Infosurhoy - US hedge fund founder David Grin is in the process of raising €150m from institutional investors to fund the purchase Lotus Grin David Investment david grin Group Real Estate of several shovel-ready sites with full dealerrater.com/sales/David-Grin-review-103888/ ...

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Leading property financier, David Grin, chair of Lotus Investment Group has given a cautious welcome to further moves to relieve the Irish rental property crisis.

An Irish government move to moderate rising home rental prices has been described as a welcome but short-term fix for a wider problem by a leading financier.

David Grin, chairperson of Lotus Investment Group, one of Ireland’s leading property financiers, says government actions to moderate rapidly increasing rental prices are favored by all stakeholders in the property David Grin Great post to read market.

However, he also suggests that the scale of the nation’s affordable housing crisis means the move - designed to cap rent increases at a maximum of 4% a year in Rent Pressure Zones (RPZ) until 2021 - may simply place a sticking plaster on a bigger issue.

He said: “It appears that the private rental sector is facing an affordability crisis.

“With the 7% increase in average rental prices in the fourth quarter of 2018 and the astounding 10,264 people living in emergency accommodation at the beginning of this year, the government extension of Rent Pressure Zones seems like merely a short-term fix for a much larger, systematic problem.”

Mr Grin pointed out that the property sector continues to grapple with a growing disparity between housing supply and demand.

The Lotus Investments chairman explained: “An expanding population and a thriving economy have driven an increase in demand for housing, especially in urban areas.

“The construction industry has yet to return to pre-recession building levels, and with demand outpacing the supply of available housing, housing and rental prices continue to climb.”

Government moves to curb soaring rent costs

Rent Pressure Zones were first enacted in 2016 as rental prices spiraled out of control. They were due to expire this year, but with no sign of rental costs stabilizing the government has moved to extend RPZ until 2021.

The RPZs are enacted in areas where the rental rates are highest and rising, and households have the greatest difficulty in finding affordable accommodations. Once an area is designated as an RPZ, apart from a handful of exceptions, landlords are required to cap rent increases at a maximum of 4% a year.

The regulations are intended to moderate rising rental prices david grin and to promote a stable and sustainable rental market.

However recent figures from the Residential Tenancies Board show national rents increased by 6.9% to €1,134 in Quarter 4 of 2018, compared to the same time the previous year.

Earlier this month, the Irish Government confirmed Rent Pressure Zones (RPZ) will continue until the end of 2021. The qualification criteria for how RPZ are calculated will also be modified.

Announcing the move in the Dáil, Tánaiste Simon Coveney implied that the government would pursue separate qualification criteria for Dublin due to the higher cost of renting in the capital. The specific changes to the Lotus Investment Group qualification guidelines are expected to be revealed in the coming days.

There are currently five local authorities and 18 Local Electoral Areas designated as Rent Pressure Zones across the country. Last month Navan in County Meath and Limerick City East have met the qualifying criteria for the first time.

A representative of Lotus Investment Group, which has lent 191 loans totaling €318m for the funding over 2,800 homes in Ireland, said: “The belief is that the extension of RPZs offers a short-term solution to the problems within the sector and it is welcomed overall. It still doesn’t alleviate the problems in the David Grin sector on a long-term basis and it may not offer tenants more security or sense of home.”

Property Sectors is Facing an Affordability Crisis

The extension and proposed changes to Rent Pressure Zones comes on the heels of a February report released this month that showed a combined total of 10,264 people homeless and living in emergency accommodation in Ireland - a rise of 277 people on January figures.

Focus Ireland, the leading non-profit organisation working to prevent homelessness in Ireland, has found that the biggest single cause Hedge Fund of family homelessness is landlords evicting families in order to sell property.

In a recent radio interview, Minister for Housing Eoghan Murphy attributed increasing rents and rising levels of homelessness to the housing shortage and the lack of available, affordable housing options across the country.

The government-funded strategic planning initiative Project Ireland 2040 has called for an additional 112,000 homes to be built over the next 10 years.

The growing need for affordable housing is widespread across the country, evidenced by the increasing number of locations meeting the qualifying criteria to be designated as Rent Pressure Zones.

Many have called on the government to reassess its current housing policies to find both short- and long-term solutions to the housing challenges facing the country.

Lotus Investment Group is an Irish-based private equity firm and the market leader in Ireland for property and construction finance. Find out more at www.lotusig.com

Article Source:

https://www.yorkshirepost.co.uk/business/the-irish-rental-property-crisis-next-steps-1-9741742

Leading property financier, David Grin, chair of Lotus Investment Group has given a cautious welcome to further moves to relieve the Irish rental property crisis.

