Newstalk 106: Rents are out of control, 23rd August 2016

Tara Duggan was presenting the ‘Right Hook’ and spoke to Karl Deeter of Irish Mortgage Brokers and Margaret McCormick of the Irish Property Owners Association about the issues around rents as news came out that they had reached boomtime levels.

The topics covered also reached into areas of taxation and new supply as well as the issues that currently exist due to past failures such as the ineffective rent control measures brought out in late 2015.

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McWilliams vs Murgatroyd

Why have a two handed economist when you can have two one handed economists? (my jokes deteriorate in quality by the day)

Today there are two very different opinions on the property outlook in Ireland from two very different commentators, first up is David McWilliams who wrote a piece in today’s Independent, where he says the nation is a ‘Bankocracy‘ and that property prices have much further to fall – to the tune of a further 45% according to his figures (saying that current avg. prices are €250k and they should be c. €135k). He implores people to look at the fundamentals of the market and price via yields [disclosure: we support his valuation approach, it was the basis of our investor reports].

McWilliams is probably right, the market is not at the bottom, having said that, there is no metric which can gauge bottoms, even in stock analysis you can use Fibonacci numbers or Bollinger’s to look for trends or turning points, but there is no …

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Fast Track Repossessions, what does it mean?

There has been an interesting development in the area of repossessions in recent weeks in which a property can be taken back (repossessed) without a full court procedure having taken place. Today we will consider how this will work.

First of all, there are several things which tie in together in 2009 and they form part of reason behind the new ruling. The use of circuit courts to repossess a home used to be commonplace because the decision was set in a court depending on the ‘rateable value’, but the domestic rates system was discontinued in 1978, thus, the hearings started to default into the higher echelons of judicial decision making and today the common court for repossession hearings is the High Court.

The new rule means that a Registrar will decide what is seen or not by the court and a side effect of this is that a house can be repossessed without actually going before a judge. It is important to note that a registrar is not merely a …

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Housing dysfunction

There are some who are saying that there are amazing deals to be found in the current market and if you consider price only then you may be tempted to believe this. Yields could also present a strong argument for property investment if yields stay at historic levels, however yields are likely to fall in 2009 and will remain stagnant until at least 2011/12 for several reasons which we will outline, we will also look at some of the current dysfunction in the market by examining a few types of sellers and how their personal situations express themselves in their selling behaviour.

The first group bought in the last days of the boom, they likely used minimal deposits (or even 100% finance) in order to purchase and they are in deep negative equity, they are now no longer on fixed rates – which tended to be 1/2/3yr fixed- and may have moved into the variable market which revises their payments upwards. One can be forgiven for thinking they may be a ‘distressed seller’ – the distress …

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