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Opinion Every government has a choice - this one could ban cuckoo funds from buying up Irish homes

Pitting first-time buyers against cuckoo funds is a recipe for disaster, writes Cian O’Callaghan of the Social Democrats.

LARGE INTERNATIONAL INVESTMENT funds and Real Estate Investment Trusts (REITs) – or cuckoo funds – are currently buying up houses and especially apartments en masse.

This is pushing up prices and putting new homes beyond the reach of many people.

According to the Construction Industry Federation, in 2019, 95% of new apartments were sold to institutions, leaving just 5% for everyone else. Individuals and couples can’t compete with these multimillion-euro funds.

As a result, an entire generation is being locked out of homeownership and forced to pay rents to investment funds that are much higher than a mortgage.

Rents in Dublin – which have almost doubled in the last 10 years – are now the most expensive in the European Union. This makes Ireland a very attractive option for investment funds that want to maximise profit. But it also means it’s an unaffordable place to live for people on average incomes.

Entire apartment blocks and some estates have been bought up all at once. Herbert Hill in Dundrum, in south Dublin, is a good example. An entire block of 90 apartments was sold to a German investor.

Subsequently, these apartments were leased to the local authority for social housing at a cost of over €2,000 per month per apartment for 25 years. This is an incredibly expensive way to provide homes for people who need them.

Better system needed

It doesn’t have to be like this. Every Government has choices to make.

The Government of New Zealand has chosen to ban non-residents from buying houses to dampen down prices and increase the supply available to people living there. The Overseas Investment Act of 2018 was introduced as a measure to help curb house price inflation.

The Government in Germany has banned Real Estate Investment Trusts from buying up residential property. This decision was taken by the German Government in 2006 specifically to ensure that large international investment funds would not be attracted towards buying up homes and apartments.

The Irish Government introduced the Real Estate Investment Trust regime to Ireland in 2013. They have subsequently chosen to appease big international investors at every turn with favourable tax treatment. This has resulted in rents spiralling out of control and has allowed the housing crisis to run and run.

We have to ask: what is our vision for housing in Ireland? Is it one where apartment block after apartment block is owned by vulture funds who rent them all out for record-high rents to tenants with limited security? Where potential first-time buyers are squeezed out, while favourable tax treatment applies to investors. Where housing is turned into a financial product instead of a basic necessity.

We have a choice

This is the track the current Government has put us on.

Ireland desperately needs a plentiful supply of decent, high-quality homes; where rents and mortgages are affordable; where people have security of tenure and the peace of mind of having a place to call home. To achieve this, we need to take housing policy in a new direction.

There are concrete examples in Ireland of how homes can be delivered that are affordable and within reach. 
At Dun Emer in Lusk in North County Dublin, Ó Cualann Cohousing Alliance is building homes ranging from €166,000 for a two-bed apartment to €258,000 for a three-bed semi-detached home.

This would mean a monthly mortgage repayment over a 30-year period of €698 for a two-bed apartment or €1,085 for a three-bed house.

Similar affordable housing is being built by Ó Cualann in Cork City and at Ardmore, County Waterford. These are good examples of affordable homes being delivered on public lands and provide a model that could and should be replicated across the country.

However, it is not enough to have a number of small schemes like this scattered around the country – the delivery of homes that are genuinely affordable needs to be scaled up very significantly to meet demand.

The interests of first-time buyers must be put ahead of foreign vulture funds. Tenants’ rights must be strengthened and secured. The State has to shift resources away from subsidies for developers which inflate house prices and start directing these resources towards supplying more affordable purchase, cost rental and social homes.

In particular, we have to think seriously about who should own Ireland’s homes. Like Germany, we should ban Real Estate Investment Trusts from buying up residential property and driving up prices.

This will increase the supply available to first-time buyers who want to own their own home and take some pressure off the spiralling cost of renting and buying a home.

Cian O’Callaghan TD is the Social Democrats spokesperson for Housing.

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    Mute Brian Kelly
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    Jan 26th 2022, 2:33 PM

    It’s a good thing there is still dialogue between them. I’m still on the side of Ukrainian people and their government. They should be allowed to join what ever they want be it the EU and NATO. No other country should dictate to them what they can and cannot do. This is what is called democracy!

