You can buy four Longford homes for price of one in Dublin

This article originally appeared in the Irish Independent

YOU could buy four houses in Longford for the price of one in Dublin, and still have change left over. 

And a buyer could snap up three homes in Cavan for the price of one in the capital and have enough money left over to furnish them.

A new database of property transactions shows Longford recorded the lowest selling prices for houses last year, with an average of just €79,000.

This compared with Dublin where the average selling price was €356,000, an analysis of the market shows.

There were just 43,428 residential property transactions last year from a total stock of over two million properties, according to the An Post GeoDirectory database.

This equates to a national turnover rate of 2.2pc. This is half of what is considered normal for a functioning property market.

The low transaction rate reflects the current shortage of property on the market and tough lending rules imposed last February by the Central Bank.

Of the total transactions recorded last year, only 13pc represented new properties, while 87pc were second-hand property transactions.

Using the GeoDirectory, Central Statistics Office population figures and taking in figures from the Property Price Register, it emerged that Dublin had the highest average transaction price.

This was followed by Wicklow, where the average selling price was €296,000, and Kildare at €245,000.

The average transaction price nationally was €225,000.

Dublin and Kildare experienced the greatest turnover in housing stock, at 2.6pc of the residential stock of each county.

A total of 3,957 residential buildings were classified as being under construction in the GeoDirectory Database in the fourth quarter of last year.

Demand for housing is strongest in Dublin, but new housing represented just 16.9pc of all buildings under construction in the State.

Building activity was very muted in Roscommon and Leitrim where fewer than 40 buildings were under construction in each county.

Kildare witnessed a sharp increase in the number of buildings under construction, up to 253 buildings final quarter from 19 the previous year.

This might be down to a larger number of people being pushed to move outside the capital by rising house prices, the report said.

Dublin had the highest residential density per square kilometre by a large margin.

The next highest ranked county, Louth, had a substantially lower density. Leitrim and Mayo had the lowest residential densities.

Chief executive of GeoDirectory Dara Keogh said: "We've seen a consistent picture over the last two - three years, with demand outstripping supply in the more urban areas, while the market remains sluggish in large parts of rural Ireland."

Annette Hughes, director of DKM Economic Consultants, who worked on the report, said the national average housing turnover rate in the year to December 2015 stood at 2.2pc.

"This rate is showing very few signs of improving and is still well below what would be deemed to be a more normal housing turnover rate of around 4pc to 5pc," she said.

GeoDirectory is an address database of homes, jointly set up by An Post and Ordnance Survey Ireland.

It was used to develop the Eircode postcode.

Irish Independent

YOU could buy four houses in Longford for the price of one in Dublin, and still have change left over. 

Sharp fall in number of new homes built in capital

This article originally appeared in the Irish Independent

House-building has dropped by more than 60pc in some parts of the capital as new figures show a slight rise in the number of homes completed across the country.

Housing output is way below the level needed to meet demand, despite a series of Government interventions aimed at boosting delivery of new homes. Photo: Jason Alden/Bloomberg

Housing output is way below the level needed to meet demand, despite a series of Government interventions aimed at boosting delivery of new homes including a €500m funding package for developers, introduction of a vacant site tax and a rebate on development levies.

But Department of the Environment figures show the policies have yet to have an impact. Just 12,666 homes were built last year, up 1,650 on the number of completions in 2014. This is far short of the 21,000 units needed.

There has also been a marked drop in output across three of the four Dublin local authorities, where some 2,891 units were completed last year - a fall of 377, or 11pc.

Completions are down 62pc in South Dublin to just 313 units; by 27pc in Dublin City to 667 units; and by 7pc in Dún Laoghaire Rathdown to 651. Completions have also dropped in Galway city, in Laois and in Westmeath.

The figures show that almost half of all units completed are one-off (6,071 or 48pc). Some 4,954 scheme houses and 1,641 apartments were delivered.

The lowest number of homes were delivered in Galway city (83, down 5pc), and the highest in Fingal (1,260, up 56pc). The sharpest rise was recorded in Waterford - up 97pc to 380.

