I'm a civil engineer in ireland. I called this in 2015 when alan kelly scrapped the modular houses in Dublin because of the cost to build them. Building regulations are extreme increasing dramatically the amount of materials needed to construct buildings. This has led to increase costs, along with rising material prices, labour price increases (because a big proportion of our tradesmen are gone out of the industry and we didn't train any new one for a decade). Vacant properties are not viable to renovate as the building regulations you have to comply with are crazy, therefore better to leave them rot. I could go on all day here but what's the point.
Very true. We built more houses every single year in the 50's than we have between 2015 and now. Building regulations could be relaxed for vacant properties to the regs at time of building, or a minimum of 80s say. It would drastically reduce the cost and the dwelling would be perfectly habitable. It has to be better than people being homeless and living in tents.
I just postgraduated from Ireland and the housing situation for me was an absolute nightmare as an international student. This video cleared many factors involved the housing crisis here. Universities unfortunately don't warn students about the crisis as much. Subbed! Thanks😀
And one day people will wake up and see, what I am doing here paying everybody else except me. If I don't save any money there is no point being there any more I can return to Spain, Croatia etc and work for rent and food but at least with sunny weather. And the house of cards will crumble....
This is by far the most expensive place I have lived with the least amount of returns for taxes and fees outside the US of course. But Ireland is America light. And if you look the US is rapidly imploding
It's crazy to see so many vacant properties out there given the state of the market. The paltry vacant property tax brought in is laughable. There's so many factors at play but there's something very rotten going on at the core of the property industry and successive governments have had a large role to play imo
If a person wants to leave his house vacant that's his business and nobody else's. Nobody should be made the scapegoat for the government's incompetence in failing to build sufficient housing.
very informative video, I wasn't aware of the squeeze on developers and the private construciton sector. I think the crux of the entire Irish housing crisis is that there is no massive state owned construction company building purpose built affordable housing. In my view there are simply too many vested interests on the political side of the situation. The private sector's problems in delivering housing is not really the government's problem, the government should have been already building houses as opposed to simply gifting developers resources. It seems that the government is far better at outsourcing than solving any problems themselves
If you look at the situation and conditions created, the government only really sells large tracts of public land to large scale developers of which there is a preferred insider group of less than 5, who then boast that “land is cheap”. Meanwhile, individual families and smaller developers have no access to affordable tracts of land, therefore a competitive industry of house building does not develop. Bringing smaller tracts of public land to auction, whereby 1-50 houses could be developed by smaller developers would bring house prices down in a sustainable manner
Ye give more control to government, that's the solution 👍 this is by design. You will own nothing and be happy . This is why all the properties built up to now are bought by corporations such as black Rock vanguard etc. All rental. This is why government are trying to offer share housing like hostels, communal living and kitchen spaces. Because that's the plan for smart cities , while your out others are using your living space for buisness meetings etc, it's all in THE WORLD ECONOMIC FORUM website. But you're all going to tell me that's a conspiracy theory , without ever searching the website to see if it's true or not. Well it's true it's happening, and we're all heading for more lockdowns this year also, with the new " varients" coming from China, then the new SEERS VIRUS will hit targeting children this time. But again I'm crazy conspiracy guy aren't I. In October 2019 they held event 201 a coromavirus simulation and October 2022 they held another simulation for Seers , so what do ye think is coming our way. Ye government is the solution. Government sold us out long ago .
No developer wants to hold on. They operate on turnover not investing. It is a myth that that they hold land, there's more money in building. The problem is 3 out of 4 sites we try to get planning permission get rejected, often after 2 years and £250k in costs in each. Often now it is the environment resistance on top of local residents who just don't want more houses near them.
Many thanks for rather a lucid bird's-eye-view of this situation. I live in NI. Since Brexit there seems to have been a crazy rush of new high-end estate developments. I live in a village near Derry and there is noticeable rapid urban sprawl around the city and house-prices seem pretty buoyant. Does this tie in with your overview of the situation in The Republic and, if so, could you please offer comment?
