The Housing Markets most Pressing Issue

Ireland’s “most pressing issue”…

The lack of housing.

Economist Philip O’Sullivan is reported as saying that tens of thousands more houses need to be completed annually to meet current demand. Why is it that there’s such a shortage of homes?

It is on schedule right now that 21,500 homes were built this year and 24,000 for next year. Though, a good number in the race to meet demand needs, it is nothing near the needed 30-50,000 homes being built to sufficiently meet the demand.

The society of chartered survey of Ireland has predicted that this housing crisis could continue for another 10 years. Paul O’donoghue, a writer for Fora sad that drastic measures need to be taken immediately to push for the development of homes.

With too little of homes available to meet demand, it is the law of supply and demand that says the price of the homes will increase as well. Equilibrium is expected to be reached by 2026.

This, falling in line with the prediction of the housing crisis to continue for nearly …

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Warnings on Capital Gain Tax Exemptions

Recent emails obtained under Freedom of Information by Pearse Doherty, Sinn Fein’s Finance spokesman, revealed concerns the Revenue Commission has regarding the Department of Finance’s capital gain tax exemptions introduced in last year’s bill.

 

Revenue has warned the Department of finance that it’s tax exemption measures could cause property fund to hoard and sit on its properties instead of selling them, restricting supply and causing difficulties in the housing market.

 

The five year capital gains tax exemption applied to funds that invest in property for capital gain. It was implemented to encourage these funds to purchase and develop more land to boost housing supply in the market. The tax exemption allows the funds to be avoid any tax charged on the profit made when selling an asset during a five year period.

 

The problem is that due to the tax exemption, property funds are less likely to sell their assets before the five year term ends even through there is a …

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