Leading property financier, David Grin, chair of Lotus Investment Group has given a cautious welcome to further moves to relieve the Irish rental property crisis.

An Irish government move to moderate rising home rental prices has been described as a welcome but short-term fix for a wider problem by a leading financier.

David Grin, chairperson of Lotus Investment Group, one of Ireland’s leading property financiers, says government actions to moderate rapidly increasing rental prices are favored by all stakeholders in the property market.

However, he also suggests that the scale of the nation’s affordable housing crisis means the move - designed to cap rent increases at a maximum of 4% a year in Rent Pressure Zones (RPZ) until 2021 - may simply place a sticking plaster on a bigger issue.

He said: “It appears that the private rental sector is facing an affordability crisis.

“With the 7% increase in average rental prices in the fourth quarter of 2018 and the astounding 10,264 people living in emergency accommodation at the beginning of this year, the government extension of Rent Pressure Zones seems like merely a short-term fix for a much larger, systematic problem.”

Mr Grin pointed out that the property sector continues to grapple with a growing disparity between housing supply and demand.

The Lotus Investments chairman explained: “An expanding population and a thriving economy have driven an increase in demand for housing, especially in urban areas.

“The construction industry has yet to return to pre-recession building levels, and with demand outpacing the supply of available housing, housing David Grin and rental prices continue to climb.”

Government moves to curb David Grin Have a peek here soaring rent costs

Rent Pressure Zones were first enacted in 2016 as rental prices spiraled out of control. They were due to expire this year, but with no sign of rental costs stabilizing the government has moved to extend RPZ until 2021.

The RPZs are enacted in areas where the rental rates are highest and rising, and households have the greatest difficulty in finding affordable accommodations. Once an area is designated as an RPZ, apart from a handful of exceptions, landlords are required to cap rent increases at a maximum of 4% a year.

The regulations are intended to moderate rising rental prices and to promote a stable and sustainable rental market.

However recent figures from the Residential Tenancies Board show national rents increased by 6.9% to €1,134 in Quarter 4 of 2018, compared to the same time the previous year.

Earlier this month, the Irish Government confirmed Rent Pressure Zones (RPZ) will continue david grin until the end of 2021. The qualification criteria for how RPZ are calculated will also be modified.

Announcing David Grin Check out here the move in the Dáil, Tánaiste Simon Coveney implied that the government would pursue separate qualification criteria for Dublin due to the higher cost of renting in the capital. The specific changes to the qualification guidelines are expected to be revealed in the coming days.

There are currently five local authorities and 18 Local Electoral Areas designated as Rent Pressure Zones across the country. Last month Navan in County Meath and Limerick City East have met the qualifying criteria for the first time.

A representative of Lotus Investment Group, which has lent 191 loans totaling €318m for the funding over 2,800 homes in Ireland, said: “The belief is that the extension of RPZs offers a short-term solution to the problems within the sector and it is welcomed overall. It still doesn’t alleviate the problems in the sector on a long-term basis and it may not offer tenants more security or sense of home.”

Property Sectors is Facing an Affordability Crisis

The extension and proposed changes to Rent Pressure Zones comes on the heels of a February report released this month that showed a combined total of 10,264 people homeless and living in emergency accommodation in Ireland - a rise of 277 people on January figures.

Focus Ireland, the leading non-profit organisation working to prevent homelessness in Ireland, has found that the biggest single cause of family homelessness is landlords evicting families in order to sell property.

In a recent Grin David radio interview, Minister for Housing Eoghan Murphy attributed increasing rents and rising levels of homelessness to the housing shortage and the lack of available, affordable housing options across the country.

The government-funded strategic planning initiative Project Ireland 2040 has called for an additional 112,000 homes to be built over the next 10 years.

The growing need for affordable housing is widespread across the country, evidenced by the increasing number of locations meeting the qualifying criteria to be designated as Rent Pressure Zones.

Many have called on the government to reassess its current housing policies to find both short- and long-term solutions to the housing challenges facing the country.

Article Source:

https://www.yorkshirepost.co.uk/business/the-irish-rental-property-crisis-next-steps-1-9741742

David Grin Reviews New Legislation Designed to Strengthen Tenant Rights and Protections

New legislation recently passed by the Oireachtas, Ireland’s National Parliament,seeks to regulate rising rental costs and strengthen tenant protections, which have eroded during the recent nationwide housing crisis.

