12 people become property millionaires each week

On average, a dozen people each week becomes property millionaires in Ireland. There are currently around 4,000 homeowners with property worth more than €1 million, and the rates at which new million euro homes are listed and sold are increasing rapidly.

 

Across the country, house prices have increased by 9.4% in the past year, and 40% in the past five years, turning many homeowners into property millionaires. While the average property value is currently around €230,000 and the average value in Dublin is around €350,000, many districts and counties have average values of 700,000 or more.

 

Sandycove in Dublin has an average property value of close to €800,000. An even more expensive street is Herbert Park in Dublin, where five homes have sold for more than €3 million in the past 2 years. A quick search on myhome.ie will reveal that around Dublin’s Ranelgh area, a couple houses are listed at more than €5 million. Other areas with the most expensive home prices include Foxrock and …

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The most expensive places to buy in Ireland

The most expensive property sold in 2017?

€8.4 million was paid for a house in Fintragh of Shrewsbury Road according to the Daft.ie. Five streets have had transactions of €3 million or more in the last 18 months: Shrewsbury Road, Ailesbury Road, Temple Gardens, off of Palmerston Road in Dublin and Westminster Road in Foxrock.

Only one percent of all homes in Ireland are worth €1 million and over according to the Property Price Register.

Highest number of over a million home transactions is Herbert Park in Ballsbridge.

Total spent on housing since 2016?

€800 million was spend on housing alone since 2016 according to the Property Price Register. That averages around €12 million every week paid for in housing. The average price for a house the first quarter of 2017 was €230,000.

Ten years ago, however, the average home was worth around €370,000. After the crash, the average price of a home was around €165,000 five years ago.

Total of all Ireland’s Property worth?

If you would combine all the valuations of all the properties in Ireland it will …

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An increase of housing demand for millennials in the US

Real estate is on millennials to do list despite the stalled wage growth and housing market fears in the United States.

The National Association of Realtors show that the amount of first-time home buyers increased 3 percent year-over-year. They made up of 33 percent of the home mortgage market in May.

First-time home buyers can be categorized as someone who has not owned a home in the past three years.

Fannie Mae statistics shows that first-time home buyers make up of 42 percent of all home mortgages from January to April which is up 2 percent from 2016.

As interest amongst the millennials is rising in home buying, whether or not that will be a good idea is at question. The Federal Reserve just raised their interest rates which will affect the millennials in search for a …

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A construction agency has seen a boom in business since the Help-to-Buy scheme

Abbey, a property developer, has high hopes for the Irish housing market.

They are seeing huge gains as the house prices keep increasing. They are especially reaping the benefits from the Help-to-Buy scheme. That’s why they are against the review of the scheme.

The intention of the Help-to-Buy scheme was to encourage first-time buyers and to speed up new supply of houses. It can give first-time buyers up to €20,000 in tax rebates. The scheme, instead, has apparently increased home values than raise supply of new homes. This has raised concern for the Minister for Housing, Eoghan Murphy, which brought up the review of the scheme.

 

The Central Statistics Office published on Tuesday that the Irish housing prices went up by 11.9 percent in May from the previous 12 months, driven by a 12.8 percent increase outside of Dublin.

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Rate of expansion in construction activity slowed in June

In June, the rate of expansion in construction activity slowed in Ireland. The civil engineering division had a slight decrease while the housing and commercial divisions remained strong.

The latest Ulster Bank Construction Purchasing Managers’ Index (PMI) showed construction activity went from 63.6 percent in May down to 58.2 percent in June. However, if it is above 50 percent then that means the sector is growing.

Housing activity sector of the index went from 69.2 percent in May to 59.5 percent in June. Commercial activity reads at 60.8 percent in June from 65.2 percent in May. Civil engineering dropping from 51.8 percent in May to 48.4 percent in June.

Despite the sector growing, it still has not hit the target level of 25,000 new housing units every year, according to the Economic and Social Research Institute. Last year, the Department of Housing estimated a total of …

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Mortgage lending gets tougher in Canada

The Canadian housing market has been growing rapidly in the past few years. Currently, many experts fear that home in cities like Toronto and Montreal are greatly overvalued, a reflection on the general instability in the Canadian economy. While Bank of Canada has yet to announce its well anticipated interest rate hike that will curb the rapidly rising house prices, lenders have already begun tightening lending rules and raising mortgage rates.

