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Does anyone know any internet site that showed the affect of ring fencing property losses had on average rents in Ireland? I'd like to look at the figures myself to see what the effect was, but can't seem to find anything great.
Ross
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Ross Barnett - Property Accountant
Don't know of any resource on that but there is an entertaining parliament debate on the same topic available online here: http://theyworkforyou.co.nz/portfoli...e_prices_rents
It does go a bit off track at one point, but there are some interesting questions and answers!
Rental prices have been in freefall in Ireland for more than two years with more drops likely. Rents are down by ~25% from their peak although house prices are down 30%-40% from their peak. On similar boards to this (in Ireland) - the optimists are predicting house prices need to decline by around a further 15% while the pessimists believe house prices need to fall by a further 40-60%.
Personally I think the property accountants in this country are going to become as reviled as the financial advisors that put all their clients into finance companies unless you guys wake up and realise just how ****ed property is as an investment and start pointing out the stretched fundamentals to your clients and the realities of what has happened overseas. We are not immune to what has happened overseas - we are just the furthest away from the GFC tidal wave. Our time will come.
This is a good precis of the situation including stats. Irelands biggest issue was chronic over supply, unlike New Zealand. Pretty scary numbers there now.
Is residential property in Ireland an attractive investment? Full analysis of Ireland's property market. Best areas? Most demand? Highest rental yields?
Does anyone know any internet site that showed the affect of ring fencing property losses had on average rents in Ireland? I'd like to look at the figures myself to see what the effect was, but can't seem to find anything great.
The main tax changes affecting rentals were the complete withdrawal of mortgage tax relief for rental property for personal income tax purposes (source (doc)), and some tinkering with the stamp duty. The subsequent rental rises were (source (PDF, figure 2.5)):
1999 6%
2000 10.5%
2001 14.6%
Where did you get these stats from? I'm struggling to get the same stats from the figure 2.5?
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Ross Barnett - Property Accountant
Where did you get these stats from? I'm struggling to get the same stats from the figure 2.5?
They are calculated from the inflation figures in the graph (e.g. (84.2-76.2)/76.2, also the report states them in the text just above the graph: "...rent inflation averaged at 3 per cent per annum between 1990 and 1996, but that this jumped to 5.3 per cent between 1997 and 1998. 1999/2000 and 2000/2001 saw particularly high growth in private residential sector rents, which increased by 10.5 per cent and 14.6 per cent respectively during these years."
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