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The unwelcome guest - you speculated that they could choke supply enough in Dublin to keep prices up didnt you? Do you stand by this?
This looks to me like more spin. If this is so unusual why isn’t there a comparison with last April, as opposed to 10 YEARS AGO?!!!
And it don’t explain why prices have dropped in dublin on both new & second hand apts(as we can verify in price drops forum), especially so called starter homes to attract FTB’s when there is suppose to be a shortage.
They ain’t building more because they know its a high risk if they make a profit on them or not
A 15% drop in supply is only a drop in the ocean.
Investors/specuvestors have pulled out of the market - that equates to 40% of the demand vanished literally overnight.This segment of the market have turned into active sellers further swamping the market with supply.
They would want to literally choke the living daylights out of supply to balance this equation - God help the supplier that’s all I’ll say.
Naw, no matter what way you look at this mess it all adds up to a crash.
I said it was a possibility, something builders might try to do but of course there are all sorts of knock on effects and reasons why it would be difficult to achieve.
I haven’t seen too much evidence of new apartments dropping prices, certainly not at the keener end of the market and I was backed up in that view by our resident EA, murrayo.
Certainly there are ways and means of developing positive inertia (from the specuvestors point of view) in the market and this is but one instrument.
88% of builders do not expect price rises this year. That’s what the headline should be. I suspect that they would put an optimistic slant when queried by Merrion Stockbrokers.
I don’t know where the VIs get 3-5% rises this year when the builders don’t expect them. Also builders have been offering buyers extras and cash back for purchases.
Would the abolishion/reduction of stamp duty have the effect of stifling supply?
If there are no penalties incurred by well-off people and/or landlords in holding on to their land, then they are effectively incentivised in to land hoarding. Given the nature of the capitalist world in which we live, the net result of there being no/little stamp duty is this: rich people will hold their assets and pass them through their families (by taxation gymnastics via their companies/farms). The net result being that there is less property available to the masses who must work harder for smaller and smaller units, further and further away from the traditionally desirable areas.
I think this whole “stamp duty is an inequitable tax” is short-sighted. Be careful what you wish for, because there are a lot of very wealthy land owners in this country who are praying to God that stamp duty will be abolished in the name of “helping the poor old first time buyer on the ladder”.
Ireland needs a complete overhaul of its land policy. IMHO the state should hold ownership of all land.
The ways of capitalisim can continue, however the pitch has been levelled.
The current setup only favours bullies, land grabbers & cowboys PERIOD!
Closest we might get is land tax that is weighted agsint specualiton but I don’t hold my breath. We still have a rental economy half in the black market FFS.
SD must stay for want of anything better in its place.
SD penalises the wealthy as it stand. FTB do not need SD to be changed.
Absolutely not. Stamp duty is a tax on transactions. Reduce the tax and you increase the number of transactions thus increasing supply and liquidity.
There isn’t anything per se wrong with a transactional duty. I just feel it should be flatrated. On the other hand, there should be a heavy blow dealt to property hoarding.
There are a lot of properties which are unoccupied, regardless of whose figures you want to believe. Property which is bought and not occupied either via owner or tenant or declared holiday home should incur a massive wealth tax, say 50% or so. That takes capital appreciation out of the equation in terms of depending on it to make money in a property investment and puts the focus back on rental yield, big time.
Of course, this is going to screw a lot of speculators over because on average, we’re not short accommodation as witnessed by static rents over the past four or five years, so they will be left with massive tax burdens which they can’t actually rent out and will have to sell to deal with their property tax burden.
They’ll scream about that tax then too…but hey, houses are meant to be lived in, and if they can’t sell them or rent them or live in them then they shouldn’t have bought them in the first place.
This whole “holiday home” idea sounded great when prices were rocketing by 18%.Now that’s all changed the idea of owning a “holiday home” is going to leave a very sour taste in many people’s mouths.
Expect to see the purchase of these “holiday homes” plummet and the sale of them to rocket.
Also what about the poor souls with the section 23 properties, these poor “devils” are destined to watching these depreciate in value for years and years and they won’t even be able to sell them!
Oh what a fine mess.