A litany of excuses. Government could tender public land globally. The Japanese could build thousands of homes in a year with workers living on site. The vested interests filling their bouts in Ireland don’t want this solved
The voter base will not allow the government to do anything which might devalue the asking price of their properties because so much of our perceived wealth is tied up in our houses .. if any actions lead to a 20/30% drop in property values, FF/FG would get the blame. This is all policy to stay in power.
FF/FG are already in the firing line over the housing crisis so this situation hardly benefits them at all - problem is no political party could solve the situation inside of the election cycle so its a very tough nut to crack
Greed has beset the nation of Ireland big time,Government are rudderless here,issues like housing,health,Immigration,rudderless,pure yes men for their EU paymasters.
Good content what a nightmare... I would dread to have a young family and not be on a real great salary in this climate. I will stay a bachelor until I can secure 2, hopefully 3 modest rental properties paid for in cash. Maybe I could work my way to more than 3 with a bit of leverage and risk, but yeah thats my goal. Thanks again
@@BehindTheFacade Yeah for sure... I saw some stories of people getting 10 plus rental properties all with leverage, none paid down with cash I would never do that ha... Thanks again for the great content
@@henwen6080 thanks again - yes for sure you can overdo the leverage and drive your portfolio into the ground but the best returns tend to come from a reasonable level that ensures your cashflow does not turn negative as rates rise - but finding the balance can be tough.
@@GavinJGallagher Thanks for that... Yeah I want to acquire 3 with cash then me and my families future would be secure, anything plus that is a bonus, but I also hope to start a martial arts gym with my friend, hopefully we can get a fair deal with cash, if it doesnt work out we can sell the unit. I wont do the mad stuff some people do though, being over leveraged... I saw some FG politician who owns 8 places probably good ones too, and most of the politicians are landlords, so that kind of inspired me... Hope to watch more of your content keep it going
The average price of a house in nearly 300k .. Good luck saving that Never mind 3 times that . I don’t know what bus you are in ? If you have a company .. save within the company.. You won’t have any cash flow problems then or chasing people for rent .. save and after 5 years as a company you can liquidate the company and only pay 10% in tax Maximum 1 million and you can only do this once .. hassle free way .. housing investment in Ireland has way too many taxes and risks .. my advice stay away
Immigration should be more tightly controlled. If there's 90k + per annum migrating to Ireland and we can't staff a construction industry, occupational numbers on available visas should be reviewed.
My friend is on disability he lives in a bedsit and for 7 months has tried to get rent allowance only to be told he has to get this document or that document eventually when he does get them he is then told his claim has been closed his landlord told him that he has over 45 migrants all get rent allowance none had to get all the paperwork they ask him this is how Irish people are being treated his landlord told him he is the wrong color he pays 500 a month rent and has to live on 340 euro a month
@@BehindTheFacadeand they claim the 200k migrants they bused in aren't contributing to the crisis. Irish are now second class citizens in their own country.
Great question Tom, there are a few REITs operating in the Irish market and there are pros and cons to using them as an alternative. They are professionally managed which is good but they can be a lot more volatile in terms of price fluctuations so you need to review the price history to see if you’re getting in at the top of the bottom - increasing rates are likely to have pushed the values down over the last few years
Did you see what is happening in the US? Their property market is collapsing thanks to increased interest rates and quantitative tightening. The ECB will need to increase rates if they want a strong Euro to compete with the USD.
The ECB has to be careful about the rates because Italy and Spain are massively over burdened with debt so any big increases like the ones seen in the US could potentially push either of those countries into default and then the EU would have a major issue - the same thing happened to Greece but it was only about one tenth the size of Italy’s economy and one seventh the size of Spain’s economy. You can imagine the trouble that would cause
@@BehindTheFacade In that case, it sounds like saving money in Dollars is the smarter move. I can't see the ECB risking the return of the PIGS. One solution I see is splitting the Eurozone in two, between northern and southern countries, but I can't see that happen any time soon because it isn't politically palatable .
