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

Villa05

https://www.boards.ie/discussion/comment/118853677#Comment_118853677

Same thing happens every time in Ireland.

May be we should have clearer procedures around legal challenges and objections, high-rise zones, beettles habitats and building reduces the value of my home and whatever else takes one's fancy.

Also notable that the state was the largest holder in the world of development land, half finished and finished estates in that time period, now there amongst the largest buyers of same. That's some own goal

Villa05

https://www.boards.ie/discussion/comment/118853930#Comment_118853930

Nearly a better signal than inversion curve

Timing belt

https://www.boards.ie/discussion/comment/118854292#Comment_118854292

Clear planning procedures and less use of the housing crisis as a political football with political parties objecting to new housing just because the opposition suggested it would definitely help a lot…but we all know that won’t happen because none of the political parties really care about solving the housing crisis and are more interested in points scoring and getting their sound bite to post on Twitter so they get elected/re-elected.

Villa05

Yet another demand side masterstroke from our government. Our housing is for paying foreign pensioners and enslavement of our own. We'll done ff/fg.

If the auto enrolment pension is partly for paying your rent in retirement, how will they pay their rent while working?

Could be the spark for an election this, wondered why SF were around canvassing yesterday in an area where they would normally not get any votes.

https://www.independent.ie/irish-news/politics/new-pension-scheme-is-for-the-masses-who-will-never-own-a-home-admits-government-41501346.html

Jonnyc135

https://www.boards.ie/discussion/comment/118853930#Comment_118853930

Wouldn't heed what Jim Creamer says anyway. A lot of discussion now by prominent Financial gurus saying that the soft landing is well and truly passed and the last two options left are let inflation run hot for 2-3 years or else fight it and cause a deep recession. Most of them said they would let inflation run hot. This could end up a disaster.

Stocks market so volatile at the minute, when April 1st comes and Putin shuts off the gas as he want roubles that might shake the tree.

Wanderer78

https://www.boards.ie/discussion/comment/118854489#Comment_118854489

ah i suspect this government will eventually run its course naturally, sf canvassing pops up regularly enough, i wouldnt read too much into it, theyre just preparing for their chance, and they ll eventually get it.....

MacronvFrugals

Genuine question, I'm on a good wage and all together 22%(personal 15% and employer 7%) goes into my pension each month or over 1200 euro, in no way would I ever think that would be enough to cover current private rents during retirement, with this are they relying on a substantial decline in rents within a couple generations? What if pensions dont perform as well?

As an aside this scheme does help our "pension timebomb crisis" right?

New pension scheme needed to pay for 'generation rent' who will never own a home when they retire

The Government has privately conceded that the new auto-enrolment pension scheme is needed for the increasing number of older people who will still be renting when they retire, the Irish Independent can reveal.

A confidential Cabinet memo prepared for ministers states that the new pension scheme will be “particularly important” as home-ownership rates are in decline and an increasing number of older people need enough income to meet the cost of rent during their retirement.

“An increasing number of older people will need sufficient income to meet rental costs during their retirement years,” the memo states. “The expansion of pension coverage is key to addressing this challenge.”

https://www.independent.ie/irish-news/politics/new-pension-scheme-needed-to-pay-for-generation-rent-who-will-never-own-a-home-when-they-retire-41501346.html

RichardAnd

https://www.boards.ie/discussion/comment/118854489#Comment_118854489

Is there any information on whether Irish pension funds do the same thing overseas? I'm quite sure that they do.

Anyways, it's good to know that the state has decided to consider the future needs of todays working generations. Knowing that there's a shared room in the tenement block will warm the heart of many a 30-something as they pay massive amounts of tax to keep todays retired generations in pensions.

Sarcasm aside, how can a society continue to function when the social-contract is broken? Keeping older generations in generous pensions is pauperising the younger generations. I, for one, think that it's time these pensions were reconsidered.

Mad_maxx

https://www.boards.ie/discussion/comment/118853930#Comment_118853930

What bear market?

There hasn't been a bear market since the shortest one on record in 2020

JimmyVik

https://www.boards.ie/discussion/comment/118851897#Comment_118851897

If they rent it they might never get thier house back, or at best have to go through the courts for years to get it back, so i dont see that happening.

If properties arent rented at the moment they are unlikely to be rented in the future. Totally different ball game to helping out people from a war zone.

Mad_maxx

https://www.boards.ie/discussion/comment/118853956#Comment_118853956

Well it should suit them now ? ,demand is enormous

Perhaps it's government regulation providing obstacles?

Spec regulations are far too high nowadays for one ,drives costs up hugely

Villa05

https://www.boards.ie/discussion/comment/118854789#Comment_118854789

I would imagine it would offset some of the hap the state would otherwise be paying for your rent. Would we have been better off if we left the Queen in charge

JimmyVik

I remember the smugness of people a decade ago talking the value they got renting and that renting was always better than buying.

I was one of them :)

Now over a decade later, I have reversed that opinion. Renting is 100% dead money imo. And its only going to get worse. And whats even adder is it is getting worse at a frightening rate. As landlords leave the market and people who had cushy below market rents for years it is accelerating.

We have passed the point of no return. People with controlled rents are in for some shock at what their new rent will be when their landlords sell up, and sell up they all will. You're only option will be REITs.

