Daft Property - Irish Property News

THE country is facing crippling interest payments of €10 billion a year after the European Union and IMF agreed to an €85bn rescue package to fund the economy for the next three years. The bulk of the money, €50bn, will be used to pay for the day-to-day running of the country. The banks will receive €8bn immediately to restore their cash reserves; €2bn will be on standby and a further €25bn will be available if and when they need it. The money will come from the IMF, our Euro area partners and loans from Britain, Denmark and Sweden. In addition, the country has been told to take €12.5bn from the National Pension Reserve Fund and use €5bn the NTMA had already borrowed to pay for early 2011. The expected average interest rate for the bailout will be 5.83%. By 2013 the national debt is expected to rise above €200bn and by then almost a quarter of all taxes raised will be used to pay interest service costs. At the end of the term this is expected to have climbed to €9.66bn a year if the ba

Caging Tiger-think key to Ireland's economic revival... OPINION : Stimulus and mass job creation is a must as we leave behind crazy, jargon-filled days of boom and pursue a more concrete reality THREE YEARS ago, it seemed Ireland was doing very nicely. And then suddenly it all changed. Our lifestyles were threatened; our wealth and dreams shattered. People had to try somehow to understand and come to grips with the frightening new reality of a rapidly deteriorating economy and a property market about to crash. Jules Henri Poincare wrote: “To doubt everything or to believe everything are two equally convenient solutions; both dispense with the necessity for reflection.” We have spent a lot of time since, necessarily so, reflecting on a continuous flow of appalling information about banks, developers, Nama, frozen credit, failing businesses, negative equity and a collapsing economy, accumulating in an astonishing and calamitous increase in unemployment. But unlike WC Fields’ comment

Reports blame Cowen for stoking fires of 'meltdown'... TAOISEACH Brian Cowen's overheating of the economy and failure to deflate the property bubble when he was Finance Minister will be identified today as contributing to the banking crisis. The damning findings will be contained in two reports into the banking crisis, which senior coalition sources last night said were "devastating". Contrary to the Taoiseach's version of events a fortnight ago, where he sought to absolve himself of blame in a major speech on the economy, Mr Cowen's budgetary policies are singled out for criticism. The reports also: * Attack bank directors for allowing the financial crisis to develop. * Criticise the Financial Regulator for being too lax. * Find the Central Bank failed to take responsibility in the overall stability of the banking system. * Point out economic projections made by a number of organisations were wrong. The report by Central Bank governor Prof

Too many estates in the capital have been left in a mess after developers pulled out... THE Government is being called on to change derelict site legislation to prevent vacant Nama land turning into a new generation of eyesores. The call comes as it emerged that there are over 3,700 unfinished houses in developments in south Co Dublin alone. Councillors have backed a motion seeking a review of the laws and a redress of the balance "between the interests of developers and local communities". It was brought before a meeting of the council by Cllr Dermot Looney (Lab), who said the existing legislation favoured developers who had been allowed to leave behind ghost estates and "other kips" after the property crash. Derelict At the same meeting it emerged that South Dublin County Council has 3,789 houses in 23 developments that have not been completed. The council will now write to the Minister for the Environment, Heritage and Local Government, John Gormley, to carry out

It's time to shout 'stop' -- NAMA is grand larceny... The land has reverted to the price you'd get from a farmer for putting a donkey out to graze on it For the past year, this column has been warning of a "triple lock" in the Irish banking system, which would financially incarcerate the Irish people for a generation. The triple lock would solder the people to the banking system in a suffocating embrace forcing us to borrow from tomorrow to pay for yesterday and, in the process, destroy the opportunities of today. Now with the Government upping its stake in Bank of Ireland, this prediction -- regretfully -- is coming to pass. The worst thing is that it doesn't have to be like this. The latest news that some development land in Athlone valued in the boom at €31m is now worth only €600,000 has truly terrifying implications for all of us, because it means NAMA will bankrupt us, and the triple lock implies that we can't sever the fortunes of the people fro

