Tag Archives: income
Property prices in Dublin fall slightly month on month, but nationwide values are up
Residential property prices in Ireland increased nationwide by 0.5% in May and are 13.8% higher than they were a year ago, but fall slightly in Dublin. The latest data from the Central Statistics Office also show that prices are still some 37.5% lower than at the peak of the market in 2007. A breakdown of the figures show that in Dublin, which has been leading the real estate recovery prices actually fell by 0.1% in May but Dublin residential property prices are 15.2% higher than in May 2014. Dublin house prices fell by 0.2% in May whilst Dublin apartment prices rose by 0.4%. However, a CSO spokesman said that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. Outside of Dublin residential property prices rose by 1.1% in May and prices were up 11.9% compared with May 2014. Dublin property prices are now 38.1% lower than their 2007 peak with house prices 36.4% lower and apartment prices 41.9% lower. Outside of Dublin residential property prices were 40.8% lower than their highest level in 2007. But prices are expected to continue rising. According to Savills Ireland a 9.6% increase in Dublin rents over the last year, make further house price increases inevitable. Savills director of research, John McCartney, believes that a simultaneous increase in rents has limited any decline in residential yields. ‘While deposit rates have fallen by 28% since the end of 2012, property yields have held up better due to rental growth. This relative swing has diverted money into bricks and mortar, and this will continue,’ he said. According to Savills, investment activity will remain focused on Dublin where yields are particularly attractive. ‘Normally you expect riskier, less prime assets to deliver a higher income return. However a quirk of the current market is that average yields are higher in Dublin than elsewhere in the country. In part this reflects the fact that Dublin rents are rising so strongly,’ explained McCartney. ‘But it also reflects the fact that prices fell more steeply in Dublin during the crash, and they still haven’t fully bounced back,’ he added. McCartney pointed out that Dublin house prices would need to rise by a minimum of 12% to restore the natural pecking order in residential yields. And, with attractive rental returns, investor demand will be a key driver of this price growth. Continue reading
Rise in people looking to rent their property on a short term let
Just over a quarter of letting agents in the UK have seen a rise in the number of inquiries for short term lets, according to new research from the Association of Residential Letting Agents. The latest report from ARLA reveals that 26% of letting agent members have reported a rise in this sector where lets are classed as under 90 days. Such a tenancy is regarded as having many perks such as offering landlords a quick income and providing people with an alternative to hotels. However, there are legal requirements involved in the process and ARLA says it is easy to get it wrong. Homeowners, who are looking to let their property out short term should ensure they’re complying with the law, ensuring best practice and making the most of their property. ARLA advises landlords to check mortgage or tenancy agreement to ensure you are permitted to rent out your property and to use a reputable agent. For example, an ARLA Licensed agent will not only help with marketing and finding tenants for your property, but also ensure that all legislation is being met, whilst you happily benefit from the income. If you go through an agent, using them to manage the property as well means you don’t have to worry about maintenance on the property as the agent will do that for you. For landlords who are letting their property out because they’ve had to move away or are abroad, this will be invaluable in making the process as pain free as possible. Landlords also need to ensure the property is in a decent condition including being clean and tidy with little clutter. Also, all of the furniture in the property needs to comply with the relevant safety legislation and vital safety checks will need to be carried out before you make the property available for a short let. If you are only letting your property for a couple of weeks, for example during Wimbledon or whilst you go on holiday, ARLA’s advice is to make sure someone visits it regularly. Consider having someone come in every day to clean and change the bed sheets. This will mean your property is kept in a good condition for when you return and also ensure that a short term license does not become a full statutory tenancy. ‘Short term lets can be hugely beneficial for both tenants and landlords, offering freedom and convenience for both parties. A short let can also be a more profitable option as you may be able to charge a higher rent than you would if you were letting a property out full time,’ said David Cox, ARLA managing director. ‘We’ve already seen a massive rise in the number of enquiries for short term lets and with the rising popularity of websites like Airbnb this is only going to continue. Landlords looking to let their property out short term should follow our simple tips to ensure they’re… Continue reading
Over a third of UK self-employed think they can’t get a mortgage
Some 38% of self-employed people in the UK interested in taking out a mortgage are concerned they’ll never get one because they work independently, new research has found. On top of this 63% of microbusiness owners think the self-employed have to jump through more hoops than traditional employees, with it being especially difficult for those new to freelancing. And 61% think mortgage advisors do not understand their financial situation while 45% think mortgage providers don’t want them as customers, according to the research carried out by IPSE, the Association of Independent Professionals and the Self Employed. The research also found that 61% believe it’s more difficult to supply the financial information required when applying for a mortgage if you’re new to independent working To ensure more self-employed people can access a mortgage, IPSE is calling for mortgage advisors to be given better advice on independent working and a Government review into lending to independent professionals. ‘Getting a mortgage is a major concern for the self-employed, despite 4.5 million people choosing to work independently in the UK. The whole culture around mortgage lending to the self-employed needs to be changed to accommodate the modern way of working,’ said Chris Bryce, chief executive of IPSE. “It’s crucial that better advice is given to mortgage advisors to provide them with a better understanding of independent working to ensure the self-employed are treated fairly. A dedicated member of staff is another way to achieve this,’ he pointed out. ‘The Conservative Party made a commitment to review mortgages for the self-employed in its business manifesto and we look forward to working with the new Government on this important area,’ he added. According to Paul Winter, chief executive of the Ipswich Building Society, too many credit-worthy borrowers with unusual circumstances are overlooked by mainstream mortgage lenders. ‘Our view is that mortgage misfits, including the self-employed, freelancers and contractors, should have the same level of choice and access to the mortgage market as any other group,’ he said. IPSE has issues some top tips for the self-employed seeking a mortgage. Top is ensuring that you have proof of income as self-certifying your income is a thing of the past and you now need to show you earn the money you say you do. If you have a company, this can be company accounts, otherwise other proof may be needed such as paid invoices, or even pay slips from employed work in a similar field over the last two years. Applicants also need to show that they will continue to get work and this can be done by showing you have had contracts renewed in the past or showing you have worked lined up. If you do not you may need to show you can meet mortgage payments with saving for at least a couple of months. … Continue reading
