Not For The Likes Of You

at | 38 Replies

This morning.

Via The Irish Times:

Only about 8,000 of the 21,000 new homes built in the Republic last year were offered for sale on the open market, according to the Construction Industry Federation.

The federation, which represents most builders, says that the State acquired at least 4,400 new homes for social housing, while investment funds bought 95 per cent of the 3,644 apartments completed here last year.

95 per cent.

Just 8,000 houses built last year offered for sale on open market, says CIF (irish Times)

Thanks class wario

38 thoughts on “Not For The Likes Of You

      1. V

        perhaps
        But Tokyo and Canberra, which I also used as an example somewhere, are Monday to Friday cities, with only visitors around at weekends. Canberra is an excellent example of a “company town”

        Dublin will soon be like that with Dubs themselves living outside the County, and its workforce only maintaining Studio/ one beds with the main family gaff down the Country

        I was out there on Saturday night and the only Dubs around Dublin 2 were homeless people
        I’m fortunate to both live and work comfortably in the City, have a life, rear a young ‘wan and whatnot with all the trimmings;

        But Jaysus lads, believe it or not, the chances are that I’m the last generation that’ll be able to do that from scratch again

        At least in Northern California, you’ll still have locals able to get a start in the areas they were born and rared in.

        Reply
  1. Blonto

    New Zealand banned foreign ownership of homes (can’t remember details) last year.
    We need to do something similar by banning corporations etc. from buying houses/apartments. Also limit the number of houses/apartments that individuals can own. Get rid of the big landlords.
    Homes should not be used for generating large corporate profits.

    Reply
    1. Dr_Chimp

      You do realise that only 2% of tenancies registered with the RTB are “company” landlords and that 64 landlords out of approx 173k landlords have 100+ tenancies? Big landlords spend more money and maintain properties to a higher standard than individual landlords. If you ban corporations from buying blocks (i) the blocks won’t get built in the first place (ii) if they do, the vast majority of people couldn’t afford them anyway. In any case, it’s not like the big landlords are struggling to let their units…they’re setting a rent and people are willingly paying it.

      Reply
      1. Dr_Chimp

        Not that I know of. But the point is that even if they do, this does not by itself mean that there will be more available for the average Joe. In fact it’s the opposite.

        Reply
        1. 01101101 01100011

          Hi Dr_Chimp

          “this does not by itself mean that there will be more available for the average Joe. In fact it’s the opposite”

          unfortunately on that one I believe you are incorrect, I would suggest the fact is there are virtually NONE available to Joe in the first place so trying a new strategy isn’t going to affect Joe negatively much one way or the other .

          “average Joe” NOR “average Joe Landlord” can afford let alone even get access to purchase many of these apartments….so in essence, who fupping cares if they stop building them or not? I certainly don’t, from my perspective they are as useful as a nice statue, meh. In fact the term “Landlord” may even be moot. Because this construct is designed to be fodder for Investment Vehicles, they are a hideyhole for money, nothing more nothing less I suspect in the same way as often you see commercial office developments go up but remain dead for years, maybe indefinitely. they are just another commodity to be treated like gold or shares in AAPL. so about as useful as a dead hamster.

          I pass one particular development daily on my way to college. It was completed 2 years ago. I’ve been watching it week in week out as I cycle past. The estate as a whole is lived in but only partially – there are 2 distinct blocks of apartments in this development visible from the side of the road and over those last 2 years as I pass save for a handful nobody has occupied them. The estate is completed, no planning issues and every evening as I pass the lights are off and no-one’s at home (Xmas was the best time to observe) beautiful accommodation that sits there and flaps away to itself in the breeze.

          utter nonsense!

          Reply
          1. Dr_Chimp

            Hi 01101101 01100011
            I agree that it’s ridiculous that some apartment blocks can lie vacant but generally speaking those blocks owned by institutional investors are operating with almost no vacancy. For example, IRES operate at 98.7% occupancy. So if you ban them from investing, where do all.these people go? It may not be a solution that everyone likes but the fact is that they are providing housing (at high rents in this market) that would otherwise not be available.
            There are obviously many reasons why blocks can lay idle but one reason is due to the rent caps…a developer/investor/landlord is incentivised to try and get the highest possible rent on first letting because after that, you’re stuck in rent control. So it creates the perverse situation where you’re better off leaving them empty until you can get the best rent. This is the exact opposite of what we need.

