Surely in Dublin they could build and make a profit now?
I don't think you'll see anything except apartments and small houses being built inside the m50 in the future except in premium developments. They don't need to be shoe boxes but we need higher density, well thought out housing.
, in 2013 and 2014 they allow landlords to buy and pay no CGT if they hold the property for 7 years. So that's helped drive the 2nd hand market mental in large parts of Dublin, with Cork and Galway following suit by some accounts.
Oh, and where I live, not even this policy is too likely to inflate much of a bubble, in case anyone wants to try to dampen my enthusiasm with warnings of overpricing...
1) Build social housing
2) Reduce VAT on new house builds (Or reduce other taxes such as development levies)
3) Bring in grants for first time buyers of new builds
4) Bring in grants for all buyers of new builds
5) Bring in mortgage interest relief for buyers of new houses
6) Guarantee 10% of the mortgage on new builds in exchange for the lender giving a discount on its SVR
7) Give tax incentives to property investors to build new properties to rent to rent allowance tenants for 10 years
No CGT is certainly an incentive for investors to get into the property market. But it doesn't just apply to landlords. Is their evidence it has helped the property market, is it this that is driving the market. Even with this incentive, if you want to be a landlord than you'd want more than this to make it worthwhile. With all the costs it's hard to justify buying.
You'll end up with a larger mortgage and the property will cost more than it should have if this policy comes to fruition.
That was my point Bronte, I don't think I will, because the market (housing-wise and employment-wise) where I want to buy is sufficiently depressed that not even this policy is likely to spark too much life into property prices.
Prices in Dublin mean that it is profitable to build houses.
I'd imagine if developers have land there's no incentive to build and sell at the bottom of the market. The price of building is going nowhere fast but who knows where selling prices will be in a year or two.So, why are they not being built?
I'd imagine if developers have land there's no incentive to build and sell at the bottom of the market. The price of building is going nowhere fast but who knows where selling prices will be in a year or two.
So, why are they not being built?
However, this government is committed to raising prices and is pathologically unable to stop meddling in the market.
Both good sensible suggestions Gerry. Simple and straightforward and unfortunately appear to be too simplastic for the Gov to implement! Councils should be in a position where if landbanks are unused for a period, then they can use compulsary purchase legislation to acquire them at an acceptable market price. There is a huge need for additional social housing and this can be an incentive for the market as a whole.Force; by penal rates that Building Land owners use it, or lose it or get heavily taxed
2. Instigate an immediate Co Co building programme of X units per Co Co.
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