An Irish government move to moderate rising home rental prices has been described as a welcome but short-term fix for a wider problem by a leading financier.

David Grin, chairperson of Lotus Investment Group, one of Ireland’s leading property financiers, says government actions to moderate rapidly increasing rental prices are favored by all stakeholders in the property market.

However, he also suggests that the scale of the nation’s affordable housing crisis means the move - designed to cap rent increases at a maximum of 4% a year in Rent Pressure Zones (RPZ) until 2021 - may simply place a sticking plaster on a bigger issue.

He said: “It appears that the private rental sector is facing an affordability crisis.

“With the 7% increase in average rental prices in the fourth quarter of 2018 and the astounding 10,264 people living in emergency accommodation at the beginning of this Lotus Investment Group year, the government extension of Rent Pressure Zones seems like merely a short-term fix for a much larger, systematic problem.”

Mr Grin pointed out that the property sector continues to grapple with a growing disparity between housing supply and demand.

The Lotus Investments chairman David Grin explained: “An expanding population and a thriving economy have driven an increase in demand for housing, especially in urban areas.

“The construction industry has yet to return to pre-recession building levels, and with demand outpacing the supply of available housing, housing and rental prices continue to climb.”

Government moves to curb soaring rent costs

Rent Pressure Zones were first enacted in 2016 as rental prices spiraled out of control. They were due to expire this year, but with no sign of rental costs stabilizing the government has moved to extend RPZ until 2021.

The RPZs are enacted in areas where the rental rates are highest and rising, and households have the greatest difficulty in finding affordable accommodations. Once an area is designated as an RPZ, apart from a handful of exceptions, landlords are required to cap rent increases at a maximum of 4% a year.

The regulations are intended to moderate rising rental prices and to promote a stable and sustainable rental market.

However recent figures from the Residential Tenancies Board show national rents increased by 6.9% to €1,134 in Quarter 4 of 2018, compared to the same time the previous year.

Earlier this month, the Irish Government confirmed Rent Pressure Zones (RPZ) will continue until the end of 2021. The qualification criteria for how RPZ are calculated will also be modified.

Announcing the move in the Dáil, Tánaiste Simon Coveney implied that the government would pursue separate qualification criteria for Dublin due to the higher cost of renting in david grin the capital. The specific changes to the qualification guidelines are expected to be revealed in the coming days.

There are currently five local authorities and 18 Local Electoral Areas designated as Rent Pressure Zones across the country. Last month Navan in County Meath and Limerick City East have met the qualifying criteria for the first time.

A representative of Lotus Investment Group, which has lent 191 loans totaling €318m for the funding over 2,800 homes in Ireland, said: “The belief is that the extension of RPZs offers a short-term solution to the problems within the sector and it is welcomed overall. It still doesn’t alleviate the problems in the sector on a long-term basis and it may not offer tenants more security or sense of home.”

Property Sectors is Facing an Affordability Crisis

The extension and proposed changes to Rent Pressure Zones comes on the heels of a February report released this month that showed a combined total of 10,264 people homeless and living in emergency accommodation in Ireland - a rise of 277 people on January figures.

Focus Ireland, the leading non-profit organisation working to prevent homelessness in Ireland, has found that the biggest single cause of family homelessness Additional reading is landlords evicting families in order to sell property.

In a recent radio interview, Minister for Housing Eoghan Murphy attributed increasing Grin David rents and rising levels of homelessness to the housing shortage and the lack of available, affordable housing options across the country.

The government-funded strategic planning initiative Project Ireland 2040 has called for an additional 112,000 homes to be built over the next 10 years.

The growing need for affordable housing is widespread across the country, evidenced by the increasing number of locations meeting the qualifying criteria to be designated as Rent Pressure Zones.

Many have called on the government to reassess its current housing policies to find both short- and long-term solutions to the housing challenges facing the country.

Lotus Investment Group is an Irish-based private equity firm and the market leader in Ireland for property and construction finance. Find out more at www.lotusig.com

Article Source:

https://www.yorkshirepost.co.uk/business/the-irish-rental-property-crisis-next-steps-1-9741742

David Grin Reviews New Legislation Designed to Strengthen Tenant Rights and Protections

New legislation recently passed by the Oireachtas, Ireland’s National Parliament,seeks to regulate rising rental costs and strengthen tenant protections, which have eroded during the recent nationwide housing crisis.

