

PropQueries

The_Conductor wrote: »

They already got an additional 10k in the fillip that was given to first time buyers- if they imagine there are more goodies coming on the way, they're not going to be happy.

At the moment we are spending money like there is no tomorrow- because we can- but there is already an end-date on borrow and spend- when the Commission will re-assert budget rules on member states. Keep in mind- we're paying between 8 and 9 billion on servicing debt per annum- and thats at ultra low interest rates. If/when rates rise- its going to hurt badly.

If developers think there is something in the budget for them- they have another thing coming.

This will be one of the most interesting budget in many years. But I wouldn't second guess what they might do. Well I actually would

Remember, one of the many acts by Michael Noonan to get the market moving last time was to basically ban bedsits. Basically he threw the bottom 1% of the population under the proverbial bus in "their" interest.

But, many of them have now been refurbished and are coming back into the market in their throves at exactly the wrong time (for investors).

But as you say, budget constraints etc. and any measures would most likely be very short term.

PropQueries

cnocbui wrote: »

Reading between the lines, there is a good chance they will call them back if they will be slugged more tax, which they should be. This country offers a low corporate tax rate as there is a belief the employment generated is worth the discount. If the Multinationals stop holding up their end of the deal, even the Irish government might be stirred to do something.

I'm not too sure on that argument. Google already employs as many people across europe as in Ireland (admittedly spread across many EU countries).

Pelezico

This thread is fast becoming a forum on taxation