State to rent Nama properties for social housing... The government plans to rent thousands of vacant houses and apartments from the National Asset Management Agency (Nama) and use them for social housing. Representatives of the new ‘bad bank’ have held meetings with officials in the Department of the Environment, Heritage and Local Government to explore the possibility of renting out properties that would otherwise lie empty. Housing minister Michael Finneran said his officials were seeking to ensure a ‘‘social dividend’’ from Nama by renting residential units on long-term leases for social housing purposes. Finneran said an arrangement could help to deliver ‘‘a return in line with Nama’s mandate’’. The government is under pressure to demonstrate to the European Commission that Nama will be capable of generating significant ongoing cash flows over its lifetime, and that the new agency will not be excessively generous to participating banks. While a move to rent properties for social ho

THE head of Ireland's auctioneers and the former Finance Minister Ray MacSharry have clashed over the future of the so-called 'ghost estates' left over from the property boom. President of the IAVI (Irish Auctioneers and Valuers Institute) Aine Myler has suggested that some new estates may have to be demolished altogether as part of an ongoing effort to restore stability to the property market. Speaking to the Sunday Independent at the IAVI's annual conference in Dublin on Friday, Ms Myler said that as a result of poor planning and a lack of infrastructure, some of the country's newer housing stock may never be required. Asked what could be done with these developments, Ms Myler said: "It's really difficult to know. It shows up a number of issues that emerged during the boom, where there was poor planning, the building of large estates where there was no infrastructure, no transport links and other links which have probably diminished in the meantime as a r

How greed is the rot at society's dying core... OPINION: A PAIR of travel-worn slippers, a brass bowl and plate, round-rimmed glasses and an old pocket watch recently fetched a whopping $1.8 million at a New York auction. The memorabilia constituted just about all the earthly possessions of Mahatma Gandhi, the man Churchill infamously described as the “naked fakir” or beggar. Coincidentally, on the anniversary of the death of Gandhi, who epitomised austerity and simplicity, Seán Quinn, Ireland’s richest man, admitted in an RTÉ interview following the collapse of Anglo Irish Bank to feeling that “we were too greedy” ... It may well be deemed a collective admission from all of us, who in varying degrees, have brought on this global recession. Topping the list will be those whose greed has subsumed the hopes and dreams of generations, to the extent where radio shows that hitherto dished up discussions on caviare and champagne are recommending snail and nettle soup as its recession fla

With an oversupply of properties and tumbling prices, renting seems the way to go... IN THE Chinese calendar, 2009 is the year of the ox, but in Ireland it looks set to be the year of the renter. Economists are predicting that rents will drop by at least 10 per cent in the year ahead, compounding similar falls in 2008. Tenants are waking up to the fact that it’s a buyers’ market and negotiating lower rents and better conditions (see panel). In many cases, they are renting properties that they could never afford to buy. Large, luxurious homes are coming on to the rental market for the first time. Meanwhile, new standards are coming into force next month which will improve the quality of existing rental accommodation. Forget about grotty bedsits, coin-operated electricity meters and rent hikes – tenant power is in the ascendant. The downward pressure on rents has been caused primarily by a glut of properties flooding the market. Developers, buy-to-let investors and those trading up who f

Budget cuts of 2 billion euro as economic crisis deepens... But property developers seek hundreds of millions in refunds due to value losses ... FINANCE minister Brian Lenihan is looking for fresh spending cuts of around €800m for next year, on top of the €1.3bn reduction that has already been signed off by ministers in estimates negotiations. The grim news comes as it emerged this weekend that Ireland's property developers, who made millions in the boom, are seeking tax refunds of hundreds of millions of euro after writing down the value of their land banks and other assets. This threatens to drastically reduce the corporation tax receipts the Revenue Commissioners were banking on. With September tax returns expected to be very bad and the economic climate rapidly deteriorating, a further 1.5% reduction in 2009 spending is now up for debate. This would bring planned cutbacks in current expenditure for next year to more than €2bn . " It's very grim. Two weeks after finan