House prices continue to rise nationally due to the shortage of new homes and in the wake of tough Central Bank lending rules. The Construction Industry Federation said while the overall increase was welcomed, the cost of building a home was often more expensive than its market value.

Crisis

Fianna Fáil said the lack of housing was a "national crisis".

Sources said while the Dublin output was disappointing, completions in previous years may have involved finishing existing schemes rather than new developments. Banks were also selling loans attached to land banks, meaning land was becoming more affordable.

"I would say that will lead to an increased supply because the land is now being offered at a sensible price," one source said.

Irish Independent 

Sharp fall in number of new homes built in capital

TDs urged to bring in new cap on home loan rates

This article originally appeared in the Irish Independent

At least two political parties are prepared to bring in legislation to give the Central Bank powers to regulate variable mortgage rates.

The Fair Mortgage Rates Campaign, headed by Brendan Burgess, has asked political parties to outline their policies on mortgage rates ahead of the election.

It said around 300,000 borrowers were being overcharged by banks on variable mortgage rates, which are twice the average charged elsewhere in the Eurozone.

The number affected rises to around 500,000 people when the fact that most borrowers are couples is factored in, Mr Burgess said at a briefing for politicians.

But half of these are unable to switch, and would not benefit from new lenders entering the market.

"Some 150,000 borrowers can't switch because they have high loan-to-values, are in negative equity, or are in arrears," he said.

The campaign wants the law changed to stop banks charging lower variable rates to new customers compared with what they charge existing customers.

Both KBC Bank and Bank of Ireland charge far higher rates to existing customers who are trapped, Mr Burgess said.

Banks were accused of collectively making profits of €1bn a year from excessive mortgage rates.

The Fair Mortgage Rates Campaign has proposed legislative changes that would give powers to the Central Bank to limit variable rates to no more than 4pc above the European Central Bank, which is 0.05pc.

Fianna Fáil's Michael McGrath said his party was in favour of giving powers to the Central Bank to limit what could be charged. He added: "The Central Bank needs to start fulfilling its consumer protection role. It should not allow discrimination between new and existing borrowers."

Fine Gael TD Alan Farrell said new business rates should be available to all borrowers, but his party had no plans to legislate to cap mortgage rates.

Sinn Féin's Pearse Doherty said he was called into the office of former Central Bank governor Patrick Honohan when his party proposed giving the regulator legislative powers to limit variable rates.

He claimed he was told the Central Bank did not want this power. "Of course they do not want the powers. But they should be given it. We need a Central Bank that acts in the interests of consumers," he said.

Irish Independent 

TDs urged to bring in new cap on home loan rates

Nama close to deal to deliver up to 5,000 homes in the capital

This article originally appeared in the Irish Independent

Nama is set to sign off on a plan with three developers that could see thousands of homes built in south Dublin. 

The agency is said to be close to agreeing terms with developers John Flynn, Paddy Kelly and the McCormack family, which controls the property firm Alanis. Under the deal, which has not been concluded and could still fall apart, Nama would sell off the loans tied to the developers, but retain development land which had formed part of their portfolio.

Nama will then hire Mr Flynn, Mr Kelly and the McCormacks to build homes on the sites in Carrickmines and Sandyford in Dublin, and Bray in Co Wicklow. Industry sources believe the sites could potentially hold up to 5,000 homes, but other property experts believe that figure would be overblown.

Any new home development in the Dublin area will be welcomed, given the shortage of housing around the capital.

By most estimates, Dublin needs about 25,000 homes per year in order to meet demand. However barely half that figure is being delivered at present.

Construction has even slowed in recent months, with developers blaming the high cost of construction and the uncertainty created by the Central Bank rules which restrict mortgage levels. This would be the second time that Nama has been prepared to sell the portfolio tied to the three developers.

Last year Nama pulled the loan sale, dubbed "Project Tolka" as Mr Flynn was in talks to refinance some of his debts.

Project Tolka featured loans tied to the three with a face value of €1.5bn. Many of the loans were interlinked, as the McCormacks and Mr Kelly apparently jointly invested in a number of projects.

Nama prepared that portfolio for sale after an approach by US private equity firm LoneStar, which has spent millions on property here since the crash.

