Should we enforce more regulations for the housing market?

In reference to Michael O’Flynn backs tax on those hoarding development land by

Ciarán Hancock on June 21, 2017 in the Irish Times.

Michael O’Flynn, a property developer, gives support to a tax to those who are hoarding land and waiting until the housing prices increase. This tax has to be carefully composed in order to avoid taxing those who can’t build because of issues surrounding planning, lack of infrastructure, or zoning. This would be difficult to police and enforce due to fraud or proof of these issues.

O’Flynn also suggested the government to create a government separate entity to help coordinate the planning and zoning issues as well as manage infrastructure spending. This is so the two processes can better work together and help combat the housing issue.

If the government will reduce the VAT 4.5% from 13.5% to 9%, Michael O’Flynn …

Read More

Newstalk ‘The Right Hook’, Jonathan Healy speaks to Karl Deeter

We were speaking to Jonathan Healy who was covering for George Hook on ‘The Right Hook’ about the ‘home renovation initiative’ which is set to end at the end of 2016. We covered some of the general terms and conditions of how it worked then went on to analyse whether it was a good idea or not given the various happenings everywhere else in the market.

Read More

Irish Times article by John McCartney, Lorcan Sirr & Karl Deeter

The Irish Times carried an article by John McCartney (Savills), Lorcan Sirr (DIT Bolton St) and Karl Deeter (Irish Mortgage Brokers) about the issues surrounding a shift away from a home ownership model.

Our point isn’t that there is a definitive ‘right or wrong’ way to provide housing, obviously our market has massive issues at present, but the larger question is the long run effects and how a lack of household savings can turn a property crisis into a pension crisis of sorts.

That is why we need to find new solutions for more than just housing.

Read More

Irish Examiner quotes Irish Mortgage Brokers on planning

The Irish Planning Institute held their national convention in Athlone and we were pleased to see one of our own as one of the opening speakers at it. The points raised about planning, housing, and the importance of household wealth were received well by the audience which was about 300 strong and made up of the key players in planning throughout Ireland.

Claire O’Sullivan of The Irish Examiner followed up with a good piece on the conference and quoted Karl Deeter extensively, the excerpts from the article are below.

The Government should consider removing the rights of people to object to proposed developments as it is hugely costly, causes delays, and is not necessary, the Irish Planning Institute’s annual conference heard.

A compliance manager with the Irish Mortgage Brokers Association, Karl Deeter, said instead there should be greater trust in the ability of planners and the local authority.

He said a “third party right to object” did not exist in many countries as the planning departments and local authority are expected to make the correct decision.

“The role …

Read More

Newstalk: Talking Point on housing, Saturday 9th April 2016

This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.

Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.

 

Read More

VAT cuts in construction, who would get the benefit and why?

VAT is an end user tax, the ‘cost’ to businesses is zero. That fact is often overlooked in all debates about VAT, a business has input and output VAT, if they take in more than they charge they send the balance to Revenue, if they pay out more than they take in they are in a refund situation.

So why would dropping the VAT rate make any difference at all if the cost to the business doesn’t change as a result of it?

The normal implication is that the end user would benefit because you would have a ‘cost plus’ that would result in a lower end price, which intuitively makes sense until you consider the other issue of bottom up costs and obvious capacity for additional profit taking.

What that means is there are bottom up costs like various levies, regulations, and carry costs that make the break even point higher than it might naturally be, certainly higher than it ought to be if you go by international standards. If current costs are above break even a lower VAT …

Read More

Pay to go where? Why the elderly stay where they stay and how to keep everybody happy.

We lament that older people under-occupy homes, the older people probably aren’t so upset or they wouldn’t do it. They have reasons for this, a common one being that a large home is like keeping an ‘option’ open for visitors (often their adult siblings with grandchildren), or that they can’t find something else in the same location which they would like.

Is there a way to encourage older people to downsize, make it financially rewarding and at the same time resolve some of their concerns about where they live and why? The ‘way’ we’d suggest would be to use the most practical solutions available that tick the most boxes.

The first thing is to accept that older people may live in an area and want to stay there, so asking them to up and leave isn’t fair or going to work. The second consideration is if very high taxes would give a ‘nudge’ (the answer is yes but it’s a brutal way of doing it). The third issue is taxation and the fourth is a general issue with building supply …

Read More

One Big Switch findings on mortgage holders

There was an interesting infographic out today from One Big Switch showing what people have done in order to make their mortgage repayments.

It ranged from working extra hours, to taking fewer holidays and socializing less. What is interesting about this, is that nobody tends to look at the wider economy effects of high mortgage rates, and the Central Bank while saying they want to examine them, cannot and will not do anything about it.

Higher rates act like an informal ‘tax’, and as some banks are foreign owned it means taking income out of the Irish economy and funnelling it elsewhere, this affects our balance of trade and was a reason we always questioned the Patrick Honohan diktat of not having an issue if all banks were foreign owned.

This informal tax reduces expenditure in the productive economy and goes towards rationalizing zombie balance sheets, so lower rates should be a priority for everybody, but the way to get there isn’t force, it’s competition and for that reason we are hopeful that the switching campaign will be a successful …

Read More