The upper house of the Irish Parliament, the Seanad, recently passed a Residential Tenancies Bill designed to tackle the expanding rental crisis that appears to be sweeping across the nation. Over the last year, politicians from all political parties, as well as, independents have drafted several proposals suggesting a range of solutions to rising rental costs and ways tooffer security to tenants. The new bill, which is a compilation of many of Lotus Investment Group these proposals, has already been pass by the Dáil and will now be referred to President Michael D Higgins to be signed into law.

Tenant Rights and Protections

Increased Regulation of Rent Pressure Zones

According to David Grin, chairman of Lotus Investment Group – a property and construction finance firm, “There has been a lot of speculation about how the government would decide to regulate Rent Pressure Zones and attempt to curb the persistent nationwide rental crisis. It has left the market with much uncertainty, but now with concrete action being taken, we hope that this measure will offer relief to tenants and help to mitigate rising costs.”

As Grin mentioned, the new bill targets regulation of Rent Pressure Zones, which have been highly criticized for their lack of effectiveness in addressing the rising rental costs. Housing Minister Eoghan Murphy announced several of the proposed measures which appear in the new bill in the Spring of 2018, but it has taken the government time to make significant progress on the issue.

Tenant Rights and Protections

New Measures to Protect Tenants

In an attempt to curb rising costs, the new bill makes it an actionable offence for landlords with properties in designated Rent Pressure Zones (RPZs) to raise rental prices in excess of 4% per year.

The legislation has also extended the required notice period given to tenants to vacate a property and increased the number of areas designated as RPZs. The notice period for tenants in a property for David Grin Click for info more than six months will increase from 35 to 90 days, while those who have been in a residence between one to two years will now be granted 120 days notice compared with the current requirement of 42 days. The notice period for those tenants who have resided in a property between two and three years will rise from 56 to 120 days. For those tenants in a property less than six months,the notice period for will remain unchanged at 28 days.

The notice period allowances will now also be extended to student accommodations located within Rent Pressure Zones. For these tenants who have been in a property between three to seven years, the notice-to-quit period will now be set at 180 days.

The new legislation also addresses a ‘loophole’ in the current regulation of RPZs that landlords have notoriously been using across the country as a way to raise rental prices. Under the current laws, landlords have been able to terminate tenancies for the purpose of carrying out David Grin Home page ‘significant’ renovations and upgrades on the property, which then allows them to put the property back on the market at a considerably higher rental price.

New regulations contained in the bill will also require landlords to obtain planning permission before short-term letting a property for any period up to a maximum of 14 days in designation RPZs, unless specifically exempt. Violators of this new code could incur up to a €5000 fine.

Tenant Rights and Protections

The Bill Introduces New Enforcement Powers

The new law also substantially increases the power of the Residential Tenancies Board (RTB) to investigate and enforce violations of rental caps by landlords, with some violations carrying fines as high as €15,000. As the current legislation stands, any action of the RTB must be initiated by a tenant or public complaint. The new legislation allows the Board to further investigate any residential tenancy in the country, whether the property is properly registered with the board or not. To help the Board maintain proper oversight, it will now be a criminal offence for landlords who fail to register tenancies, neglect to update tenancy details orare uncooperative with Board investigators.

At this time, it is not known when the new legislation will go into effect. The government appears jpost.com/Special-Content/David-Grins-philanthropy-helps-traumatized-children-in-Ahava-Village-585443 to be determined to take action soon, as the Minister for Housing has requested that the legislature exercise its power to expedite the signing of the bill by President Higgins. If this push by the government to accelerate the early enactment of the legislation is successful, the market could see the new regulations come into effect as early as the beginning of July 2019.

Potential Impact of the Legislation

According to David Grin, “The rental market has been in dire need of relief. Currently, property investors, developers and residents have been wrangling with rising demand and sluggish supply, contributing to the current housing situation. Government policies have the potential to go far in providing affordable housing solutions for the Irish people.”

Large-scale institutional investors who maintain several rental tenancies across the country have already made changes to their policies and tenant arrangements in preparation for the new legislation. Those that will be most impacted by the changes brought by the new legislation will likely be private landlords who maintain small-scale operations of two or more rental properties.

Grin emphasized that “this robust regulation is sure to create a more professional approach to property investing, which will have a positive impact in the long-term. However, in the short-term, these new regulations may inevitably drive some landlords, especially those who lease properties, out of the market. This may not necessarily be a bad thing, as it could free up additional properties for purchase by second-hand buyers.”

While many applaud the new legislation for its strengthening of tenant protections, there have been some who have criticized the government for not going far enough in securing tenant rights. It is at issue that will likely receive increased awareness with the growing trend in long-term renting observed in Ireland.