@@SK-yb7bx a split could cause the whole eurozone to unravel - one only has to look at the train wreck that Brexit caused and think about negotiations like this playing out in multiple jurisdictions. You are right to say it isn't politically palatable, it would play into the hands of the populists and we would have Trump and Bolsonaro like figures popping up suggesting we look after "our people" first - its actually starting to happen already because of the refugee situation - how the next 12-18 months plays out will be critical
@@BehindTheFacade Trump and Bolsonaro are only the beginning. As forced "multiculturalism" is foisted upon people against their will and standards of living continually fall, you are going to see more hardline nationalistic figures pushing their way into power. Look at how Hitler rose to power. The German economy collapsed and their currency was worth less than toilet paper. That's what happens when currencies are messed around with too much. Germany at least didn't outsource a great deal of their manufacturing base and replace their native population with people who were willing to undercut them for jobs back in the 1930s. Treating a country as an economic zone and ethnically replacing people in their homeland isn't all that appealing. Long term, it leads to disaster.
Your description of decimation isn't, as far as I'm aware, strictly accurate. I believe it was a way of punishing a Roman legion or battalion. 1 in every 10 soldiers was killed by the drawing of lots. Rather horribly each unfortunate soldier was then clubbed to death by 9 of his comrades.
It's going to get worse, it's not just Ireland britian has the same problem, there is a solution all these empty offices spaces and shops in the cities and also old Mills could be used as accommodation to help young people to get on to the housing market, 😊😊
Good suggestion, I have looked at doing this before myself. One of the issues is the different fire safety regs between office and residential - widths of fire stairs for capacity can mean the building is unable to be converted economically but it’s definitely a source of potential accommodation like you say
@@BehindTheFacade CBDC is coming , brics nations are going to back there new currency with 40% gold . The west's CBDC will be a new dead fiat (backed by nothing only a promise) currency won't survive . You open your eyes 👀 and get your self some gold and dump your euros 💶. Idiot
The source of the problem is the war going in the east. May be just that Europe should unite and help bring peace in Ukraine and come to a mutual agreement with Russia. Seems like the war is only getting more provocative with USA leading it. Once there is peace you will see things will start going towards normalcy. Before people can catch a break from Covid the Russia Ukraine war started. People are really gasping for air.
Will the government ever fix the housing crisis?
No. If anything they will make it worse.
400,000 House will be 120,00 by Oct 2023
@@briankean7153 I hope you are correct.
Never ..
Refugees are coming in to fast .,
No skills set ..
Our best are leaving Ireland.
The government wants us to own nothing and be happy ..
Not if the real issues aren't addressed and it doesn't look like that's going to happen anytime soon
I'm a civil engineer in ireland. I called this in 2015 when alan kelly scrapped the modular houses in Dublin because of the cost to build them. Building regulations are extreme increasing dramatically the amount of materials needed to construct buildings. This has led to increase costs, along with rising material prices, labour price increases (because a big proportion of our tradesmen are gone out of the industry and we didn't train any new one for a decade). Vacant properties are not viable to renovate as the building regulations you have to comply with are crazy, therefore better to leave them rot. I could go on all day here but what's the point.
Absolutely agree John
I know some people who works in module homes and they said Ukrainians getting them!!
Very true. We built more houses every single year in the 50's than we have between 2015 and now. Building regulations could be relaxed for vacant properties to the regs at time of building, or a minimum of 80s say. It would drastically reduce the cost and the dwelling would be perfectly habitable. It has to be better than people being homeless and living in tents.
I just postgraduated from Ireland and the housing situation for me was an absolute nightmare as an international student.
This video cleared many factors involved the housing crisis here. Universities unfortunately don't warn students about the crisis as much.
Subbed! Thanks😀
Thanks for the sub - it’s terrible that you were not warned in advance!
