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 

EAST COAST FM: Thank You

Huge thanks to everyone who came along and supported our East Coast FM Coffee Morning to raise money for cancer services throughout County Wicklow.  I am delighted to say that the team here at Kinsella Estates, together with our clients and friends raised €960 so far, with more money still coming in daily.

This is a great sum raised for a great cause - we were delighted to get involved this year and genuinely appreciate the support locally.

Thank you all,

Michael, Eileen and the team here at Kinsella Estates

Impact of a New Government on the Property Market

The Property Industry Ireland (PII, a lobby group of IBEC) have issued a industry report looking at the impact a new government (when we get one!) will have on the property market.  The report is called 'The First One Hundred Days in Housing' and predicts that the number of new homes delivered in 2017/2018 will be determined by policy decisions made within the first three months of the new Dail.

If this is true, then the entire country will be watching with interest as low supply is the single greatest challenge in the marketplace at the moment.  This is particularly true in Wicklow although Wexford is starting to see some  new developments completing and coming on stream.  Here at Kinsella Estates, we  are delighted to be launching a new scheme shortly, you can register your interest with us by email Michael@KinsellaEstates.ie and we will release details shortly.

The lack of housing supply means that people are stuck.  Owner-occupiers are stuck in so-called 'starter homes' that are badly needed for the private rental market;  first-time buyers have mortgage approvals ready-to-go but cannot find suitable new homes and large home-owners are unable to trade down when the time comes as there are no local homes available.  This has a knock-on effect for social housing locally and the rental market in general.  The obvious solution is to make more new homes available and that is what is need now from government.  Given uncertainty surrounding who will be our new Taoiseach, it is difficult to guess how the Cabinet will be made up.  If priority is given to social housing, then delivery is likely to happen where the housing lists are longest, for example, in Dublin.  However, if priority is given to first-time buyers, then delivery will be focused on delivering affording houses along the commuter belt, for example Wicklow.  

Since 2009, the construction industry has delivered significantly less housing units per year than were needed.  Seven years on, the shortage has reached crisis point.  We can see this every day with the level of enquiries we get from  buyers who are frustrated with the lack of choice out there.  For people who are considering selling their home or investment properties over the next few years, it makes sense to do so before new supply starts becoming available over the next 12-24 months.  If this is something that you have been thinking about, you can speak with me directly on Tel:  +353 53 94 21718 and I can talk you through local supply and demand in the immediate area.

The PII has made several recommendations to the impending new government, calling for the  appointment of a cabinet level minister with oversight for housing, infrastructure and planning policy.  At the moment this position is at the level of junior minister.  A cabinet level minister would report directly to the Taoiseach.  They have also called for emergency planning and development legislation (for three years) to fast-track new private and public housing developments through the planning process.  It also recommends a review of the tax-base of property, taking in the local property tax (LPT), stamp duty, VAT and development levies.

I would love to hear your thoughts on these recommendations - do you have any to add to these, whether as a future buyer, seller, investor or developer in the Wicklow/Wexford 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 . 

Alternatively, you can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718

How to Speed up the Sale of your Home

Michael Kinsella's top ten tips for sellers:

1.  Commit to selling - Make decision, know your bottom price

    This might sound strange but often times people bring their home to the market, not really sure if they want to sell or whether now is, in fact, the right time.  This is always a recipe for disaster. Uncommitted sellers tend to value their own home disproportionately high, they are generally not accommodating when it comes to viewings and not flexible when negotiations start.  There can be no winners in this scenario so the best advice that I can give would-be sellers to to do their research, then make a decision and stick to that decision unless circumstances change.  The main challenge of being an uncommitted seller is that if when you finally make the decision to accept any offers, the buyers might be gone.  Second changes are rare in a recovering market.

2. Know your buyer

   Once the decision to sell has been made, it's important to figure out who your buyer is likely to be as this will help to determine pricing and targeted marketing.  In most areas outside of Dublin, there is very little overlap between the types of property that a home-buyer (first-time buyer or those trading up) or and investor will consider.  Budget plays a part in this but the other considerations are property type i.e. house or apartment, or location i.e. town, country or outskirts of town.  Knowing who your buyer is likely to be makes marketing the property more straightforward and increases relevant enquiries quickly.
   

3. Price it right

   Property valuation is actually quite different to pricing a property to bring to market.  There has to be some element of strategic thinking involved.  Depending upon the local supply and demand, it might make sense to start at a lower price to garner as much interest as possible from as many different buyers as possible.  The higher the number of bidders, the better chance of achieving a strong price.  On the flip side of that, it is important not to price too low so that prospect buyers are put off by some perceived 'flaw' or reason for the cheap price.  This is particularly true when it comes to home buyers, who often equate price with value i.e. a higher price means better quality, but this is not always true.   
   

4. Present it well

    I mentioned earlier that there are no second chances and this is always true for first impressions.  It can be tempting just to bring your home to the market as is just to 'test the marketplace', with the intention to carrying out any upgrading works if and when they are needed.  My best advice here is to resist this temptation. As a general rule, home buyers will not revisit a property they have already viewed and ruled out due to lack of appeal.  The one exception to this is a substantial price drop but this is a very costly mistake to make.  You really do only have one chance for your home to make a good first impression, don't blow it for lack of a coat of paint!
   

5. Carry out necessary work 

   Following on  from my point above, if a property needs clearing (most do) and a fresh lick of paint, do it prior to coming to the market.   Similarly, small fixes like cupboard doors with loose hinges or dripping taps should be rectified before starting viewings.  It is amazing the tiny details that house-hunters focus on when viewing a property.  Quality fittings, like new door handles and freshly varnished door/doorstops will generate a positive feeling with potential buyers.  I am not suggesting that you need to rip out your bathroom but a new set of mats might just help.
   

6. Neutralise the decor

   Too many home-owners are confused about the difference between a property with character and a property with the owns personality stamped all over it.  Character is good, excessive personality - usually demonstrated by shocking pink bedrooms or nude art painted in the bathroom - will rarely help home buyers imagine their own future lives in the home. There is a time and a place for tasteful minimalism and selling your home is both the time and the place.
   

7. Get the best photos

   Now that you have your home looking great and de-personalised, it's time to capture it in its best light.  Even great properties need great photographs to make them stand out on-line. The trick here is not to try photograph the entire room in one shot but rather showcase beautiful features that would be lost in a wide room shot.  Help potential buyers find the beauty in your home. 
   

8. Timing isn't everything, but it helps!

   In the past, property was relatively seasonal in that there were quiet times and busy times; however, since the property crash and as the market recovers, seasons have gone completely out of the window.  It is true that investors and ready buyers will buy at any time.  Having said that, home-buyers, particularly those with school-going children will generally start looking to the market in March/April time for a summer move.  This is a great time to launch a family home on the market to a captive audience.
   

9. Be flexible

   The most frustrating part of selling your home is that you can do everything right and still the right buyer hasn't come along.  If you find yourself in this position, it is worth re-evaluating the price, presentation and marketing of the property.  While it is a cliche to say that you only need one buyer (provided that it is the right buyer!) this is true.  Remaining flexible gives your property the best chance of sale.
   

10. Eliminate legal delays

    Finally, have title deeds taken up (if with your mortgage lender) and have them delivered to your conveyancing solicitor prior to sale agreeing your home so that contracts can be prepared and ready for when the right buyer (and the right offer) comes along. This will give your solicitor the opportunity to spot and resolve any legal issues, and essentially to pre-empt any queries that the purchaser's solicitor is likely to raise, before they become a cause for delay.

    

    Remember that all-important 'curb appeal' to tempt buyers in