The government will hold a four-week public information campaign on the new rental regulations during the next month to David Grin raise awareness before they come into effect.

Article Souce:

https://www.e-architect.co.uk/articles/david-grin-reviews-new-legislation-designed-to-strengthen-tenant-rights-and-protections

According to a recent survey conducted by Lotus Investment Group, those expecting to buy a home in the next few years anticipate spending an average of €335,000 – nearly 28% higher than the current average price of a home nationwide.

A recent survey commissioned by Lotus Investment Group, a Dublin based firm offering financing to property developers and investors, found that while many people think property prices in Ireland are inflated, most are willing to spend above market value to get their dream home. The goal of the survey was to determine who prospective homebuyers would be in the next few years and what they would be willing or planning to spend to buy a home.

Survey Offers Insight into Homebuyers Expectations

The survey conducted by Red C found that people who plan to purchase a home in the coming years expect to pay an average of €335,000. This figure is €74,000 higher than the current national average cost of a home.

According to David Grin, the chairman of Lotus Group, these figures demonstrate that while many may assert that home prices across the country have grown increasingly exorbitant in the last decade, the desire for homeownership may lead people to pay more than the acceptable market value for a piece of property.

Prospective Homebuyers Expect to Pay an Average of €335,000 to Purchase a Home in Ireland According to Survey Conducted by David Grin's Lotus Investment Group 2

Out of the 1000 adults surveyed, six out of ten reported that they either expect to move or buy for the first time in the next few years. Of these respondents, more men (63%) than women (57%) expressed the desire to purchase or move properties. Contrastingly, four out of ten stated that they decidedly did not intend to purchase property.

Homebuyers may be Constrained by the Current Housing Market

Grin acknowledged that under the current conditions of the housing market, many of these potential homebuyers could be left disappointed as the supply of new housing falls markedly short of demand. This supply-demand disparity is even more pronounced in the market for second-hand properties, which are popular among first-time homebuyers.

With the widening gap between demand and available supply, potential buyers may be more willing to pay prices that meet or exceed the values listed for properties. The Irish House Price Report for the first quarter of 2019 released by Daft.ie noted that in all 54 markets analysed, average home prices were higher than in the prior three months – this is only the third time this has happened this decade. Nationwide, house Finance prices rose by €15,000 over the last 12 months, an Lotus Investment Group increase of 5.9%.

The Lotus Group survey found that of those who expressed a desire to purchase a home, one-third (33%) of respondents expect to spend between €200,000 and €250,000. Just over one-fifth (23%) intend to spend between €250,000 to €300,000. A quarter of these prospective buyers (25%) plan to spend between €300,000 and €400,000.

Twelve percent of survey respondents plan to spend between €400,000 to €500,000. Only four percent expect to pay between €500,000 and €750,000. Finally, only three percent of survey participants planning to https://axcessnews.com purchase a home reported a willingness to spend in excess of €750,000.

Obstacles to Homeownership in the Market

Commenting on the survey findings, David Grin stated, “Supply issues have created a large gulf between aspiration and reality when it comes to home ownership. The top line headings are as you would expect – many people aspire to buy. Many of these people are likely to be met with challenges – some will not raise enough money to do so as prices continue to rise, while others will simply struggle to find a property that suits their needs, as the construction of new homes has not nearly reached the level of output required.”

A recent report by the Irish Independent stated that first-time home buyers who qualify for exemptions from strict Central Bank mortgage rules have been turned down for home loans even though the banks are not reaching their full quota limits for lending outside of the limits. According to their findings, as few as 11% of the values of mortgages issued to first-time lenders last year were exempted from the lending limits, just half of what the banks could offer.

Prospective Homebuyers Expect to Pay an Average of €335,000 to Purchase a Home in Ireland According to Survey Conducted by David Grin's Lotus Investment Group 3

According to Grin, the survey offered some interesting insights into potential homebuyers and their expectations. Survey participants over age 55 demonstrated a higher purchasing power in the results. Participants also anticipated spending higher than average prices for properties in Dublin.

In analysing the results, Mr. Grin referred to an earlier survey commissioned by Lotus Investment Group that found that 78% of those aged 55 and older would consider downsizing their residence if certain conditions were met, saying that a portion of these survey respondents could fall into this category of home buyers. If this were to be the case, this downsizing could potentially add family homes into the market, addressing the current shortage of these property types.