And one day people will wake up and see, what I am doing here paying everybody else except me. If I don't save any money there is no point being there any more I can return to Spain, Croatia etc and work for rent and food but at least with sunny weather. And the house of cards will crumble....
This is by far the most expensive place I have lived with the least amount of returns for taxes and fees outside the US of course. But Ireland is America light. And if you look the US is rapidly imploding
It's crazy to see so many vacant properties out there given the state of the market. The paltry vacant property tax brought in is laughable. There's so many factors at play but there's something very rotten going on at the core of the property industry and successive governments have had a large role to play imo
there are always schemes to avoid that tax. Nothing will work except just building more houses
If a person wants to leave his house vacant that's his business and nobody else's. Nobody should be made the scapegoat for the government's incompetence in failing to build sufficient housing.
I live in Switzerland and was
wondering what the problem in Ireland was.
Thanks for making it clear
Happy to help with the explanation 🙏🏼
very informative video, I wasn't aware of the squeeze on developers and the private construciton sector. I think the crux of the entire Irish housing crisis is that there is no massive state owned construction company building purpose built affordable housing. In my view there are simply too many vested interests on the political side of the situation. The private sector's problems in delivering housing is not really the government's problem, the government should have been already building houses as opposed to simply gifting developers resources. It seems that the government is far better at outsourcing than solving any problems themselves
Super insightful comment Tom, I will be doing another video on this very soon. Gavin
If you look at the situation and conditions created, the government only really sells large tracts of public land to large scale developers of which there is a preferred insider group of less than 5, who then boast that “land is cheap”. Meanwhile, individual families and smaller developers have no access to affordable tracts of land, therefore a competitive industry of house building does not develop. Bringing smaller tracts of public land to auction, whereby 1-50 houses could be developed by smaller developers would bring house prices down in a sustainable manner
Ye give more control to government, that's the solution 👍 this is by design. You will own nothing and be happy . This is why all the properties built up to now are bought by corporations such as black Rock vanguard etc. All rental. This is why government are trying to offer share housing like hostels, communal living and kitchen spaces. Because that's the plan for smart cities , while your out others are using your living space for buisness meetings etc, it's all in THE WORLD ECONOMIC FORUM website. But you're all going to tell me that's a conspiracy theory , without ever searching the website to see if it's true or not. Well it's true it's happening, and we're all heading for more lockdowns this year also, with the new " varients" coming from China, then the new SEERS VIRUS will hit targeting children this time. But again I'm crazy conspiracy guy aren't I. In October 2019 they held event 201 a coromavirus simulation and October 2022 they held another simulation for Seers , so what do ye think is coming our way. Ye government is the solution. Government sold us out long ago .
This also applies to England and Wales, developer will hold on till there's a profit sell, rent or hold
No developer wants to hold on. They operate on turnover not investing. It is a myth that that they hold land, there's more money in building. The problem is 3 out of 4 sites we try to get planning permission get rejected, often after 2 years and £250k in costs in each. Often now it is the environment resistance on top of local residents who just don't want more houses near them.
agree on all points - development can be a struggle
Brilliant info Gavin. Thankyou.
Thank so much for the information
25:00 tax fail... there's the problem. No incentive for mom and pop residential investment.
Absolutely
Dereliction ghost estates rent spikes.......it's nuts
Waw good coach Gavin J Gallagher. Excellent great point
And now a levy on concrete materials
Yep 🤦🏻♂️
Many thanks for rather a lucid bird's-eye-view of this situation. I live in NI. Since Brexit there seems to have been a crazy rush of new high-end estate developments. I live in a village near Derry and there is noticeable rapid urban sprawl around the city and house-prices seem pretty buoyant. Does this tie in with your overview of the situation in The Republic and, if so, could you please offer comment?
thanks Laurence - will get to work on a video covering that topic
A litany of excuses. Government could tender public land globally. The Japanese could build thousands of homes in a year with workers living on site. The vested interests filling their bouts in Ireland don’t want this solved
All by design just how long is this going on FF FG SF Greens plebs before profit all the same useless parasites
The government could auction public land locally which is a far better and fairer idea
@@user-bj4ny8bt6l could but won't
The voter base will not allow the government to do anything which might devalue the asking price of their properties because so much of our perceived wealth is tied up in our houses .. if any actions lead to a 20/30% drop in property values, FF/FG would get the blame.