Developers cut prices, give interest free loans... Apartments in Elm Park, D4 and The Grange in Stillorgan are among those being offered at cut rates to buyers... TWO OF the country's largest developers are offering financial packages to buyers in an effort to kick-start the new homes market. In Dublin 4, two-bedroom apartments in the Elm Park development on Merrion Road, have dropped at least 20 per cent to €470,000 with developer Radora offering buyers loans at zero interest of between 20 and 30per cent of the selling price. Radora is controlled by Bernard McNamara along with Gerry O'Reilly and David Courtney. Meanwhile Ray Grehan of Glenkerrin Homes is offering buyers a 15 per cent interest-free loan for up to seven years on luxury two-bedroom apartments at The Grange in Stillorgan which are being sold at 2005 prices, of €525,000. The deal, which is backed by the Construction Industry Federation, is being offered across other Glenkerrin-developed properties including Ballint

Exchequer faces €5bn shortfall as tax revenues drop sharply... TAX REVENUES are continuing to plummet, according to the latest official figures, which indicate the shortfall for the year could exceed €5 billion. This is far worse than the Government was expecting as recently as two months ago. In July, the Government projected a tax shortfall of €3 billion for the year, but a rapid slowdown in consumer spending has hit VAT receipts, while the dramatic slowdown in stamp duty and capital gains tax receipts has continued due to the property crash. The implications of the figures will be discussed by the Cabinet today at its first meeting after the August holiday break. Substantial cuts in public spending for next year now appear inevitable and are likely to be accompanied by increases in borrowing and taxation. The Opposition parties last night accused the Government of failing in its duty to get to grips with the crisis in the public finances during the summer and taking its traditional

The fundamentals of the Irish housing market point to more sharp falls over the next two to three years... WITH HOUSE prices falling fast and likely, come the autumn, to fall even faster, no sane person would currently even think of buying a house. But this immediately raises the question of how long the crash will last. In other words, how long will it be before you can buy a house and not regret the decision for the rest of your life? Looking at past collapses in house prices abroad, we can see that they fall into two broad groups. In the first group, that includes Japan and Switzerland, prices suffered a long, slow decline of a few per cent a year for a decade. The second group, that includes the Netherlands and Finland, saw real prices halve in three to four years, and then fall gently for a few more years. If this second pattern repeats in Ireland, given that we are already one year into the crash, we can expect two to three more years of sharp falls. After that, prices should sta

Homeowners left reeling as 30pc price fall predicted... HOME owners are reeling from a double-whammy of bad news, after both an international broker and one of Ireland's leading economists warned house prices could plummet even further over the coming months. In a statement announcing the predictions, international broker Credit Suisse said that Ireland's property market is continuing to tumble, with house prices potentially falling by another 30pc over the coming months. The internationally-respected firm has made the comments because it says the market is only reacting to the credit crunch now. The upshot is that the impact of the credit crunch has yet to filter through to the Irish housing market, with any weakness already experienced down to a drop in demand rather than tighter credit. "As a result, we see mortgage affordability decreasing and house price declines accelerating. What is more, the housing market has been underpinned by strong immigration and rental deman

In today's Sunday Buisness Post, Post David Cullen in Belfast reports, on the Property scene in Northern Ireland... "North facing property crisis as house values take a hammering... The deepening crisis in the North’s residential property market is highlighted by figures showing a near 19 per cent slump in values in the year to the end of June. The survey, by Nationwide building society, also showed that prices had dropped by 9 per cent in the second quarter of this year - the steepest correction in property values recorded across Britain and the North. The downturn comes on the back of an unusually sharp jump during 2006 and 2007, when prices grew by almost 80 per cent. ‘‘These increases were clearly not sustainable and left the market particularly vulnerable to external shocks, such as the financial downturn that began last August,” said Fionnuala Earley, chief economist of Nationwide. ‘‘We are now seeing the consequences of that excess vulnerability.” The average price of a