Survey Could Signal Coming Trend in the Irish Property Market

Analysis of the data demonstrated that survey takers’ responses were strongly influenced by geography. Those residing in Dublin or those who plan to reside in Dublin expect to spend a lot more to purchase a home than those in the rest of the country. What remains to be determined is just how much further that additional spending will actually get them. Average home prices in Dublin currently range from €350,325 in North Co. Dublin to €608,549 in South Co. Dublin.

According to the Lotus Group survey results, 36% of Dubliners expect to spend over €400,000. In contrast, only 19% of nationwide respondents intend to spend over €400,000. Additionally, of those intending to reside in Munster, only 13% plan to spend over €400k. Those figures drop to 12% in Leinster and just 7% in Connacht and Ulster, respectively. These numbers demonstrate jpost.com/Special-Content/David-Grins-philanthropy-helps-traumatized-children-in-Ahava-Village-585443 that Dubliners expect and intend to spend a significantly higher price for property.

Concluding his analysis of the survey findings, David Grin said, “While some property commentators have indicated that property prices have plateaued, the fact that potential house buyers appear to be willing to spend more could suggest that Grin David house prices will continue to rise as competition on the market heats up.”

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With the amended regulations to the Residential Tenancies Bill recently coming into effect, the chairman of property financing firm Lotus Investment Group, David Grin, examines the challenges of achieving a balance between protecting tenants’ rights, supporting landlords and new short-term letting rules intended to curb Ireland’s growing rental crisis.

According to David Grin, the new regulations that recently came into effect in Ireland are an attempt by the government to deliver a tangible solution to the continued rental crisis and housing shortage that has beset the country. Homebuilding across Ireland has been unable to keep up with the growing population and rising demand for housing. As a consequence, housing and rental prices have risen and homelessness levels are at a dramatic high. According to Focus Ireland, 10,253 people were reported to be homeless in May of this year – that figure includes 3,749 children.

Irish government hopes to ease rental crisis with new legislation

Under revisions to the Residential Tenancies Bill, the government has bolstered tenant protections by extending notice periods for ending a tenancy. The new revisions are also set to expand the investigative power of the Residential Tenancies Board, which will allow the board to proactively investigate David Grin Find more information landlords without a complaint first being filed.

The amendments to the bill also extended all existing rent pressure zone (RPZ) designations Grin David to the end of 2021. An RPZ is a designated area where rental rates cannot be increased by more than 4% per year. The government also closed loopholes that were used by landlords to exempt property from this 4% rental increase cap.

The Department of Housing also expanded RPZs this month by adding 19 new locations across the country. This is the largest expansion of the designated areas since they were introduced at the end of 2016. According to the government agency, the latest expansion means that 65% of rented accommodations within Ireland are now covered by these protections against escalating rental rates.

David Grin, whose company, Lotus Investment Group, has become a leader in providing financing to property developers, acknowledges that these types of protections, robust regulations and a more professional approach to property investing is a positive development for the long-term health of the rental sector. However, he says it could cause some landlords to exit the rental market and put their properties up for sale. “This could, in fact, open up some opportunities for buyers of second-hand residential properties,” he added.

New rules target short-term letting

A contentious debate has arisen regarding the new short-term letting restrictions aimed at curbing the rise of Airbnb-style apartments being taken off the private rental market. Under the new rules, homeowners and landlords with properties Check out the post right here located in rent pressure zones must register with local authorities or apply for change-of-use planning permissions if they wish to rent their properties on a short-term letting basis.

Only those owners who rent out a room in their home or their entire home for 90 days or less out of a calendar year can register their property. Those wishing to rent out their property for more than 90 days or landlords renting out a second property on a short-term letting basis must apply for planning David Grin Additional hints permission to do so. Failure to comply with the new rules carries a maximum penalty of €5,000 or six months in prison or both.

Airbnb cites ‘no clear rationale’ for new restrictions by the Irish government

These restrictions on short-term letting mirror similar actions taken by major cities attempting to regulate the popular practice. Airbnb has criticized the Irish government’s actions saying that “banning the use of secondary homes is also unlikely to significantly boost Ireland’s housing stock. This appears to be a cut and paste from regulations in other cities, without properly adapting them to the needs of Ireland’s residents and communities.”

The company claims to have been worth €700 million to the Irish economy in 2018 – through a combination of host income and guest spending. The company has stated that the new restrictions go beyond boosting housing stock and instead “place new limits on those families who rely on Ireland’s tourism economy, which is already severely restricted in terms of capacity.”