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    Mute Fr. Fintan Stack
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    Jan 26th 2022, 4:18 PM

    @Brian Kelly: True, Ukraine should be allowed to join what they want. And I’m sure NATO would be only too glad to have them join. It would mean NATO/US bases set up in Ukraine right in the face of Russia.
    On the other hand could you imagine if Canada or Mexico decided to join a Russian military alliance? With Russian bases set up around Canada or Mexico peering in to the US? I wonder what the US reaction to that would be to that? Maybe they would put 100,000 troops on the border as a show of strength?

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    Mute Roy Dowling
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    Jan 26th 2022, 4:41 PM

    @Fr. Fintan Stack: Something tells me Canada isn’t going to quit NATO and join Russia any time soon.

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    Mute Fr. Fintan Stack
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    Jan 26th 2022, 4:49 PM

    @Roy Dowling: of course Canada are not going to join a Russian military alliance. Do I really have to explain to you what the point of using Canada and Mexico in my comment was for?

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    Mute superdooper
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    Jan 26th 2022, 5:04 PM

    @Fr. Fintan Stack: russia is a bad neighbour especially with Putin harboring territorial ambitions. you cant blame any country bordering russia from looking for assisstance keeping the bear from the door.

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    Mute Kerrill Thornhill
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    Jan 26th 2022, 5:45 PM

    @Brian Kelly: It’s oxymoronic to keep say you are on the side of democracy and support the violent coup that overthrew democracy in Ukraine in 2014, installing a fascist regime – who incidentally are the only country (with US) who recently refused to condemn the glorification of nazism in the UN. There is a huge swath of Ukraine that does not support the current regime, pretending there is a united Ukrainian voice is garbage, who is going to protect them from more atrocities like this, carried out by Western backed forces: https://www.theguardian.com/world/2014/may/02/ukraine-dead-odessa-building-fire

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    Mute Vonvonic
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    Jan 26th 2022, 5:48 PM

    @Roy Dowling: Hypothetical arguments are hard.

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    Mute Jim Buckley Barrett
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    Jan 26th 2022, 6:41 PM

    @superdooper: wouldn’t disagree with you but Cuba felt the same about the US and we nearly had WWIII over Russia attempt at setting up in Cuba.

    There’s still sanctions imposed on Cuba by US today for being a communism country.

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    Mute superdooper
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    Jan 26th 2022, 6:49 PM

    @Jim Buckley Barrett: true. i think the americans found it useful to have cuba as a bogeyman. gave them a handy enemy.

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    Mute Roy Dowling
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    Jan 26th 2022, 7:09 PM

    @superdooper: Israel and Saudi Arabia are bad neighbors. Don’t see the EU, NATO or the US imposing sanctions and threatening them if they keep attacking there neighbors.

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    Mute superdooper
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    Jan 26th 2022, 8:34 PM

    @Roy Dowling: true.

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    Mute Thomas Harrington
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    Jan 26th 2022, 9:40 PM

    @Fr. Fintan Stack: they’re all gangsters dude – the yanks/ nato in Iraq – the russkis in Syria – the only ones that gain are the crooks at the top and regular folk suffer – until we have a brotherhood of man nothing will change

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    Mute Paul Duffy
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    Jan 26th 2022, 10:10 PM

    @Fr. Fintan Stack: didn’t we have something like that before…. oh yeah Cuba
    The yanks didn’t like that one little bit

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    Mute Niall Dunne
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    Jan 26th 2022, 11:12 PM

    @Roy Dowling: yeah he’s just showing it from Russia’s point of view. This thing is the Cuban missile crisis in reverse. Now it’s the Americans who are friendly with Russia’s neibhours and they’re worried about first strike missiles being placed in ukraine a couple of thousand miles from Moscow. America lost the rag when it was the Russians putting their missiles in Cuba. And yes America invaded Cuba too they just got some separatists to do the work much like what Russia is claiming.
    Recently both countries have been shooting down their own satellights in a message that says don’t try putting the missiles in space attached to satellights. Now we have space debris that presents a hazard. Both of these countries have no right to involve the rest of the planet but that’s the status quo.