 

Early this month, major lenders Bank of Montreal, CIBC and Royal Bank of Canada have all raised rates on various types of fixed rate mortgages. Both Bank of Montreal and Royal Bank of Canada raised mortgage rates by 0.2% and rates at CIBC raised by 0.05%. The higher rates of lending is thought to precede Bank of Canada’s anticipated rate hike, which may come as soon as tomorrow.

 

Accompanying the higher mortgage rates is a series of other lending restrictions put in place by Canada’s banking regulator, The Office of the Superintendent of Financial Institutions …

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Dublin puts blame on Airbnb… again

The new protocol is whatever the issue is blame it on Airbnb.

Airbnb is being blamed for causing the housing crisis in Dublin. Critics are saying that the up and coming ‘hip’ way to travel site is causing apartments and houses that would be long-term let into short-time let. The site apparently contributing to Ireland’s housing shortage by taking housing off the market.

Policymakers and businesses has started a trend worldwide of blaming this short-term rental site for economic and societal problems with little evidence to back it up, claims Mark Paul from the Irish Times.

Ireland is not the only blaming Airbnb, New York has hotels (Airbnb’s competition) lobbying politicians left and right. Italy accused Airbnb of turning the country into a theme park.

Such problems are linked to issues in Venice from Airbnb, supposedly. With landlords making more money in a week from travelers compared to long-term lets in a month; therefore, the landlords are increasingly turning their properties into Airbnb listings. Venice being such a small city, there is not many places to rent in the first …

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Housing Prices push up living wage

The Living Wage Technical Group, an organization that annually calculates the wage required to support an acceptable standard of living in Ireland, recently published it’s 2017 report, listing the living wage as €11.70 an hour. This new rate is €0.20 higher than the previous rate and €2.45 higher than the actual minimum wage in Ireland.

 

The Living Wage Group defines the living wage as a rate that “provides employees with sufficient income to achieve an agreed acceptable minimum standard of living”. It is calculated to account for the price of various necessities such as clothing, food, housing, healthcare, and education. Out of these factors, many experts have attributed rising housing prices as the main reasons behind the need for higher wages.

 

In its 2017 report, the Living Wage Group supported this reasoning and published that “the current housing crisis, and associated increases in rent levels, has been the main driver of the increased wage rate”. The average house price in Ireland has risen 11.2% over the past year, with areas such as Dublin seeing even greater increases in …

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Generation X still suffering the consequences of the housing crash

A mortgage lender offers 100 percent mortgage and a little extra for furnishing the home, why not take it? This before the housing crash seemed like a fool-proof idea. House prices were continuously rising and real estate looked like a safe investment.

Then the housing market crashed. House prices dramatically dropped while unemployment rate was rising. Suddenly Generation X now has negative equity on a home. They’re owing more on a home than it’s actually worth. What do you do?

Generation Xers, classified being born between 1965 through 1984, had a majority out of a job or have had a huge pay cut and having negative equity on a home. Massive tax cuts and the expense of childcare has taken over the disposable income.

Living in a generation of spending culture, during the time of economic growth they did not think to save for retirement. Now …

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Eoghan Murphy wanting to expand mortgage-to-rent

Minister for Housing wants to decrease rules on mortgage-to-rent (MTR) scheme to help expand the programme. Relaxing the criteria will dramatically increase the number of MTR homes.

The goal of the scheme to allow an option for people who can’t qualify for social housing.

How it works?

A group of investors will buy trouble mortgages and will let the houses to the tenants as a form of social housing.

The aim of the programme was to aid around 250 homes a year. Currently, the statistics have shown that from 2012 to the end of March only 240 have went through the programme. This is out of 3,672 applications submitted.

The reason?

This scheme can take up to an 18 month turnaround which is too long for a lot of investors.

To help out the scheme currently, a homeowner can surrender their home to the lender which goes to the Housing Agency. They can offer them an approved housing bodies (AHBs). Then AHBs buys the home and lets it to the borrower as social housing.

The revised version of MTR.

It …

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