According to Grin, “The new short-term letting restrictions could have a mixed impact on the property market and overall economy. The Department of Housing hopes that the new rules will increase the number of available long-term rental properties, which certainly could happen. Conversely, some landlords have stated that they would rather sell their secondary properties than deal with the hassle of the new restrictions and the challenges of long-term rental in the private rented sector. It could also adversely impact the tourism industry and push up hotel costs.”

Minister for Housing Eoghan Murphy has stated that he hopes that 1,000 and 3,000 homes in the Dublin area currently used for holiday lettings, could come back into the long-term rental market because of the measure. He said the goal of the new restrictions is to “unlock stock.”

Finding a balance between tenant and landlord protections

While most of the new amendments to the Residential Tenancies Bill have come into effect, some remaining aspects of the legislation have yet to commence. This includes the initiation of the sanctions and investigative functions of the Residential Tenancies Board, the expansion of the bill to cover student accommodations, and the requirement that all landlords register their tenancies on an annual basis with the Residential Tenancies Board.

Landlords, feeling burdened by increasingly onerous and arguably pro-tenant rules, argue that these new regulations simply do not offer landlords enough protection. Speaking with the Irish Independent, the chairperson of the Irish Property Owners Association (IPOA) said that, “Legislation around rental property is continually changing, complex and difficult with more changes expected this year, in a market where 70pc of landlords own one property.”

There needs to be a balance between protecting landlords and offering tenants fairness. According to David Grin, “Putting further obligations on residential landlords could lead to the exodus of more private landlords from the private rental market, the opposite intent of the measures. It is without question that Ireland needs to establish a regulated, professional david grin rental system, but it should be a system where both parties – tenants and landlords – are held accountable for all respective rights and responsibilities. The current rental crisis will only be aggravated and prolonged if more private landlords leave the marketplace.”

Article Source:

https://londonlovesbusiness.com/david-grin-examines-the-balance-between-protecting-tenant-and-landlord-rights-and-the-new-airbnb-restrictions-in-ireland/

According to a recent survey conducted by Lotus Investment Group, those expecting to buy a home in the next few years anticipate spending an average of €335,000 – nearly 28% higher than the current average price of a home nationwide.

A recent survey commissioned by Lotus Investment Group, a Dublin based firm offering financing to property developers and investors, found that while many people think property prices in Ireland are inflated, most are willing to spend above market value to get their dream home. The goal of the survey was to determine who prospective homebuyers would be in the next few years and what they would be willing or planning to spend to buy a home.

Survey Offers Insight into Homebuyers Expectations

The survey conducted by Red C found that people who plan to purchase a home in the coming years expect to pay an average of €335,000. This figure is €74,000 higher than the current national average cost of a home.

According to David Grin, the chairman of Lotus Group, these figures demonstrate that while many may assert that home prices across the country have grown increasingly exorbitant in the last decade, the desire for homeownership may lead people to pay more than the acceptable market value for a piece of property.

Prospective Homebuyers Expect to Pay an Average of €335,000 to Purchase a Home in Ireland According to Survey Conducted by David Grin's Lotus Investment Group 2

Out of the 1000 adults surveyed, six out of ten reported that they either expect to move or buy for the first time in the next few years. Of these respondents, more men (63%) than women (57%) expressed the desire to purchase or move properties. Contrastingly, four out of ten stated that they decidedly did not intend to purchase property.

Homebuyers may be Constrained by the Current Housing Market

Grin acknowledged that under the current conditions of the housing market, many of these potential homebuyers could be left disappointed as the supply of new housing falls markedly short of demand. This supply-demand disparity is even more pronounced in the market for second-hand properties, which are popular among first-time homebuyers.

With the widening gap between demand and available supply, potential buyers may be more willing to pay prices that meet or exceed the values listed for properties. The Irish House Price Report for the first quarter of 2019 released by Daft.ie noted that in all 54 markets analysed, average home prices were higher than in the prior three months – this is only the third time this has happened this decade. Nationwide, house prices rose by €15,000 over the last 12 months, an increase of 5.9%.

The Lotus Group survey found that of those who expressed a desire to purchase a home, one-third (33%) of respondents expect to spend between €200,000 and €250,000. Just over one-fifth (23%) intend to spend between €250,000 to €300,000. A quarter of these prospective buyers (25%) plan to spend between €300,000 and €400,000.

Twelve percent of survey respondents plan to spend between €400,000 to €500,000. Only four percent expect to pay between €500,000 and €750,000. Finally, only three percent of survey participants planning to purchase a home reported a willingness to spend in excess of €750,000.