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    Mute Donal Desmond
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    Jan 27th 2022, 12:01 AM

    @Brian Kelly: Funny but when the Soviet Union put missiles in Cuba the US responded just like Russia is now. Where was the democracy when the U.S. supported by the coalition ( NATO ) invaded Iraq. Hypocrisy and propaganda at it’s best

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    Mute Vonvonic
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    Jan 26th 2022, 3:49 PM

    The Americans need to back out of this. Everything they do is influenced by their own internal division now. Biden is the only one making threats at the moment. Putin has been playing the American division for years and there’s nothing to suggest this is any different. The Americans need to concentrate on how to fix their own union before all he’ll breaks lose there.

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    Mute superdooper
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    Jan 26th 2022, 5:05 PM

    @Vonvonic: you remember russia invaded ukraine in 2014 right and seized the crimea. he got away with it then and now hes looking for more. appeasdidnt work with the nazis and it wont work here

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    Mute Fr. Fintan Stack
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    Jan 26th 2022, 5:16 PM

    @superdooper: do you remember when the US and its allies invaded half the middle east and got away with it?

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    Mute Vonvonic
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    Jan 26th 2022, 5:17 PM

    @superdooper: “Appeasment didn’t work with the Nazis” is a cliche based on a misunderstanding of the facts; and propagated by Curchillites. In reality, it allowed Britain the time to arm up. Even after the Nazis invaded Poland; it took months before Britain were in a position to enter the war properly.
    In any case; it’s has no resemblance to current events. The absolute imperative in Ukraine is to avoid war. The French are far more likely to achieve this through diplomacy than a US which doesn’t know what to do with itself; never mind Ukraine. Biden is making a complete fool of himself with the tough talk.

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    Mute Fachtna Roe
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    Jan 26th 2022, 6:22 PM

    @superdooper: The last thing Russia needs is more land. It’s already the largest country on the planet, by a very long margin. This is about security for Russia. They do not trust NATO. They accepted NATO as a neighbour in the smaller Baltic states, but they’ve said repeatedly and consistently that Ukraine is a line too far, because of those security concerns; which appear justified considering that NATO keeps prodding at them. If there are parallels with Nazis in the 1930′s, then the lines run in exactly the opposite direction to that which you think they do.

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    Jan 26th 2022, 6:30 PM

    @Fr. Fintan Stack: so the fact that us invaded iraq means that russia gets a free invasion of ukraine is it?

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    Jan 26th 2022, 6:32 PM

    @Vonvonic: the war could have been avoided altogether if france and britain had refused to allow germany to rearm in the first place. they ignored the nazis rearmament and allowed hitler act with impunity on the mistaken belief that if they acceeded then he would stop. he never did

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    Mute Vonvonic
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    Jan 26th 2022, 6:35 PM

    @superdooper: The nazis had rearmed well before appeasement came about. Go.away and read about.
    Again, nothing to do with the current situation in Ukraine. It’s not a zero sum game. Nothing is black and white here.

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    Mute superdooper
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    Jan 26th 2022, 6:51 PM

    @Vonvonic: the Ukrainians would say its pretty black and white.

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    Jan 26th 2022, 7:00 PM

    @Vonvonic: appeasement continued for almost the entirety of the 1930s. if the allies had taken a stronger unified approach at the reoccupation of the rhineland it might ( and what were both talking about is whataboutery) have deterred the nazis.

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    Mute Vonvonic
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    Jan 26th 2022, 7:30 PM

    @superdooper: The British military stated over and over in the 30s that they didn’t have the capacity to defend the med and the homeland. It was the main reason for appeasement. They wanted to keep their empire.
    No, the Ukranians wouldn’t say it’s black and white. Their stated aim is a diplomatic solution. Are you saying that someone should go to war with the Russia?