LoneStar may again seek to buy the portfolio, although the market in Dublin has flagged in recent weeks with a number of big property sales either missing the asking price or taking longer to complete.

Nama declined to comment.

Irish Independent

Nama close to deal to deliver up to 5,000 homes in the capital

Declutter Your Home In Ten Easy Steps

Step # 1: Set A Schedule

You are much more likely to stick to a routine, whatever it may be, if you work on a schedule.  In addition, this allows you to clean when you can minimize interruptions and maximize your time.

Step # 2: Set A Goal For Each Room

If you can visualize what you want, you will be better able to achieve it.  By setting goals for each room, you can note the things that need changing and work toward that goal one day at a time.

Step # 3: Create A Timeline

When do you hope to have your home completely free of clutter?  One week, two weeks or even a month?  Depending on your schedule and the amount of clutter that you have, it may take anywhere from a few days to a few weeks before you can kick back and relax again.

Step # 4: Start Small

The clutter in your home didn't appear overnight, and it won't disappear overnight either.  If you start small, you will be less likely to get frustrated and give up midway through your clean up.

Step # 5: Categorize Your Clutter

When cleaning, it's important to categorize your items into groups.  By separating the items that you want to keep, dispose of and donate, you will be able to move through your clutter quickly and efficiently.

Step # 6: Letting Go

A good rule of thumb for uncluttering your home is to get rid of anything that you haven't used within the past year.  If it's still useful, consider donating it to a good cause.  Otherwise, dispose of it.

Step # 7: Storing Your Clothing

When storing seasonal clothing, purchase a sturdy plastic storage bin with a lid and roll your clothes instead of folding them in an effort to maximize storage capability. 

Step # 8: Wardrobe Organization

Did you know that your choice of clothes hangers can greatly impact the storage capacity of your closet?  Wire hangers take up less space and can save your shirts from getting that annoying shoulder bump that often arises from the use of plastic hangers.

Step # 9: Shoes Blues

·         When it comes to storing shoes, many homeowners are fighting a losing battle with clutter.  How many pairs of shoes do you own?  How neatly are they stored?  If your shoe storage has you down, try purchasing clear lidded shoe boxes.  These handy creations can house each pair of shoes and can be stacked neatly in your closet.  And best of all, you can see your shoe collection without having to sift through a sea of sandals.

Step # 10: Read The Labels

If you have medicine, food or anything else with an expiration date in the home, check to make sure that the items are still good.  If the expiration date has already come and gone, throw them away. 

Learn more

How to decide if now is the right time to buy a home?

Buying A Home Versus Renting A Home

When it comes to a home you have two options whether to buy or rent.  What is right for one person may not be right for another, which is why it's important to know which is the best option for your individual situation. 

Why Some People Choose To Rent

There are various reasons why someone may either choose or be forced to rent.  Their income may be unpredictable, or they may have to relocate for work on a regular basis. They may be unable to save enough money for the down payment required to buy a home.

Maintenance Matters

Another consideration when choosing whether to rent or buy is maintenance and repair issues.  When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be costly.

How To Know When It's Time To Buy

If you have steady employment and income, a good credit history and proof of adequate savings it may be time to consider buying a home instead of renting.  In many cases, the cost of rent can exceed that of a typical mortgage payment. When thinking about buying, job stability is a big factor you may want to consider before making the decision to make a purchase.

Home Buyer's Checklist 

In addition to any current monthly outgoings can you afford a monthly mortgage payment as well as property taxes and insurance?

Do you have the necessary time at present to devote to shopping for a home and comparing interest rates from various lenders to get the best mortgage for you?

The Final Decision

The final decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation.  An estate agent can show you the perfect home and a lender can tell you whether or not you can afford it, but it's up to you to make the choice as to whether or not you are ready to make that move. 

Learn more

Why Open House Viewings Are So Popular With Purchasers

An open house can be a great tool for showing your house and getting it sale agreed.  On the other hand, it may take work to prepare for one but the benefits by far outweigh the effort.  It requires that you be out of your house for only a short while usually an hour at most.  It also guarantees you will get a lot of people in the door some serious some maybe not, however those attending have shown interest in your property so by no means is it a wasted effort. 