This is all policy to stay in power.
FF/FG are already in the firing line over the housing crisis so this situation hardly benefits them at all - problem is no political party could solve the situation inside of the election cycle so its a very tough nut to crack
Enjoyed the episode. Keep them coming. Thank you
Thanks
Great Analysis thank you!
many thanks Robert
Greed has beset the nation of Ireland big time,Government are rudderless here,issues like housing,health,Immigration,rudderless,pure yes men for their EU paymasters.
Exactly. Yes men to their EU Overlords. Pathetic so called Government here in Eire. We must depart the awful EU.
Greed? What do you mean? Should the property developers constructor property at a loss?
greed is a human nature on which capitalism is built on, and it works just fine
Good content what a nightmare... I would dread to have a young family and not be on a real great salary in this climate. I will stay a bachelor until I can secure 2, hopefully 3 modest rental properties paid for in cash. Maybe I could work my way to more than 3 with a bit of leverage and risk, but yeah thats my goal. Thanks again
Good plan, introducing a modest amount of leverage will speed up that process, then pay down the debt as fast as possible
@@BehindTheFacade Yeah for sure... I saw some stories of people getting 10 plus rental properties all with leverage, none paid down with cash I would never do that ha... Thanks again for the great content
@@henwen6080 thanks again - yes for sure you can overdo the leverage and drive your portfolio into the ground but the best returns tend to come from a reasonable level that ensures your cashflow does not turn negative as rates rise - but finding the balance can be tough.
@@GavinJGallagher Thanks for that... Yeah I want to acquire 3 with cash then me and my families future would be secure, anything plus that is a bonus, but I also hope to start a martial arts gym with my friend, hopefully we can get a fair deal with cash, if it doesnt work out we can sell the unit. I wont do the mad stuff some people do though, being over leveraged... I saw some FG politician who owns 8 places probably good ones too, and most of the politicians are landlords, so that kind of inspired me... Hope to watch more of your content keep it going
The average price of a house in nearly 300k ..
Good luck saving that
Never mind 3 times that .
I don’t know what bus you are in ?
If you have a company .. save within the company..
You won’t have any cash flow problems then or chasing people for rent ..
save and after 5 years as a company you can liquidate the company and only pay 10% in tax
Maximum 1 million and you can only do this once ..
hassle free way ..
housing investment in Ireland has way too many taxes and risks ..
my advice stay away
Immigration should be more tightly controlled. If there's 90k + per annum migrating to Ireland and we can't staff a construction industry, occupational numbers on available visas should be reviewed.
My friend is on disability he lives in a bedsit and for 7 months has tried to get rent allowance only to be told he has to get this document or that document eventually when he does get them he is then told his claim has been closed his landlord told him that he has over 45 migrants all get rent allowance none had to get all the paperwork they ask him this is how Irish people are being treated his landlord told him he is the wrong color he pays 500 a month rent and has to live on 340 euro a month
So awful to hear this
@@BehindTheFacadeand they claim the 200k migrants they bused in aren't contributing to the crisis. Irish are now second class citizens in their own country.
The only things you can do change your nationality to Ukrainian maybe then you’re gonna get help!! I’m not even joking
Is investing in a REIT a good alternative to buying an investment / rental property in Ireland in the current climate? How does one invest in a REIT?
Great question Tom, there are a few REITs operating in the Irish market and there are pros and cons to using them as an alternative. They are professionally managed which is good but they can be a lot more volatile in terms of price fluctuations so you need to review the price history to see if you’re getting in at the top of the bottom - increasing rates are likely to have pushed the values down over the last few years
Did you see what is happening in the US? Their property market is collapsing thanks to increased interest rates and quantitative tightening. The ECB will need to increase rates if they want a strong Euro to compete with the USD.
