T McGibney
Registered User
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You're not talking though about the State selling anything. You're talking about the State producing a social good (housing) and renting it though permitted profit-making intermediaries at significant undervalue, thus generating a ruinously negligible rate of return on the original investment.You mean the private entrepreneurial spirit is dead? You mean if the State sold RTE that no-one could submit a tender that guarantees the same level of programming, radio and TV, with all its advertising revenues, for a cheaper license fee?
I know TV3 finds it hard to compete with RTE, if only they had a slice of the licence fee however?
No, the initial electricity infrastructure installed in Ireland up to the early 1960s is now largely if not totally obsolete and has been supplanted by waves and waves of newer investment.
Where exactly is the incentive?
You cannot insure against normal wear and tear as it's an inevitability.
Ah come on, anyone who has owned a 1970s house since it was built has by now spent a considerable sum on its upkeep, or at this stage has a derelict property.
Where is the service? There's no skill involved in sending a bill out to someone.
Where is the profit?
That isn't profit, it's contribution towards fixed costs, including cost of capital, and contingencies. What's left at the end is profit.
Based on what, though?
The children's hospital.
The Luas.
On housing, the entire social housing programme during the bubble years.
You're not talking though about the State selling anything. You're talking about the State producing a social good (housing) and renting it though permitted profit-making intermediaries at significant undervalue, thus generating a ruinously negligible rate of return on the original investment.
Your faith in builders and their standards is touching.I said houses built to standard today!
So it still has the 60s wallpaper, kitchen, bathroom etc?My parents live in a house built in 1960's. Aside from a new roof on the kitchen extension I cant recall any repairs of significance that the plumber or electrician wasnt able to fix.
That's not a real profit. It's actually a ripoff. It depends on the State contenting itself with an artificially low 1% gross return (€2,500 per annum on €250k invested in building a house).Profit for property management, affordable rent for tenant.
...
I put in €333pm = €4,000pa. This covers €2,500 back to government + €500pa over (20yrs) accounts for initial €10,000 furnishing cost + €1,000pa for normal wear and tear.
Tenant pays me €7,200pa. Profit of €3,200 or €267 per month.
The State doesn't enjoy the luxury of having net funds on deposit, so your question is moot.What is the cost of capital if my initial outlay for yr1 is €10,000 + €1,000 + €2,500 = €13,500 and I have that in my bank account earning 2% interest (if lucky)?
Its not even built yet, is it? How can you judge.
I'm confused. You've been arguing til now that the State should build houses, not outsource them to others.Ok, outsourcing so.
Generally, the super market doesn't pay for these discounts, the suppliers do.Why shouldn't they?
Actually, supermarkets are a good example of constantly offer discounts , lower prices in an effort to compete to provide a quality service.
So it still has the 60s wallpaper, kitchen, bathroom etc?
That's not a real profit. It's actually a ripoff. It depends on the State contenting itself with an artificially low 1% gross return (€2,500 per annum on €250k invested in building a house)
The State doesn't enjoy the luxury of having net funds on deposit, so your question is moot.
The property management sets a fixed rental fee, reviewable every two years with limited increases no more than prevailing inflation rate
If the property management company can't increase rents to increase profits,
like providing substandard service. Or they'll go bust, leaving unattended properties behind.
If they provide substandard service they will be penalised.
The corporate graveyard is full of profitable businesses that went bust because they ran out of cash.I dont see how someone making a profit can go bust.
I asked this question days ago and never got an answer: what service exactly is involved in sending out bills for a monopoly?
The corporate graveyard is full of profitable businesses that went bust because they
BigShort, those people were defying a court order; there has to be respect for the rule of law.
In the meantime, house prices rise by 10.4% y-on-yr
https://www.rte.ie/news/business/2018/0911/993034-residential-property-prices/
And six people arrested for public order offences protesting the lack of accommodation
https://www.rte.ie/news/dublin/2018/0911/993167-north-frederick-street/
But hey, its 'the market'
What monopoly are you talking about??
So where or what is the monopoly?
I asked this question days ago and never got an answer: what service exactly is involved in sending out bills for a monopoly?
Here is an idea. If a tenant is not satisfied that the terms of the rental agreement are not being met they complain about their grievances to an independent adjudication body for a hearing.
If a tenant is not paying their rent, or carrying out criminal behaviour like destruction of property etc then the property manager does the same. If the complaint is upheld then sanctions are imposed on tenant.
QUOTE]
This sounds like the PRTB.
There would be the usual uproar if a private commercial company was to evict someone.
The State will insure for structural defects that occur over lifetime of property.
The State will insure the property management for non-payment of rent where the tenant is shown to be in financial difficulties and unable to pay (as distinct from refusing to pay).
If a tenant is not satisfied that the terms of the rental agreement are not being met they complain about their grievances to an independent adjudication body for a hearing.
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