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    Jan 26th 2022, 7:52 PM

    @Vonvonic: i dont russia should go to war with anyone. i think russia should withdraw from crimea

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    Mute Damian Moylan
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    Jan 26th 2022, 10:03 PM

    @superdooper: Russia have been invaded in the past by Germany and Napoleon. Russia wishes to protect its border and do not want Nato military bases on its border as was agreed in 1991. Russia is the largest country on earth full of minerals, metals, oil and gas. They have no need for small additional tracts of land in Eastern Europe. Russia needs access to the Black Sea so they can get to the Meditteranean and the Indian Ocean. The Russian Navy is based in Crimea and they have been there for centuries since Elizabeth The Great defeated the Ottoman Empire who previously defeated the Greeks. So no way they were going to give up those Navy bases.

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    Jan 26th 2022, 10:24 PM

    @Damian Moylan: in 1994 ukraine returned 1700 nuclear weapons to Russia in exchange for territorial agreements. Russia broke those sgreements when they invaded in 2014

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    Mute Donal Desmond
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    Jan 27th 2022, 12:04 AM

    @superdooper: Think the Russians have experienced the Nazi regime before. Wonder why you didn’t mention the coup that brought the present Ukraine government to power. If you can remember the Western media claimed the new government were right wing fascists..Funny how that has suddenly changed.

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    Mute Colm O'Leary
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    Jan 27th 2022, 6:38 AM

    @Damian Moylan: this isn’t about Russia gaining land it’s about Putin rebuilding the USSR in his image and longing for his old KGB days and for that he needs Ukraine, and if he’s let get away with seizing that where will he stop? The border with Germany? Will he try to get eastern Germany back. At what point does he get told enough is enough. After he invaded Hungary or the Czech Republic.??

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    Mute andrew
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    Jan 26th 2022, 10:06 PM

    Russian minorities in Ukraine don’t want to be under Kiev rule and is Russian a language of the EU when their are minorities in the Baltic states and decades of Russian influence in eastern and central europe. Europe needs to make overture to Russia that shows that it respects its security issues.

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    Mute superdooper
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    Jan 26th 2022, 10:27 PM

    @andrew: so russia is allowed sponsor rebellion amongst their populations living abroad then seize territory

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    Mute Colm O'Leary
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    Jan 27th 2022, 6:43 AM

    @andrew: This is nothing to do with security. That’s just Russian propaganda. It’s to do with Russia taking back land that it considers to be Russian. Despite the fact hat it isn’t Russia’s to take back!

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    Mute George Vladisavljevic
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    Jan 26th 2022, 4:00 PM

    The best solution to this crisis and conflict would be best resolved by dialogue between the people of the Ukraine and the people of Russia, as they are the ones that have the most to lose if this conflict escalates.

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    Mute Splat
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    Jan 26th 2022, 6:40 PM

    @George Vladisavljevic: oh the democratic peoples of Russia?… I just fell off my chair.

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    Mute Seán Ó Briain
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    Jan 26th 2022, 9:55 PM

    @George Vladisavljevic: Russia isn’t interested in dialogue. Where was the dialogue when they annexed Crimea? Where was the dialogue when they sent in soldiers and funding to terrorists in Eastern Ukraine? Zilch.

    Putin is a tyrant.

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    Mute Damian Moylan
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    Jan 26th 2022, 10:11 PM

    @Seán Ó Briain: Ukraine broke the agreement about Crimea where was agreed annual lease for the land upon which the Russian Navy have their bases. Turns out Russia has been in Crimea for centuries (1783) and most people working there are connected to the Russian Navy complex. As a largely land locked country they need Crimea as access point to the Mediterranean and the Indian Ocean. No way they were going to be forced to leave the Black Sea and replaced by the U.S. Navy or Nato ships in Crimea on their doorstep.

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    Mute Zmeevo Libe
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    Jan 26th 2022, 11:05 PM

    It is great that France, Germany, Ukraine and Russia are having talks without the Americans. By all that was written in the last week it looks like the US of A are doing their best to ramp up the tensions. After all, if a war starts they will be on a different continent, so why not start s small profitable war in Europe? I wonder how long will NATO last. It is so blatantly pushing for American interests over those of their allies, you wonder how would European countries keep up the appearances?

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    Mute Colm O'Leary
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    Jan 27th 2022, 6:48 AM

    Russia is the kid in the playground who’s parents had a really bad divorce and he’s going around bullying other kids because it gives him a sense of power. Now substitute that bully for Putin.

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