Property Tax: We need to talk about sticks.

People often discuss economic incentives in terms of ‘sticks’ and ‘carrots’, it’s an adage that refers to getting a donkey to work, you use a carrot to entice it forward or a stick to give a more coercive physical encouragement.

When it comes to property tax the rules in Ireland are damn near shambolic. Our property tax rates are some of the lowest in Europe, for that reason under-occupancy reigns supreme and nobody has to pay the price for it other than those who are on the outside looking to get in (ie: mostly renters).

We have a tendency to under use property, this isn’t just well to do older people living in big houses on their own, it happens in low-income homes too, to an extent that you just don’t see in almost any other well run European country, in fact, elsewhere almost the opposite is true. (see the table below).

In fact, when it comes to people in the lowest quintile of income, we are exceptional because many of them own their own homes outright, this is …

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RTE 1: Claire Byrne Live features Irish Mortgage Brokers, 17th September 2018

We took part in a panel discussion about the ‘take back the city’ campaign. While we are in favour of solutions to housing shortages, taxing dereliction and land, we are not in favour of taking people’s property. This has to be balanced against why property rights were established in this country and we also questioned why they went after private property rather than the abundant and abandoned state owned property which includes council owned homes that are not being used.

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TodayFM ‘The Last Word’ features Irish Mortgage Brokers

We were asked to take part in a segment called ‘Home Truths’ on TodayFM during the Last Word with Matt Cooper. The segment featured Karl Deeter and David Silke from the housing agency.

We were discussing the rental market and certain issues that go along with it, our main point is that there shouldn’t be a housing crisis, but that we managed to manufacture one.

The audio clip has the full segment on it.

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Where we are in the property cycle and what to expect next

Property cycles have always been a source of fascination for me (KD) and it’s worth briefly mentioning where we are now and where we are likely to go.

In the past I have always said that there are two broadly distinct phases, the first is a post-crash recovery where you see prices come back then rise fairly quickly before stalling.

The ‘stall’ is a mid cycle phenomenon where due to prices having risen you see a lot of buyers back off or take stock of the position, the memory of ‘we saw something like this before’ is still there to haunt them.

After that you get into the second phase where the upward momentum recommences but this time, having seen that the stall was somewhat ‘false’ (in the sense that it is perceived that way, it doesn’t actually have to be that), prices rise up even quicker.

This is unexpected (to some) and evidence that you have to ‘get in’ on the game. It brings us to the second phase which is the classic ‘boom-bust’. This eventuality is inevitable in …

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Irish Mortgage Brokers on Today FM

We were asked to speak with Gavin Reilly on TodayFM’s ‘The Last Word’ where he was sitting in for Matt Cooper, to discuss a new piece of proposed legislation.

While we believe that all people are deserved of compassion and respect when it comes to financial difficulties with their family home, that it would be an error to expect the judiciary to somehow step in and make what are effectively family protection and social protection decisions on something that should be viewed via the contract.

Mortgages arrears are also more of a symptom than the inherent disease, the disease is low employment, job loss, a lack of low income housing, social housing and social supports. It would be an error to misdiagnose this and in short, only an academic or a politician could look at this problem and see the solution in the way that this proposed legislation outlines it.

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The Last Word on Today FM features Irish Mortgage Brokers, 3rd January 2017

Matt Cooper had Karl Deeter from Irish Mortgage Brokers and Ronan Lyons of Trinity & Daft.ie on to discuss the government ‘help to buy’ scheme launch.

The scheme has come under fire prior to the launch and it will likely continue, our view is that the policy implications are of secondary concern to first time buyers who can avail of it. Our advice is that if you can get the grant you should avail of it.

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Pat Kenny Show on Newstalk 106, featuring Irish Mortgage Brokers

Pat Kenny had Lorcan Sirr from DIT and Karl Deeter from our company on to talk about the property market in particular in light of the changes announced by the Central Bank.

The conversation covered many topics in the market and outlined where so many issues in housing are arising.

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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.

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