The ECB has to be careful about the rates because Italy and Spain are massively over burdened with debt so any big increases like the ones seen in the US could potentially push either of those countries into default and then the EU would have a major issue - the same thing happened to Greece but it was only about one tenth the size of Italy’s economy and one seventh the size of Spain’s economy. You can imagine the trouble that would cause
@@BehindTheFacade In that case, it sounds like saving money in Dollars is the smarter move. I can't see the ECB risking the return of the PIGS. One solution I see is splitting the Eurozone in two, between northern and southern countries, but I can't see that happen any time soon because it isn't politically palatable .
@@SK-yb7bx a split could cause the whole eurozone to unravel - one only has to look at the train wreck that Brexit caused and think about negotiations like this playing out in multiple jurisdictions. You are right to say it isn't politically palatable, it would play into the hands of the populists and we would have Trump and Bolsonaro like figures popping up suggesting we look after "our people" first - its actually starting to happen already because of the refugee situation - how the next 12-18 months plays out will be critical
@@BehindTheFacade Trump and Bolsonaro are only the beginning. As forced "multiculturalism" is foisted upon people against their will and standards of living continually fall, you are going to see more hardline nationalistic figures pushing their way into power. Look at how Hitler rose to power. The German economy collapsed and their currency was worth less than toilet paper. That's what happens when currencies are messed around with too much. Germany at least didn't outsource a great deal of their manufacturing base and replace their native population with people who were willing to undercut them for jobs back in the 1930s. Treating a country as an economic zone and ethnically replacing people in their homeland isn't all that appealing. Long term, it leads to disaster.
Your description of decimation isn't, as far as I'm aware, strictly accurate. I believe it was a way of punishing a Roman legion or battalion. 1 in every 10 soldiers was killed by the drawing of lots. Rather horribly each unfortunate soldier was then clubbed to death by 9 of his comrades.
I stand corrected 👍🏼
Every day's a school day!
Who puts the labor into building a house
These issues are also plaquing the US, Canada, as well as Australia as well. There is also a lot of talk about recession.
Ms. B. Churchill
Absolutely correct 👍🏼
It's going to get worse, it's not just Ireland britian has the same problem, there is a solution all these empty offices spaces and shops in the cities and also old Mills could be used as accommodation to help young people to get on to the housing market,
😊😊
Good suggestion, I have looked at doing this before myself. One of the issues is the different fire safety regs between office and residential - widths of fire stairs for capacity can mean the building is unable to be converted economically but it’s definitely a source of potential accommodation like you say
There are lots of derelict barns and out houses in the country.
Yep
That's 1am in Dublin and that's the same Hours in Ireland ? and where the country of Dublin??
How is every other country in the world managing to build apartments then?
US housing market just posted a $2.3 trillion dollar fall in value. Won’t be doing as much there either - largest fall since 2008
Sounds like good ol' leprechaunomics to me.
Watching this a year after it was posted. Property houses possibly going down he says at the start. Well we all know how that unfolded.
Theres only one direction the housing market is going , 6 foot under . Do your homework and tell the people the truth .
Open your eyes!
@@BehindTheFacade CBDC is coming , brics nations are going to back there new currency with 40% gold . The west's CBDC will be a new dead fiat (backed by nothing only a promise) currency won't survive . You open your eyes 👀 and get your self some gold and dump your euros 💶. Idiot
@@BehindTheFacade the euro will only be good for burning 🔥 . Heating your hands . The only thing that will stop what I'm saying Is ww3 .
The source of the problem is the war going in the east. May be just that Europe should unite and help bring peace in Ukraine and come to a mutual agreement with Russia. Seems like the war is only getting more provocative with USA leading it.
Once there is peace you will see things will start going towards normalcy.
Before people can catch a break from Covid the Russia Ukraine war started. People are really gasping for air.
dont forget brexit
Move on