CorkRed93

https://www.boards.ie/discussion/comment/118854489#Comment_118854489

oh this will definitely end well

MacronvFrugals

Spanish inflation running at 9.8%

I get its possibly short-term and due to energy increases but how does the ECB react seeing a figure like that?

https://www.politico.eu/article/march-inflation-hits-9-8-percent-in-spain/#:~:text=It's%20the%20highest%20rate%20since,from%207.6%20percent%20in%20February.&text=FRANKFURT%20%E2%80%94%20Spanish%20consumer%20prices%20rose,country's%20statistics%20office%20said%20today.

timmyntc

https://www.boards.ie/discussion/comment/118854841#Comment_118854841

Loan to income (LTI) limits set the upper bound for what a couple can pay for a house. Due to building standards, its increasingly expensive to build new homes. Add in recent inflation in construction materials and land, and its getting more and more difficult to build new homes at a price they will actually be sold.

Construction is starting to slow down

_Brian

https://www.boards.ie/discussion/comment/118854929#Comment_118854929

Currently tidying up our rented property as we’re between tenants.

seriously looking at selling. The power balance between tenants and landlords is nowhere near balanced, add to that draconian tax on rental income and it’s not attractive at all.

CorkRed93

https://twitter.com/Elaine_Loughlin/status/1509097717888344069

lol

JimmyVik

https://www.boards.ie/discussion/comment/118855031#Comment_118855031

You also have a likley SF in government looking over your shoulder too. You are the devil to their voters and will be punished. You may never see the inside of your own property again, l;et alone sell it at full market price, if they follow through with their stated plans.

timmyntc

https://www.boards.ie/discussion/comment/118855036#Comment_118855036

we're screwed

we only built 20k new homes last year

https://www.cso.ie/en/statistics/construction/newdwellingcompletions/

JimmyVik

https://www.boards.ie/discussion/comment/118855036#Comment_118855036

He better get out with a trowel himself and build them :) Because they never going to get anywhere near whats even needed for Irish people. Never.

PommieBast

@RichardAnd

Sarcasm aside, how can a society continue to function when the social-contract is broken? Keeping older generations in generous pensions is pauperising the younger generations. I, for one, think that it's time these pensions were reconsidered.

My working assumption (no pun intended) is pensions and retirement as they are recognised today not existing in 20 years time. Only question is whether it will be the current 18-35s electing a burn-the-state right-wing party, or (more likely) the IMF coming to town.

@JimmyVik

We have passed the point of no return. People with controlled rents are in for some shock at what their new rent will be when their landlords sell up, and sell up they all will. You're only option will be REITs.

When that happened to me I worked out that my rent per square meter almost tripled, but for me the bigger shock was even places asking north of £2k having queues out the door. I emigrated not because of the prices but the way potential tenants are treated.

wassie

https://www.boards.ie/discussion/comment/118854789#Comment_118854789

As an aside this scheme does help our "pension timebomb crisis" right?

Australia introduced a defined contribution pension scheme 30 years ago. The basic system at present is that employers contribute 10% of salary to employees fund and is set to rise each year by 0.5% to 12% by 2025. According to wikipedia, "as of 30 September 2021, Australians have AUD$3.4 trillion in superannuation assets, making Australia the 4th largest holder of pension fund assets in the world".

We are very late to the party.....and the squeezed middle as usual will pay for it.

JimmyVik

https://www.boards.ie/discussion/comment/118855153#Comment_118855153

An the government of Ireland would look at a pot like that as a potential source of funds to raid. Ask FG.

I think you should only be able to force people to auto enrol if you make it impossible for the govt to raid pensions again.

Otherwise the government is just taking peoples money and storing it in a nice place that the government can dip into it.

There are a hell of a lot of people who stopped their pensions after the last raid. Trust is hard earned and easily lost.

RichardAnd

https://www.boards.ie/discussion/comment/118855089#Comment_118855089

Hmm, I think that Ireland is not the kind of place where a right-leaning party would be able to flourish. The problem with right-leaning parties is that whilst some of them do indeed have a handle on the problems of globalism, they mingle these policies with social issues that are far too heavily influenced by old-style Catholic church teachings. No party is going to get far with that kind of thing.

I personally think that the "reaction" to the current mess will be the election of increasingly bizarre collections of economically illiterate lefties who will, as leftist often are, be played like a fiddle by the neo-liberal civil servants who sit behind the throne, so to speak.

Thus, I agree. the IMF will be here at some point once again.

Very curious, for the active home buyers on here, by active I mean people actually bidding on houses etc and not just looking on daft, how are you finding the whole process? From personal experience I find alot of the houses we have viewed etc are nowhere near meeting the asking price let along exceeding them with the very odd exception. We are looking in Galway, maybe it is completely different in Dublin or elsewhere. Also looking at new build estates, €375k for 4 bed semi d, not a bad price in the scheme of things. Would like to get everyone else's opinion on their experience.

houseyhouse

https://www.boards.ie/discussion/comment/118855232#Comment_118855232

That’s a great price if the location suits you. I’m not actively buying right now but have been going to open houses and so on in Galway city. Curious to see how the ODJ auction goes next week. We bought in 2020 and paid close to 350k for a 3 bed semi-d that needs a LOT of upgrading to get to the standard of a new build (1960s house). Got an estimate from an architect recently and it was eye watering. Hence going to viewings again.

CorkRed93

https://www.boards.ie/discussion/comment/118855232#Comment_118855232

4 bed semi seems reasonable to me but im in cork just outside the city and youd be lucky to get new 3 bed semis for that now with material cost baked in to prices etc. mate down here purchased just as covid hit in 2020 , 4 bed semi for 395. same house now 435

https://www.boards.ie/discussion/comment/118855272#Comment_118855272

Cheers for your reply. Yeah location suits, so will see. Currently talking to developer. So will you sell the property you bought in 2020 then or rent it? Tricky to know what is best to do. We can the HTB scheme so I guess it helps.

JimmyVik

https://www.boards.ie/discussion/comment/118855232#Comment_118855232

I cant remember the last time i even heard of a winning bid for a house being below the asking price.