The availability of beds to rent reduces. Simple example family with two kids in a rented three bed house. Landlord sells and a couple with no children purchase (with intention of having a family in the future).Strangely, even if the landlords head for the exit, their houses don't disappear.
And if a family with three kids buys it then the availability of beds increases. Either way things will average out so there'll be no net change.The availability of beds to rent reduces. Simple example family with two kids in a rented three bed house. Landlord sells and a couple with no children purchase (with intention of having a family in the future).
You still have one house but nowhere for the two kids previously living in the property to sleep!
I know this was meant as a bit of a joke , but that image was really about council workers and that's the real reason why the state does not want to employ construction workers themselves, you end up with glorified county council staff.Granted, we're talking about getting away from the old image of a half dozen lads leaning on their shovels, drinking tea, and looking into a hole in the gro
That is a problem but it really only effects the ground works. The rest of the house should be built in a factory and assembled onsite. Bathrooms can be built completely and pressure tested before arriving onsite. A few Irish companies have even tried this but have been unable to get the regulations modernised so that their products could be certified.I know this was meant as a bit of a joke , but that image was really about council workers and that's the real reason why the state does not want to employ construction workers themselves, you end up with glorified county council staff.
If it was the case that construction was such a handy job where you could stand around a hole drinking tea well then why is it so hard to recruit construction workers, even with relatively high wages and over 400,000 people on the PUP ?
The fact is that a lot of construction is dirty,dangerous, hard work, you never know what obstacles and problems you are going to encounter when you start digging . Many facilities and utilities are not properly mapped and not in the places they are supposed to be, unlike in the Nordic countries. While it may be easy to draw a line on a plan by an architect, realising that line in reality can be very difficult when you encounter the above issues.
That is a problem but it really only effects the ground works. The rest of the house should be built in a factory and assembled onsite. Bathrooms can be built completely and pressure tested before arriving onsite. A few Irish companies have even tried this but have been unable to get the regulations modernised so that their products could be certified.
There is a US company, owned by an Irish American family with Limerick roots, now manufacturing factory built homes in Limerick so maybe the Dept of the Environment has got their house in order, 10 years later.
If Irish people are actually that stupid then we deserve to have a housing crisis.There is probably a cultural thing in Ireland going back to the Rhofab prefab houses of the 70's (albeit I've been in a few and they weren't the worst.) that would need to be got past first.
No, it's the market.then what makes up the difference- is it the land price?
According to the Institute of Chartered Surveyors the cost of Finance accounts for 6% of the total cost of the average home. Given that factory built homes are faster to produce and can be manufactured while the groundworks are being done there should be a significant reduction in the cost of finance.
If the cost of finance is really up to 10%, as indicated in the link above, why are there not specialised finance companies competing within the sector? a 10% margin is beyond anything that can be made in Bonds or normal banking.
Given that the Institute of Chartered Surveyors are part of the construction sector they are hardly a neutral player in all this so should their numbers be taken with a pinch of salt?
It also means that if the developer goes bust while the houses are being manufactured they could be sold to a different developed and assembled onto different groundworks. In other words they will have a saleable value on an open market and so the risk to the lender is reduced.I agree with you that if you changed the build process to pre-fab manufacturing which led to a quicker build process it reduces the risk and should reduce the cost of financing.
So if I am working in City west and don't want the commuting cost/time then the price for living near where I work is €166k
Now I know the 2 houses may have different build/quality etc but if you assume material and labour costs are more or less the same, then what makes up the difference- is it the land price?
No, it's the market.
No it does not as the number of bed spaces/bedrooms still stays the same. Normally people trade up for extra bedrooms or as a min trade to a property with the same no of bedrooms. Rarely do people trade down. Trading down is not unheard of but is unusual.And if a family with three kids buys it then the availability of beds increases. Either way things will average out so there'll be no net change.
The market is valuing the property because of the amenities surrounding your property in City West compared to your property in Carlow. it is to simple to compare two similar properties (in terms of size and build costs, finish etc) without factoring in the differences outside of the property itself.Agree it's the market.
But isn't the market effectively valuing that piece of land and it's location at 166k more. (let's assume the buildings are identical).
So if I am working in City west and don't want the commuting cost/time then the price for living near where I work is €166k
That won't reduce the sell price, just the cost price. It's not a normal open market so reductions in cost won't translate to reductions in price.Remove VAT cost on new builds - now and forever and commit to never taxing the building of sovereign/societal infrastructure again! You lunatic politicians!
Bad idea; we've enough urban sprawl as it is. If we can't to grow outside the citied then have development plans for our towns.+ increase development land 25km around Cork/Dublin/Galway/Limerick/Waterford
With all the public service type work practices, pensions and inefficiencies? I'd rather see the State just get better at procurement.Government should acquire the largest Irish PLC house builder - Glenveagh Properties - and make it a semi-state company with the same management,cost and incentive structures benchmarked against the other PLC home builder Cairn Home but Glenveagh will have a zero P&L target…….Glenveagh is building a company that is designed to be the low cost producer of starter homes in the state with per annum target builds of c.3,000 homes a year in 2023. Go pick it up now while its cheap - selling below book value.
We don't produce the raw materials here. Attempting to on-shore our supply chain would add massively to our costs and serve no purpose as the suppliers have their suppliers and those will be outside Ireland anyway. We're not going to produce glass and PVC and the polymers for insulation and wiring and rubber and steel for nails and screws and hinges and latches for doors and windows and polymers for paint and varnish and all the other niche products that go into houses.Supply chains have proven to be fragile (shortages / inflation)…….Brexit….COVID……strategic aim of in-sourcing more building materials from the island of Ireland
The school no doubt had to go through a public procurement process where only the larger more expensive outfits quoted (procurement process is cumbersome and takes time, even when you don't win, so that's all added to the costs)My local school recently completed a small one classroom extension cost approx 180K. The professional fees from the Architect were 38K including vat for design and supervision and then people wonder how building is so expensive. Imagine how much professional fees would be on a housing estate when one room cost 38K.