The upper house of the Irish Parliament, the Seanad, recently passed a Residential Tenancies Bill designed to tackle the expanding rental crisis that appears to be sweeping across the nation. Over the last year, politicians from all political parties, as well as, independents have drafted several proposals suggesting David Grin get more info a range of solutions to rising rental costs and ways tooffer security to tenants. The new bill, which is a compilation of many of these proposals, has already been pass by the Dáil and will now be referred to President Michael D Higgins to be signed into law.

Tenant Rights and Protections

Increased Regulation of Rent Pressure Zones

According to David Grin, chairman of Lotus Investment Group – a property and construction finance firm, “There has been a lot of speculation about how the government would decide to regulate Rent Pressure Zones and attempt to curb the persistent nationwide rental crisis. It has left the market with much uncertainty, but now with concrete action being taken, we hope that this measure will offer relief to tenants and help to mitigate rising costs.”

As Grin mentioned, Grin David the new bill targets regulation of Rent Pressure Zones, which have been highly criticized for their lack of effectiveness in addressing the rising rental costs. Housing Minister Eoghan Murphy David Grin Find more info announced several of the proposed measures which appear in the new bill in the Spring of 2018, but it has taken the government time to make significant progress on the issue.

Tenant Rights and Protections

New Measures to Protect Tenants

In an attempt to curb rising costs, the new bill makes it an actionable offence for landlords with properties in designated Rent Pressure Zones (RPZs) to raise rental prices in excess of 4% per year.

The legislation has also extended the required notice period given to tenants to vacate a property and increased the number of areas designated as RPZs. The notice period for tenants in a property for more than six months will increase from 35 to 90 days, while those who have been in a residence between one to two years will now be granted 120 days notice compared with the current requirement of 42 days. The notice period for those tenants who have resided in a property between two and three years will DAVID GRIN rise from 56 to 120 days. For those tenants in a property less than six months,the notice period for will remain unchanged at 28 days.

The notice period allowances will now also be extended to student accommodations David Grin Article source located within Rent Pressure Zones. For these tenants who have been in a property between three to seven years, the notice-to-quit period will now be set at 180 days.

The new legislation also addresses a ‘loophole’ in the current regulation of RPZs that landlords have notoriously been using across the country as a way to raise rental prices. Under the current laws, landlords have been able to terminate tenancies for the purpose of carrying out ‘significant’ renovations and upgrades on the property, which then allows them to put the property back on the market at a considerably higher rental price.

New regulations contained in the bill will also require landlords to obtain planning permission before short-term letting a property for any period up to a maximum of 14 days in designation RPZs, unless specifically exempt. Violators of this new code could incur up to a €5000 fine.

Tenant Rights and Protections

The Bill Introduces New Enforcement Powers

The new law also substantially increases the power of the Residential Tenancies Board (RTB) to investigate and enforce violations of rental caps by landlords, with some violations carrying fines as high as €15,000. As the current legislation stands, any action of the RTB must be initiated by a tenant or public complaint. The new legislation allows the Board to further investigate any residential tenancy in the country, whether the property is properly registered with the board or not. To help the Board maintain proper oversight, it will now be a criminal offence for landlords who fail to register tenancies, neglect to update tenancy details orare uncooperative with Board investigators.

At this time, it is not known when the new legislation will go into effect. The government appears to be determined to take action soon, as the Minister for Housing has requested that the legislature exercise its power to expedite the signing of the bill by President Higgins. If this push by the government to accelerate the early enactment of the legislation is successful, the market could see the new regulations come into effect as early as the beginning of July 2019.

Potential Impact of the Legislation

According to David Grin, “The rental market has been in dire need of relief. Currently, property investors, developers and residents have been wrangling with rising demand and sluggish supply, contributing to the current housing situation. Government policies have the potential to go far in providing affordable housing solutions for the Irish people.”

Large-scale institutional investors who maintain several rental tenancies across the country have already made changes to their policies and tenant arrangements in preparation for the new legislation. Those that will be most impacted by the changes brought by the new legislation will likely be private landlords who maintain small-scale operations of two or more rental properties.

Article Source:

https://www.e-architect.co.uk/articles/david-grin-reviews-new-legislation-designed-to-strengthen-tenant-rights-and-protections

David Grin Reviews New Legislation Designed to Strengthen Tenant Rights and Protections

New legislation recently passed by the Oireachtas, Ireland’s National Parliament,seeks to regulate rising rental costs and strengthen tenant protections, which have eroded during the recent nationwide housing crisis.