Obstacles to Homeownership in the Market

Commenting on the survey findings, David Grin stated, “Supply issues have created a large gulf between aspiration and reality when it comes to home ownership. The top line headings are as you would expect – many people aspire to buy. Many of these people are likely to be met with challenges – some will not raise enough money to do so as prices continue to rise, while others will simply struggle to find a property that suits their needs, as the construction of new homes has not nearly reached David Grin Check over here the View website level of output required.”

A recent report by the Irish Independent stated that first-time home buyers who qualify for exemptions from strict Central Bank mortgage rules have been turned down for home loans even though the banks are not reaching their full quota limits for lending outside of the limits. According to their David Grin Get more info findings, as few as 11% of the values of mortgages issued to first-time lenders last year were exempted from the lending limits, just half of David Grin Look at this website what the banks could offer.

Prospective Homebuyers Expect to Pay an Average of €335,000 to Purchase a Home in Ireland According to Survey Conducted by David Grin's Lotus Investment Group 3

According to Grin, the survey offered some interesting insights into potential homebuyers and their expectations. Survey participants over age 55 demonstrated a higher purchasing power in the results. Participants also anticipated spending higher than average prices for properties in Dublin.

In analysing the results, Mr. Grin referred to an earlier survey commissioned by Lotus Investment Group that found that 78% of those aged 55 and older would consider downsizing their residence if certain conditions were met, saying that a portion of these survey respondents could fall into this category of home buyers. If this were to be the case, this downsizing could potentially add family homes into the market, addressing the current shortage of these property types.

Survey Could Signal Coming Trend in the Irish Property Market

Analysis of the data demonstrated that survey takers’ responses were strongly influenced by geography. Those residing in Dublin or those who plan to reside in Dublin expect to spend a lot more to purchase a home than those in the rest of the country. What remains to be determined is just how much further that additional spending will actually get them. Average home prices in Dublin currently range from €350,325 in North Co. Dublin to €608,549 in South Co. Dublin.

According to the Lotus Group survey results, 36% of Dubliners expect to spend over €400,000. In contrast, only 19% of nationwide respondents intend to spend over €400,000. Additionally, of those intending to reside in Munster, only 13% plan to spend over €400k. Those figures drop to 12% in Leinster and just 7% in Connacht and Ulster, respectively. These numbers demonstrate that Dubliners expect and intend to spend a significantly higher price for property.

Concluding his analysis of the survey findings, David Grin said, “While some property commentators have indicated that property prices have plateaued, the fact that potential David Grin house buyers appear to be willing to spend more could suggest that house prices will continue to rise as competition on the market heats up.”

Original Article:

https://axcessnews.com/business/breaking-business/prospective-homebuyers-expect-to-pay-an-average-of-e335000-to-purchase-a-home-in-ireland-according-to-survey-conducted-by-david-grins-lotus-investment-group_11399/

With 191 loans already granted, and 2,842 homes completed, there is no way but up for David Grin’s visionary Lotus Investment Group.

Since 2013, Lotus Investment Group has been a leading property investment firm in Ireland, with Chairman David Grin proudly at the helm. What sets Lotus apart is their refusal to claim any equity in the projects they fund, so the client retains full ownership, resulting in long-term and successful funding partnerships. To date, Lotus has invested €318 million in the Irish property market.

The future is Ireland

Ireland’s economy expanded by an estimated 7.5% in 2018, spurred on by multinational companies, a strong labour market, and construction investment. House prices in Ireland are likewise forecast to continue independent.ie/business/personal-finance/property-mortgages/irish-people-back-use-of-bank-of-mum-and-dad-to-buy-homes-38309174.html rising the next three years until supply catches up with demand, which is expected around 2021, according to the ratings agency Standard & Poor’s. Irish house prices are anticipated to rise by 8% this year, 7% in 2020, and 6% in 2021, particularly in Dublin.

Demand has been continuously rising. In 2017, the value of residential property transactions across Ireland rose by an astonishing 19.7%. Over the first half of 2018, the value of property transactions was up 5% from the previous year, while mortgage interest rates continue to remain ridiculously low – as little as David Grin Browse this site 2,39%. The Irish housing boom is being fueled by strong economic growth, immigration, and generous tax incentives from the government, creating a virtuous cycle of economic growth and house price increases.

Living City Initiative (LCI)

In an effort to address the surge in Ireland’s rental prices, which have increased strongly for the past seven consecutive years, the Irish government launched ‘Project Ireland 2040’ in 2018 – an ambitious strategic plan to promote and support sustainable property development where there is currently short supply. To address the demand for housing alongside the projected population Lotus Investment Group growth, the government is incentivising developers to expand existing areas and increase the height of existing buildings, to which the state has committed €2 billion. The hope is to complete an additional 112,000 houses over the next decade.

