Mm Capital propose building university dorm copycat in Dublin 1

With housing options becoming more and more difficult to secure for an affordable price in Dublin, many people wonder when the ever-expanding city will reach maximum capacity. With the thought of growth being stagnated by the availability of homes or apartments at a reasonable price point on the brain, Mm Capital began looking for answers. 

In partnership with international shared residential operator SQRE Living, Mm Capital composed and submitted a building proposal that would allow them to build a 132-bed co-living development on a 5000 square meter plot. This residential building would be located at 39-42 Hill Street in Dublin 1. 

Although this sounds to be an outrageous propositions, students all across Europe and the United States live in these type of conditions for 2-4 years of their lives while attending university. Many of the dorms strewn across campuses can house hundreds of students easily and effectively. 

This real estate investment and development firm has also mentioned many different styles of living that would be available. Around 75pc of the 132 rooms would be 19 square meters, while the other …

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New rent laws

Holiday homeowners must now have planning permission to rent out their property to tourists or stays ip to two weeks. This new rule are in effect as the start of July, 2019. The new rental law only applies to properties in a rent-pressure zone (RPZ). An RPZ is a zone where rent is typically above the national average.

This summer could mark the last summer that holiday home owners in the RPZs will be able to rent out their properties to tourists. Property owners will be breaking the rules if they continue to rent their homes out to tourists unless they are granted the planning permission to do so. Failing to get planning permission for renting to tourist can result in fines up to  €5,000 or six months of imprisonment – or both.

Homes that are not effected by the rental restrictions can be defined as homes which were purposely designed, constructed and approved to be dedicated to tourism accommodation.

According to Jacinta Doolan, the founder of Trident Holiday Homes, about 80% of holiday homes throughout Ireland do not have planning …

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Inflation Rates Return to Normal

 

The current housing prices in Dublin have been talked about extensively recently. The newest trend shows that housing prices have reached peak affordability and now some of the wealthy classes of people are having trouble affording homes. Current house prices in Dublin are more than nine times the average salary making them unattainable for the majority of people because mortgages can only be 3.5 times your salary. Additionally, these numbers have not been seen since the Celtic Tiger Era, however, the central bank has been more careful this time and increased borrowing rules unlike during the Celtic Tiger Era. Prices are now beginning to slow down because simply nobody is able to afford them.

Inflation has also cooled off recently with a decrease from 12.4% last May to 2.8% a year later. Dublin has seen a significantly smaller inflation rate with an increase of prices from the current year to May of .6%.

The region of Dublin had the highest median price of 366,000 Euros which is just over 9 times more than its average salary of 40,000 Euros. …

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Institutional Investors not to Blame

Institutional investors have commonly been credited with causing the rise in property prices. However, stockbroker Davy, claims otherwise and says they are not to blame. The report by Davy credits the inflation in house prices to be caused by the Bank of Ireland’s strict mortgage-lending rules. The pressure on the housing market has caused many people to become interested in the rental market causing pressure there too and a 7% rise in rentals.

Institutional investment has been rising exponentially in Ireland. It has grown in sales to a total of 1.1 billion Euros in 2018 up 200 million Euros from the previous year. These figures may seem high, but only account for 30% of total property investments in 2018 and do not have a big enough impact on the market to make a tremendous impact. Additionally, most of those investment occurred in Dublin where the top 25 transactions account for 2,370 units worth 954 million Euros in 2018.

Davy analyst Conall Mac Coille commented, “People have, however, confused the chicken with the egg,” and “Institutional investors have been attracted here …

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Both Political Parties are Pointing Fingers

The Increase of difficulty in attaining mortgages coupled with rising home prices has caused Ireland to have the lowest rate of home ownership in 50 years. The main group affected is young people looking to buy their first home who do not have enough money saved up to meet the 10% deposit required to attain a mortgage. Additionally, Fianna Fáil Leader Micheál Martin stated, “a litany of failures,” when discussing how the increase of homeless children falls on the current government’s policies. Mr. Martin discussed how Ireland used to be one of the highest home ownership rates in the EU to now one of the lowest at 68%.

The government may be too complacent with policy or foreign multinational corporations are bringing in a lot of short-term employees who are looking for renting, but something needs to be done to increase home ownership following this statistic. Owning a home provides long-term equity to people in a form other than cash that can be a safety net in times of trouble. Additionally, having to pay rent during retirement years can cause …

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Affordable Rental Properties are Hard to Come by

Rental properties have provided the people of Ireland different options when it comes to living situations. People that cannot secure mortgages for various reasons and therefore are unable to buy a home look into the rental market.