The upper house of the Irish Parliament, the Seanad, recently passed a Residential Tenancies Bill designed to tackle the expanding rental crisis that appears to be sweeping across the nation. Over the last year, politicians david grin from all political parties, as well as, independents have drafted several proposals suggesting a range of solutions to rising rental costs and ways tooffer security to tenants. The new bill, which is a compilation of many of these proposals, has already been pass by the Dáil and will now be referred to President Michael D Higgins to be signed into law.

Tenant Rights and Protections

Increased Regulation of Rent Pressure Zones

According to David Grin, chairman of Lotus Investment Group – a property and construction finance firm, “There has been a lot of speculation about how the government would decide to regulate Rent Pressure Zones and attempt to curb the persistent nationwide rental crisis. It has left the market with much uncertainty, but now with concrete action being taken, we hope that this measure will offer relief to tenants and help to mitigate rising costs.”

As Grin mentioned, the new bill targets regulation of Rent Pressure Zones, which have been highly criticized for their lack of effectiveness in addressing the rising David Grin rental costs. Housing Minister Eoghan Murphy announced several of the proposed measures which appear in the new bill in the Spring of 2018, but it has taken the government time to make significant progress on the issue.

Tenant Rights and Protections

New Measures to Protect Tenants

In an attempt to curb rising costs, the new bill makes it an actionable offence for landlords with properties in designated Rent Pressure Zones (RPZs) to raise rental prices in excess of 4% per year.

The legislation has also extended the required notice period given to tenants to vacate a property and increased the number of areas designated as RPZs. The notice period for tenants in a property for more than six months will increase from 35 to 90 days, while those who have been in a residence between one to two years will now be granted 120 days notice compared with the current requirement of 42 days. The notice period for those tenants who have resided in a property between two and three years will rise from 56 to 120 days. For those tenants in a property less than six months,the notice period for will remain unchanged at 28 days.

The notice period allowances will now also be extended to student accommodations located within Rent Pressure Zones. For these tenants who have been in a property between three to seven years, the notice-to-quit period will now be set at Grin David 180 days.

The new legislation also addresses a ‘loophole’ in the current regulation of RPZs that landlords have notoriously been using across the country as a way to raise rental prices. Under the current laws, landlords have been able to terminate tenancies for the purpose of carrying out ‘significant’ renovations and upgrades on the property, which then allows them to put the property back on the market at a considerably higher rental price.

New regulations contained in the bill will also require landlords to obtain planning permission before short-term letting a property for any period up to a maximum of 14 days in designation RPZs, unless specifically exempt. Violators of this new code could incur up to a €5000 fine.

Tenant Rights and Protections

The Bill Introduces New Enforcement Powers

The new law also substantially increases the power of the Residential Tenancies David Grin Additional resources Board (RTB) to investigate and enforce violations of rental caps by landlords, with some violations carrying fines as high as €15,000. As the current legislation stands, any action of the RTB must be initiated by a tenant or public complaint. The new legislation allows the Board to further investigate any residential tenancy in the country, whether the property is properly registered with the board or not. To help the Board maintain proper oversight, it will now be a criminal offence for landlords who fail to register tenancies, neglect to update tenancy details orare uncooperative with Board investigators.

At this time, it is not known when the new legislation will go David Grin website into effect. The government appears to be determined to take action soon, as the Minister for Housing has requested that the legislature exercise its power to expedite the signing of the bill by President Higgins. If this push by the government to accelerate the early enactment of the legislation is successful, the market could see the new regulations come into effect as early as the beginning of July 2019.

Potential Impact of the Legislation

According to David Grin, “The rental market has been in dire need of relief. Currently, property investors, developers and residents have been wrangling with rising demand and sluggish supply, contributing to the current housing situation. Government policies have the potential to go far in providing affordable housing solutions for the Irish people.”

Large-scale institutional investors who maintain several rental tenancies across the country have already made changes to their policies and tenant arrangements in preparation for the new legislation. Those that will be most impacted by the changes brought by the new legislation will likely be private landlords who maintain small-scale operations of two or more rental properties.

Article Source:

https://www.e-architect.co.uk/articles/david-grin-reviews-new-legislation-designed-to-strengthen-tenant-rights-and-protections

According to 2018 figures, the cost of building a family home in Ireland has risen by 7.5% to as much as €161,000 over the past fiscal year. Ireland’s leading property financing firm, Lotus Investment Group, is making up the difference.

The Linesight Annual Handbook has been David Grin one of the most accurate and reliable reports of annual building costs and inflation in Ireland. Published annually by industry consultants ‘Linesight’, the report forms part of the company’s yearly handbook which highlights how the construction industry in the Republic is doing.