      1. Jonboy

        ‘When Leilani Farha touches down in a new city, the first thing the UN special rapporteur on the right to adequate housing does is look up.’

        It’s a good strategy to avoid eye-contact with homeless people.

        Reply
  2. Dr_Chimp

    How many of the apartments bought by investment funds were also developed/financed by investment funds? Investment funds are buying them because the average punter can’t afford them. Even if the developer sold at cost, they would still be well beyond the reach of most people. Rents are high, yes, but without the evil investment funds they would be even higher.

    Reply
    1. class wario

      quite weird to acknolwedge the role of these entities in the current housing market here but also suggest they have no role in the profiteering and mass commodification either

      Reply
        1. scottser

          indeed. so nobody in your world volunteers to teach football to kids or say, helps out in a charity shop?
          *flings dr chimp’s poo back at him*

          Reply
          1. Dr_Chimp

            You know very well what I mean. The world is not one big charity shop. I presume you haven’t negotiated your salary such that it provides you with the bare minimum to survive as God forbid you might make a profit

  3. John Doe

    Honestly how can you compete with rising rents when your neighbour has their rent paid by HAP?

    Yeah I’m fully aware some people are struggling, but when your at apoint where 70% of your income is being spent on €2k house in Tallaght, when your neighbour is having it paid in full by the state and sitting at home all day….

    Let alone how is someone suppose to save a deposit and show good credit for a mortgage which would be around €1k a month for the same property?

    Reply
      1. Dr_Chimp

        Well, the situation described above is the reality of what HAP has done. The “poors” haven’t done it, it’s the state that has created a joke of a system because they’re so far behind the housing curve that this is the only way they could keep a lid on it. If we’re talking about “fairness” then HAP has created more unfairness in the rental market.

        Reply
      2. Andrew

        Well the state is probably the biggest tenant in the country and what their willing to pay in HAP puts a floor on rent rates.

        Reply
      1. V

        true

        But HAP must be recognised also as an enabler for Government Statistics, and not just as a tool for Government Policy Scottie

        IMO anyway, HAP is helping to hide or a least disguise the real shortage of Social Housing Units

        And I remain convinced that its only a denier of the real housing crisis in this Country

        A big worry should be if even one of the REITs decides to stop taking HAP payments – imagine the homeless crisis on our streets then.

        Reply
  4. Cian

    This article is very misleading:

    8,137 (38%) houses for sale
    5,068 (24%) self build houses
    4,392 (21%) social housing
    3,462 (16%) apartment sold to rent
       182 (1%) apartment for sale

    the headline could be re-written as
    Only 16% of homes are bought by investment funds for renting
    or
    63% of homes built for owner-occupier

    Reply
    1. wearnicehats

      Stats! who knew.

      Exactly Cian. For “investment funds bought 95 per cent of the 3,644 apartments completed here last year” also read “investment funds bought 16 per cent of the new homes built in the Republic last year”.

      But that wouldn’t get the pitchforks out would it….

      Reply
      1. Panch

        Still though. As someone looking to buy a new (to get FTB grant) apartment (house out of the question in price) it’s infuriating to know that I can get a look in on only 5% of what’s available. Many people in the same position as me in Dublin – being incentivised with the FTB grant as saving a deposit is impossible, but new house prices are out of the upper limit for the grant.

        Reply
        1. Rob_G

          I’m not familiar with the FTB grant, but is it only for brand-new properties? I presume that there are also lots of second-hand, individual apartments being sold on the market; I can’t see REITs buying up all of them, it wouldn’t be worth their while.

          Reply
          1. Panch

            Yea, it’s only for new builds. So the options for me are basically buy an old house or apartment at 400-500k and come up with the deposit myself, or buy a new apartment at 500k and get 20k for the deposit from the FTB grant. It’s a no brainer really, but the options are next to none when large investment funds buy out blocks of new apartments for rental only.

          2. Rob_G

            I mean, it’s unfortunate. But you are being outbid on your chosen property by people who have more money; this is one of the unfortunate things that happens to someone looking to buy property. It could happen just as easily if you were trying to buy a property that isn’t brand new (and indeed, is happening to other buyers right now as we speak).

            I wish you good luck, I’m sure you will find something soon.

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