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

This is the only way, but gov won't do anything that stabilises or brings a necesarry correction in price. Homelessness and unaffordability are necessary in order to allow continuous house price appreciation

This would flush out the land hoarders, knowing that a government acting on supply would devalue there land where they to continue to sit on it and do nothing. Remember alot of this land was sold by the state at fire sale prices in the last crash.

Even the mere announcement of change in policy by the government towards supply would panic the land hoarders into action as they would rush to get there's built before the state

Currently they are incentivised to sit on the land as the government continues with demand side policies, they know there land will continue to rise in value

This has to continue because highgher and higher house prices and rents are far more beneficial for the Irish people and economy, until its not.

We must persist with this policy regardless of the cost. There is no better way

I dunno, you have to plan to live there for the next 5 years, and whatever may happen to you (and your family)

I have a colleague who bought a 1 bed in 2008, and only moved out in 2017, with a wife and 2 kids.

Average age of FTB is increasing, and to be honest, there's no value in apartments anymore, especially not the Celtic tiger-era buildings. You'd almost be better off to save a little extra and get a house.

Wish I wasn’t farting around trying to buy a new car in my early 20s and instead put the money down on a 2 bed in 2013. Although no idea if finance was coming back to the masses by then.

Don’t know of anyone my age who even half talked about buying until late 20s. Perhaps a hangover from the crash where nobody was talking about it as a good financial move. Missed opportunity.

That was our plan but as much as we save houses are going up by more as we save. We are going backwards. Time to takle what we have and settle for something less than what we were saving for. That way we can jump ahead of the cart instead of watching it get further in front of us as we run to catch up

@danfrancisco83

My story is not vastly different. Moved into my (then) place in 2013 and until RPZ came along had never had any rent increases, but once it came in he would go as far as having the full rise calculated down to the single Euro. Eventually sold up. Guessing he was the type of landlord who previously only did rental reviews when tenants moved on.

Turned out to be a blessing in disguise, gave us the kick we needed.

If the.most you can build is 30k houses a year and demand is 40-50k/ year over a 5-8 year period you will always have price pressure on houses both existing and new builds.

What government support dose idms it loads the system towards those FTB's. Whether that is a good or bad thing is hard to decipher. On one hand these are the priority for housing. It probably also creates a construction industry that tends towards smaller units. However bigger units would tie up more labour during construction.

A person moving looking for a larger units will also be selling a property. Most of these will have bought a property 10+ years ago. For those that bought 7-12years ago they will have decent equity build up in there house/apartment. Someone that bought an property in that period probably paid 50% of today's value and may have a 30+%of the mortgage paid off during a low interest environment. They would have been saving as well over the last 5 years as there repayments would have been moderate

Government intervention was originally intended to stimulate the restarting of house building. However regulations and buyer expectations have made house building expensive. Because of this it relatively hard to withdraw these supports.

Maybe the allowing of HTB for buyers of second hand properties will allow buyers to compete better with investors who at present would be out bidding first time owner occupiers for properties that decent returns in RPZ's

If retail is down 30% and offices down more, it will always perk up interest

Notable that investors are expecting more repricing and that they are looking at in student accommodation and offices with government contracts

A state flush with cash should be looking at those areas themselves to reduce outgoings into the future and generate an income stream for a sector that claims to be underfunded

Great idea get the government to throw more money at a problem that can’t just be fixed with just money.

And the government are already doing what you have suggested via AHB…. I.e buying an asset which generate cash flows to buy more and repair existing properties.

Did you ever ask yourself Why would the government increase its national debt by getting councils to build and as a result having to consolidated the debt into the official government debt figure which in turn would end up with the government paying more on its debt as yields on gov bonds increases all.

The days of councils holding the asset and debt went out the window back in 80/90’s (along with trade unions in the private sector) when the likes of Italy got away with fudging its national debt so it would meet EU standards and look like they didn’t have a debt problem.

Instead set up not for profit entity that is run as a business (aka AHB’s) and give them money which they can use as collateral to borrow more money and build houses and none of the debt is consolidated into government debt.

I think it would be prudent for the state to purchase an asset that generates a return significantly greater than the cost of borrowing.

Need to be very careful setting up a state wealth fund now as the everything bubble begins deflating

14 billion in extra spending announced Tuesday, it's not like we need to borrow for capital infrastructure

It might just be market saturation as about 4 or 3 new developers are within 5km of each other.

The 3 bed in the second tranch is 10k cheaper that the first launch on the other hand the second tranch of the 3bed in a development about 10km away is up 15k

@L1011