House price rises needed to ease homes shortage: Nama chief

House price rises needed to ease homes shortage: Nama chief - Sarah McCabe → independent.ie/business/pers … 02178.html

And there you have it, if ever there was an article that states ‘the game is rigged to squeezs more tax out of every brick an to hell with doing the right thing’ this is it.
What was the overall tax take per property during the celtic pussy 47% or 57% and what is it now? Jay*** H, I despair of this place.

What normally happens is that the banks repossess and sell property in arrears.
The market shoots down, until this stock clears.
Only after, does the market recover.
But at least it is on firm ground where demand equals genuine supply.

His admission regarding market manipulation outlines the achilles heel of this ‘recovery’, along with the entire raison d’etre of NAMA.
Artificially restricting supply in an effort to force prices up and promote construction whilst ignoring the arrears inventory.

I have mentioned this numerous times here, were I a builder, it is not prices which provide most concern, but the build-up of unsold inventory from the sidelines.

Words cannot describe how angry I feel after reading that article. So NAMA builders cannot make a profit on building when 2006 site costs are included? So the solution is to call in the loans, enforce your security and bring in real builders eg plc’s from the UK to develop the sites. Any upside goes back to the tax payer and the home buyer pays a fair price. Everyone is a winner except for the cowboy builder. Oh wait, that wouldn’t be right, would it? XX

The average new build property price in the North of England was 157k (€195k) in 2012.

lloydsbankinggroup.com/globa … prices.pdf

That comprised: Terraced (27%), Semi Detached (25%), Detached (30%), Flats (18%), and obviously includes land and construction costs, fees, levies, taxes etc.

From the Daft Q2 2014 Sale Report, the unweighted average of 3-bed semi-D asking prices across Dublin is €304k, and for 2-bed terraced in €207k.

So despite having plenty of land available around Dublin (see Google maps satellite view), and (presumably) significant labour market slack in the construction industry, we’ve still managed to produce housing more expensively that our nearest neighbour (culturally , economically and geographically) despite them still being in the grip of a decades-long housing boom founded on extreme land use restrictions and a psychotic attachment to owning piles of bricks.

It’s impossible to escape the conclusion that the “prices are too low to support new construction” meme is (even if true) not some factor of inescapable costs intrinsic to the process of building new houses, but a set of conditions deliberately engineered and sustained by the government and state agencies.

Hello, I’d like to buy some land.
To build a house?
Yes, to build a house.
Well I’m sorry sorry there’s none of that left. All we can offer is a small parcel of cloud cuckoo land.
Why do you call it cuckoo land?
Because we need it to cuckoo the books.

Was there any mention in the article about reducing build costs ? :angry:

Even a whisper about the 13.5% VAT ?

It’s almost as if construction isn’t about building homes, but of tax revenue generation.

Speechless reading this, as if we needed to be kicked when down. This article epitomises this dis-ingeniousness that plaques the nation. This will end very badly and those who made money from it and benefited the most (the political class and their rodent cabal) will be long gone when the Ponzi comes tumbling to its inevitable and sorry conclusion. A slow motion tragedy :frowning:

SBP reports up to 1600 BTL repossessed houses and apartments coming to market courtesy of AIB and BOI.
Not to mention all the section 23 tax relief properties that are expiring, amateur BTL will want to exit the market since the rental return is no longer there for most and all those interest only mortgages have to be repaid.

Yup, saw that.
Tiz the beginning.
Loads more to come.

Assuming these properties do actually make it to the market, would most not be from outside Dublin (hence having little impact on Dublin prices)?

NAMA doesn’t want to go gently into that good night.

independent.ie/irish-news/ne … 02918.html

Taking the three common categories from Payscale.com and using 1.26 as the exchange rate:

UK/Ireland
Carpenter: €13.95/€15.38
Construction Laborer: €9.95/€9.83
Construction Foreman: €16.42/€16.62

Not substantially different. Haven’t done regional comparison.

I’ll give FG this, they did what took FF over a decade to do in less time. The Hall of Infamy is going to need a new wing.

would the chief of NAMA care to elaborate how anyone is going to be able to pay for these over-priced semi-ds of the future? Utterly sick of hearing how developers can’t afford to build. It’s time for a debate on wages, affordability and house prices. The average wage here does not support the the current rate of housing price inflation or current rent levels either.

On the MF radio show earlier, a studio guest said that if you wanted to build a single house in Dublin right now, then there’s 1 of the local authorities that require 54k in development fees upfront before a shovel hits the ground.

So compare labourers,carpenters etc all you want to the countries around us…it’s the Govt whats screwing the us both in building costs, and then through keeping selling prices (and indeed supply) at inflated levels

Limerick City fees

Looks like fees of a few grand.

Where €54k comes from is anybody’s guess.

If I recall correctly 40% of the cost of a new build is paid to the government in taxes/charges.

True, but that includes payroll taxes and vat on materials etc.
The lad on the radio was very adamant about the 54k up front payment before work could start on any build…must be Dublin Corp he was referring to as surely the likes of Fingal aren’t charging that for 1-off builds in north county Dublin

What is that as a % of the total number of mortgages where not a penny has been paid in the last 2 years?