Rising Tide

The Irish construction industry is currently worth around €20 billion, a fair chunk of the economy. The current cost of building an average suburban house fluctuates around €1,610 per square meter. Using the example of an average three-bedroom, semi-detached house of 100 square meters, the total building cost would be between €126,000 and €161,000.

The Lighthouse report provides the actual cost of building a home, taking into account inescapable outlays such as the cost of labor, raw materials, heating, plumbing and electrical installation. In practice, this cost is usually at least doubled when the cost of land development, tax, financing, and professional fees are included. Therefore, when doubled, the cost of David Grin Visit this link building a typical family home is still below the national average price of purchasing a similar, already built home, which is currently an average €345,000 (according to the Central Statistics Office figures at June 2018).

The increase in construction costs is, in part, attributed to a continuing labour shortage, rising industry wages, and increased cost of materials. Also, Ireland has been dealing with a housing shortage in recent years, and the gap between supply and demand is likely to continue for quite some time still. While bi-annual figures show an average yearly increase of 30% in building activity, the country is still far behind the government’s 2040 target of 550,000 completed homes within the next two decades.

Housing sales are expected to increase a David Grin Click here for more further 5% this year, a growth rate that hardly reflects the high level of demand that is pushing up the purchase and rental prices. The ongoing trend of high demand and short supply is fueling construction across the country. First-time home buyers are currently the largest group of mortgage applicants, accounting for 60% of mortgages granted.

Supply And Demand

In 2018, the Irish government launched ‘Project Ireland 2040’, a strategic plan to promote sustainable property growth, prevent urban sprawl, and to address the relentless housing shortage. The Project encourages developers to expand on existing areas and to increase the height of buildings, a plan to which the government has committed €2 billion. The goal is to add 112,000 new houses over the next decade.

According to Lotus Investment Group chairman, David Grin, “The expected population growth, and therefore the growth in property development will be exciting times for investors and developers. Lotus has seen the possibilities and pitfalls and developed innovative and flexible investment options that have distinct advantages in the current Irish market.”

The planned new high-rise and mixed-use development projects likely mean that the intelligent funding solutions offered by Lotus Investment Group will be david grin in high demand. The company’s focus on financing residential development is perfectly aligned with the Irish government’s strategic 2040 project.

About Lotus

Since entering the market in 2013, Lotus Investment Group has been the leader in Ireland for property and construction finance, providing property developers and investors with loans ranging from €500,000 to €10,000,000+. To date, Lotus has granted 191 loans and completed 2,842 properties.

Focused on long-term funding partnerships rather than once-off transactions, Lotus uses a “non-personal recourse” model and never takes equity, meaning that clients retain full ownership of the property concerned at all times. Lotus does not follow the traditional banking model and their finance is derived solely from private equity sources, resulting in faster and more flexible loans than competitors. With a turnaround time of as little as three weeks, Lotus is faster than any other like company at making funds available.

Lotus Chairman, David Grin, is also the Chairman of Cara Infinity Investments, another Dublin based investment company specializing in site investments with full planning permission that must be completed within one to two years. Cara Infinity operates separately from Lotus Investment Group, with a focus on buying ready-to-build housing more info sites.

Updating The Old

The Irish Ministry of Finance currently offers tax break initiatives to assist property owners refurbishing or converting properties to encourage cities to revitalize historic and rundown areas. Lotus Investment Group says they are in a unique position when it comes to restoring properties and repurposing such properties; while grants are available for this type of construction, finance is usually required to make up the difference. Traditional banks and lenders have not shown much interest in this type of investing and preferring to fund new from-the-bottom-up developments, which ultimately garner higher sale values. Lotus has found that this has left a substantial need and an excellent opportunity for developers seeking alternative funding. Lotus is making a name for itself in this niche market, breathing new life into old properties and forgotten areas.

The government has also placed a priority on building up vacant plots. Local municipalities may now impose a levy on property owners who fail to develop prime land. In Dublin, for example, property owners can be fined 3% of the land’s value in the initial year, increasing to 7% in subsequent years until such time as development on the land in question begins.

Article Source:

https://baltimorepostexaminer.com/lotus-investment-group-can-help-with-the-rising-costs-of-building-in-ireland/2019/05/16

According to 2018 figures, the cost of building a family home in Ireland has risen by 7.5% to as much as €161,000 over the past fiscal year. Ireland’s leading property financing firm, Lotus Investment Group, is making up the difference.

