Rental, ownership and new forms of tenure

Where are the landlords going?

Sinn Féin 's leader Marylou McDonald isn't wrong to suggest that emerging from negative equity is one of the reasons landlords would sell. Here are a few more:

?? The CGT exemption from 2013/4 lasted for 7 years. Some got out on the dot. Some are a bit late, but time to let fly.

?? Prices have been showing signs of peaking for some time - a big push signal

?? The CGT incentive helped clear a backlog, but there was no further stimulus to build/renovate more. In fact, right after it closed, things started tightening with the RTB making it objectively less attractive, to be a landlord. That and the incentive disappearing caused a stagnation in that market.

(It was like policy makers thought it was a one-time fix, that things would be back to Celtic tiger era once things started selling again, but the sad thing is, most of that era was BS in and of itself.)

?? The fear of Sinn Féin for those who own property is real, regardless of whether it is warranted or not - and as a push signal, with prices peaking and a general fear of policy which may depress the economy, again, warranted or not, means people will take the 'safer' option. Sell.

(Buying these at peak is not a good idea IMO, but as some form of emergency measure... who knows.)

New forms of tenure

Homebuyer's Hero has a focus on home buying. It's in the name. And our first strands in vacancy and in new builds are definitely focused there.

??? However, we have envisioned many pathways to get to that point. It used to be the case that there would always be folks who wanted to rent or had no option. Other countries have much higher % rental - but all is not rosy there either and ask them if they'd like to own, they'd say yes, but can't afford or find a home to buy.

?? What's needed here and internationally are new forms of tenure.

?????? ??We have developed something that will work at scale (a *tiny* bit like the First Home Scheme but with no inflationary tendency at all and would allow state funds to act without pushing up prices) which will work for any home, new or second hand.

??We have models under which homes can be built, for buyers or users of our new buying pathways, which simply don't require that we spin up huge volumes of "rental" and under which it is far financially easier than renting, while having ownership as the end result, accruing over time, building with each payment and irrevocably yours. No losing it all if you fail at year 10 to pay your mortgage.

Borrower default risk at near 0.

These models will really reduce the state's burden to simply the tightest definition of social housing over time and that will allow for a right to housing to be placed in the constitution without also requiring massive ideological change or indeed, really skipping a beat at all.

These models serve to sever the links between the production of homes and the fortunes of the wider economy, making it near recession-proof.

?? We have been calling for a #proptechfund / #homesmarkettechfund because obviously, #housing is a big problem and the #housingcrisis is real.

We start with pushing up the numbers of new builds and vacants back in use. We proceed then to the above and tools to fix the second hand market.

Enterprise Ireland via its CEO Leo Clancy has told the Public Accounts Committee that housing is a headwind for them, *despite turning away* housing solutions and they have also said that they are doing great things with the #BuiltToInnovate support. Maybe, but we and other #proptech market solutions can't access it. ??

Surely it is plausible that if the politicians who may not have the expertise were to enable those who do, that positive outcomes in #housing might be achieved?

Still waiting to hear Labour's final take on a fund. Cian O'Callaghan likes it but his party feels that Enterprise Ireland, Local Enterprise Offices , NDRC etc *should* help and have left it at that. Eoin O'Broin and his colleague, Louise O'Reilly are to come back to me. Eoin has wondered about who should control the proptechs like ours. (Remember the 'fear' re economy etc? ??)

Scale Ireland and even Enterprise Ireland recognise #housing as the biggest of problems. SURELY we will help #housingcrisis solutions get on their feet and scale up? We are not the only one out there.

Ireland needs that proptech fund. How's it coming along?!

Senator Mary Fitzpatrick Darragh O'Brien TD Simon Coveney Alan Dillon TD

https://www.irishtimes.com/ireland/housing-planning/2023/04/10/sinn-fein-leader-rejects-suggestions-partys-policy-on-housing-leading-to-private-landlords-exiting-market/