Bringing Buyers Back: Return of the FTB Grant

...that's not a grant

It was announced earlier this week that first-time buyers are set to benefit from a new grant in the upcoming Budget.  The ‘Help-to-Buy’ scheme, which is likely to be given by way of a new tax-rebate scheme, is due to be announced in October; however, assurances have been given by the government that that any benefit will be backdated to this week.  These are the only details that have been made available so far but we will post the full details here as soon as they are announced.

The idea of this relief package is to help potential homebuyers who are finding it difficult to get their foot on the property ladder while paying rent.  It is good news for many but it doesn’t really address the big problem, which is the lack of supply for house hunters at the moment.  It feels a bit like the right move by government but at the wrong time.  The biggest problem is certainly a shortage of suitable, affordable starter homes, followed closely by the Central Bank rules that require first-time buyers to pay a 20% deposit on the portion of their new home that exceeds €220,000.  The Housing Minister Simon Coveney implied that the benefit will only apply to new builds and will not extend to second-hand homes. “Whatever we do, it will be on new houses to ensure that we are encouraging a dramatic increase in supply of new houses for first-time buyers. It’s not a grant”. 

There has been a lot of speculation about how substantial the payment might be - the figure of €10,000 has been thrown around - but we are unlikely to know for sure until Budget day in October.  This will be a difficult figure to get right as home buyers in Dublin are paying close to double the price for a 3/4 bed semi-detached house as that paid by new buyers in smaller regional towns nationwide.

Here are two of our houses that might just appeal to first-time buyers or for any family looking for a new home in Wicklow and Wexford:

Wicklow

2 Gorse Haven in Coolboy, Tinahely is an appealing five bedroom home situated within a development of only seven houses. The property has recently been decorated to a high standard and ready for its new family!

Wexford

2 The Road, Riverchapel Wood in Riverchapel (between Gorey and Courtown) is a spacious four bedroom, three storey house located close to Courtown beach and yet is under an hour's drive to Dublin. 

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie . 

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718                     

Good time for investors looking to get out

 Property Industry Ireland, or PII, in conjunction with AIB and DKM Economic Consultants published their quarterly publication Property Watch last week. This report not only brings together key statistics from across the industry, it also follows recent past  trends to allow for more accurate future forecasting. 

One of the more interesting figures to emerge from this report is the prevailing low level of housing commencements.  Despite government prompting and greater funding availability, slightly in excess of 2,000 housing unit builds started in the first quarter of 2016.  Of those 2,000, 38% were one-off builds.   This number falls short of the total level of house building forecast for the year, which is 11,000.  Even if these 11,000 homes are delivered in 2016, it is still hugely below the 30,000 that is needed annually for the next few years.  It is not good news for home buyers and for residential investors (unless they are willing to take on 'project ' properties or refurbishment jobs).

So what does all this mean for sellers?  Actually, it is good news for sellers who will face less competition for their home when trying to attract a buyer.  Of course, this is true only if the seller is not trying to find a new home to trade up or down to.  For investors who are looking to offload some investment properties, there really has not been a better time in recent years to bring units to the market.  While demand does not appear to be growing, it is consistent and with the stock of available housing on the markets dwindling every month, prices in most areas are increasing.

Last month I mentioned how would-be buyers queued from dawn to secure planned - but as yet, not built - new houses in North Wicklow (Newtownmountkennedy).  This obviously creates opportunities for sellers even in the south of the county and in bordering counties, like Wexford, to make their homes more attractive now for families who are open to a commute of up to one hour.

 As the current generation of first-time buyers moves away from the concept of a 'starter home', it now makes sense to consider a three or even a four bedroom home with garden and proximity to schools within an hour drive of the capital, over  a one or two bedroom apartment on the outskirts of Dublin's M50 at the same, and sometimes higher price.

 With our entire planning system facing overhaul this year, in accordance with the government’s programme for the year, this low level of output is not going to improve quickly.

This might be relevant for the owners of run-down houses in the area, who were previously reluctant to spend the necessary money to get their properties market-ready.  If this applies to you, just give me a call directly on  +353 53 942 1718 and I will let you know about the demand (house-hunters and their budgets) in your particularly area.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie .  

Email me directly on michael@kinsellaestates.ie or telephone: +353 53 94 21718