Why the American Housing Market is Crashing

With housing being the most affordable it has been since the mid-1970’s, why are Americans choosing to rent instead of buy?

Many good things are to come by investing property, one of the best ones being the extremely high returns that can be received.

With mortgage rates at an all-time low, many areas with generally inexpensive rental properties are still proving to be more costly to live in, relative to the alternative of buying into the housing market.

The National Association of Realtors is even expecting rent costs to increase up to 5% over the upcoming years, giving any person a difficult purpose to justify renting over buying.

Caitlin McCabe suggests that part of the hardship is a “housing hangover” that was caused by the market crash of ’08. Many American homeowners are still experiencing a considerable loss while they have more to pay on their mortgages then what their home is even worth.

McCabe also did a study in which she found that less than one-third of those that lost their homes due to foreclosure plan to return to …

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A loan may be offered to vacant-home owners

In reference to Loan scheme aims to bring vacant homes into use by Paul Melia on 29 June 2017 in Independent.

A possible solution to the shortage of housing in Ireland: a local authority loan could be offered to property owners of vacant housing. This solution came about when it was heard that 80,000 vacant housing was available in high demand urban areas from the 2016 Census. About 100,000 units are vacant in non-urban areas, excluding holiday homes. Data shows Ireland’s vacancy rate is at 9 percent while UK is only at 2.5 percent.

Chairman of the Housing Agency Conor Skehan worries about the impact on Ireland’s competitiveness if the housing shortage issue is not addressed. Affordability is essential to Ireland’s competitiveness and the housing costs drives wage costs so if housing is imbalanced Ireland’s competitiveness may be in trouble.

The one stipulation of this loan is it has to be affordable housing. This could raise the issue to some houses in areas not usually affordable.

This loan, however, can be just what an owner needs to get a …

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ESRI is saying there is no housing bubble

With reference to ESRI says rapid rise in house prices does not signal new bubble by Eoin Burke-Kennedy 22 June 2017 in the Irish Times.

The Economic and Social Research Institute, ESRI, is stating that even though the housing prices and rents are rising rapidly this does not necessarily mean a new housing bubble. The official house construction may be overestimating the housing activity, according to the ESRI.

ESRI’s latest economic commentary included a section saying that even though new credit is growing in the residential market and small companies, a good credit risk assessment is still in place and seems to provide no risk.

ESRI still believes the housing prices and rent will be rising from the growing imbalance between supply and demand. The predicted the long-run housing demand to increase from 25,000 to 30,000-35,000.

The government supposedly overestimated the level of supply which may have overstated the true level of construction activity. Government estimating the housing supply at 15,000 in 2016 and ESRI at 12,700.

There is a lot of speculations of another housing bubble coming about. …

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Property Company Drops Landlords: What this means for Dublin’s rental market

Property agent Hooke & MacDonald announced Monday that it will no longer manage individual lettings because of the paperwork costs involved. The Residential Tenancies Act of 2004 has been recently amended by the Residential Tenancies Act of 2015 and the Planning and Development and Residential Tenancies Act of 2016, which extended rent pressure zones, made it harder to raise rents and increased the frequency of rent reviews and other bureaucratic procedures for private rented housing.

For a large property company like Hooke & MacDonald, the new regulations mean that managing single property lettings is no longer profitable. The company suffers from economies of scale, and only by managing entire apartment blocks and multiple lettings will it be cost efficient. For landlords renting a single property, this means not only being restricted by the regulations but also having to find a different company to represent them.

Hooke & MacDonald’s response reflects the consequences of the new regulations. In particular, regulation on rent pressure zones restrict the rise in rents …

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Q102 Drive at 5 features Irish Mortgage Brokers, Wednesday 26th April

Scott and Venetia had us on their show to discuss the property market and to go through some of the things that are affecting it.

They also found out how much he paid for his last haircut and a few other unusual things that you don’t normally hear on radio!

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RTE Sean O’Rourke speaks to Irish Mortgage Brokers

Sean O’Rourke had Karl Deeter on his ‘Today’ show to discuss planning laws and how a change in them could result in up to 4,000 additional Dublin City homes at a very low financial cost.

The idea was to reduce the regulatory burden and inefficiency of planning, and (in Karl’s opinion) to also consider some reductions in the standards because applying modern standards to old buildings is like applying modern car safety rules to old cars.

The clip is a good debate showing the good and bad facets of this argument.

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Fianna Fail, the unsung heroes of landlords

Without realizing it, Fianna Fail are helping the property owners, developers and landlords that (at least by reputation) they were associated with in times past, that they are doing it while trying to help tenants is the funny part.

There are 150,000 tenancies in Dublin and Cork that will be affected by the new rent control regulations, but we have to remember the timing of this because December 2016 is a key month for rent reviews and the start of January is also a fairly active month in lettings.

When Alan Kelly changed the rules in late 2015 it meant a lot of (2014 and before) tenants got a passover of a rent review because landlords didn’t have the time to serve notice, new rents also then started to spike as landlords priced in two years of increases upfront.

This means that for many tenants the two year anniversary is up this month. Landlords have to give notice of an increase but the new price kicks in from month 25 (January).

By delaying the current legislation it means that the …

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TodayFM: The last Word features Irish Mortgage Brokers

Matt Cooper had Irish Mortgage Brokers on ‘The Last Word’ to discuss some changes announced by Simon Coveney regarding rent controls in Dublin and Cork.

The piece focused on some of the issues at hand with a commentator from the Dublin Tenants Association also taking part.

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Vultures are a key part of our housing recovery

When we hear talk of ‘vultures’ and ‘vulture funds’ it’s usually in highly negative overtones. That’s why the name-calling exists in the first place, the idea is to imply you have these groups that feed off the dead bodies of an innocent party.

Put this aside and realize that even if a company does feed off the assets of a failed one, that it doesn’t mean the firm that failed was somehow an innocent bystander. Usually they lost their market share and assets as a result of their own decisions and by definition a liquidator would sell these on to somebody.

Whether that ‘somebody’ is a person, fund or regular company hardly matters. What does matter is that we have a housing crisis and that these same ‘vultures’ will likely be delivering about 75% or more of private new housing in Dublin where the problems are most pronounced.

Take a look at some of the numbers in new developments: * Lone Star own 600 acres of land in Dublin with the potential for 7,000 homes: in Adamstown, where it has …

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