So how often should you hold an open house when your home is on the market?

The frequency depends on a few factors as an open house will bring in people who otherwise might not have made an appointment to see your home. These are people who may not have known the house was of interest to them until they saw it in person.  Home hunters often spend a day at weekends going to various open houses, and might add a home to their list that wouldn't otherwise be of interest. When you leave enough time in between each open house, you allow for new buyers to come into the market and bring a new crop of people each time.

Is The Effort Worth The Benefit?

Getting your home ready prior to an open house viewing takes some effort.  You will need to make sure everything is clean and all the clutter is hidden away.  Even if you are keeping your home show ready as much as possible it will require some extra work. In the initial stages an open house is a good strategy to promote your property and generate immediate interest.  The longer your house is on the market it may be a combination of single viewings and open house viewings at weekends.  Presentation is key so any time you spend will assist you in getting the best possible price.

Which Day To Hold An Open House Viewing On?

Ensure that the agent you appoint is prepared to do open house viewings at weekends and ideally confirm that they will do Sundays as well.  So many people are working long hours nowadays that in a lot of cases the only day that most couples have off work to view together is a Sunday.  Also request that viewings are not just done early morning but also in the afternoons which is often more convenient for people with children.

How Important Are Single Viewings?

If you have a lot of prospective buyers making appointments to see the house you may not need to hold single viewings that often.  If you aren't getting a lot of requests to view then any enquiries submitted have to be taken very seriously.  Arranging an appointment to view from the interested party is imperative so a single viewing may be the best option. The longer you have been on the market the more useful a single viewing may be especially as a second viewing by someone who has already seen the property at an open house viewing.

Of course, your estate agent will help you to select the right timing and frequency of your open houses based on the interest in your property and the market in your area.

Learn more

New figures show Central Bank restrictions continue to impact on lending.

This article originally appeared in The Irish Times

Fall in mortgage approvals and drawdowns for first-time buyers

First-time buyer mortgage drawdowns were particularly hard hit, showing the first decline seen in two years during the fourth quarter.

Tougher Central Bank lending restrictions continued to impact on the property market during the last three months of 2015 with the number of mortgages approved and drawndown slowing.

New figures published by the Banking and Payments Federation Ireland show 8,103 mortgage were drawn down in the fourth quarter, up 6.9 per cent year-on-year. The value of the mortgages drawndown rose by 8.2 per cent to €1.45 billion.

This represents a considerable slowdown versus the 44 per cent rise in volumes and 49 per cent increase in values seen during the first half of the year.

Goodbody Stockbrokers said the weakening trend highlighed the impact that the macro prudential rules, introduced by the Central Bank last February, were having on the mortgage market.

Analyst Julie Tennant also noted that a comparison with the same quarter a year earlier was challenging as the market was particularly strong in the final three months of 2014, as activity surged ahead of the expiration of a special CGT exemption.

First-time buyer mortgage drawdowns were particularly hard hit in the fourth quarter of 2015, recording the first decline seen in two years.

First-time buyer mortgages, which accounted for 47.1 per cent of all mortages drawn down during the fourth quarter, were down 5.4 per cent to 3,819, the figures show. In contast, re-mortgages or swiching volumes more than trebled year-on-year during the final three months of 2015.

The value of mortgages drawndown by first-time buyers also fell during the quarter, down 3 per cent year-on-year to €655 million.

On an annual basis, mortage drawdowns rose by 23.5 per cent last year to 27,324 with the value of drawdowns up 26.2 per cent to almost €4.9 billion.

Related figures published by the federation show a total of 2,375 mortgages were approved per month in the fourth quarter, of which 51 per cent were for first-time buyers.

The number of approvals was down 14.6 per cent year-on-year and 6.7 per cent month-on-month.

The value of mortgages approved per month, on average, in the three months ending to the end of December was €448 million, down 12.3 per cent year-on-year and 5.1 per cent month-on-month.

Overall, 29,925 mortgages, valued at €5.6 billion, were approved last year, up 13 per cent in volume terms and by 17.6 per cent in value.

The Irish Brokers Association said the latest figures show a slow recovery in mortgage market activity is underway but said the Central Bank needed to be revisited.