A New Marketing concept in Ireland called "Recession"... An ad on daft.ie: ..."This is a private sale, so the saving to the Vendor on auctioneers fees is reflected in the price which was orignally offers in excess of 400k prior to the recession!!!" Description: "Summerhill, Carrowmore Lacken, Ballina,Co. Mayo Detached House Excess €370,000 ...dormer home was completed in June 2004 to a very high standard in an area of outstanding natural beauty where planning simply isnt being granted anymore. It has truely wow views out of every window and is within walking distance of pub and beach. The elevated property overlooks the Ross Estuary, Rathfran Abbey, Bartra Island and Killala Bay. Sligo, Enniscrone and the Donegal mountains, together with Nephin Mountain are also to be seen. The rural location is ideal for a large family home or holiday house away from hussle and bussle and yet is less than an hour from Knock Airport. This is a private sale, so the saving to the

Time for the Summer SALES!... The Sunday Buisness Post's, Michelle Devane, "looks at what’s on offer for buyers ahead of the summer season... Eirene, Marino Avenue East, Killiney, Co Dublin Savills HOK Was: €6 million Now: €4.15 million Built in 1884, this spacious detached period residence was designed by the renowned Victorian architect Thomas Deane and is full of original period features. Eirene has been on the market for almost four months and its asking price has been reduced by 30 per cent to €4.15 million. With five-bedrooms and 325 square metres of living space, which is in need of modernisation, it is set on two acres of private mature grounds with views across Killiney Bay. The Dart station, Killiney beach and the Holy Child convent are within a couple of minutes walk... 49 Clarinda Park East, Dun Laoghaire, Co Dublin Savills HOK Was: €2.55 million Now: €2.15 million Beautifully restored and refurbished, 49 Clarinda Park East is a two-storey over garden level propert

Sunday Tribune's Ken Griffin reports today that... ONE OF the country's leading property magazines has become the latest victim of the construction slowdown, having ceased trading due to deteriorating advertising revenues. Publication of 'Irish Property Buyer' was suspended on Wednesday after a last-ditch attempt to save the magazine collapsed. The title was established four years ago by publisher Joan Fitzpatrick and a former senior editor with the 'Irish Times', Don Buckley, at the height of the property boom. At one stage, the monthly title sold over 7,500 copies per issue but this had fallen to nearer 6,000 in recent times. Buckley told the Sunday Tribune the title had been running at a loss since the end of 2007. "The slide began towards the end of 2006. Last year, we pumped our reserves from previous years into the title to maintain its position but things continued tailing off," he said. He said even advertising for over­seas properties, which h

Down, Down, Get On Down... So just how low can it get? Irish Times Property News: "Deep price cuts in end-of-season sales. WITH summer holidays looming and a glut of €1 millon plus homes on the market, and the realisation is finally setting in that a drastic price cut could be required to secure a buyer. While the property market has seen price "adjustments" across the board, heavy discounts are now offer in some cases. In the six properties listed here, the average price cut is 33.4 per cent. The slowdown has been particularly tough on high-end properties, which have a smaller pool of potential buyers. Price drops of over 30 per cent can mean upwards of €1 million being shaved off the asking price. KILLINEY: -31% EIRENE ON Marino Avenue East in Killiney, Co Dublin, came on the market in March at €6 million. Now three months later Savills HOK has cut the asking price to €4.15 million for the two acre property which is a stone's throw from the Dart and beach and may h

On UTV TV... "Bursting the Bubble... Insight investigates falling housing prices in Northern Ireland... A year after Insight warned that Northern Ireland was witnessing a bubble in the housing market, the programme returns to the subject. Reporter Jamie Delargy explores what has been driving prices down. He talks to those in the construction industry, the removal business and estate agency world whose trade has been impacted by a drastic fall in the number of house sales. One of the big banks here explains why they’ve had to tighten their lending criteria. A home owner explains reveals how she feels about a thirty thousand pound drop in the value of her new home. And we hear about the developers who overpaid for land, some of how now risk going bust." "Bursting the Bubble" Part 1: "Bursting the Bubble" Part 2: "Bursting the Bubble" Part 3: