RTE: Sean O’Rourke Show, hard to help the homeless 8th May 2018

We were asked to speak on the Sean O’Rourke show about one landlords experience and how the experience left them feeling very negative towards the local authority.

We would believe that in order to remedy our housing crisis, in particular the homelessness element of it, that state power must to work as positively as possible with all of those who are involved including landlords. Serving a notice of a €5,000 fine and threats of prison for minor infractions is not part of how that comes about.

Dublin City Council have turned the landlord in question diametrically against helping more people in homelessness in the future. If this pattern of behaviour is repeated again and again across the city it is no wonder that helping people out of homelessness has become such a slow process.

Read More

Generation Rent? Try generation Broke

It bothers me when people promote long-term renting as a better choice than home ownership because it belies some basic facts.

When I was studying accounting, I was taught to be accurate. When I was learning about financial advice, I was taught to be prudent. Yet both of these concerns are often cast aside when debating the benefits of buying versus renting.

Nationally we are at an important juncture. It’s acknowledged that huge numbers of people won’t be able to afford to buy a home. If this proves to be true, many will also be locked out of one of life’s most wealth-creating activities.

The first problem is the nature of the comparison. If rent is €1,300 a month and a mortgage costs €1,500, then it’s cheaper to rent, right? Well . . . no it isn’t. The outlay is less, but the actual cost of the provision of occupancy is the rent versus the interest portion of the mortgage, not the entire payment. I will explain that point.

People often say rent is dead money. To be fair, so …

Read More

Claire Byrne show, 23rd May 2016

This clip is a good insight into the many facets of the housing debate when looking at the ‘crisis’ end of the spectrum. It raised some interesting issues and commentary. One thing we want to state is that there was an implication that if a fund bought your mortgage that you might be able to get thrown out rapidly, we should state clearly that this simply isn’t the case and is likely a misinterpretation of fact than a stance which is there to deliberately mislead.

Read More

Newstalk 106: Pat Kenny talks to Irish Mortgage Brokers

The Pat Kenny show on Newstalk 106FM had Karl Deeter of Irish Mortgage Brokers and Carol Tallon of BuyersBrokers on to discuss the property market in 2016 and to consider some of the things that were happening as well as why certain problems seem to persist.

It was an interesting segment and one that highlighted things such as problems of dereliction.

Read More

Joan Burton made a housing issue worse

About four years ago many landlords were receiving letters which stated that rent supplement was going down, this was occurring irrespective of what point in your rental contract you were at. This was at the behest of Joan Burton, the issue of rent supplement was later divested because it was later to be taken over by DECLG.

The genesis of the current issues with much of this rest with Labour and Joan in particular, this isn’t pointed out in the press, but the people affected know it, which is why her name almost always appears on their placards (see image to the left for a recent example)

At the time tenants were getting a letter that stated ‘Rent limits were reduced on the 1/1/12. The new rent limits for a family of your size is now (whatever the price was). Can you ask your landlord to reduce your rent and fill in section 13 to reflect the reduction‘.

This was a unilateral move, and one that paid no attention to the …

Read More

Should we consider scrapping any gains tax on sites temporarily?

If we are to look at housing (at least in Dublin) as being of a crisis nature then perhaps we should consider some bold moves that might bring land into play that otherwise wouldn’t make it.

The talk of a site tax is a good idea, it was the tax we were meant to get from the beginning before the government reneged on their stance for it. This will help create a ‘use it or lose it’ aspect to land holding. The second trick is to encourage movement.

Scrapping the 80% windfall tax would be a start, but most of the site with planning don’t fall into that category, so perhaps scrapping Capital Gains Tax on any site sold (with planning) in 2014 would be a start. The reason for this, and the issue it intends to resolve, is that many sites have insolvent owners, or people too highly leveraged to make the site viable.

Getting rid of the 33% tax (which is harsher than it used to be because the tax …

Read More

Bad incentives created the housing crisis

This is a fascinating video that clearly points out some of the myths surrounding the housing bubble in the USA, describing the role that Federal Reserve policy played in creating the bubble, they created a set of incentives which were badly aligned with long term aims. We have long felt that the role of monetary policy and regulation have been central to the problems in both the US and Europe, the full video of the conference is below.

Read More