Ordinary Madness Tales of the Real Estate Market

Even cats are getting shorn now. There was a story of ordinary rental market madness across the country during the week. Roy spoke on RTE Live line on the cost of renting with a cat. He and his partner Sandra have two cats, which the way things are looking could be called extravagant. Roy told Joe that he and Sandra wanted to move and they saw an ad for what looked like a nice place to rent for $ 2,250 per month.

We are now at the stage where € 2,250 is not considered an exorbitant monthly rent for a two bedroom apartment in Dublin. The development was Griffith Wood, north of Dublin. It consists of 377 apartments and eight townhouses. The American investment fund Greystar owns 342 homes which it acquired from the builder Cairn Homes for € 180 million. The remaining 35 apartments were purchased by Dublin City Council for social housing.

The advertisement had indicated that the development was “pet friendly”. It didn’t say the animal would want to make a living. Image: iStock

Roy and Sandra went to visit the property, where they discovered that the rent was not € 2,250 but € 2,550. On top of that, each parking space costs € 50 per month. And then the clicking sound.

“We were asked if we have any pets,” Roy said.

The agent said the cost of the rental would be an additional € 75 per cat. The advertisement stated that the development was “pet friendly”. It didn’t say the animal would want to make a living.

So now the monthly rent offered by the couple had swelled to € 2,800. It was outside of their range, so they turned to another place that might know the value rather than the price of a cat.

Cairn Homes built the development and then ended its involvement when almost all of the apartments were sold to one buyer.  File Image: Sam Boal / Rollingnews.ie

Cairn Homes built the development and then ended its involvement when almost all of the apartments were sold to one buyer. File photo: Sam Boal / Rollingnews.ie

This is the reality that tenants face today, from top to bottom of the socio-economic ladder, across the country. All the usual suspects get a slice of the property’s creamy pie.

The land, which originally belonged to the Christian brothers, was sold in 2014 for an undisclosed price. Cairn Homes built the development and then ended its involvement when almost all of the apartments were sold to one buyer. The bank that funded it would most likely have been informed that this would be the outcome, which provided the bank with more security and less hassle. There would be no problem selling houses to first-time buyers and waiting for mortgage approval and everything.

Now Greystar, who has paid a hefty price, has a cash cow in the distant future. At the end of the chain are the people who just want a place to live but have to pay more, and sometimes a lot more, than what would be needed to buy a house.


Already, young couples are slow to found a family due to a lack of secure housing. Now they have to think about the idea of ​​owning a pet.

Another story of ordinary madness involved another site in Dublin’s Northside, the former Chivers jam factory in Coolock. This week, city councilors claimed they got wool over their eyes when they sprinkled gold on the site for a developer who told them he wanted to house the masses.

The land was purchased by Platinum Land, a London-based company owned by Dublin brothers Andrew and Maurice Gillick. The site was valued at 2.55 million euros in 2016. The following year, Platinum attempted to have it dezoned for residential use.

“We chose to buy this site to try to create affordable housing for normal people,” Andrew Gillick wrote to a Dublin city councilor, according to the online newspaper. Applicant Dublin.

“We were lucky and hearing about the housing crisis on Joe Duffy we thought this would be a great opportunity to give back,” he wrote.

He and his brother had decided that “the most beneficial action plan for everyone, from the local community to society, to ourselves would be to dezone this site and put in place sustainable residential development and quality ”.

For many, there is no prospect of ever owning a home.  How they negotiate their retirement under these circumstances will ultimately be a major political issue.
For many, there is no prospect of ever owning a home. How they negotiate their retirement under these circumstances will ultimately be a major political issue.

The land had an altruistic side. Here are some local boys – from the end of the street in Glasnevin – coming home to spread some of their good fortune. The council was presented with a plan to build around 350 homes that would be affordable and built quickly. The land has been duly dezoned and Platinum has obtained a building permit for 550 housing units, 30% of which will be let to the town hall. The site is now marketed for € 25 million.

The mad rush to build is gone. The vision of creating affordable housing for normal people has collapsed. Land is the most expensive component in building a house. The land on which these houses will be built is now valued at 10 times what it was before the rezoning.

What now for normal people?

What now for normal people? If they are not eligible for the local authority scheme, they would like to receive abnormal wages to buy a house on the site. That is, of course, if homes are even made available to first-time buyers, which is unlikely in today’s environment.

When the local guys made up for it, they came home to help out, as they described it, what exactly did they mean by “creating affordable housing for normal people”? Surely they weren’t thinking of housing to rent from investment funds at exorbitant prices?

Speaking to the media this week, Andrew Gillick was on a different theme than he used to convince councilors of his good intentions four years ago.

“Some advisers seem to be obsessed with the fact that we are potentially making a profit,” he said.

“Business always makes a profit or fails. Advisors also seem to totally underestimate the complexity / cost and time involved in designing and planning a project.

Convincing councilors to rezone the land and obtain a building permit has increased the investment tenfold. Does this represent a profit margin in real estate development today?

This is the context in which people are housed. The above examples are both located north of Dublin, but the problem is acute in all major cities in the state.

There are a few big winners and a generation of losers, who have to shell out a completely disproportionate amount of their income to rent a house in which they will only have basic land rights.

For many, there is no prospect of ever owning a home. How they negotiate their retirement under these circumstances will ultimately be a major political issue.

The current situation is not tenable. Tinkering with the problem, as the current and previous governments did, will not be enough. Radical change was avoided even when dealing with a fundamental aspect like land speculation.

There is no magic wand, but unfortunately it also appears that there is no urgency to apply to this fundamental function of governance.

Source link

About Mildred B.

Check Also

We stopped believing in him, the club needed a change

6:01 am ET Sam marsden Moises Llorens Barcelona defender Oscar Mingueza said players had “stopped …