A new Simon Communities Study has found that over 90% of homes available for rent within Ireland are not affordable for people with state housing benefits. The study indicates that the government needs to monitor and strictly enforce rent pressure zones, including the 19 new zones announced today.

The most recent publication of the Locked Out of the Market report found that approximately 8% of properties available on the market to rent were within the housing assistance payment limits. That percentage is drastically smaller compared to the percentage of the population that is using housing assistant payments.

The study found some alarming information that the government needs to take under consideration. Only one property was found available to rent within the Rent Supplement or HAP limits across all of the study areas for a single person. Additionally, only two unites were available within …

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Renting vs. Buying

A current issue revolving around Irish news is whether to increase the supply of rental or property ownership. It is well known that there is a shortage in properties available, but just trying to produce as many properties as possible is not the solution. Careful review of the issue needs to take place by the government and necessary legislation would follow. Some factors to consider include; land zoning, shared ownership purchase models, tax breaks for EU nationals arriving for construction work, reduced CGT for empty sites, tax reduction for citizens downsizing, and help-to-buy schemes.

First time home buyers are having trouble purchasing homes due to the increasing purchase prices. It is universally agreed upon that more properties need to be available. According to an independent article, 2500 houses that were built in the first three months have not been sold yet. In addition, this is driving up decisions. That coupled with difficult mortgage banking is challenging middle- and lower-class citizens to find accommodation. These statements emphasize the lack of availability and ease for purchasing affordable housing.

Build-to-rent schemes have the …

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Is Long-Term Renting Sustainable?

Lifelong renting is becoming increasingly popular within Ireland’s largest cities. Influential Cork developer, Michael O’Flynn, talked about instances when he heard of people suggesting that up to 50% of houses should be rented. O’Flynn heavily disagrees with this statement and suggests that ideas such as economic and pension polices should be reviewed.

O’Flynn most recently addressed this issue during his discussion at the Institute of Professional Auctioneers and Valuers (IPAV). He set out to prove that retirees could not sustain a long period of renting properties and instead should have a house paid off to retire in. He asked the audience, “There are currently five workers for every pensioner, but the projection is for this to drop to two workers for every retiree by 2050. Have we considered how that will impact on pension income?” The renting model is not affordable for many classes of people and can cause severe economic troubles down the road when savings begin to dry up. Renting can be a great alternative for people moving to new areas or students and young adults in the …

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Single Parents and Migrants at Greatest Risk for Homelessness According to New Report

If you identify as either a lone parent, migrant, or a member of a traveling community then you are at greater risk of homelessness according to Focus Ireland. Focus Ireland conducted a report examining the drivers of family homelessness in Dublin. The overarching idea was many families are being evicted from private rental properties and unable to find another place to live causing homelessness. Many of these families have a long history with residing in the same apartment and should not be threatened with homelessness due to the rising property prices and shortage of availability.

Mike Allen, Director of Advocacy at Focus Ireland, appeared on RTÉ’s Morning Ireland to discuss his companies recent report. He was quoted saying, “the vast majority of the families surveyed had been living in the private rental sector without any problem until the crisis came along.”  Mike Allen has witnessed an increase in many property owners exiting the rental market especially those that are offering more affordable properties to rent. This is one of the many reasons contributing to the growing numbers of homelessness in …

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Dart and Luas location spikes home prices

Location has always played a substantial role in the pricing of property, especially in major cities. Comparing prices of rent or total purchasing price of business, commercial and residential properties, it seems that this is a common trend across the world.

In Dublin, this also reigns true. New research from Daft.ie has shown that if you are a renter located near the Dart or Luas, your rent can be up to 12% higher than that of those a bit further from these modes of transportation, with Luas red line stops topping the charts. Rent in Dublin has averaged €2,000 per month in 2019, while more conveniently located renters paid a premium of up to €3,500 per month.

On the coast, there is also an influx in prices due to its prime location from some of Dublin’s quickest modes of transportation. This is not unwarranted though, given that the Luas and Dart decrease travel time significantly. Time is very valuable, especially for commuters into or a bit outside of the city.

As a student at UCD this summer, …

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