Colette Fitzpatrick had a panel in to speak about the property market on Midweek, there was Jim Power (economist), Angela Keegan (MD of MyHome.ie) and Karl Deeter. The discussion looked at the disparity of the urban and rural markets as well as asking whether or not Dublin is in a ‘bubble’.
In this piece covering property prices, the increases in Dublin and the situation around the rest of the country we gave a brief comment highlighting that for the first time outside of Dublin there was a year on year sign of stabilisation in prices. Paul Murphy gave some excellent analysis on the topic.
We discussed the research that showed people expect to be paying mortgages into their 70’s.
This piece is about using rental yields to create a valuation, the way it works is to use the annual rent and assume that it represents a yield (anywhere from 7-8% for instance) then gross that up into a value which will mean at that price you are getting that yield.
We are doing an online survey for people who bought investment properties in the past, the survey is here.
If you can answer it please do, the research is in conjunction with Brian Lucey from Trinity College, Marie Hunt from CBRE and Irish Mortgage Brokers.
It will help to get a feel for what motivated property purchases and perhaps give some greater insight into the people behind the Irish investment property market.
Your help is appreciated,
Irish Mortgage Brokers
I thought it would be interesting to look at the ‘mansion tax’ and post some houses that would be considered by any metric to be a mansion that won’t be paying it. This is just a way to help demonstrate that the idea of a ‘super tax’ is a carrot used to make everybody else feel good about getting their bill.
First, the well known singer Shane Filan’s (Westlife) house, described as ‘a magnificent contemporary mansion home with impressive accommodation and almost five acres‘. It is 9,500sqft, has five bedrooms and five bathrooms. The entire second floor comprises a bar and entertainment lounge together with a sun room area, cinema room and a small office. Amazeballs, MTV cribs eat your heart out! But at a price of €990,000 it won’t be paying any ‘mansion tax’.
Or what about the following 12,000sqft house, it was the family home of the Jameson family (of whiskey fame), this is a 12 bed, fabulous period house. To buy the actual materials that make up this house …
I often talk about the idea of discounted cashflows in property and how to use it as a valuation tool, Frank Quinn and I have done reports using a DCF model in the past. The idea of discounted cashflows is not restricted to property though and if there is one thing I think schools should teach about finance it’s discounted cashflows.
This is a good presentation from BionicTurtle, well done to the folks over there for producing this video!
Edel Morgan has an interesting article in the Irish Times today about estate agents having problems getting their licenses set up – the financial services industry went through the same set of issues nearly ten years ago. New forms, paperwork and bureaucracy always suffer teething problems but on the point below there is an obvious answer:
However one south Dublin estate agent, who declined to be named, said he is worried that he may not meet the requirements for licensing despite nearly 20 year’s experience. He was trading under his own name for less than three years prior to his application and the legislation says that sole traders or independent contractors need to show “evidence that the applicant was the holder of a licence or permit issued under the Auctioneers and House Agents Acts 1947 to 1973 for three of the five years immediately preceding the making of the application.”
In financial services there was a similar problem of people having a long established work record but lacking the specific qualifications that were developed for the …