“The mortgage market is fluid and so too should the rules pertaining to it be,” said the association’s chief executive Ciaran Phelan.

Mortgage lending approvals and drawdowns remain low

The growth in rental prices is now outpacing the growth in property values

This article originally appeared in The Irish Times

Rent pressure set to continue in 2016 – survey

Results predict the average rental value for a three-bed semi-detached property will increase by a further 5 per cent to 7 per cent this year.

Instead of alleviating rental costs a new survey indicates that the latest measures could lead to further rent increases. After an average increase in rental values of 12 per cent nationally last year, a survey conducted by property industry members body, the Society of Chartered Surveyors Ireland (SCSI) predicted the average rental value for a three-bed semi-detached property will increase by a further 5 per cent to 7 per cent this year depending on location. And two out of three of the 700 respondents believed that the new rent freeze legislation had increased the cost of renting for tenants.

John O’Sullivan, chairman of the SCSI Residential Agency Professional Group said the rental increases were not only down to an undersupply of housing nationally, but also a consequence of the difficulties renters are having accessing finance to purchase a house. “Allied to this, the collapse in construction output has resulted in virtually zero supply of social housing units to accommodate the growing social housing lists. Consequently, this cohort of tenants has had to seek accommodation within the private rental sector, putting further pressure on very limited supply,” he said. The growth in rental prices is now outpacing the growth in property values, and the pressure is mounting in the counties outside Dublin, as people are pushed further out to find accommodation.

The survey, conducted by the SCSI in conjunction with Future Analytics, estimated property values have risen by about 8.8 per cent nationally in 2015 but to have moderated to 4.8per cent in Dublin. In 2014 Dublin property values rose by 19.5. However in Leinster, outside Dublin values are estimated to have increased by 9.4 per cent. Similarly Munster and Connacht/Ulster rose by 10.4 per cent and 8.8 per cent respectively. Cue more calls for Government to devise a cohesive and strategic approach to properly address inadequate housing supply.

Rent pressure set to continue in 2016 – survey

Divergence between pace of rises in Dublin and rest of country expected to continue

This article originally appeared in The Irish Times

House prices predicted to rise by up to 5% in 2016

House prices in Ireland are expected to rise by up to 5 per cent this year, according to the latest house price survey from property website myhome.ie.

The report, compiled in association with stockbroker Davy, predicts rising incomes and the ongoing economic recovery will lead to a single-digit gain in prices for the next 12 months.

Asking prices on new instructions – which provide the best leading indicator for transaction prices – fell by 0.8 per cent nationally in the fourth quarter of last year but were up 7.4 per cent on the year, myhome said.

In Dublin, asking prices fell for a second consecutive quarter, by 0.1 per cent, but were up 2.6 per cent on the year.

Davy chief economist Conall MacCoille, author of the report, said the Central Bank’s revised mortgage lending rules had prevented homebuyers from taking out higher-leveraged mortgages, thus limiting the pace of house-price inflation in 2015.

“Housing market activity was artificially inflated towards the end of both 2013 and 2014 by expiring mortgage interest reliefs, capital gains tax exemptions and a rush of transactions and mortgage approvals ahead of the Central Bank’s lending rules,” he said.

“In 2015, the usual summer peak for activity reasserted itself with the result that both housing transactions and movements in asking prices in Q4 were always likely to be relatively modest.”

Looking ahead, Mr MacCoille expects a growing divergence between the pace of price rises in Dublin and the rest of the country to continue: “The median asking price for a three-bed semi in Dublin is €275,000, which is six times the average income of €45,600. In contrast, price-to- income multiples in many other areas are still in the range of three to four.”

Mr MacCoille said Ireland’s economic recovery has continued at a “rapid pace” and he expects to revise up forecasts for GDP growth for this year towards 5 per cent, from 4 per cent.

“Income growth is now accelerating, driven by public- and private-sector wage increases, tax cuts and the introduction of a higher minimum wage. The lack of supply in many urban areas also remains acute. So a single-digit gain in Irish house prices, close to 5 per cent, seems likely through 2016.”

House prices predicted to rise by up to 5% in 2016