Residential property prices rise across Ireland

Within the last 7 years there has been an upward trend for residential property pricing. So far, 2019 has continued to follow this trend, showing significant national growth each month; Dublin seems to stay at or above par in comparison to national average prices.  

Although this trend has been upwards, Ireland is still yet to reach the price levels that they had sustained in 2007. The current residential property prices in Dublin still falls at 22.5% lower than the highest period during the early 2000s, while the national values are 18.5% lower.

In 2018, the prices rose a total of 13.3% throughout the year, giving many sellers hope that the trend would continue forward into the following year. From February to March 2019, the prices increased 3.8%. March to April there was a 3.1% increase, which shows a smaller amount of increase, but it is still far from slowing down.

Dublin increased residential prices by 0.5%, leaving house prices and apartment rents increasing by the same 2.2% as the previous month.

It seems that Dublin and …

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Pepper Money Expands Lending in Ireland

Pepper Money, an Australian lender, will soon begin offering commercial property loans ranging in value from €250,000 to €7.5 million to borrowers in Ireland. It hopes to extend €300 million worth of commercial loans within the next two years, roughly half of what the Strategic Banking Corporation of Ireland has extended at the end of March 2017. These loans will meet the demand of professional buy-to-let borrowers hoping to refinance and the demands by first time buyers for properties with various commercial uses.

 

Pepper Money has been keen on taking risks in lending and exploring new markets, being the first new lender to enter the Irish Market for residential mortgages after the market crash and financial crisis, offering small home loans through brokers and direct channels. While entering the market for commercial mortgages, Pepper also plans to lend to borrowers with historical credit issues who have had trouble meeting criteria to obtain loans from banks and other lending institutions in Ireland. It will offer loans to borrowers as long as they are up to date for the past 18 …

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Six One News looks at the problem of Rent Receivers

Rent receivers are generally sent in when a landlord is unable to meet the terms of their contract. It doesn’t mean they can’t pay anything (although often insolvency is behind it), sometimes the landlord is on an ‘interest only’ term that reverts to capital and interest and the uplift in cost means there is no way they can meet the increased commitment.

The issue is also more common in properties with equity because the bank don’t stand to suffer a loss in that position (they do in properties with negative equity), it’s also used as a more coercive approach to borrowers who want to hold on to trackers, as ‘interest only’ is often extended for people willing to forgo that aspect of their contract.

Unbalanced taxation on property is also a concern, the ability to tax a cash flow loss on residential property makes it a difficult trade off of ‘who shall we upset’ the choice being the bank or Revenue (most opt for the former).

 

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MyHome.ie Property Investor Report, 1st March 2012

We are please to bring you some interesting analysis on the residential investment property market in 2012. A big thanks in advance to MyHome.ie who made this possible by giving access to their data. You can get the report here or by clicking on the image to the right.

It was created by Karl Deeter of this firm and Frank Quinn, a lecturer in valuations at Senior College Dun Laoghaire. The valuation models used are Discounted Cashflows, the Investment Method and one developed by Karl which is an after tax comparison against bank deposit returns.

Tom Dunne of Dublin Institute of Technology Bolton Street kindly critiqued the report.

The general findings were that property is still overpriced in our main cities for investors (buyers face different costs/taxes/incentives). This over-valuation will adjust but one big inhibitor to investing in property at present is the taxation of it.

The coverage thus far (eg:

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