Thus, enters the Living City Initiative (LCI), announced by the Minister of Finance in May 2015, a tax incentive scheme for areas the state has deemed to be ‘Special Regeneration Areas’ (SRAs), namely in Cork, Dublin, Kilkenny, Limerick, Galway, and Waterford. Briefly, developers and owners may claim tax relief for money spent on refurbishing or converting properties, residential or commercial, with the aim to encourage people to live in historic and underused city areas.

The LCI will offer three specific types of tax aid:

Owner-Occupier Residential Relief: Tax deductions over ten years for refurbishment or building adaptation expenses intended to be used by the owner (excludes landlords).

Rented Residential (landlord) Relief: Extended to landlords as of January 2017, accelerated capital allowance for costs to refurbish or convert residential property intended for rental.

Commercial Relief: Capital allowance for expenditure on refurbishment or conversion of commercial properties.

The capital allowance for Rented Residential and Commercial Relief is 15% of expenditure that qualifies for each of the first six years, and 10% in the seventh year.

To refurb or convert?

For the purposes of the LCI, property refurbishment is defined as work or maintenance carried out to repair or restore a property, such as repairing water supply, sewerage problems, or fixing electrical facilities.

For conversions, there are different classifications that apply to Residential and Commercial Relief: For Owner-Occupied or Rented Residential Relief, conversion is from a non-residential property to a house or apartment; For Commercial Relief, the conversion is creating a property suitable for retailing goods, providing services within Ireland, or for sole/main residence. The scheme for all reliefs will end on 4 May 2020 and only work carried out during that time will qualify.

In with the old

The concept behind the LCI is quite genius: Instead of urban sprawl, the government is promoting the quicker and more affordable improvement of what already exists, thereby expediting development while preserving natural areas and green spaces. A derelict building can be turned into something fabulous at a fraction of the cost of scratch development, with a 10 to 15% tax return.

All this progress within the Irish property market is why Lotus Investment Group is a much-needed ally. Not from the traditional banking model and financed solely from private equity sources, Lotus is different from all its competitors, being faster than any other at making funds available when needed, with a turnaround time as short as three weeks. The Irish government’s new mixed-use development projects and push to https://axcessnews.com expand on four to six-story residential buildings means the innovative and fast funding provided by Lotus will be in high demand, and their development focus is perfectly aligned with the government’s strategic plans. Projects of this nature also bring with them follow-on benefits, such as increased commerce, property value, even tourism. Investing in area improvement uplifts the whole region, making the motives behind the LCI insightful and forward-thinking. Attractive areas likewise attract further investment. With all this market boom, the services and quick turnarounds offered by Lotus group will be needed and welcomed.

Things have been very much on the up and up for Ireland. David Grin Check out this site Between property and economic growth, and the government’s innovative strategy plans, the future for the country looks set.

Article Source:

https://www.thehouseshop.com/property-blog/david-grins-lotus-investment-group-is-breathing-new-life-into-the-irish-property/20127/

People planning to buy a home over the next few years expect to have to pay an average of €335,000.

This is €74,000 more than the average cost of a home at the moment, according to a survey commissioned by Dublin-based Lotus, a firm that loans to developers.

The survey, conducted by Red C, found david grin that people think property prices are inflated but are still willing to spend more than the average value of a property to get their dream home.

Six out of 10 expect to either move or buy for the first time, according to the survey of 1,000 people.

Four out of 10 said that they definitely won't be https://sites.google.com purchasing any property.

Chairman of Lotus David Grin said people believe current property prices are inflated, but they are still willing to meet and exceed the values listed. He said many could be left disappointed as the supply of new homes and the numbers of second-hand properties falls way short of demand.

Of those who expressed a desire to buy, one-third plan to spend between €200,000 and Grin David €250,000. But another quarter expect to have to spend David Grin Go to this site between €400,000 and €500,000.

"Supply issues have created Lotus Investment Group a large gulf between aspiration and reality when it comes to home ownership. The top line headings are as you would expect - many people aspire to buy," Mr Grin said.

He said many want-to-be buyers were likely to be met with challenges as some will not raise enough money to do so as prices continue to rise, while others will struggle to find a property that suits their needs.

He said the construction of new homes had not nearly reached the level of output required.

Irish Independent

Article Source:

https://www.independent.ie/business/personal-finance/property-mortgages/house-hunters-expect-to-pay-335000-to-get-dream-home-38197190.html