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 ability to create a social dependent society. In this case, people are trying to fix a problem, but inherently making everyone else worse off in the long run. Another problem is the 3.5 multiplier that the banks use to determine how much money can be loaned. This is hurting people who have the ability to set aside more of their income for housing but cannot due to this lending multiplier.

Tax breaks for construction workers that are moving to Ireland for work would be a great incentive. Part of the problem with the slow deliveries of houses compared to the growing population is that there are not enough construction workers available. This would be a great incentive to draw construction workers to Ireland if a tax break was offered thus decreasing the demand for housing and subsequently stabilizing prices as well.

Taoiseach Leo Varadkar is a strong supporter of home ownership and believes that it provides a more stable long-term lifestyle. However, owning a home has become increasingly harder in recent years and delivering affordable homes should be at the top of the to do list. That is why the rental option has become very attractive for different classes of people.

There are just as many great opportunities as there are disasters that can arise from different housing plans. Research and time need to be spent by the government and third-party organizations deciding what strategies will have the best long-term effect on Ireland. Until then, many debates are arguments will continue.

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