The Linesight Annual Handbook has been one of the most accurate and reliable reports of annual building costs and inflation in Ireland. Published annually by industry consultants ‘Linesight’, the report forms part of the company’s yearly handbook which highlights how the construction industry in the Republic is doing.

Rising Tide

The Irish construction industry is currently worth around €20 billion, a fair chunk of the economy. The current cost of building an average suburban house fluctuates around €1,610 per square meter. Using the example of an average three-bedroom, semi-detached house of 100 square meters, the total building cost would be between €126,000 and €161,000.

The Lighthouse report provides the actual cost of building a home, taking into account inescapable outlays such as the cost of labor, raw materials, heating, plumbing and electrical installation. In practice, this cost is usually at least doubled when the cost of land development, tax, financing, and professional fees are included. Therefore, when doubled, the cost of building a typical family home is still below the national average price of purchasing a similar, already built home, which is currently an average €345,000 (according to the Central Statistics Office figures at June 2018).

The increase in construction costs is, in part, attributed to a continuing labour shortage, rising industry wages, and increased cost of materials. Also, Ireland has been dealing with a housing shortage in recent years, and the gap between supply and demand is likely to continue for quite some time still. While bi-annual figures show an average yearly increase of 30% in building activity, the country is still far behind the David Grin government’s 2040 target of 550,000 completed homes within the David Grin Look at more info next two decades.

Housing sales are expected to increase a further 5% this year, a growth rate that hardly reflects the high level of demand that is pushing up the purchase and rental prices. The ongoing trend of high demand and short supply is fueling construction across the country. First-time home buyers are currently the largest group of mortgage applicants, accounting for 60% of mortgages granted.

Supply And Demand

In 2018, the Irish government launched ‘Project Ireland 2040’, a strategic plan to promote sustainable property growth, prevent urban sprawl, and to address the relentless housing shortage. The Project encourages developers to expand on Learn here existing areas and to increase the height of buildings, a plan to which the government has committed €2 billion. The goal is to add 112,000 new houses over the next decade.

According to Lotus Investment Group chairman, David Grin, “The expected population growth, and therefore the growth in property development will be exciting times for investors and developers. Lotus has seen the possibilities and pitfalls and developed innovative and flexible investment options that have distinct advantages in the current Irish market.”

The planned new high-rise and mixed-use development projects likely mean that the intelligent funding solutions offered by Lotus Investment Group will be in high demand. The company’s focus on financing residential development is perfectly aligned with the Irish government’s strategic 2040 project.

About Lotus

Since entering the market in 2013, Lotus Investment Group has been the leader in Ireland for property and construction finance, providing property developers and investors with loans ranging from €500,000 to €10,000,000+. To date, Lotus has granted 191 loans and completed 2,842 properties.

Focused on long-term funding partnerships rather than once-off transactions, Lotus uses a “non-personal recourse” model and never takes equity, meaning that clients retain full ownership of the property concerned at all times. Lotus does not follow the traditional banking model and their finance is derived solely from private equity sources, resulting in faster and more flexible loans than competitors. With a turnaround time of as little as three weeks, Lotus is faster than any other like company at making funds available.

Lotus Chairman, David Grin, is also the Chairman of Cara Infinity Investments, another Dublin based investment company specializing in site investments with full planning permission that must be completed within one to two years. Cara Infinity operates separately from Lotus Investment Group, with a focus on buying ready-to-build housing sites.

Updating The Old

The Irish Ministry of Click for source Finance currently offers tax break initiatives to assist property owners refurbishing or converting properties to encourage cities to revitalize historic and rundown areas. Lotus Investment Group says they are in a unique position when it comes to restoring properties and repurposing such properties; while grants are available for this type of construction, finance is usually required to make up the difference. Traditional banks and lenders have not shown much interest in this type of investing and preferring to fund new from-the-bottom-up developments, which ultimately garner higher sale values. Lotus has found that this has left a substantial need and an excellent opportunity for developers seeking alternative funding. Lotus is making a name for itself in this niche market, breathing new life into old properties and forgotten areas.

The government has also placed a priority Learn more here on building up vacant plots. Local municipalities may now impose a levy on property owners who fail to develop prime land. In Dublin, for example, property owners can be fined 3% of the land’s value in the initial year, increasing to 7% in subsequent years until such time as development on the land in question begins.

Article Source:

https://baltimorepostexaminer.com/lotus-investment-group-can-help-with-the-rising-costs-of-building-in-ireland/2019/05/16