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Sinn Féin housing spokesperson Eoin Ó Broin today Leah Farrell

Irish government policy is incentivising property funds to buy up entire housing estates, say opposition

Round Hill Capital bought 135 homes at a new development in Kildare.

SOLUTIONS TO THE issue of global investment funds buying up entire estates to be placed on the rental market can be found in the tax code, Sinn Féin housing spokesperson Eoin Ó Broin has said this afternoon.

Last Sunday, the Business Post reported that Round Hill Capital and its partner SFO Capital, have just inked a deal to buy 135 of 170 houses at the Mullen Park estate in Maynooth in Co Kildare.

The two companies, both headquartered in the UK, also bought 112 homes at the Bay Meadows estate in Hollystown, Dublin 15 last month.

All 250 homes are set to be rented out, raising concerns about the already constrained supply of homes for prospective buyers.

“It’s going to have a big impact on first-time buyers. I’ve been contacted by several people who are very upset. It’s a sign of things to come,” Social Democrats co-leader Catherine Murphy told the Business Post at the weekend.

Speaking outside Leinster House today, Ó Broin told reporters, “This isn’t a new phenomenon — it’s been happening for a number of years.” 

“The solutions to this are really within the tax code. These investment firms don’t pay Capital Gains Tax, they don’t pay corporation tax and they don’t pay any tax on their rent roll.

“What they’re doing is they’re going in, buying at high prices, charging high rent and then using that to flip the properties after a short period of time and to not pay any Capital Gains Tax.”

Sinn Féin, he said, would “remove those tax exemptions. They would have to pay that tax on the rent roll. They would have to pay capital gains tax. We’d also increase their stamp duty.”

Overall, Ó Broin said, “Long term, low yield institutional investors coming in and building good quality apartments to rent at reasonable prices: that’s not a problem.

“Our problem at the minute is short term, high yield vulture funds have been incentivised by government policy — tax breaks that have been in place for a decade.”

Pressure

Government politicians have also raised concerns that the demand for homes from global investors is increasing pressure on domestic buyers.

On Sunday, Fianna Fáil MEP Billy Kelleher tweeted, “If something isn’t done to tip the balance in favour of homeownership and disadvantage investment funds, we will be tenants again, like we were a hundred years ago.

“The only difference is our landlords will be investment funds based in London or New York.”

This morning, his party colleague, Minister for Housing Darragh O’Brien said he does not approve of so-called ‘cuckoo funds’ buying up estates for rental purposes.

Speaking on RTÉ Radio 1′s Morning Ireland programme, O’Brien said, “Do investors have a role in housing in Ireland? Yes, of course they do… What I would say is that where funds are coming in and taking homes away effectively from families is a concern of mine.”

However, he said he was against “banning” investment funds altogether from the residential market, which he said would be “radical” and could have major ramifications for investment in general”.

Reporting by Christina Finn

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    Mute whatistheseason
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    Jul 16th 2021, 9:57 AM

    I have volunteered to be part of the control group for this experiment

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    Mute John Drake - Zoomers is OUT NOW!
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    Jul 16th 2021, 10:06 AM

    @whatistheseason: Congratulations! You have earned a nomination for this year’s Darwin Awards.

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    Mute whatistheseason
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    Jul 16th 2021, 10:09 AM

    @John Drake – Zoomers is OUT NOW!: We’ll see, but it looks likely that Covid won’t get me considering I’ve been travelling around the world all the way through this pandemic. And this vaccine has not been tested like previous vaccines. Ever hear of what happened with thalmolide?

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    Mute whatistheseason
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    Jul 16th 2021, 10:11 AM

    *thalidomide

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    Mute Darren Norris
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    Jul 16th 2021, 11:47 AM

    @whatistheseason: it is a key WHO medicine. Was not able to know the effects on every type of person at the time but still a valid and important medicine. Are you trying to scare people on vaccines with Facebook jargon?

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    Mute SmallbutMighty
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    Jul 16th 2021, 12:33 PM

    @whatistheseason: except it has been tested to the same standards as every other vaccine.

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    Mute James Ward
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    Jul 16th 2021, 12:40 PM

    @whatistheseason: funny that the same company who created thalidomide, manufacture the biggest selling pain relief/stomach relief product in Ireland. maybe helps with back relief for tin hats as well!

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    Mute whatistheseason
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    Jul 16th 2021, 3:24 PM

    @SmallbutMighty: No because other vaccines have average of 10 years before they were cleared for the general population. There’s no substitute for time and experience no matter how sophisticated they think they are. Add to that the fact that the vaccine manufacturers got an 100% indemnity, any dissent on traditional/social media is immediately crucified, the main stream news has gone way over to the left, has a lot of propaganda and can’t be trusted, people are at their wits end with the lockdowns, most people are afraid of stepping out of line and the pharmaceutical industry is there to make a profit. You can’t just go along with everything you are told, you have to investigate. If there was an actual debate and more dissent on the issue I would be more inclined to take the vaccine. However the fact that everyone is singing off the same hymn sheet is the thing that worries me the most. Conforming to the majority opinion is nothing to be proud of, nothing. Wake up sheeple.
    https://www.youtube.com/watch?v=tNmx2Kj628M

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    Jul 16th 2021, 3:29 PM

    @James Ward: FTW I mean are you trying to make my point for me?!

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    Mute Paul
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    Jul 16th 2021, 10:08 AM

    Nice weather for it

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    Mute Jonathan
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    Jul 16th 2021, 11:19 AM

    Get them into you

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    Mute Rob
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    Jul 16th 2021, 9:56 AM

    Will those aged 35 and older be able to register through the portal for AZ or JJ? Leo mentioned they would at a briefing a few weeks ago but no mention of it since.

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    Mute Ryan O'Rourke
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    Jul 16th 2021, 10:12 AM

    @Rob: if you register it goes to a page and asks you if youre happy to receive Astra. No mention of J&J, presume that’s only through pharmacies?

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    Jul 16th 2021, 10:53 AM

    @Ryan O’Rourke: The AZ option is there for all age groups?

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    Mute Rob
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    Jul 16th 2021, 11:04 AM

    @Rob: Its ok, I just registered but no option to choose AZ. No worries will decline my appointment when offered one and sit tight!

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    Mute Diarmuid Hunt
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    Jul 16th 2021, 11:13 AM

    @Rob: I just booked it and you are automatically register for pfizer and moderna and can also select Astrazeneca if you are willing to get it.

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    Jul 16th 2021, 11:16 AM

    @Diarmuid Hunt: I’m 41 so that must be for younger age groups?

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    Jul 16th 2021, 1:49 PM

    @Rob: I’d imagine so as the AZ side effects though extremely rare have a higher occurrence in younger age groups.

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