Tag Archives: real estate
Property prices outside Dublin rising faster year on year, latest data shows
Residential property prices in Ireland increased by 0.9% across the country in July compared to the previous month but values in Dublin price growth is slowing, the latest official figures show. On an annual basis prices are 9.4% higher nationwide but in Dublin they are 9% higher than a year ago. It is the first time since the middle of 2013 that prices in the capital city have risen by less than 10% year on year. A breakdown of the data from the Central Statistical Office shows that Dublin house prices rose by 0.6% in July whilst apartment prices increased by 2.7%. 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 1.2% in July and prices were up 9.6% compared with July 2014. So prices outside of Dublin are now rising faster on an annual basis. At national level residential property prices were 36.9% lower than their peak level in 2007. Dublin house prices were 36.3% lower than their peak, Dublin apartment prices were 40.6% lower than their peak and Dublin residential property prices overall were 37.9% lower than their highest level. Outside of Dublin residential property prices were 39.8% lower than their highest level in 2007. According to Dermot O’Leary, chief economist with Goodbody Stockbrokers, it had been expected that prices outside Dublin would rise at a faster pace because new mortgage rules were having a bigger impact in Dublin. ‘We expect further moderation over the coming months, with the slowdown in price inflation to be particularly felt in the capital,’ he said, adding that house price inflation continued to be supported by ongoing supply shortages. Experts are now predicting that residential property prices are likely to slow towards 5% by the end of the year. Continue reading
Older home owners in UK still planning to move, new research shows variety of reasons
Many home owners in the UK over the age of 55 are not intending to stay put with 37% planning at least one more move, new research has found. Indeed, overall they are planning more than three million future property purchases worth a total of more than £775 billion, the data from insurance firm Prudential shows. However, contrary to some predictions, this does not seem to signal an explosion in property deals fuelled directly by the new pension freedoms. Only 14% say their plans have come about as a result of the pension rule changes and just one in 10 think the changes make them more likely to buy a property in the future. The research results show that investing in property is something that remains popular with the over 55s with 18% of those planning a property deal say they will not be buying a home to live in, but will be buying second homes, buy to let properties, development properties or homes for their relatives. Prudential’s research also reveals the scale of the property deals being considered by the over 55s. The average maximum purchase price for their next property is over £250,000 while 20% say they are willing to spend £350,000 or more. Some 83% who are planning a property deal, say that their planned purchase is likely to be their last. However, not all of the older property dealers will be last time buyers as 11% say they will probably buy again in the future. ‘There was a lot of speculation that the pension freedoms would spark a rush of over 55s investing in buy to let property as a means of generating income in retirement. However our research suggests that this hasn’t yet been the case,’ said Stan Russell, retirement expert at Prudential. ‘In fact the process of withdrawing cash from a pension fund to purchase property and potentially generate an income is complex and could result in a large tax bill. Anyone aged 50 or over with a defined contribution pension is entitled to free and impartial guidance from the Government’s Pension Wise service, and many of those considering accessing their retirement savings under the new freedoms would benefit from a consultation with a financial adviser,’ he explained. The results of Prudential’s research also show that the biggest motivation for over 55s planning a property deal is to downsize with 43% giving this as a reason. ‘Using money raised from a property sale could prove to be a helpful boost to retirement income for some. But it’s no substitute for starting to save as early as possible to prepare for eventual retirement,’ said Russell. There is an almost equal split between those who expect to buy a property that’s more expensive than their current home, and those who plan to buy a cheaper property and bank some cash. Around 29% expect to spend more on their next property while 27% say they’ll spend less. The research shows… Continue reading
High speed broadband becoming more important for UK home movers
House buyers might have a dream kitchen on their wanted list or an extra bathroom but an increasing number want fast broadband and they are willing to pay extra for it. Some would pay an extra 8% or £14,000 for their property if it was guaranteed to have broadband with a speed of at least 100Mbps, a new survey has found. Research carried out by ultrafast broadband provider Hyperoptic polled prospective home buyers on the importance of a quality internet connection, and found that this is valued more strongly than many other factors when moving house. Two thirds of those questioned said that having a good broadband connection was just as or more important than living next door to nice neighbours and a third would give up an extra bedroom if it meant having a quality broadband service. According to Hyperoptic vice president for products Steve Holford, the poll results ‘categorically proves’ that broadband has become a key deciding factor when moving home. ‘Ultrafast broadband makes a property more marketable; people are increasingly reliant on their connection and need it to cope with their current and future bandwidth demands,’ he said. Holford pointed out that an increasing number of consumers are now checking average broadband speeds in areas before moving there, and that this will only continue as data demands and reliance on technology increase. The survey found that 61% of UK house buyers currently check their potential broadband speeds before renting or buying a property, with anything less than 6Mbps being a deal breaker, while 31% do not officially move house until broadband is up and running in the new home. Respondents said 14Mbps would be the bare minimum speed, but something closer to 100Mbps would be far more attractive, with a connection of this quality preferable to a swimming pool for half of consumers. Holford said one of the best ways to check the broadband speed in an area is to contact the provider directly, adding that online speed tests also offer an indication of whether internet speeds are up to par before people buy their new property. Continue reading
